Citizens Keeps Market Outperform on Microsoft, $550 PT

Citizens analyst Patrick Walravens reiterated a Market Outperform rating and $550.00 price target on Microsoft (NASDAQ: MSFT).

“On September 14, Microsoft (MSFT, MO, $550 PT) Chairman and CEO Satya Nadella was asked about the “Pacing the Frontier” essay and explained four points on how AI should be developed and deployed.

First, on human control, Mr.

Nadella said, “We should do what it takes to build stuff that serves humanity first and is in human control.” Second, on distribution, he said “the broad diffusion of this technology is the most critical thing,” requiring “choice,” “competition,” and a mix of “business models” so that it “serves humanity.” Third, on enterprise control, he said customers need sovereignty over their data, adding “I want my privacy,” “I want to be able to embed my knowledge in a set of weights I control,” and “my IP shouldn’t leak,” along with transparency into the chain of thought the model produces.

Fourth, on safety, he said it means “taking all the time we want to test things” and embracing “third-party testers,” provided they are not “cozy arrangements.””

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