12:42 PM EDT, 06/07/2024 (MT Newswires) -- Microsoft's ( MSFT ) collaboration with OpenAI is "positive and sustainable" as it provides OpenAI access to top artificial intelligence infrastructure and funding while granting Microsoft ( MSFT ) exclusive access to leading AI models, Oppenheimer said in an emailed note to clients Thursday.

GPT-5 is expected to be available by the end of 2024, solidifying OpenAI's and Microsoft's ( MSFT ) position in generative AI, while the latest GPT-4o model is leading the market and technology despite increasing competition, Oppenheimer said.

The investment firm's analysts, including Timothy Horan, said they expect Microsoft ( MSFT ) to earn $50 billion in generative AI revenue in four years, needing $50 billion in investments. Microsoft ( MSFT ) can increase its cloud market share by 1% to 2% more than expected, which could bring in an extra $3 billion to $6 billion in revenue.

"Microsoft ( MSFT ) will regain a dominant platform role like its PC-era influence in a larger AI-driven market, and expand its multiple," the analysts said, adding that its partners including Equinix ( EQIX ) and Cloudflare ( NET ) set to benefit from this scenario.

Oppenheimer adjusted its price target on Microsoft ( MSFT ) to $500 from $450, with an outperform rating.

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