What happened
Shares of Microsoft (MSFT -1.96%) climbed more than 4% on Tuesday after the software giant announced some highly anticipated, AI-powered upgrades to its web browser and search tools.
So what
Microsoft is adding a new chat box to its Bing homepage. The new AI-driven tool can provide more complete and relevant answers than traditional search engines, according to Microsoft. Users will also be able to refine their search results via an interactive experience. Additionally, the chat box can generate content from a user's prompts.
Microsoft said that by combining search, browsing, and chat into an integrated tool, it hopes it can serve as a user's "copilot for the web."
This new version of Bing is powered in part by OpenAI's technology. Microsoft made a multibillion-dollar investment in the research company in late January, following the blockbuster debut of its massively popular ChatGPT application.
Microsoft said it's using next-generation tech from OpenAI that's even more powerful and faster than ChatGPT and specifically designed for search. The software titan also developed proprietary technology to maximize the capabilities of OpenAI's data models.
The new search engine is now available as a limited preview on desktop computers. Microsoft intends to launch a mobile version soon.
Now what
Microsoft CEO Satya Nadella sees artificial intelligence as an enormous opportunity. "AI will fundamentally change every software category, starting with the largest category of all -- search," Nadella said in a blog post.
Nadella likened the potential impact of AI to that of cloud computing, which has reshaped Microsoft's business in recent years. "I have not seen something like this since I would say 2007-2008, when the cloud was just first coming out," Nadella said during an interview with CNBC.
