In this article, we will cover a list of 55 Artificial Intelligence Companies in USA. If you want to skip our detailed analysis, head straight to the top 10 Artificial Intelligence Companies in USA.
On 21st July 2023, seven major tech giants, including Alphabet Inc (NASDAQ:GOOG), Microsoft Corp (NASDAQ:MSFT), Meta Platforms Inc (NASDAQ:META), and Amazon.com, Inc (NASDAQ:AMZN) pledged a “voluntary commitment” to collaborate with the Biden administration to mitigate the risks associated with artificial intelligence (AI). Following a meeting with President Joe Biden, these companies agreed to focus on safety, security, and trust in AI development. This included subjecting AI systems to external testing for safety and capabilities, safeguarding against cyber and insider threats, and ensuring that AI does not promote bias or discrimination.
How Real is the AI Hype?
Whenever a new technology enters the market, investors deliberate its economic implications and its potential to augment corporate profits. The hype around Artificial Intelligence (A.I.) has now gained significant momentum which can be realized by the fact that it has contributed to a surge of nearly 40% in the Nasdaq Composite, in the first half of 2023.
While some analysts have coined this surge as an “A.I. gold rush,” there are contrasting perspectives. Some believe that investors might be preemptively optimistic about the valuation of A.I-related stocks. These cautious perspectives suggest that the anticipated A.I. boom might not unfold as projected, especially concerning stock market investors.
However, the analysts at Goldman Sachs present a differing view, contending that the hype about A.I. is indeed real. Kash Rangan, a software analyst at the bank, conveyed his viewpoint through an interview featured in Goldman’s latest publication, “Top of Mind.” Rangan stated, “A.I likely isn’t undergoing a period of unwarranted exaggeration. When there’s a unanimous consensus within the technology provider community that a genuine technological shift is taking place, it signifies an actual transformation. Furthermore, when customer interest starts to escalate, such enthusiasm shouldn’t be dismissed as mere hype. The growing interest from customers solidifies the authenticity of the trend.” To read more about the disruptions by AI, check out our article on Industries Being Revolutionized by AI.
How Important is Artificial Intelligence for Corporations?
While the threat of AI replacing humans for employment opportunities remains huge, there is not denying that the same AI has tremendous potential to boost the productivity and efficiency of corporations. In fact, a senior strategist at Goldman Sachs, Ben Snider, projects a 1.5% annual productivity growth over the next decade through A.I which can potentially lead to a 30% or higher boost in S&P 500 profits. To read about how AI can replace human jobs, check out our article about Jobs That Will Disappear in the Future Due to AI.
To exemplify, we can look at how NVIDIA Corp (NASDAQ:NVDA) has risen as a leader in AI by spearheading the development of specialized GPUs optimized for intricate AI computations. These GPUs, built with powerful parallel processing capabilities, are exceptionally well-suited for AI tasks. With a 95% market share in the GPU sector, NVIDIA Corp (NASDAQ:NVDA)’s dominance has become more than evident, as it empowers a number of AI applications with outstanding performance and efficiency.
Mairs & Power, an investment advisor, released “Mairs & Power Growth Fund” that commented in second quarter investor letter:
In fact, in Q2 2023, NVIDIA Corp (NASDAQ:NVDA)’s revenue leaped to $13.5 billion, a twofold YoY increase, driving its stock up 220% since the year’s start, with a market cap exceeding $1 trillion. The company’s specialized AI chips underscore its advantage, and thus, dominate 80% of the global market.Moreover, NVIDIA Corp (NASDAQ:NVDA)’s H100 chip which is vital for AI commands double its initial price due to high demand.
On the other hand, Microsoft Corp (NASDAQ:MSFT) is pioneering a transformative trend with its groundbreaking “Algorithm of Thoughts” (AoT) which signifies a substantial leap forward in AI training. By combining human cognition and algorithmic logic, AoT aims to enhance the reasoning capabilities of large language models (LLMs) like ChatGPT. This innovative approach, guided by in-context learning, streamlines problem-solving pathways which would result in faster and less resource-intensive outcomes.
With AoT, Microsoft Corp (NASDAQ:MSFT) envisions a more organized and systematic exploration of solutions, potentially surpassing the performance of the algorithms themselves. This marks a pertinent shift from traditional supervised learning methods to an integrated search process. As Microsoft Corp (NASDAQ:MSFT) drives this paradigm shift, it underscores their commitment to shaping the future of AI through innovative techniques that can revolutionize problem-solving across industries.