Microsoft-backed OpenAI (MSFT) has introduced a new AI tool called Codex in order to help software developers. Codex, which is available through ChatGPT, can assist with tasks like writing code, fixing bugs, and running tests. It works in a cloud-based environment and uses the user’s repository to generate code that matches human coding styles and preferences. Interestingly, Codex is powered by a version of OpenAI’s o3 model, which is designed specifically for software engineering. It’s currently available for ChatGPT Pro, Team, and Enterprise users, with plans to expand to Plus and Edu users soon.
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It is worth noting that Codex is entering a competitive market where other companies, like Microsoft-owned GitHub and Google (GOOGL), also offer AI-powered tools for developers. Startups such as Anysphere and Windsurf have also created AI tools that analyze developers’ actions and suggest code. To strengthen its position, OpenAI is reportedly in talks to buy Windsurf for around $3 billion, which would be its biggest acquisition yet.
Codex is designed for developers with some technical knowledge and aims to make their work easier by handling complex tasks with little supervision. OpenAI’s team has already been using Codex for various tasks like repetitive coding jobs and creating new features. While still in the early stages, Codex has made significant progress in solving software engineering challenges. OpenAI has also made sure that Codex can’t be used for creating harmful software in order to address worries about its potential misuse in cyberattacks.
Is MSFT Stock a Buy?
Although you cannot directly invest in OpenAI, you can buy shares of Microsoft, which has a 49% stake in OpenAI. And according to analysts, Microsoft stock has a Strong Buy consensus rating among 35 Wall Street analysts. That rating is based on 30 Buys and five Holds assigned in the last three months. Furthermore, the average MSFT price target of $493.03 implies 8.5% upside potential.
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