Microsoft (NASDAQ:MSFT) is trading around +3.3% on Thursday after it unveiled that it was integrating generative AI from OpenAI – the creator of viral chatbot ChatGPT – to its Microsoft 365 software suite.
The announcement marks the software giant’s latest plunge into AI after its “multi-billion dollar, multi-year” investment in OpenAI in January and the rollout of an AI-infused version of the Bing search engine in February.
It also marks arguably Microsoft’s biggest AI plunge. Microsoft 365 software accounts for a significantly larger portion of its revenue than Bing and is the leading business software in the market.
Search and advertising revenue accounted for around $11.5B in revenue in Microsoft’s (MSFT) last fiscal year, compared to nearly $45B from Office products and cloud services.
The generative AI features will come to PowerPoint and Excel in “months”, though it is starting with 20 undisclosed enterprise customers, including eight of the largest U.S. companies according to Microsoft (MSFT).