Artificial intelligence has swept the headlines this year since OpenAI debuted its ChatGPT service in late 2022. Yahoo Finance tech editor Dan Howley explains the directions tech giants are taking in 2023 to capitalize on the growing AI trend and enterprise adoption plans.
video transcript
– AI will undoubtedly be the word of the year 2023, and many find the new fad to be both exciting and terrifying. Students are now using it to write essays and companies are building its core infrastructure. Despite some major concerns, the new technology seems to be taking hold. He from Yahoo Finance will also be joined by Dan Howley, and especially in the first half of this year he will discuss why AI has taken the world by storm.
Dan Howley: That’s right, Rochelle. The big catalyst for this, obviously everyone will point this out, was the release of his ChatGPT on OpenAI in November 2022. That set in motion a chain of events that led the public to actually become aware of AI. I believe this is the first time that many people and companies are rushing to launch their own generative AI products.
That doesn’t mean that generative AI was invented by OpenAI. The transformer technology behind this was actually invented by Alphabet, which owns Google. However, they have lagged behind in terms of public perception of AI. And they’ve seen chatgpt progress and OpenAI progress with its technology, and they’ve been working on their own tooling in the background.
So in November 2022 we released chatgpt. In February, Microsoft announced new Bing and Edge browsers. Bing is obviously its search engine and chat bot. The day before, Google launched its own banned Bard chatbot. It didn’t actually start. It was just like, ‘Hey, we’re working on that, we’ll talk about the release later. They just wanted to throw water on Microsoft.
And there continues to be a steady pace of companies releasing, announcing, or discussing ways to harness generative AI. Whether it’s Meta or Amazon, we’ve been talking about getting into this space and adding it to various features. Microsoft went on and Alphabet kept talking about adding this to their various products, whether on the consumer side or the business side. And obviously, chip companies started jumping on it as a result.
As of yesterday, Nvidia is up 176% year-to-date. And then there are other AI companies. C3 AI. We are an AI enterprise company. That’s a 190% increase year-to-date. So it’s clear that this is a kind of AI boom. There are also companies such as Microsoft, which are up 37% year-to-date. They’re kind of trying to take over the search realm and become some kind of big player. And Google is up 34% year-to-date. All these numbers are as of yesterday on the news of that kind of effort in AI.
And besides NVIDIA, in terms of chips, AMD has also entered this space, or is even more active in this space. It increased by 69% in the first half of this year. So many of these companies are talking seriously about how they use generative AI, or how they are working to benefit the field and the players in that space.
And they seem to discuss the pros and cons. Misinformation, disinformation, people talking about copyright, works used to train these models. Non-stop since the new year. And indeed, if he can talk about one big theme for 2023, which he’s only seven months into, it has to be AI.
– That’s right. It was a hot topic at every earnings release. We’ll see if investors make an effort to get concrete information from some of these companies about how they plan to take advantage of it further. There is some great stuff out there. Thanks for the update. Our very own Dan Howley.
