Microsoft’s (MSFT) launch of its new AI business unit “brings balance, not displacement” to its partnership with OpenAI, Macquarie said Thursday in a report.
The launch is “another example of Microsoft’s strategic navigation of the rapidly evolving AI landscape,” Macquarie said. Microsoft selected an external team of AI experts to lead its new unit, and the company plans to build products with internally developed AI technology and key partners such as OpenAI, the report said.
“In our view, the decision to create a separate AI unit staffed principally by accomplished AI researchers suggests Microsoft investing into its own AI competencies,” Macquarie said.
Macquarie reiterated its outperform rating and $455 price target on Microsoft.