Artificial Intelligence is an increasingly impactful element in our world and will continue to have an impact on our world financially. In an effort to keep you informed on the AI space, this series of posts will do a deep dive into this and connect its significance to your financial life.
Artificial Intelligence (AI) has become part of our daily lives, in small and big ways, changing industries and redefining the boundaries of technological capabilities. From healthcare and finance to entertainment and education, AI’s transformative power is unmistakable.
In our previous post about AI, we referenced some foundational information about Artificial Intelligence and we discussed, at a high level, why you should pay attention to this emerging technology. Now the question is “what’s next” – as an investor, understanding how to navigate the AI landscape is crucial to capitalizing on its potential.
Access our FULL LIST of the “17 Best AI Companies to Invest in Right Now”
Defining the Landscape
The AI ecosystem involves a range of applications and technological categories. Understanding these distinctions is essential for investors as it provides a clearer picture of the diverse opportunities within the AI landscape.
There are 9 main categories companies fall into within the AI ecosystem. We’ve defined them here and then we’ll apply these categories to specific companies to give you a sense of how they work together.
- Cloud Providers – they offer platforms that enable scalable AI and machine learning services, essential for processing vast amounts of data and deploying AI applications.
- Design – these companies create the underlying architectures and semiconductor designs critical for AI processing capabilities in various devices.
- Fabless – these chip makers design and market semiconductors for smartphones, computers, medical devices, and many other electronic devices. They decide how to assemble and market the semiconductor chips but don’t fabricate (fab) them—hence they’re fabless. That task is outsourced to a foundry specializing in the highly sophisticated and capital-intensive work of producing them.
- Foundry – foundries are producers of highly sophisticated semiconductor chips.
- Manufacturing – these companies supply the equipment and technologies necessary for producing high-performance AI chips.
- Memory – these companies provide the storage solutions that support AI’s need for rapid data access and processing.
- Security – this category of companies enhance AI-driven cybersecurity measures to protect data and infrastructure.
- Servers & Networking – these companies supply the hardware and networking solutions that support AI data centers and cloud infrastructures.
- Utilities – these companies use AI to optimize energy production and distribution, contributing to more efficient and sustainable operations.
Identifying Top Companies
Now that we have a grasp of the types of companies involved in the AI ecosystem, let’s dive a little deeper into the top companies involved.
Access our FULL LIST of the “17 Best AI Companies to Invest in Right Now”
You’re definitely familiar with these four giants. They are all part of the Cloud Provider category and are heavily involved in day to day lives including work and play:
Amazon (AMZN) is a major player in the development of AI, primarily through its cloud computing platform, Amazon Web Services (AWS), which offers a wide range of AI and machine learning services.
Google (GOOGL) is deeply involved in AI research and development, leveraging its expertise through Google Cloud AI services, AI-driven search algorithms, and autonomous technologies like Waymo. Google’s AI subsidiary, DeepMind, is also at the forefront of advanced AI research.
Microsoft (MSFT) is a key player in AI with its Azure cloud platform, providing extensive AI and machine learning tools and services. The company also integrates AI across its software products, including Office 365 and Windows, enhancing user experience and productivity.
Oracle (ORCL) integrates AI into its cloud services and enterprise software solutions, enhancing data analytics, automation, and predictive capabilities. Their AI-driven applications aim to improve business operations and decision-making processes.
Additionally, you’re probably familiar with this company as well for its contribution in the category of Servers and Networking.
Cisco System (CSCO) leverages AI to optimize network operations, enhance cybersecurity, and provide intelligent solutions for data centers and IoT environments. Their AI-driven technologies improve connectivity and operational efficiency.
You may not be familiar with this company in the category of Utilities:
Vistra Corp (VST) uses AI to optimize energy production and consumption, manage demand response, and improve operational efficiency. AI helps them predict and respond to energy needs more effectively, enhancing their ability to provide reliable and cost-effective energy solutions.
But what about companies that provide chips (both Fabless and Foundry), Design, Memory, Security and more?
Need Additional Support?
Rely is here to help you navigate the complexity of the AI landscape and the potential impacts it can have in your financial future. Reach out to us to set up a call to discuss what your next step might be.
