Microsoft’s market cap briefly exceeded $3 trillion for the first time in its history on Wednesday, positioning it as the world’s second-largest company in terms of market value, following Apple Inc.

Since the beginning of the year, the tech giants have been competing for the top spot, with the iPhone maker temporarily capitulating its position to the Washington-based firm on January 12th.

Microsoft stocks climbed more than 1% and hit a record high of $405.15 as investors rallied around the company’s expansion into AI. According to CNBC, the shares are reportedly up more than 7% year to date. Apple became the first company to hit $3 trillion last year, as the company’s stock closed at $193.97 per share in June.

Microsoft boosts AI investment

Earlier this month, Microsoft announced the launch of its new premium subscription Copilot Pro, and the expansion of its Copilot for Microsoft 365 offerings to businesses of all sizes. These developments represent a significant step in commitment to integrating advanced AI capabilities into everyday work and personal life.

The company is also building its own custom AI chip that can be used to train large language models in a bid to reduce costs and reduce reliance on Nvidia, the leading AI chip supplier.

Supported by its investment in OpenAI, the maker of ChatGPT, it is widely regarded as a frontrunner in the competition for supremacy in generative AI, alongside others such as Alphabet, Amazon, Oracle, and Meta.

However, there have been repercussions. Both the UK’s Competition and Markets Authority and the European Commission are examining whether Microsoft’s $13 billion investment into OpenAI is reviewable under the EU merger regulation rules.

“The European Commission is checking whether Microsoft’s investment in OpenAI might be reviewable under the EU Merger Regulation,” the commission said in a statement on January 9th.

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Suswati Basu

Freelance journalist

Suswati Basu is a multilingual, award-winning editor and the founder of the intersectional literature channel, How To Be Books. She was shortlisted for the Guardian Mary Stott Prize and longlisted for the Guardian International Development Journalism Award. With 18 years of experience in the media industry, Suswati has held significant roles such as head of audience and deputy editor for NationalWorld news, digital editor for Channel 4 News and ITV News. She has also contributed to the Guardian and received training at the BBC As an audience, trends, and SEO specialist, she has participated in panel events alongside Google. Her career also includes a seven-year tenure at the leading AI company Dataminr, where she led the Europe desk and launched the company’s first employee resource group for disabilities. Before this, Suswati worked as a journalist in China for four years, investigating censorship and the Great Firewall, and acquired proficiency in several languages. In recent years, Suswati has been nominated for six awards, including the Independent Podcast Awards, International Women’s Podcast Awards, and the Anthem Awards for her literary social affairs show. Her areas of speciality span a wide range, including technology, Diversity, Equity, and Inclusion (DEI), social politics, mental health, and nonfiction books.