Microsoft has a history of being a frontrunner in technological advancements but frequently loses traction after initial success. This pattern is evident in Microsoft's foray into generative AI, where its progress has lagged behind competitors like ChatGPT despite an initial strong push with Bing Chat. Similarly, the company's pioneering work with HoloLens has not transitioned into consumer products, resulting in a retreat to enterprise solutions. While Microsoft is financially diversified with strong Azure sales, its commitment to consumer-focused innovation remains in question.
Historically, Microsoft seems cursed: It's often early to big technological shifts, and it's great at prototyping them. But then, after a hype-filled launch where Microsoft celebrates its lead, the company seems to lose interest.
Copilot use now appears far behind ChatGPT and other competitors. The good news for investors is that Microsoft is diversified, and it's set to reap profits selling compute on Azure to companies around the world.
Examples of this pattern aren't hard to find. For instance: Apple, Meta, Google, and Samsung are all investing heavily in augmented reality or mixed reality headsets and glasses.
Microsoft built hype for HoloLens among consumers, but then never released it as a consumer product, instead retreating to the enterprise market.
Collection
[
|
...
]