Analysts at Wedbush Securities kept a bullish stance on shares in Microsoft Corporation (NASDAQ:MSFT) in the wake of an invite-only event that provided greater insight into the company's plans to integrate ChatGPT into existing products.
The presentation coincided with Google's unveiling of its own AI chatbot, Bard, and followed Microsoft's US$10bn investment in OpenAI, the developer of ChatGPT and its underlying GPT language processing models.
The investment bank called the gathering "impressive" as Microsoft announced the integration of ChatGPT technology into its search engine Bing and the company’s Edge browser.
Bing will be powered by a new next-generation language model, GPT3.5, which will provide better search results, complex user questions, and an all-new chat feature, similar to the ChatGPT chatbot.
The search engine is now working with OpenAI using the Prometheus method to improve the relevance of answers. The new capabilities and improved user experience are expected to challenge the web search market and grab market share, Wedbush said in its note.
The West Coast investment bank believes that this strategic investment by Microsoft in OpenAI will boost its position in the AI demand market.
It maintained its ‘outperform’ rating and a $280 price target for the company.