"Revolutionizing Game Development: How Microsoft's Game-Changing AI is Transforming the Industry" - TipRanks.com

Microsoft (MSFT) has introduced an exciting generative AI model that can create visuals and actions for video games. This innovative tool, dubbed the World and Human Action Model, or “Muse,” was developed in collaboration with Ninja Theory, a studio within Microsoft’s Xbox Game Studios. Muse has the potential to significantly cut costs for game studios by minimizing the need for extensive human programming and animation.

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What’s the WHAM Model?

The WHAM model is a new type of AI foundation model that includes advanced language capabilities. Similar to Nvidia’s Cosmos, launched earlier this year, both models aim to improve AI’s interactions within different settings.

Microsoft is currently providing developers with access to AI model data and tools for hands-on exploration. Developers can test out WHAM models through the WHAM Demonstrator on Azure AI Foundry, a platform dedicated to developing AI applications. This tool offers a user-friendly visual interface for interacting with and experimenting with WHAM AI models.

Microsoft’s WHAM: A Game-Changer

With game development costs on the rise and consumers being more cautious, AI is becoming more popular in the gaming industry. Microsoft’s WHAM model could change the way games are designed, benefiting both players and developers. This new approach might open the door to more creative and varied gaming experiences.

Currently, Microsoft uses Muse to develop a real-time AI model based on its own first-party games. The Xbox team aims to utilize AI to reduce the large budgets associated with blockbuster video games. However, this shift has raised concerns. Gamers are worried that using generative AI might affect the quality of games, while studio employees, many of whom have already faced layoffs, fear further job cuts.

Is Microsoft a Smart Investment?

Wall Street analysts are optimistic about MSFT stock, giving it a “Strong Buy” rating. TipRanks shows 29 recommendations for buying with just three hold ratings. The target price stands at $510.38, suggesting a potential increase of 23.05% from the current price.