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Artificial Intelligence, also known as AI, refers to the technology that uses computers to simulate human knowledge and learning abilities. Although AI has been a hot topic for many years, the launch of ChatGPT has garnered broader attention among the public. ChatGPT (full name: Generative Pre-trained Transformer) is an AI chatbot launched by OpenAI. OpenAI was co-founded by several well-known figures in the tech industry, such as LinkedIn founder Reid Hoffman, Elon Musk, and PayPal co-founder Peter Thiel.
Although ChatGPT is still in its prototype stage, users are attracted by its deep knowledge across multiple fields and detailed answers. How impressive is it? ChatGPT has passed medical licensing, MBA operations, and bar exams, and it will continue to improve.
Next, let's take a look at five companies at the forefront of the AI revolution:
Microsoft: As early as 2019, Microsoft provided $1 billion in funding to OpenAI, the developer of ChatGPT. After the successful launch of the ChatGPT prototype, Microsoft recently announced plans to invest an additional $10 billion over the next decade. At the same time, ChatGPT has transitioned from a free service to a "freemium" service, where the basic version is offered for free, but paid users can enjoy faster response times and availability during high load times for a fee of $42 per month. Microsoft's Azure is the primary cloud service provider for ChatGPT. Microsoft CEO Satya Nadella confirmed the company's commitment to AI during the company's earnings call, stating: "We are committed to helping our customers harness our platform and tools in the AI era to achieve more innovation with fewer resources." This news initially drove the stock price up by 5%.
Nvidia: Although AI has been applied for many years, its popularity has soared recently, which is closely related to public usage. What limited the development of AI at that time? AI platforms like ChatGPT require immense computing power to handle complex tasks. Nvidia is a leader in computer graphics processors and has been applied in various AI fields such as high-performance computing and virtual reality platforms. Nvidia's competitors, such as Intel and Advanced Micro Devices, will also benefit from this.
Alphabet: Google's parent company Alphabet is currently the company with the widest application of AI in business. Alphabet uses AI to:
- Optimize its search engine Google.
- Manage YouTube video content that violates policies.
- Leading its autonomous driving division Waymo.
- Transforming image data into actionable insights at its Bots company, Boston Dynamics.
Tesla: Given that Elon Musk is a co-founder of OpenAI, Tesla will certainly not be absent from this list. Tesla's autonomous driving division is at the core of AI in practical applications. Tesla's autonomous driving system collects information using cameras, sensors, and GPS, and uses AI technology to quickly interpret the information and make decisions. The information used is not discarded but recorded for future applications. In other words, the more you use Tesla's technology, the smarter and safer it becomes.
The best choice for investors looking to specialize in AI and autonomous driving is Mobileye. Mobileye is a leader in the autonomous driving field and provides technology to automakers such as Nio Inc, Ford Motor Company, and General Motors. With the sharp increase in fatalities due to distracted driving, Mobileye and Tesla will continue to lead in this area. A few months ago, Elon Musk hinted that Tesla would launch a futuristic "Robotaxi," a ride-sharing service similar to Uber that does not require human drivers.
Intuitive Surgical: Just like driving, there are many areas where AI supporters believe machines handle better than humans. A typical field is minimally invasive surgery—where precision is crucial in this medical practice. Intuitive Surgical is best known for its successful "da Vinci" robotic surgical system, priced at $2 million. Currently, surgeons can manipulate the equipment to perform various complex surgeries from a console away from the patient. However, the company is leveraging AI to collect and organize data to improve future patient outcomes.
In the long run, stock value is driven by higher returns, which stem from innovation. Looking back at some of the biggest winners in the past few decades, Netflix brought streaming to the masses, making video rental stores unnecessary. Apple combined phones, computers, and cameras into one, fundamentally changing the mobile market. Therefore, investors need to start following the AI sector. Although this field is still in its early stages, with use cases being just the tip of the iceberg, given the success of ChatGPT, it is expected that more funds will flow in and more game-changing technologies will be launched in the future. Although there are currently only a few public pure-play companies, it is anticipated that new companies will go public and existing ones will generate more revenue from this revolutionary industry.