Microsoft (MSFT)-backed AI research and development company OpenAI is exploring the development of humanoid robots, The Information reported. This move positions OpenAI alongside industry leaders like Nvidia (NVDA) and Tesla (TSLA), who are also focused on advancing and commercializing humanoid robotics.
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Earlier this year, OpenAI took part in a $675 million funding round for Figure, a robotics startup that has developed a humanoid robot, Figure 01. This robot can perform tasks like handing objects to humans and organizing dishes.
Investors should note that the move marks OpenAI’s potential return to robotics, which had previously shut down its robotics division in 2021. Further, humanoid robots are not the immediate priority for OpenAI, as the company’s primary focus remains on the development of advanced AI models.
Global Humanoid Robot Market Holds Growth Potential
The robotics market has evolved significantly in recent years, with advancements in both hardware and the AI systems that power them. According to a report by Fortune Business Insights, the market is expected to grow from $3.28 billion in 2024 to $66 billion by 2032, reflecting a CAGR of 45.5% during the period.
However, if OpenAI decides to pursue humanoid robot development, it will face stiff competition from players like Nvidia.
Is Microsoft a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 27 Buys and two Holds assigned in the past three months. At $501.69, the average Microsoft price target implies a 14.19% upside potential. Shares of the company have gained 17.7% year-to-date.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
