OpenAI Secures New Funding Round, Valuation Set to Reach $800 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy MSFT?
Source: CNBC
- Massive Funding Round: OpenAI is finalizing a funding round exceeding $100 billion, which is expected to elevate the company's valuation to $800 billion, significantly enhancing its capacity for innovation and development in the AI sector.
- Thrive Capital Investment: Joshua Kushner's Thrive Capital invested approximately $1 billion in OpenAI at a $285 billion valuation last December, indicating a strong commitment and trust in OpenAI's long-term potential.
- Strategic Investor Participation: About 90% of this funding round is expected to come from strategic investors like Nvidia, SoftBank, and Amazon, reflecting robust market confidence in OpenAI's future and potentially accelerating its technology deployment and market applications.
- Close Executive Relations: OpenAI CEO Sam Altman has a close relationship with Kushner, expressing gratitude on social media, which highlights their collaborative efforts in commercializing artificial intelligence technologies.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 401.720
Low
500.00
Averages
631.36
High
678.00
Current: 401.720
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surge in ETF Inflows: Amid rising uncertainty, ETFs focusing on immediate cash returns, dividends, and buybacks have seen an influx of $7 billion this month, indicating a drastic decline in interest for long-term bets and a shift towards a concentrated AI risk investment strategy.
See More
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- Microsoft Revenue Forecast: Ives highlighted that 10% of Azure customers have embarked on the AI path, which he predicts will generate an incremental revenue of $35 billion to $40 billion for Microsoft, showcasing the company's potential and market demand in the AI sector.
- Nvidia Stock Analysis: Ives referred to Nvidia as a 'stunner,' noting that despite a 9% drop since its earnings report, he expects the stock to be valued between $210 and $215, reflecting a bullish outlook on its future performance.
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See More
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- Bank Stocks Plummet: The collapse of UK private lender Market Financial Solutions Ltd raised fears of rising defaults, leading to significant declines in bank stocks, with Morgan Stanley and Goldman Sachs both down over 7%, indicating instability within the financial sector.
- Economic Data Impact: The US January PPI rose 0.5% month-over-month, exceeding expectations of 0.3%, while the Chicago PMI unexpectedly increased to 57.7, demonstrating economic resilience, although market speculation regarding Fed rate cuts was dampened.
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