All thanks to AI: Microsoft bypasses Apple to become the leader in the ranking of tech giants
Microsoft overtook Apple to become the world’s largest company by market capitalization. This was facilitated by its deep focus on generative artificial intelligence (AI), a sector that is gaining increasing popularity among investors.
This was reported by Reuters.
The tech giant, which, along with Nvidia and Amazon, has been focusing on artificial intelligence, has experienced significant market growth over the past year. Microsoft’s market value increased by more than $1 trillion over the year.
Analysts draw parallels between this shift and the early 2000s, when technology and internet companies began to replace consumer and financial firms at the forefront of the upper echelons of the market.
According to LSEG, Microsoft’s market capitalization stood at $2.887 trillion, the highest ever, while Apple’s market capitalization was $2.875 trillion at Friday’s close after reaching a peak of $3.081 trillion on December 14.
Microsoft has incorporated OpenAI technology into its productivity software suite, helping to spark a recovery in its cloud computing business. Artificial intelligence has also created an opportunity to challenge Google’s dominance in web search.
Apple, on the other hand, is facing a decline in demand, particularly for its flagship product, the iPhone. The company is facing particular difficulties in China, a key market where the economic recovery from the COVID-19 pandemic is sluggish and competition from resurgent Huawei is intensifying, affecting its market share.
Other AI-focused tech players, such as Nvidia, Meta Platforms, and Alphabet, also witnessed a significant jump in their market capitalization last year.
OpenAI pioneered the development of generative AI by launching the ChatGPT chatbot and attracted Microsoft as a $10 billion investor.
