Alphabet and Meta Race to Lead AI Transformation
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Alphabet is incorporating AI into Google Cloud to provide a one-stop shop for enterprise data and AI training needs. This builds on its existing advantage, with 70% of AI startups using Google infrastructure.
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Meta Platforms' share price has surged over 170% in the past year due to its pivot to focus more on generative AI. This could optimize ads and improve consumer apps.
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Meta is adding conversational AI to apps like Instagram and WhatsApp to maintain user engagement and generate valuable customer data.
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Both Alphabet and Meta have potential economic moats from their massive troves of user data to train AI models.
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The AI landscape will likely become increasingly competitive, especially on the software side. Alphabet and Meta seem well-positioned to see market-beating growth.