Which 'Big Tech' is Winning the Battle for AI market dominance?

The battle across Big Tech for AI market dominance is heating up.

Here are Lumida Wealth's views on how the race stands for each segment: Personal Assistant AI, Enteprrise AI, and Government AI.

This is based on extensive research into 10Qs, management discussion, and analyst reports.

Consumer AI - The Personal Assistant

In consumer AI, we believe Google is the presumptive winner despite its stumbling out of the gate. Three reasons: 1) Google leads with its deep integration into daily life via search, email, browsers, and Android aiming for total device and platform ubiquity, 2) Google knows us better than Open AI due to its vast data troves and email application, 3) Google's AI project 'LaMDA' is more powerful than GPT4. Google has the technology...

Apple and Amazon squandered an initial advantage with the success of their Siri and Alexa apps and are playing catch-up.

Government AI

In government and defense, Amazon, Microsoft, Palantir, and old-timers like IBM clash over massive federal contracts for next-gen capabilities. With lengthy sales cycles, this battle is still warming up.

Palantis is also a contendor given their existing defense contracts. However, Palantir does need to build out new capabilities and will likely need to team up with Cloud AI providers.

Enterprise AI

Microsoft stands out in the enterprise sector with stronger capabilities than Amazon's Cloud AI thus far. But, earnings show revenue growth is still limited.

Microsoft also looks strong in the SME market which also includes AI-enabled due to Microsoft's integration with developer tools GitHub and OpenAI.

These factors mean Amazon's AWS stands to lose ground. However, Amazon is investing in their own internal GPU chips and is considering a strategic investment in ARM. So Amazon may enter the scene in the Second Act.

Throughout these skirmishes, Nvidia shines as the true victor, as cloud providers rely on their chips to fuel today's AI and prepare for an impending surge in demand.

The large AI cloud providers are investing in infrastructure for demand that has not materialized in a truly significant way. It is 'If we build it, they will come' - and they have plenty of cash to do so.

To summarize:

1. Nvidia is a market unto itself with insatiable demand for H100s and developers trained on the CUDA language - with ARM, Amazon, Intel and others racing to catch up.
2. Microsoft and Google likely split the Enterprise market - large firms with strict InfoSec reqiurements go with Microsoft, and startups and the 'long tail' go with Google.
3. Government - is a race between Microsoft and Palantir. Although Palantir will likely need to rent Cloud AI in any case... so the cloud providers have more than one way to win.

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