Big Tech Is Spending Billions on AI Research. Investors Should Keep an Eye Out

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Big tech is throwing massive amounts of money at AI research that gets relatively little publicity. A savvy investor will pay close attention.

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In contrast, S&P 500 companies spent an average 2.82% of revenue on R&D, according to Morningstar Inc., which calculated a revenue-weighted average for index constituents in each of their latest fiscal years. Facebook parent Meta occupies the lane in the AI race dedicated to scaling data and computing power. Deep learning is a form of AI designed to mimic aspects of human neurons. It took off in 2010 when the ImageNet project proved it was possible to use two GPUs developed by Nvidia to train a large AI model to recognize labeled images, said Kyunghyun Cho, a co-founder of the startup Prescient Design and an associate professor of computer and data science at New York University.

Meta said its AI Research SuperCluster houses 6,080 Nvidia GPUs at present, a number that will rise to 16,000. The computing power will be used for language-processing and computer-vision research, with an eye toward creating the immersive world the company calls the metaverse, said Shubho Sengupta, a software engineer involved in the project.

 

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