Microsoft and OpenAI’s divergent finances showcased a growing chasm in the fortunes of Big Tech’s AI giants.
Microsoft saw its stock fall 23% over the first quarter, more than the 7% decline of the tech-heavy NASDAQ, marking the worst quarter for its share price since 2008. Investors fear soaring energy prices will hit data center plans and that its AI chatbot is losing ground to rivals.
Its traditional business is also vulnerable: Other software-as-a-service companies have seen 30% falls this year. Investors are still making big bets on AI, though. OpenAI closed its latest funding round at an $852 billion valuation; the record-breaking sum represents moves before a potential IPO, but also the incredible size of private markets.