Investors closely monitor the race for dominance in the generative AI market, which will require investment and commitments.
“Everyone is focused on AI right now. And everyone’s trying to outmarket and out-hype everybody else. And there’s room for a whole lot of players.” The parent company of Google, the world leader in online advertising, saw its profit jump 42% in the third quarter to nearly US$20 billion — well above market estimates.
Generative AI, considered by many observers to be a seismic change similar to the advent of the internet age, is based on AI systems called large language models.Microsoft — a major investor in OpenAI — along with Google and Meta have trained their own models. US chip giant Intel has been working to catch up with its rivals, especially Nvidia, when it comes to powerful chips needed to handle AI’s processing demands.
“It’s still complicated to actually figure out which models you want to use … and trying to make sure you have the right results” while keeping costs in check, said Amazon CEO Andy Jassy.