When tech startup OpenAI launched its conversational chatbot ChatGPT just over two months ago, the company kickstarted a multi-trillion-dollar AI Revolution that promises to forever change the world as we know it.
The company also started an all-out war between today’s tech giants.
The reality is – love ‘em or hate ‘em – Big Tech companies are not stupid. Most importantly, they understand the huge potential impact of AI.
They know it will change everything. And they understand that the AI Revolution will mint a whole new class of winners and losers in the business world.
Microsoft (MSFT) knows that whoever best applies AI to cloud computing and creates the best AI-as-a-Service products will dominate the $500-billion-and-growing global public cloud market.
Amazon (AMZN) knows that whoever best applies AI to shopping and creates the most personalized AI-powered online shopping experiences will dominate the $5-trillion-and-growing e-commerce market.
Alphabet (GOOGL) knows that whoever best applies AI to search and creates the most human-like AI search engine will dominate the $200-billion-and-growing global search engine market.
Tesla (TSLA) knows that whoever best applies AI to automobiles and creates the best self-driving vehicles will dominate the $3-trillion-and-growing global automotive market.
Why else do you think all these firms jumped on the AI bandwagon right after ChatGPT was launched in November?
Fueling the AI Wars
Indeed, since ChatGPT’s launch:
- Microsoft invested $10 billion into OpenAI and released a new version of Bing Search that includes ChatGPT technology.
- Alphabet launched its own ChatGPT competitor, Bard, and infused it with its Google Search engine.
- Baidu – China’s version of Google – introduced its own chatbot competitor.
- Alibaba – China’s version of Amazon – launched its ChatGPT competitor.
- Tesla CEO Elon Musk publicly said on a conference call that his firm is “one of the world’s leading AI companies.”
- Apple announced its first-ever, employee-only “AI Summit,” where the company will discuss its plans for AI development together.
All that – in just two months.
Not only has the AI Revolution begun, but so have the AI Wars.
A Revolution in Overdrive
Make no mistake. There will be multiple winners in the AI Wars – the best AI commerce company, the best AI cloud company, the best AI advertising company, the best AI transportation company, etc. And those winners will turn into the future rulers of the world.
If you think the internet titans of today are big, just wait until you see how big the AI titans of tomorrow get…
PWC estimates that AI will contribute nearly $16 trillion to the global economy by 2030. We think that number could march toward $50 trillion by 2040.
It reasons, then, that the world’s largest AI companies will potentially be $5- or even $10 trillion enterprises.
Apple is the world’s largest publicly traded company today. It’s worth $2.4 trillion.
The AI Revolution represents an opportunity to create companies worth 2X to 5X as much as the world’s current largest firm.
No wonder everyone is scrambling for a piece of the pie. No wonder Big Tech firms are going to war over this tech.
They need to master AI in order to defend their turf.
If Alphabet doesn’t create the best AI-powered search platform, it won’t be the world’s most used search engine in 10 years.
If Amazon doesn’t create the best AI-powered e-commerce platform, it won’t be the world’s largest retailer in 10 years.
The stakes are high. So are the potential rewards.
The Final Word on AI stocks
That’s why we are not shying away from the AI Revolution in 2023. Some pundits are calling this a bubble, like cryptos in 2021. Others are calling it the beginning of an iRobot-like apocalypse.
It is neither.
Instead, it is the beginning of the next world-changing technological transformation.
And if history teaches us anything about these transformations, it is that they have the potential to mint millionaires and even billionaires.
Who are the world’s richest people?
Tesla CEO Elon Musk. Amazon founder Jeff Bezos. Oracle founder Larry Ellison. Microsoft founder Bill Gates. Former Microsoft CEO Steve Ballmer. Google founders Larry Page and Sergey Brin.
All made their fortunes in the last world-changing technological transformation: the birth of the internet.
The AI Revolution is an enormous opportunity. Not a bubble or a crisis.
We intend to fully capitalize on it, both by buying the best AI stocks in the market and by figuring out how to use AI to pick the best stocks.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.