Earlier today, Microsoft-backed OpenAI (MSFT) announced that it now has 3 million paying business users, which is a major increase from the 2 million it reported in February. These users come from ChatGPT Enterprise, ChatGPT Team, and ChatGPT Edu. The company first gained popularity in 2022 with its consumer AI chatbot and has since expanded into business-focused tools. Interestingly, OpenAI currently supports around 400 million weekly active users and expects to generate $12.7 billion in revenue this year, a big leap from last year’s $3.7 billion revenue projection and estimated $5 billion loss.
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Furthermore, OpenAI says that its tools are being widely adopted, even in tightly regulated sectors like finance and healthcare. The company also just added new features to its business plans, such as “connectors,” which let users pull data from services like Google Drive, Dropbox, SharePoint, and others, all within ChatGPT. In addition, a new “record mode” lets users record and transcribe meetings, with plans to turn recordings into documents using a tool called Canvas.
Interestingly, Brad Lightcap, OpenAI’s COO, said businesses want ChatGPT to feel like an active helper, not a tool that is hidden away. As a result, the new features aim to make ChatGPT more useful in daily work by integrating it with the apps and documents people already use. This has led to OpenAI now signing nine new enterprise customers each week, and Lightcap believes these tools are becoming a standard part of how knowledge workers get things done.
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 $514.07 implies 10.7% upside potential.
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