Microsoft has outpaced Apple to become the world's largest company by market value, marking a significant development in the enduring rivalry between the two tech giants. The surge in artificial intelligence (AI) has played a pivotal role in this shift, introducing a fresh dynamic to their decades-long competition.
In early Thursday trading, Microsoft's shares rose approximately 1%, propelling its market value to $2.87 trillion, narrowly surpassing Apple. This lead fluctuated as the morning trading session in New York unfolded, showcasing the intense competition between the two.
The enthusiasm among investors for the emerging wave of generative AI has driven a rally in Microsoft's shares. The company stands as the primary supporter of OpenAI, the creator of the popular AI-driven chatbot ChatGPT. Conversely, Apple has somewhat lagged in the AI realm, contributing to Microsoft's ascendancy. Microsoft not only backs OpenAI but also serves as its largest supporter and cloud hosting provider, showcasing a pioneering role in deploying AI chatbots across its search and workplace products.
Simultaneously, Apple has faced concerns regarding weaker iPhone sales, particularly in China, which have impacted its stock in the early days of 2024. This has led to a series of downgrades by Wall Street analysts.
The historic rivalry between Apple and Microsoft dates back to the 1980s when Apple, founded by Steve Jobs and Steve Wozniak, accused Microsoft, led by Bill Gates, of copying the "look and feel" of its Macintosh computer software. Although Apple lost a high-profile copyright lawsuit against Windows in the early 1990s, Microsoft's dominance in the PC market ensued for decades. The recent market value shift adds a contemporary chapter to this long-standing competition, influenced by the evolving landscape of artificial intelligence.
(With Agency Inputs)
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