Why the AI race may never have a clear winner
Jim Cramer coined the acronym FANG in 2013 to describe some of the most prominent companies in the tech sector – Facebook, Amazon, Netflix, and Google. He later included Apple in the group and expanded the acronym into FAANG. Others even replaced Netflix with Microsoft to make it FAAMG.
Today's generative-AI-obsessed world is betting big on MAMMA (Meta, Apple, Microsoft, Amazon and Alphabet) and MATANA (Microsoft, Apple, Tesla, Alphabet, Nvidia, and Amazon) stocks. Add OpenAI, Anthropic, and Hugging Face (OAH) to the acronym and it reads MATANAOAH or MATAAANOAH. Regardless of how you juggle these acronyms, it’s not wise to bet on any one company in the AI or generative AI race, simply because there are too many variables.
New partnerships, acquisitions and investments; the emergence of new, disruptive technologies; and global regulations can all stifle the growth of new technologies and prevent mega deals. Consider these developments. On 25 September, Amazon.com Inc.
said it would invest up to $4 billion in Anthropic, making it a minority shareholder in the company and catapulting it into the generative AI race, dominated by the likes of OpenAI, Microsoft, Google, Meta, and Nvidia. Anthropic was founded in 2021 by Dario Amodei and others who were previously involved in the development of OpenAI’s GPT-3 language model. It recently debuted its new AI chatbot named Claude 2.
Last year, Google invested over $300 million in Anthropic but the exact figure was not publicly disclosed. The investment gave Google a 10% stake in Anthropic and allowed the company to scale its AI computing systems using Google Cloud. It also allowed Anthropic to use Google’s infrastructure to train and deploy its AI models.
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