This Monday, construction began on a new research facility at Oregon State University (OSU), which will be named after Jensen Huang, CEO of Nvidia, and Lori, his wife, who were both students at OSU.
During an interview with Oregon State University President Jayathi Murthy, Huang made the comment, "This is the beginning of a new world," in reference to the recent progress made in generative artificial intelligence.
Talking about chatbots like OpenAI's ChatGPT, Huang continued by saying, "You essentially have a collaborator with you at all times, essentially have a tutor at all times." Microsoft (NASDAQ: MSFT) stands to gain significantly from this innovative technology if Huang is correct, which I think he is.
The $13 billion investment in ChatGPT's founder by Microsoft last year made headlines, but the collaboration has deeper roots. Microsoft has been actively developing these AI assistants since it acquired a stake in OpenAI in 2019. Copilot, a set of generative AI-powered assistants, is the end product, and it is firmly embedded inside Microsoft's most popular products.
Simple commands are all it takes to use Copilot for Microsoft 365 to expedite a broad range of operations, such as email summarization and writing, presentation preparation, and the creation of charts from spreadsheet data, among many others. That, however, is merely the first step.
code repository Coding and debugging can be automated with Copilot. From first-party client data, Copilot for Sales may collect information, schedule meetings, and deliver summaries through integration with common CRM platforms. Copilot for Service equips customer support agents with comparable tools, allowing them to compile content from many sources—all under the user's control with simple voice or typed commands.
Because Microsoft is still rolling out these Copilots, their effect on the company's bottom line is uncertain at this time. The potential yearly increase in revenue is estimated to be between $25 billion and $100 billion.
There is a current multiple of 35 times projected sales on the stock. Considering the immense potential that lies ahead, it's a reasonable valuation, even though it sounds exorbitant.
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