IT Majors Joining AI Bandwagon
By Shikha Singh
Tech behemoths including Alibaba to Amazon to Microsoft, are racing to become the world leader in artificial intelligence (AI). These companies are pioneers of AI and are embracing this technology to deliver cutting-edge goods and services.
Alibaba is using AI to pre-empt consumers next purchase order, while Google parent Alphabet acquired DeepMind, to emphasize its commitment to deep learning and to enforce its dream project – the driverless or a self-driving taxis.
Similarly, Amazon, Apple, Baidu, Facebook, IBM, Infosys, JD.com, Microsoft, Nvidia, TCS, Tencent, Wipro, and host others have either initiated or have outlined steps to foray into generative AI technology space.
As the race is on for the next big idea to capture/engage users on the go, the buzz being created by ChatGPT, the warning signals are being raised.
Bank of America (BofA) has warned that Federal Reserve may burst AI Bubble, but many market watchers are not buying it.
BofA believes that artificial intelligence, as this year’s new investment craze, is in a baby bubble. But if the Fed makes a policy mistake, the AI bubble could burst like the dot-com bubble in the early 2000s.
With the launch of ChatGPT at the end of last year, the enthusiasm of the global market for the prospect of artificial intelligence was ignited in one fell swoop, and artificial intelligence-related companies were also favored by investors. AI is currently in a “baby bubble,” Michael Hartnett, chief investment strategist at BofA Global Research, wrote in a note.
Last month, the Fed raised its benchmark interest rate for the 10th time in a row to ease inflationary pressures. However, the Fed is widely expected to pause rate hikes at its next meeting in mid-June. BofA warned that if the Federal Reserve made a mistake in its current policy decisions, it is very likely that the artificial intelligence bubble will repeat the history of the dot-com bust.
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