Major tech companies like Microsoft, Google-parent Alphabet, and other Big Tech companies are set to go into battle for a massive prize with the title ChatGPT sparking an AI arms race to capitalize on a $800 billion market opportunity, according to Wedbush. Managing director and tech specialist at the firm, Dan Ives, said that AI is in the midst of transforming Bing, Azure, and other important Microsoft businesses.
The huge potential of AI for businesses over the next decade has been estimated to be worth $800 billion, and tech giants have spent aggressively to get as much of this pie as possible. AI’s soaring popularity this year has become one of the major stories of 2023, with investors like Bill Ackman and Stanley Druckenmiller pouring into AI-related Big Tech stocks.
Microsoft is taking the lead in this battle, having already invested $13 billion into ChatGPT creator OpenAI and implemented intelligent language bots into some of its operations. This large first-mover advantage gives the tech giant an advantage in the race, as all corporations look to properly monetize their lines. Ives believes this will be a massive transformation for the company, in terms of both Bing and Azure.
OpenAI is a non-profit AI research company, established in 2015 by entrepreneurs Elon Musk and Sam Altman. The organisation is focused on the development of artificial general intelligence (AGI) and pioneering the development of safe AGI, which can benefit humanity. OpenAI’s mission is to ensure that AGI technology is developed and deployed securely, and to advance digital intelligence in the way that is most likely to benefit humanity. OpenAI specifically looks for safe and ethical outcomes in the development of its AGI technology. With Microsoft’s help, OpenAI is at the forefront of the AI arms race to innovate revolutionary AI initiatives for use in the corporate world.
Dan Ives is a managing director and tech specialist at Wedbush, a Los Angeles-based financial services and securities broker-dealer. He focuses on covering the software and hardware industry, providing industry insight and analysis to institutional and retail investors. Ives is highly regarded in the industry, having correctly interpreted the tech industry environment and developments, and has correctly predicted some of the biggest tech industry trends. He believes that this AI arms race will be the defining battle of the next decade, with many corporations and smaller players spending billions to gain market share.
