Microsoft's New Premium AI Feature Raises Concerns About Affordability and Market Competition
Portfolio Pulse from Anusuya Lahiri
Microsoft Corp (NASDAQ:MSFT) plans to charge 53% - 83% more for new artificial intelligence features in its Microsoft 365 service. The company announced Bing Chat Enterprise and Microsoft 365 Copilot pricing at its annual partner conference. Microsoft also plans to offer a more secure version of its Bing search engine to businesses. The pricing decision has raised concerns about affordability and market competition. Meta Platforms Inc (NASDAQ:META) has partnered with Microsoft for a commercial version of its open-source large language models.
July 19, 2023 | 12:11 pm
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POSITIVE IMPACT
Meta Platforms has partnered with Microsoft for a commercial version of its open-source large language models, which could potentially provide a new revenue stream.
The partnership with Microsoft could potentially provide Meta Platforms with a new revenue stream. However, the impact of this partnership on Meta's stock price is yet to be seen.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Microsoft's decision to charge more for new AI features in its Microsoft 365 service could impact its market competition and affordability. However, the company's stock traded higher by 0.83% premarket.
Microsoft's decision to increase the price for its new AI features could potentially deter some customers due to affordability issues. However, the stock's premarket trading indicates a positive investor sentiment. The partnership with Meta Platforms could also provide a new revenue stream.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100