Microsoft (MSFT) is reportedly teaming up with Harvard in a move that could signal a shift in its AI strategy. The company is working with Harvard experts to improve the health-related answers provided by its Copilot assistant. This partnership comes as Microsoft seeks to rely less on ChatGPT creator OpenAI (PC:OPAIQ), hinting at a push for greater independence in the rapidly evolving AI industry.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Microsoft’s Harvard AI Deal
According to the Wall Street Journal, Microsoft is teaming up with Harvard to enhance the health information in its Copilot AI assistant. The report further stated that starting later in October, Copilot will use health content licensed from Harvard Health Publishing to provide more accurate and trustworthy responses to healthcare-related queries.
As part of the partnership, Microsoft will pay Harvard a licensing fee. The move is part of Microsoft’s broader effort to reduce its reliance on OpenAI’s technology.
Notably, Dominic King, Microsoft’s vice president of health AI, told the Wall Street Journal that the company aims for Copilot to provide responses as accurate and trustworthy as those from a medical professional. He believes current AI tools fail to meet this standard.
Microsoft Moves to Carve Out Its Own Space
Microsoft’s push into healthcare shows its bigger goal of standing out in the competitive AI field. Earlier this year, the company said one of its AI tools could diagnose diseases four times more accurately than a group of doctors—and at a much lower cost.
So far, Microsoft has invested around $13 billion in OpenAI and has relied heavily on the startup for AI models. However, recent tensions over OpenAI’s move toward going public, Microsoft’s equity terms, and cloud exclusivity have pushed Microsoft to focus on building its own AI capabilities. Consequently, Microsoft is steadily working to reduce its dependence on OpenAI’s technology.
In August, Microsoft announced it was testing its own in-house AI model, which could eventually power Copilot. The company has also been experimenting with non-OpenAI systems, including Anthropic’s Claude, across some of its products.
Is It Good to Buy Microsoft Stock Now?
According to TipRanks, MSFT stock has a consensus Strong Buy rating among 34 Wall Street analysts. That rating is based on 33 Buys and one Hold assigned in the last three months. The average Microsoft price target of $629.22 implies a 20% upside from current levels.
