The $1.8 Trillion A.I. Arms Race

Until recently, the speculation surrounding artificial intelligence had primarily been limited to Nvidia, which dominates the market for chips used for computing AI programs. However, the runaway success of ChatGPT, the fastest service to reach 100 million users in history, kickstarted an AI arms race, unlike anything we’ve seen before:

• Artificial Intelligence is all the rage and could become one of the decade’s fastest-growing trends. According to a report from Grand View Research, the global AI market is expected to grow by a compound annual rate of 37.3% between 2023 and 2030, ultimately reaching $1.81 trillion. This partly explains why big technology companies are ramping up efforts to dominate the space.
• Microsoft’s decision to invest $10 billion in OpenAI, makers of the chatbot sensation ChatGPT, has been a boon for investors. The stock jumped more than 12% in that period, adding nearly $250 billion to Microsoft’s market cap.
• While Microsoft has had early success with its investment, Alphabet (GOOGL) has struggled with its Bard chatbot, which sent its shares tumbling after the artificial intelligence service cost the company over $100 billion in market value.
• But it’s not just Microsoft and Google. As artificial intelligence revenue and research output soar, global competition between superpowers is heating up.
• The 2022 AI Index Report, published by The Stanford Institute for Human-Centered Artificial Intelligence in California, estimates that global private investment in AI totaled around $93.5 billion in 2022, more than double the total private investment in 2020. The U.S., China, and Europe took the largest share. Israel, Singapore, and Iceland have also invested heavily in per capita terms.
• From creating new text, art, video, audio, and code, generative AI will entrench technology into our lives more than ever. Companies that control these AI tools will be some of the richest for decades. While the top guns like Microsoft, Google, IBM, and AMD could take a large chunk of the market, other obscure companies have seen their share prices surge due to the AI frenzy. Learn more here.

• Stocks Little Changed as Hawkish FOMC Minutes Are Largely as Expected
• Now Is the Time to Buy This Mexican Underdog
• Unusual Call Options Activity in Antero Resources Shows Bullish Outlook
• FOMC Minutes Could Reveal Hawkish Fed Details