5 Most Valuable Generative AI Companies In The World

5 Most Valuable Generative AI Companies In The World

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Whether you’re a plumber, secretary, lawyer or construction worker, artificial intelligence (AI) needs no introduction. It is very unlikely that you have not heard or read about AI technology and some of the tech giants driving generative AI solutions into the future.

Generative AI models are pushing the boundaries of what's possible. Through machine learning and large language models (LLMs), we can streamline large-scale functions, such as content creation, music production, essay writing, summarising vast amounts of data, performing complex calculations, improving customer experiences, and much more.

But who are the key players driving this cutting-edge revolution?

1. Nvidia (Nasdaq; Ticker: NVDA)

Following another record high of $130.69 for Nvidia, the AI chipmaker, with a workforce of around 30,000, is now the most valuable company in the world based on market capitalisation (US$3.335 trillion), surpassing fellow tech giants Apple (AAPL) and Microsoft (MSFT).

Nvidia is up nearly +200% on a year-to-date basis.

While Central Processing Units (CPUs) specialists Advanced Micro Devices Inc. (AMD) and Intel were the go-to companies for chip makers for many years, Nvidia focusses its efforts on Graphics Processing Units (GPUs) for gaming and video. Since the onset of the COVID pandemic and the subsequent need for cloud-based computing, the company has created a strong strategic moat, controlling over 80% of the market share for GPUs!

2. Microsoft Corporation (Nasdaq; Ticker: MSFT)

With a market capitalisation of nearly US$3.317 trillion and a share price that recently refreshed all-time highs of $450.94, Microsoft is the second most valuable company in the world.

The company operates with more than 220,000 employees and is one of the most dominant players in the AI industry.

Microsoft has invested heavily in OpenAI technology and is collaborating with several companies to research and develop its AI products and services. The company recently launched Microsoft Copilot+ PCs to push AI into laptops. These will be available across major partners with Microsoft, such as Lenovo, Samsung, and Dell. Microsoft is also introducing two of its own as part of the Surface line.

3. Apple Inc. (Nasdaq; Ticker: AAPL)

Apple is the third most valuable company in the world by market capitalisation (US3.285 trillion); investors recently cheered the launch of Apple Intelligence or ‘Apple AI’, consequently lifting the company’s share price to record highs of $220.20.

According to a press release on 10 June, Apple AI is ‘the personal intelligence system that puts powerful generative models at the core of iPhone, iPad, and Mac’. The press release added that Apple AI will allow users to communicate more effectively across various settings, such as mail and third-party apps.

Whether the launch of Apple AI will continue to underpin the stock remains to be seen. Some are concerned that an iPhone older than about a year is incompatible with Apple AI; it must be an iPhone 15 Pro or iPhone 15 Pro Max. However, for any Mac user, you only need a Mac newer than 2020 to use the service.

4. Alphabet Inc. (Nasdaq; Ticker: GOOG, GOOGL)

Alphabet (Google) is the fourth most valuable company by market cap (US$2.171 trillion) and is also widely involved in the AI industry.

Recent news saw Google announce the release of its latest Gemini model: Gemini 1.5, which operates with a huge context window that allows users to tackle more complex and broader problems, including translations and coding.

Google’s LLM offers features like ‘Ask your Photo’, whereby your entire database of photos is scanned to help answer questions, such as what your car licence plate number is or when your first child began school. Another feature is AI assistance in Gmail, which aims to simplify writing and search tasks for users. Google Bard’s AI chatbot can now answer questions based on information in your Docs, Gmail and Drive.

5. Amazon.com Inc. (Nasdaq; Ticker: AMZN)

According to market capitalisation, Amazon is the fifth most valuable company in the world (US$1.902 trillion). Most people using Amazon products have already been exposed to Amazon AI-powered products and may not even know it.

If you have Amazon’s Alexa at home, you are already experiencing how this LLM operates and enjoy more natural, easy-flowing conversations with Alexa. Amazon has also rolled out generative AI to help advertisers create more thought-provoking and engaging advertisements. This, as well as being able to pay with the palm of your hand and making prescriptions easier to read, seems to be just the beginning of Amazon’s leap into generative AI.