Open AI, Microsoft, Google, and Meta locked in the race for artificial intelligence supremacy. Are you thinking about investing in AI technology?
We’ve been waiting and fantasizing about it for generations. Hundreds of sci-fi books, images, and movies have done nothing but boost our curiosity, eagerness, and impatience for a technological leap that wasn’t just new, useful, and exciting but also revolutionary.
The World is now so used to and reliant on the internet and the vast array of smartphones, smart TVs, smart homes, and smart everything to make the average American feel outsmarted by his own (smart) fridge. News of technological progress in science, medicine, engineering, entertainment, communication, and energy all feel new and important but maybe not quite revolutionary in the “BIG sense”.
Well, this might be different.
There is something about Generative AI that is seducing people and companies across the world into believing the technology to be absolutely all-changing.
In the following article, we’ll learn a bit more about Generative AI technology and we’ll find out:
- What it is
- Who is creating it, improving it, and investing the most in it
- The companies’ stocks that could represent the best opportunities for investing in AI technology.
Times have changed
I’m writing after growing up as a teenager in a generation that was confident that, by the year 2000, it would have seen people using electric flying cars to commute to work and humanoid robots doing all the house chores, babysitting the kids, going out for grocery shopping while also taking the dog for a walk and… (well… a lot of other things only a teenager could think of).
Yes, sure, some of the expectations have been let down so far (although definitely not for a lack of trying). Yet, it can hardly be denied that the 21st century is a highly technological one. Everyday life would seem almost impossible without the technology and gadgets that were not at all common just 30 years ago (if they even existed). Medicine, science, military, entertainment, information, education, energy, personal care, design, architecture, manufacturing, food processing, construction, and sport have all been massively affected by technological discoveries, inventions, and applications. In fact, it would be impossible to name an industry or aspect of life that hasn’t.
No, I won’t see any flying cars if I look out of my window but if I look back instead, I can see and wonder at how far we’ve come.
A.I. (Artificial Intelligence)
For decades, ultra-sharp minds and well-founded companies have worked both in front and behind the scenes, and theirs is a success story that continues and will continue in the future.
We all learned to get used to the presence of AI technology in different aspects of our lives. Chatbots, for example, have become the norm in most internet websites’ help and support pages as well as on all search engines. It’s enough for us to start typing the beginning of a sentence, for the AI to be able not just to predict the rest of it but also to offer alternative possibilities.
This type of A.I. works by elaborating the always-growing amount of data entered by the programmers (just as any computer) added to the ability to “learn” new data by interacting with creators and users alike. A.I.
AI is able to learn and recognize our favorite music or movie genres based on what we usually listen to and watch. It’s also able to suggest other songs and movies that we might like. It learns which products and services we are most likely to be interested in and presents us (bombard us, more like) with specifically targeted advertisements.
One type of AI – the Conversational A.I. – is now very commonly used in gadgets such as Amazon’s Alexa, Apple’s Siri, and Google’s Google Assistant. It recognizes our voice and understands our words which allows it to comply with verbal instructions given to it.
But apart from the mundane, AI is also used to suggest probable diagnoses for patients in hospitals, to predict and anticipate enemies’ missiles’ trajectory on the battlefield, and also for things such as recommending the most appropriate spot to build a school in urban architecture.
The applications for AI are, in other words, countless and companies are still discovering and creating even more.
It is the ability to learn from new interactions and to use the information learned that, only a few years ago, made AI technology new and different and that allowed it to be incorporated in pretty much every aspect, industry, and sector of the market.
Generative AI though… is on a new level altogether!
What is Generative AI?
Generative AI is the newest leap in AI technology.
Where AI has the incredible ability to “improve” itself and its original programming through learning, Generative AI is capable of generating new data by recognizing patterns in existing data. In other words, Generative AI doesn’t just learn new data, it creates it.
In November last year, Open AI, one of the major players in the AI technology market, launched its newest (and world-first) Generative AI algorithm, ChatGPT, and the World felt immediately a little different.
It was left to ChatGPT – the AI – to introduce itself and explain its potential applications to the public and this is what it said of itself:
“Ready to take your creativity to the next level? Look no further than generative AI! This nifty form of machine learning allows computers to generate all sorts of new and exciting content, from music and art to entire virtual worlds. And it’s not just for fun—generative AI has plenty of practical uses too, like creating new product designs and optimizing business processes. So why wait? Unleash the power of generative AI and see what amazing creations you can come up with!”
Generative AI algorithms are now able to create original music and painting. They are able to artistically illustrate things described to them verbally. They can write novels and make movies. NetDragon, a Chinese video game firm has even made a Generative AI called Tang-Yu its CEO with the task of supporting decision-making across the company (and by the way, the Company share price went to the roof as soon as the news was released).
There is certainly a great deal of speculation about the future effect of Generative AI in the labor market and creative arts but we shall leave that discussion for another day. For now, we’ll focus on making the best of the investment and trading opportunities that Gerative AI technology can offer to us today.
Trading and Investing in AI technology
Currently, it is OpenAI that sits comfortably at the top of the artificial intelligence technology chain. Its InstructGTP, ChatGTP, and Dall- E2 algorithms have completely changed the rules of the game and the pace of the race.
OpenAI is an American artificial intelligence research laboratory founded in 2015 by Elon Musk, Ilia Sutskever, Greg Brockman, and Sam Altman with the declared intention of promoting and developing a friendly AI. It is a private company with no stock traded on the open market. It’s not possible to invest in OpenAI but a possible future IPO is definitely something to look forward to.
Not to worry though, for traders and investors interested in investing in ai technology, the opportunities are plenty for there are a number of other large companies that are working in and are heavily invested in AI.
These, for example, are all well-known companies in the US, that are running and investing in new Generative AI technologies (…whilst also doing what they are so well known for, of course):
Microsoft is directly involved in a partnership with OpenAI itself; a partnership in which it invested billions of dollars.
The company has helped OpenAI develop ChatGPT and has already incorporated AI into its search engine Bing, its internet browser Edge, and its flagship-software Microsoft Office 365.
In 2022, Google’s Generative AI algorithm, LaMDA LLM, went as far as to convince an engineer of being sentient. He then went and exposed the fact online, naturally, creating much controversy and debate.
Google Cloud has also launched Generative AI products that offer its customers the ability to create GenApps (Generative AI applications).
Alexa and Amazon Lex have given testimony to Amazon’s interest (and huge investment) in AI and now, eager not to be left behind in the Generative AI technology race, it has partnered with Hugging Face, a startup working on creating a worthy ChatGpt’s rival.
Meta has been directly working and investing in AI for at least 10 years with its attention more focused on finding possible applications than on creating and improving the technology itself. However, Meta did create LLaMA, a new set of foundation language models for AI.
After co-founding OpenAI, Elon Musk has decided to found a new startup called XAI Corp with the primary intention of creating a new alternative to Chat GPT after complaining that AI technology is being programmed to be overly politically correct.
Ever since OpenAI’s ChatGpt was released, it seems, any company with AI on either its name or its mission statement, has seen its stock rise.
Some traders are already talking about a dot-com-style bubble. Some are looking forward to what they call “a once-in-a-generation opportunity”. Whatever you decide to do and whatever direction you decide to take, remember to do your own research first.
May the odds be in your favor.
Hope this helps.
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