Microsoft (NASDAQ: MSFT) will partner with Mercedes-Benz (MBGYY) to test ChatGPT in cars in the U.S.. This would be the first implementation of artificial intelligence (AI) software in vehicles. Mercedes will bring Microsoft and OpenAI’s ChatGPT to its customers in the U.S. through Microsoft’s Azure OpenAI Service.
Mercedes’ beta program will be available as soon as June 16 for over 900,000 vehicles equipped with MBUX infotainment system. The car company stated that customers will be able to participate in the program through the “Mercedes me app or directly from the vehicle using the voice command, ‘Hey Mercedes, I want to join the beta program.’
The tech giant has got a big boost from its foray into AI and the stock has rallied by more than 7% over the past five trading sessions, hitting a new high of $349.84 on Thursday.
Even Wall Street analysts are bullish on MSFT’s AI prospects. Top-rated JP Morgan analyst Mark Murphy reiterated a Buy and raised the price target to $350 from $315.
Murphy commented, “Regarding Microsoft’s monetization of AI, the company shares that one primary lever is through the tools and services customers use to build AI apps and services, such as running Azure OpenAI APIs [application programming interface] or using the Azure infrastructure, for example. Additionally, the company expects AI to be built into ‘every Microsoft Cloud solution.”
Overall, analysts are bullish about MSFT stock with a Strong Buy consensus rating based on 30 Buys, four Holds, and one Sell.
