After a remarkable 2023, all signs point to 2024 being a year of extraordinary continued expansion for the artificial intelligence market. According to Grand View Research, the AI industry is poised for an estimated compound annual growth rate of 37% through the end of this decade, when the global AI market could be worth as much as $1 trillion.¹

Leading this charge is Nvidia, a company whose shares hit all-time highs in early January, having seen a massive 245% rise in value since last January, firmly establishing it as the go-to hardware provider for AI developers worldwide.2 3 The pivotal role of Nvidia’s graphics processing units (GPUs) in training and running AI models has driven an unprecedented demand surge, with the company commanding a 95% share in the machine-learning GPU market.⁴

Perhaps the biggest software winner in the AI space is OpenAI, whose debut of ChatGPT in November 2022 began the current AI gold rush. In January, OpenAI unveiled several updates aimed at an improved developer experience, including new embedding models, reduced prices for GPT-3.5 Turbo, an enhanced GPT-4 Turbo preview, and improved content moderation.

The text-embedding-3-small and text-embedding-3-large models offer superior performance over previous models, achieving significantly higher benchmark scores compared to previous iterations. Notably, the price per 1,000 tokens has dropped fivefold, accompanied by options for cost reduction without sacrificing accuracy.

OpenAI’s updated GPT-3.5 Turbo model slashed prices for input tokens by 50% and 25% for output tokens. This marks the third price reduction in a year, aimed at boosting adoption. The GPT-4 Turbo preview has also been updated with notable improvements in code generation.

Furthermore, OpenAI introduced its most advanced content moderation model yet, text-moderation-007, enhancing accuracy in identifying harmful text. Developers now have increased control over API keys and access to usage metrics, allowing better tracking of individual projects. OpenAI promises further improvements this year to accommodate larger dev teams.⁵

And the AI boom has also benefitted OpenAI’s chief partner, Microsoft. Microsoft achieved a huge milestone in January as it briefly reached a historic $3 trillion market valuation, driven by optimism surrounding its strategic focus on AI and cloud computing.

Investor enthusiasm over AI, particularly generative AI, has propelled Microsoft’s growth, with its offerings positioned as significant assets in this domain. The company’s partnership with OpenAI Inc and its AI-supported services has solidified its market position.⁶

As a sign of how important AI is to Microsoft’s future, the company has announced that beginning in February, keyboards on all new Windows 11 PCs will include an AI key, which grants access to Copilot, Microsoft’s AI tool built on OpenAI’s GPT-4 LLM and help to “simplify” and “amplify” user experience with Copilot. This is the biggest change to Windows keyboards in 30 years, when the Windows key was introduced.⁷

Microsoft’s AI offerings align with long-term revenue growth expectations, with revenue projected to increase by 15% in fiscal year 2024, outpacing the overall tech sector. This surge underscores the increasing demand for AI services and the cloud infrastructure to support them, positioning Microsoft as a key player in shaping future technological landscapes.⁸



  1. Cook, D., “Better Artificial Intelligence (AI) Stock: Nvidia vs. Alphabet,” Yahoo Finance, January 9, 2024;
  2. “Wall Street Bullish on Nvidia and AMD as AI Chip Prospects Soar,”, January 16, 2024;
  3. Cook, D., “Better Artificial Intelligence (AI) Stock: Nvidia vs. Alphabet,” Yahoo Finance, January 9, 2024;
  4. Carter, R., “Why is Nvidia Stock Going Up? The Rise of Nvidia,” XR Today, January 2, 2024;
  5. Daws, R., “OpenAI releases new models and lowers API pricing,” AI News, January 26, 2024;
  6. Vlastelica, R., “Microsoft Closes at Record, Ends Just Shy of $3 Trillion Value,” Bloomberg, January 24, 2024;
  7. Rahman-Jones, I., “Microsoft announces AI key on Windows 11 PCs,” BBC, January 4, 2024;
  8. Vlastelica, R., “Microsoft Closes at Record, Ends Just Shy of $3 Trillion Value,” Bloomberg, January 24, 2024;
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Tags artificial intelligence  generative ai  gpu  Microsoft  nvidia  OpenAI