Tech giant Microsoft (MSFT) says that its latest medical AI tool can now outperform doctors when it comes to diagnosing complex medical cases. Mustafa Suleyman, Microsoft’s AI CEO, told Yahoo Finance’s Opening Bid that the company already handles 50 million health-related queries daily through Copilot and Bing. He said the firm’s goal is to offer the most accurate and affordable health advice possible. In a recent study, Microsoft’s AI system — called MAI-DxO — correctly diagnosed 85% of cases from the New England Journal of Medicine, a result that’s over four times better than a group of trained physicians.
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The best results came when MAI-DxO was paired with OpenAI’s o3 model. This medical AI breakthrough is thanks to Microsoft’s deep partnership with OpenAI, the company behind ChatGPT. Since investing $1 billion in 2019, Microsoft has poured nearly $14 billion into OpenAI and gained access to its powerful models. OpenAI, in return, has used Microsoft’s computing power to train and run those models. However, things aren’t entirely smooth behind the scenes.
Indeed, reports suggest that OpenAI wants more freedom and is pushing to become a fully for-profit company, which could impact the deal that’s currently set to run through 2030. The agreement could even end early if OpenAI’s board believes it has created artificial general intelligence. Despite these tensions, Suleyman downplayed any issues in his interview by calling the partnership strong and ongoing. Suleyman, who co-founded DeepMind and joined Microsoft in 2024, now leads all consumer AI products, including Copilot, Bing, MSN, and the Edge browser.
Is MSFT Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 30 Buys and five Holds assigned in the last three months. Furthermore, the average MSFT price target of $521.41 per share implies 4.6% upside potential.
