CHATBOT COMPANIES TO INVEST IN SOFTWARE

That said, there is no reason to believe these platforms will replace traditional search because search engines allow people to interact with the internet directly instead of having their experience filtered through a chatbot.įurthermore, as the owner of the world's two largest websites, Google and YouTube, Alphabet has access to a vast amount of data to train AI models.

Generative AI will disrupt Alphabet's search business because it can fulfill a similar role of answering customer queries.

CHATBOT COMPANIES TO INVEST IN SOFTWARE

Its Google chatbot Bard underwhelmed some early observers, but investors seem to be underestimating the company's long-term potential to dominate the software side of the industry. With Alphabet up by just 16% year to date, the market might be overlooking its AI potential. But you get what you pay for, and Nvidia is already a clear winner in the upcoming AI arms race. And this likely contributes to its high valuation multiple of 60 times earnings. Nvidia's picks-and-shovels strategy shields it from some of the competition and uncertainty involved in building a consumer-facing AI platform to rival ChatGPT. The soaring interest in building AI platforms led to a surge in demand for these products, which can sustainably boost Nvidia's revenue and profits. And instead of letting rivals catch up to its technological lead, the company has already developed a successor called the H100, which can train AI models nine times faster and infer data 30 times faster, according to tech magazine Venture Beat. OpenAI trained its ChatGPT chatbot with thousands of Nvidia's $10,000 A100 chips.

Chatbot companies to invest in