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Welcome to Investing Insights. I'm your host, Ivana Hampton.

Microsoft is leading the pack in the AI race. But how long can Microsoft stay ahead of the competition?

Morningstar Research Services,

senior equity research analyst Dan Romanov talked about the tech company's partnership with Open AI in part one of Microsoft Betts Big on AI, what investors should know. So check it out to

hear his insights. Now, Dan talks about how Microsoft is sharpening its edge

and his outlook on the company's stock. So, Dan, startups typically pull the bigger companies forward

when there's new technology introduced. What has motivated big tech and other companies to jump on

AI? Well, I mean, here you have sort of the same thing happening, right?

Like we think of like in the press, what you're hearing is that this AI is sort of new,

but I would just point out that Google bought DeepMind.

I think it was in 2015.

Open AI was started in 2016.

So, you know, we're talking about eight, eight-ish years ago where

this was going on. And I think what makes it top of mind now is the release of chat GPT to the

general public, you know, in late last year. So, so that is sort of a watershed moment. But my point

here is that these like startups were driving, you know, the interest in it.

And that's pretty typical in technology, as you point out. And what happens a lot of times is

those companies just get swallowed up by bigger companies. So Microsoft has definitely bought a number of

companies along the way, as has Google. And I would guess that they tried to buy Open AI outright and Open AI, you know, with its mission as a nonprofit and sort of wanting to benefit everyone, you know, sort of at its foundation anyway, sort of prevented them from selling out, you know, figuratively and literally to Microsoft. But they obviously had a big

influence. And realistically, like, Microsoft and Google should have been the ones that, you know,

did, that were, like, making these advancements in AI. And they were making, like,

...