BUZ INVESTORS Artificial Intelligence War A war is brewing in Silicon Valley, but not with guns and ammo.
This is a conflict of software code; of cutting-edge technology. Companies like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN) are already locked in an arms race for supremacy in “AI.” (More on that later.)
Some of you may be rolling your eyes. I know artificial intelligence companies sound like science fiction, but it’s real, and what’s more, it is the biggest investment opportunity of the century. This is not an exaggeration.
No, I haven’t fallen down and hit my head on something hard. Investors should definitely keep an eye out for artificial intelligence stocks in 2017. AI is the new fountain of wealth, because it can be retooled for almost every industry.
Artificial intelligence is software that learns and adapts to new information.
It is designed around ideas like deep learning and neural nets. Although that list is not exhaustive, it is the simplest way of defining AI. At least from a technical perspective. Perhaps the technology is easier to understand if we talk about AI’s applications.
Tech companies have already mastered Narrow AI, so this article will mostly center on the potential of those developments.
In Narrow AI, programmers design a piece of software that works at a very specific task. Playing chess, trading stocks, recommending movies. Whatever the case may be, there is usually a Narrow AI to make the software improve and learn on its own accord.
Even the titans of artificial intelligence—Google, Microsoft, and Amazon—haven’t mastered General AI. To put it simply, this form of AI would be as smart as a human. Not just for one specific task, but for everything. You could say that General AI is the next milestone for artificial intelligence companies.
This type of AI gets much closer to the dystopian vision of the future. There are experts who worry that an algorithm at Google, Amazon, or Microsoft will grow smart, 1000 times smarter than the average person. They worry that it will become a Super AI.
I know this is hard to imagine, but the GOOG stock price is trading at a discount. Investors are only placing a premium on the company’s command of digital advertising revenues because that is how Google built an empire. 99% of its revenues still come from advertising.
However, Google has some of the best AI researchers on the planet, most whom it acquired through the $600.0 million purchase of DeepMind. It bought the AI startup in 2014, and it may be the smartest acquisition ever made.
While Google and Amazon have huge, consumer-facing businesses, Microsoft sells to other corporations. Sure, many of us buy licenses for Microsoft Office, but it’s still work or school related. Our interaction with Microsoft doesn’t have to be fun.
Our lives are on the brink of massive change, yet so few people are willing to accept that. That’s why they’ll miss out on artificial intelligence stocks in 2017.
Artificial intelligence is not a vague concept we picked up from a science fiction novel. It is the single biggest technology trend since the Internet, and the money-making potential is huge
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