OpenAI Is Quietly Creating Tools to Take on Microsoft Office and Google Workspace (GOOGL)

AI company OpenAI has been quietly creating new ChatGPT features that would let people work together on documents and chat in real time, which will bring it into more direct competition with tech giants Microsoft (MSFT) and Google (GOOGL). According to The Information, these tools haven’t launched yet, but two people familiar with the plans say that OpenAI has been designing them for over a year. The company has already taken the first step by launching Canvas, a feature that helps users draft code and documents with AI.

If the collaboration tools move forward, they could shift ChatGPT from mainly a consumer app to one that also competes directly in the workplace. This move lines up with CEO Sam Altman’s goal to make ChatGPT a “supersmart personal assistant for work.” Adding tools like document collaboration and file storage could challenge the core products in Microsoft Office and Google Workspace, both of which now include built-in AI features.

Although Microsoft is OpenAI’s biggest investor and business partner, launching these tools could put pressure on their already complex relationship, especially as OpenAI is asking Microsoft to approve a restructuring of its for-profit division that oversees ChatGPT. Indeed, OpenAI has been growing its business subscriptions by selling teamwide access to companies like Moderna (MRNA) and T-Mobile (TMUS). It also recently offered discounts on these plans, which frustrated Microsoft staff who sell similar tools. OpenAI now expects ChatGPT to bring in $15 billion from business subscriptions by 2030, up from $600 million in 2024.

Which Tech Stock Is the Better Buy?

Turning to Wall Street, out of the two stocks mentioned above, analysts think that GOOGL stock has more room to run than MSFT. In fact, GOOGL’s price target of $199.20 per share implies 17% upside versus MSFT’s 5.4%.

See more GOOGL analyst ratings