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Microsoft-Backed (NASDAQ:MSFT) OpenAI Hits $80B Valuation – TipRanks.com – TipRanks

Tech giant Microsoft (NASDAQ:MSFT) Backing OpenAI was a good bet, if recent valuations are any indication. OpenAI recently signed a deal that will value the company at least $80 billion if all goes according to plan. This tripled its valuation compared to the previous transaction just a few months ago.

It also makes OpenAI one of the most valuable tech startups on the planet today, behind ByteDance and SpaceX. Generative AI has been on the rise for a while now, but it’s starting to create a real backlash as knowledge workers start to feel insecure about their jobs.

Fallout approaches

In fact, more knowledge workers are fearing for their jobs than ever since the Great Recession. We’re already seeing more layoffs in the media as investor support dries up in earnest. Look at Vice or the LA Times. Meanwhile, OpenAI’s latest tool, Sora, a text-to-video generation system, is increasingly seen as a “potentially dangerous step in the burgeoning AI economy.”

Most of the dangers focus on disinformation, but there’s also the issue of large entertainment industry sectors being wiped out by people who can create their own movies at home by typing in prompts and watching shows. there is. Both meta platforms (Nasdaq:Meta) and the alphabet (NASDAQ:GOOG) (NASDAQ:Google) is developing its own version, which clearly increases this potential risk.

What is the target price for Microsoft stock?

Turning to Wall Street, analysts are bullish on MSFT stock based on 32 buys, 1 hold, and 1 sell assignments over the past three months, as shown in the chart below. We give it a “Strong Buy” consensus rating. MSFT’s average price target of $469.45 per share implies an upside potential of 16.18%, after the stock has gained 61.23% over the past year.

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