Microsoft Makes $154B With AI Update

Microsoft reported a $154bn increase in market value after releasing an AI update within its Microsoft Copilot. To learn more about its strategy on how to swoop over $150bn in a day, as well as what are the other AI updates, read on.

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Illustration: Lenka T.

How did Microsoft increase its stock price?   

Around a week ago, Microsoft launched Copilot Subscription, an AI program, and saw its market value jump by $154 billion in a single day. 

According to Technext, its shares reportedly soared up 6% to a record high of $366.78 after it introduced a $30 subscription for its Office 365 platform. 


Its market capitalization has reportedly increased by $885 billion year-to-date, which makes its stock price increase by 50% over that time.

The company’s stock saw a serious climb with the AI boom, particularly because the company invested $10 billion in OpenAI at an early stage. After the introduction of ChatGPT, it was clear that the investment was a good idea, so the funding continued. 

Right now, Microsoft is definitely picking the fruits of its decisions. 

Not only that, but Markets Insider published a report claiming that Microsoft is the second-largest company of the S&P 500’s “Magnificent 7” tech mega-caps that have accounted for nearly all of the market’s gains in 2023, with a combined worth of $11 trillion. 

Last but not least, American investment bank Morgan Stanley forecasted that Microsoft would follow Apple’s footsteps in reaching the milestone of $3 trillion market cap. 

New Microsoft AI Updates   

July has definitely been a big month for Microsoft, considering the fact that they released important AI updates, alongside integrating with Meta’s AI chatbot Llama 2 last week. 

Some of these updates you can test already today, whereas others didn’t make users as thrilled: 

  1. Bing Chat Enterprise is an AI-powered chat for work with commercial data protection, meaning that it won’t share any company secrets; 
  2. Visual Search somewhat resembles Google Image Search, but it’s supposed to be much more advanced and accurate. As the name suggests, users can now drop an image and Bing will find what they’re looking for; 
  3. Microsoft Copilot 365 is now charging $30/month for subscription, making it more expensive than most AI tools. 

Microsoft is yet to see whether this was a good decision, considering that AI tools that are the most used are completely free, such as Google’s AI Assistant in Gmail, Google Docs, and Google Sheets. 

On the other hand, the difference is that Microsoft is offering everything in one platform, as opposed to Google’s mentioned alternatives, which can only assist you with one thing at a time. 

A journalist by day and a podcaster by night. She's not writing to impress but to be understood.