Microsoft shares hit an all-time high thanks to a new subscription to Copilot AI
Microsoft CEO Satya Nadella speaks at the company’s Ignite Spotlight event in Seoul on Nov. 15, 2022. Nadella delivered the keynote speech at the event hosted by the company’s Korean division.
Songjun Cho | Bloomberg | Getty Images
Microsoft shares closed at a record high on Tuesday after the company announced pricing for its new Microsoft 365 artificial intelligence subscription service.
Shares jumped 4% to close at $359.49. Now it’s up about 50% year over year. The previous record was set on June 15, when the stock closed at $348.10.
Microsoft’s Copilot subscription service adds artificial intelligence to the company’s popular Office products, such as Word, Excel and Teams. This will cost an additional $30 per month and can increase monthly pricing for enterprise customers by as much as 83%, generating additional revenue through recurring subscriptions.
The announcement shows how Microsoft continues to improve its Office software suite, making it more attractive to businesses looking to add artificial intelligence to their workflows. Microsoft has been investing in generative artificial intelligence, mainly through a multibillion-dollar investment in OpenAI, the creator of ChatGPT.
Microsoft Copilot, first announced in March, can design presentations, offer writing prompts, summarize meetings and rank incoming emails. It is already being tested by 600 customers Good year and General Motors Companyalthough Microsoft has not said when it will be available to the general public.
— CNBC’s Hayden Field contributed to this report.
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