By Preston Gralla

Copyright computerworld

Even so, Microsoft appears to be much better positioned for the future. The genAI tech market is in the middle of a bubble. Investors are pouring in billions; valuations are sky-high. But increasingly, enterprises say they’re not seeing the payoff they hoped for from the technology. The bubble will burst. And when it does, OpenAI will have a harder time recovering than Microsoft.

Microsoft offers a lot more than just genAI tools — it also has Windows, the Microsoft 365 productivity suite, a vast cloud business, and much more. Even in an AI bust, Microsoft should thrive.

OpenAI will survive an AI bust, too — but in weakened state, because it’s a one-trick pony. It’s got no other business. So, no matter what terms OpenAI and Microsoft eventually agree to, Microsoft will have gotten the better of the investment.