AI – New Tech, Same Players
March 10, 2023
Miles Savitz, Junior Associate
ChatGPT, along with a few other innovative AI technologies, has enthralled the world with its sophistication, and it appears we may be entering a new age of AI technology. AI technologies are not new, but the speed ChatGPT was adopted by users after its launch has not been seen before. However, the tech giants in the US and China are the companies best positioned to benefit from these innovative products. Microsoft, the partial owner of ChatGPT, has already experimented with implementing a newer version of ChatGPT into its search engine, Bing. Some kinks are still to be worked out, but the introduction of ChatGPT has scared Alphabet, the firm currently dominating the space, to speed up its implementation of AI into Google.
AI will move us to a new era of digital computing, where humans are no longer needed to make decisions. Instead of the old model of computers as an instrument for humans, AI will allow computers to make their own decisions and work alongside humans. These new technologies will permit companies to process the tremendous amount of currently collected data. AI will lead to greater efficiencies across the economy, with many jobs becoming obsolete. It will also lead to a new wave of content generation. AI can already produce reliable audio, visual, and written content (as ChatGPT has demonstrated). Over time all of this will only improve as these AI technologies learn. AI will lead to efficiencies and create numerous new business opportunities.
The companies with the most data and resources to invest in new projects are the best set up to benefit from this new era. Google, Alphabet, Microsoft, Meta, Nvidia, and Apple are the U.S. companies with the resources to invest in AI. In East Asia, Alibaba, Tencent, Samsung, Huawei, and Baidu are poised to take advantage. The creation and maintenance of models have high fixed costs because of the computing power needed, which these large tech firms already have. The more complex an AI is, the more computing power is required. The companies that posse the most computing power will be able to produce the most revolutionary technologies. These firms understand that they must keep up, or their competitors will leave them behind. The big tech companies that can create and implement these new forms of AI into their operating business will be the winners in this new era.
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