Microsoft’s rally on Bing’s ChatGPT-style revamp brings market capitalization back above $2 trillion, rejoining Apple

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Microsoft's rally on Bing's ChatGPT-style revamp brings market capitalization back above $2 trillion, rejoining Apple

On Wednesday, Microsoft’s stock price continued to rise, regaining the $2 trillion threshold for the business. Following the business’s Tuesday announcement that ChatGPT parent company OpenAI would integrate AI into its Bing search engine, shares increased by 4%.

The chatbot in an advertisement for ChatGPT rival Bard provided an incorrect response, which caused Alphabet to lose ground.

Microsoft’s market value surpassed $2 trillion once again on Wednesday thanks to a surge in its stock, rejoining tech rival Apple.

The internet giant’s shares were up 1% to $270.12, valuing it at $2.01 trillion. That came after a 4% increase on Tuesday on news that Microsoft’s Bing search engine would incorporate artificial intelligence from ChatGPT parent company OpenAI. Additionally, it will upgrade its Microsoft Edge browser system with AI capability.

Microsoft became the second publicly traded US corporation to join the club in June 2021, when it first surpassed a $2 trillion market valuation.

But the Federal Reserve rapidly raised interest rates during the bear market of last year, which hit the IT industry particularly hard.

Recent stock market gains have been supported by the central bank’s more gradual tightening of monetary policy, and the emergence of ChatGPT has stoked investor optimism about the potential of artificial intelligence, raising a wide range of stocks with an AI focus.

Given that the tech giant reportedly spent $10 billion in ChatGPT’s parent company OpenAI last month, Microsoft is particularly well-positioned to gain from the service.

Since announcing the Bard AI chatbox, an artificial intelligence chatbox, Google is witnessing a different landscape.

The parent company Alphabet’s shares dropped as much as 8% on Wednesday after an advertisement for Bard featured a chatbot providing erroneous information.

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