Earlier today, Microsoft-backed OpenAI (NASDAQ:MSFT) introduced its newest artificial intelligence model, GPT-4o. This version is faster than GPT-4 and has improved its voice, text, and imaging functionalities. According to Mita Murati, OpenAI’s CTO, the latest version will be free to all users due to the organization’s commitment to democratize advanced AI tools.
However, it’s more likely that this is OpenAI’s way of staying ahead of rising competition. Tech giants like Google (NASDAQ:GOOGL) (NASDAQ:GOOG) and Meta (NASDAQ:META) have invested heavily in their own AI models in order to get in on the action. By offering its newest version for free, OpenAI is likely hoping to take market share away from its challengers.
What sets GPT-4o apart is its ability to remember past interactions, which the company believes will enhance user experience. It can also express and perceive a range of emotions in generated voices. Furthermore, the model supports 50 different languages and offers significantly higher rate limits compared to GPT-4 Turbo.
Is Microsoft a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 31 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. After a 35% rally in its share price over the past year, the average MSFT price target of $489.56 per share implies 18.19% upside potential.
