Earlier this month, the UK Government reported a record £2.9bn invested in British artificial intelligence (AI) companies in the past year, with average deal sizes of £5.9m. Still, this figure pales in comparison to the scale of investment by the major US tech giants.
Publicly available data shows just how heavily Meta, Amazon, Alphabet, and Microsoft have already poured into AI research and development this year. In fact, Amazon alone is on track to spend an estimated $100bn by year-end, making it the single largest investor.
Considering that arguably the most well-known generative AI chatbot, ChatGPT, launched less than three years ago in November 2022 and has already seen consistent updates, it is almost inconceivable to imagine the extent to which this technology could shape our lives – and the fortunes of AI creators – in the years ahead.
Still, with valuations already appearing stretched, an important question remains: do the stocks of these household tech names continue to make good investments? Following a recent visit to Silicon Valley, Sarasin analysts Ianjit Bhatti and Kwai San Wong share their perspectives on how AI is moving from “hype to hard deployment.” They argue that the AI opportunity is not just about the next viral app; it is about the infrastructure, security, and systems that enable widespread adoption. Read their article here.
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