There is no shortage of artificial intelligence (AI) stocks on the market nowadays. These companies deal with everything ranging from chipmaking to cloud infrastructure to consumer-facing applications, and more. However, not all AI stocks are created equal, and I'd argue that many of these companies are only propped up by the current AI hype.
On the other hand, Microsoft (MSFT -2.17%) is a company involved with AI that is diversified, profitable, and already monetizing it at scale. In my opinion, it's undoubtedly one of the best AI stocks to buy now.
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One thing Microsoft has going for it regarding AI is its partnership with OpenAI. This partnership gives Microsoft first dibs on OpenAI's newest models and early integration, which is an advantage for Microsoft because it doesn't take on all the heavy lifting and costs that are required to build and run these advanced AI models in-house. This saves time, resources, and billions in a time when time is of the essence in the AI arms race.
As a bonus, Microsoft currently receives around 20% of OpenAI's revenue, though this figure is projected to be around 8% by the end of the decade. In either case, Microsoft is in a good position to profit from OpenAI's growth while continuing to strengthen its ecosystem of products and services.
Microsoft already has a stronghold on enterprise software and productivity tools. Boosting them with AI features can strengthen their value proposition.
