Is AI the key to the treasure box?
Recently AI has been dominating the news. People can’t stop talking about it and companies are chomping at the bit to get involved.
In the past month, Alphabet CEO, Sundar Pichai, and Reddit CEO, Steve Huffman, were interviewed about the integration of AI into their companies as a way to generate major long term success. Reddit will use AI to monitor content and filter for bots along with using it to translate languages and expand the platform internationally. Pichai discussed Google’s new AI tool, Gemini, and described it as the forefront of AI technology. He detailed Gemini’s many applications such as it’s specialized ability to help software enginieers complete complex coding.
This trend of companies promoting their AI involvement and development begs the question, is AI the key to financial success?
Focusing on the numbers, Alphabet’s stock has skyrocketed since Gemini’s upgrade in early February. Elon Musk’s newest start up xAI has increased its initial funding requests from 1 billion in January to 6.5 billion most recently. This enormous sum demonstrates the amount of money being invested into the AI space, and showcases investors’ confidence in their potentially hefty returns.
Taking a look at the value of AI from another angle, Shopify, an online e-commerce company, watched their stock tank earlier this month. People were eager to hear the company’s response to this major fall, and interestingly they used AI as a source of comfort for their investors. Shopify’s President, Harley Finklestein, assured the public that he was not concerned about this drop in value, and instead he fiened optimism about Shopify's future due to their focus on developing AI to augment the company’s platform. This announcement supports the power of AI as a method to financial success, as Finklestein uses its integration to promote a rise in Shopify stock.
It is clear that AI is motivating some of the largest tech investors in the world such as Elon Musk and Alphabet to pursue its development. Additionally, Shopify and Reddit recently used AI to signal a rise in company valuation. The vast applications of AI are proving to be impressive and lucrative for many companies, and very well may be the key to future financial success if harnessed correctly.