Investing in artificial intelligence looks promising. A.I. can solve complex problems, but it is itself quite complex for ordinary people to grasp. A broad consensus suggests that it is the next technological and economic revolution, just as machines were for the industrial revolution. A wise investor would certainly want to be part of this adventure!
But the average investor doesn’t always have time to immerse himself in the multitude of companies that are making the news about artificial intelligence. It would also be necessary to deepen the concepts of Machine learning, Deep learning, Computer vision etc… So, how to benefit from the market of artificial intelligence which promises to be gigantic with 4000 billion dollars from 2022?
Investing in artificial intelligence companies
The Startuppers Club has good news for you, investor friends! Artificial intelligence stars are currently quite well known. They are Google (Alphabet), Microsoft and Amazon! Indeed, each of these companies have important ambitions in the field and are well placed to take the lion’s share. Finally, these stock market values have the advantage of not being too risky because their activity is quite diversified and does not show signs of fatigue, on the contrary!
GOOGLE under the NASDAQ code: GOOG
Google, now renamed Alphabet to encompass all its services, is at the forefront of AI. We all know about Google Cars and other crazy projects that use artificial intelligence. But in September 2018, Google opened a new fundamental research center in… Paris! Sundar Pichai has inaugurated this new entity by committing to recruit 1000 employees including at least 25% engineers.
In addition, we note that Google has made startup shopping its favorite activity, and AI is no exception to this strategy! The purchase of Deep Mind, a British startup specialized in the field, for 628 million dollars can only reinforce the hegemonic position of the Empire. It’s a bit like Alphabet spotting the nuggets in the sector for you and buying them, functioning as an investment fund for you! This value is therefore to be favoured, especially for a neophyte!
MICROSOFT under NASDAQ code: MSFT
It is no longer a secret that Satya Nadella, the CEO of Microsoft, is planning to turn to artificial intelligence. The partnership with INRIA for applied research in AI has been renewed; this alliance will be able to develop patents and create innovations later on. The partnership also focuses on supporting cutting-edge startups in the field. Here again, Microsoft can act as a research head to uncover the best nuggets in the sector. The company has even developed a specialized incubator in Paris: the AI Factory. This incubator is located at Station F (one of the capital’s top 5 incubators and the largest) and complements the Bizsparck programs.
If you are also tempted by the association – investors are not just venal creatures – you should know that Microsoft is investing 40 million for humanitarian purposes. Indeed, this sum will be allocated to projects that use artificial intelligence to find the solution to the problems of Humanity!
AMAZON under NASDAQ code: AMZN
Amazon is our darling at Statuppers Club! The company lives for artificial intelligence. There is no AI department in the company. Every department in the company has an AI component to innovate. Machine learning technology has been used by the product recommendation team to improve the customer experience for a long time! Everyone knows this example.
But let’s take Amazon Go stores that don’t even have a checkout. The company has benefited from the wealth of data to track buying trends and customer behavior to refine the strategy. In return, the data gathered from the experiments in the physical stores will enable the learning machine department to make further progress. The virtuous circle for refining intelligence is set in motion!
And Jeff Bezos is offering to make his services available via AWS (“Amazon Web Services”), which could eventually give him a leading position in the market. Similarly, the company shares some of Alexa’s artificial intelligence capabilities with other companies such as Liberty Mutual and Capital One.
Investing in chip vendors, the NVIDIA alternative approach
Rather than or in addition to buying shares in companies developing AI, one may want to buy shares in the company providing the hardware. During the gold rush, shovel salesmen were the first to make a fortune after the gold rush.