Microsoft and Google Lead in AI Race, But Risks Remain as Landscape Shifts
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Microsoft and Google are leading the AI race with their large language models, but the landscape can shift quickly as new models emerge.
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Google faced criticism over its AI image generator, but the company has time to learn and its stock looks cheap compared to peers. However, its core search business is vulnerable.
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Microsoft's partnership with OpenAI has benefited its AI capabilities tremendously, but risks remain if Elon Musk succeeds in his lawsuit against OpenAI.
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Analysts rate both Microsoft and Google as Strong Buys currently based on upside potential.
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Microsoft may be the better buy over Alphabet given risks to Google's search revenues as AI chatbots gain traction. Microsoft is more of a disruptor.