Microsoft (MSFT), OpenAI Face Charges From The New York Times
Microsoft MSFT and OpenAI, the creator of the popular artificial intelligence (AI) chatbot ChatGPT, have been accused of copyright infringement and are facing a lawsuit by The New York Times NYT for abusing the newspaper’s intellectual property to train large language models (LLMs).
The lawsuit contends that the companies gave particular emphasis to The New York Times content without proper authorization or compensation, potentially leading to billions of dollars in damages. It also emphasizes the vital importance of The Times's independent journalism to democracy, describing it as increasingly rare and valuable.
The dispute highlights the growing legal and ethical challenges associated with the use of copyrighted materials in training AI models, particularly LLMs like ChatGPT, and the potential for spreading misinformation without proper attribution to the original source.
The lawsuit, in this case, does not specify a monetary claim but suggests that OpenAI and Microsoft should be held responsible for substantial damages. With any legal dispute, the outcome remains uncertain and both parties may continue negotiations or proceed with the legal process.
Despite the tensions, OpenAI has announced partnerships with entities like Axel Springer to incorporate recent and authoritative content into ChatGPT, with an emphasis on transparency and attribution. This move seems to be an attempt to address concerns and showcase a collaborative approach with publishers.
Microsoft Corporation Price and Consensus
Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote
MSFT Leads the Race for AI Revenues Through OpenAI
Microsoft, which has gained 56.8% on a year-to-date basis, is being propelled by the success of ChatGPT.
It is continuously making significant strides by integrating OpenAI's latest LLM, GPT-4, into its Bing search engine and Edge browser. Additionally, Microsoft Azure provides the Azure OpenAI Service, facilitating the seamless application of LLMs and generative AI techniques across various applications.
Further, this Zacks Rank #3 (Hold) company recently announced OpenAI's DALL-E 3 AI image-synthesis model, which is fully integrated with ChatGPT and challenges previous models by rendering images with complex descriptions and handling in-image text generation. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Additionally, the launch of enterprise capabilities of Azure OpenAI and Copilots across Microsoft 365, Dynamics 365 and Power Platform is expected to be a game changer.
The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $242.31 billion, indicating 14.3% growth from fiscal 2023. The consensus estimate for fiscal 2024 earnings is pinned at $11.13 per share, up 13.5% from the year-ago actual figure.
Spending on AI systems is expected to accelerate over the next several years as organizations deploy AI as part of their digital transformation efforts and to remain competitive in the digital economy.
According to the IDC’s Worldwide Artificial Intelligence Spending Guide, global spending on AI is forecasted to double over the next four years, reaching $110 billion in 2024 from $50.1 billion in 2020, with a compound annual growth rate of 20.1%.
Microsoft’s strong generative AI efforts pose a competitive threat to companies like Amazon AMZN and Adobe ADBE.
Recently, Amazon announced the general availability of its fully managed service called Amazon Bedrock, which provides seamless access to high-performing foundation models (FM) from AI companies through an API. The e-commerce giant’s investment plans in Anthropic remain noteworthy. Amazon will invest $4 billion to acquire a minority stake in Anthropic. This investment will allow Amazon Web Services to provide access to Anthropic’s future FMs to its customers.
Adobe has announced the commercial release of its family of creative, generative AI models, Firefly. Adobe Firefly supports text prompts in more than 100 languages, helps creators make several changes to their content, creates endless variations seamlessly and bolsters image generation capabilities. The company is gaining strong momentum among content creators with Firefly.
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