Microsoft stock had its best week in nearly 8 years after SVB’s collapse, OpenAI’s ChatGPT popularity -Dlight News

Microsoft stock had its best week in nearly 8 years after SVB's collapse, OpenAI's ChatGPT popularity

Shares of Microsoft Corp. rose to their best week in nearly eight years as the collapse of Silicon Valley Bank and the popularity of OpenAI’s ChatGPT drew investors to established tech names interested in the next big thing. Microsoft MSFT, +1.17% shares ended Friday up 12.4% for the week, their best weekly gain since April 24, 2015, when shares rose 15% for the week after the company forecast growth in its cloud business.

Read: OpenAI launches ‘safe’ AI, GPT-4; Tech giant Morgan Stanley, one of its first clients, was not only the beneficiary of Silicon Valley Bank’s closing last Friday, as investors sought safety in established tech names, but also benefited from its significant investment in privately held artificial-intelligence company Open AI. Which is fast becoming a household name as its ChatGPT AI model is growing in popularity. Read: SVB is likely to affect some software sales in the short term, and how startups are financed in the long term. Microsoft is already including ChatGPT in its Bing search engine and Office 365 copilots, large languages ​​with user data to boost productivity. Connects the model. The Copilot system uses the latest version of ChatGPT, GPT-4, which OpenAI released last week. While the Federal Deposit Insurance Corporation and the Federal Reserve last weekend took emergency measures to insure deposits of more than $250,000 in Silicon Valley banks, continued turmoil in the regional banking sector, such as First Republic Bank’s FRC, -32.80% $30 billion infusion from the banking sector, into the tech sector That has pushed investors to protect established names, as the Nasdaq rose 4.5% for the week, compared with a 1.6% gain on the S&P 500 index. Read: The Silicon Valley bank failure is an extinction-level event for startups, says Gary Tan of Y Combinator, noting that over the past 12 months, Microsoft shares have fallen 5.4%, while the iShares Expanded Tech-Software ETF IGV, -0.38% is down 13.4%. The Dow Jones Industrial Average DJIA, -1.19% is down 7.6%, the S&P 500 index SPX, -1.10% is down 11.2%, and the tech-heavy Nasdaq Composite Index COMP, -0.74% is down 14.6%.

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