OpenAI’s forthcoming offering includes collaborative tools which will allow users to edit documents and communicate via chat within ChatGPT as per a recent media report.
A Rival To Microsoft Office, Google Workspace
This latest offering will go head-to-head against Microsoft Office and Google Workspace.
There are speculations regarding OpenAI working on a productivity software suite.
It would be directly challenging one of its biggest investors and business partners, Microsoft (MSFT), as well as Alphabet-led (GOOGL/GOOG) Google.
In the meantime, Microsoft’s stock edged 0.8% higher during afternoon trade on Tuesday, while Alphabet’s stock rose 1.4% after Citi raised its price target to $203 from $200 on Search and YouTube strength.
So far, this feature is still under development, further suggestibg that the company is aiming to expand its reach from AI chatbots into the broader software productivity market.
The retail sentiment has also improved on Stocktwit as it goes from ‘neutral’ to ‘bullish’ territory just a day ago.
But all this is not instant as the internal planning for the tools began more than a year ago.
Although, it’s development faced delays due to engineering constraints, as mentioned in the report.
Emerging Dual Relationship Between The Companies
OpenAI appears to have accelerated work on these features recently as the company is aiming the launch of “Canvas,” which is an experimental tool that helps users generate and refine code and documents more efficiently using AI.
OpenAI’s this expansion into productivity software could place OpenAI in direct competition with Microsoft, which has invested billions into the startup and integrated its Copilot models, which use OpenAI’s GPT-4, across its suite of Office products.
There is an emerging dual relationship between the two companies, as both partner and potential competitor.
It also raises questions about how far OpenAI will venture into Microsoft’s territory.
In our point of view, Microsoft is already losing the battle to OpenAI, with the companies decision of opting for ChatGPT over its Copilot AI assistant.
Besides this, OpenAI has made deals with rival cloud computing companies, and the company has spend a lot of time on building out its paid subscription model.
In contrast to this Microsoft initially invested almost $14 billion in OpenAI, but has since also pumped money into rival AI startups.
ChatGPT reached $10 billion in annual recurring revenue (ARR) earlier this month and has a target of $125 billion by 2030 reportedly.
