There’s a brewing ‘A.I. arms race’ and Microsoft’s ChatGPT play is ‘a potential game changer,’ Wedbush’s Dan Ives says

Satya Nadella, chief executive officer of Microsoft, during the company's Ignite Spotlight event in Seoul, South Korea, on Tuesday, Nov. 15, 2022. (Credit: SeongJoon Cho/Bloomberg via Getty Images)

The world is gearing up for an artificial intelligence (A.I.) arms race, and it won’t just be between global superpowers vying for military supremacy—it will also include tech giants like Alphabet, Apple, and Google, along with thousands of startups.

Microsoft is even in talks with Open AI, the creator of the popular A.I. chatbot called ChatGPT that took the internet by storm a few weeks ago, to invest as much as $10 billion in the company, Bloomberg first reported this week, citing unnamed sources. Wedbush tech analyst Dan Ives called ChatGPT one of the “most innovative A.I. technologies” in history, and “a potential game changer” for Microsoft, in a Wednesday note to clients.