Is Steve Jobs rolling over in his grave? The company he co-founded, Apple, is no longer on top. In a historic shift, longtime rival Microsoft has overtaken Apple and may become the world’s most valuable company, marking a significant milestone for the tech giant. This is due mainly to Microsoft’s entrance into artificial intelligence (AI).

Microsoft took over Apple as the most valuable company in the world.

CNBC's Steve Kovach brings the latest on the stock and the Investment Committee discuss $MSFT's road to $3 trillion. pic.twitter.com/DsSQnnSAod

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Microsoft could be the world’s most valuable company in five years if it continues to dominate in the AI landscape, say market analysts and strategists. In fact, 13 market analysts unanimously voted that Microsoft will be the world’s most valuable company, Windows Central reported.

Microsoft’s rise to the top spot comes on the heels of its impressive financial performance, with the company reporting its fifth consecutive quarter of record revenue. Bolstered by robust sales totaling $62 billion, Microsoft’s market capitalization has reached past the $3 trillion mark.

Leading Microsoft’s success is CEO Satya Nadella, who steered the company into AI. Microsoft’s strategic investment in AI meant committing significant resources to advance the development and integration of AI technologies across its wide portfolio of products and services.

Central to Microsoft’s AI strategy is its partnership with OpenAI, a nonprofit organization promoting the development of artificial intelligence. Microsoft made a $1 billion investment in OpenAI, The Washington Post reported.

Microsoft’s pursuit of AI integration has seeped into its product ecosystem, with AI-powered features integrated into flagship offerings such as Microsoft Office, Bing search engine, and cybersecurity solutions.

Meanwhile, sales of Apple’s flagship product, the iPhone, have been relatively slow since the covid-19 pandemic, especially in China, particularly with the introduction of the iPhone 15. The anticipated and forecasted sales figures during the launch phase have not aligned with the actual sales performance thus far. Additionally, Apple‘s cautious approach and hesitance to embrace advancements in AI may have contributed to the sales downturn.

Microsoft, Photo by Angel Bena: https://www.pexels.com/photo/a-company-logo-on-a-wall-10142683/Apple, Photo by Maher Meskko: https://www.pexels.com/photo/apple-logo-on-the-glass-8130301/