By reaching a whopping $1 trillion market value, Nvidia has joined the rank of tech giants such as Google, Apple, and Microsoft. And this is largely achieved due to the soaring demand for AI-driven solutions — Nvidia has solidified its position as the pioneer in crafting cutting-edge chips that power transformative technologies like ChatGPT.
The rise of AI has really begun a new chapter in the tech sector, driving unprecedented innovation and giving many incredible opportunities for companies worldwide. The power of AI is really reshaping the industry, and let's check "what to expect" in this “what” article.
What Lies Behind the Nvidia Success
Surpassing all chip companies, Nvidia's stock has risen about 25% and reached $1 trillion over the last weeks. Now, Forbes
lists Nvidia as the sixth highest-valued public company, which is trailing slightly behind Apple, Saudi Aramco, Microsoft, Alphabet, and Amazon. What's the secret of such rapid growth? The company claims it's an increased production of the chips that power AI technologies, including ChatGPT.
Jensen Huang, the CEO of Nvidia said in his public speech
, “We have reached the tipping point of a new computing era. Just as I was with the PC and chip revolution, you're at the beginning, at the starting line of AI. Every industry will be revolutionized”. He also presented a demo with the capabilities of AI supercomputer called ‘NVIDIA DGX GH200’. By the way, this innovative supercomputer is fitted with 256 GH200 Grace Hopper Superchips and is suitable for generative AI applications. Moreover, Huang revealed that Meta, Google, and Microsoft will be among its first customers.
As we’ve just mentioned Microsoft, it’s worth noting that its co-founder Bill Gates has recently made a bold prediction about the future of AI and how it will disrupt the lives of people worldwide. Bill Gates said that the company will create an AI personal agent that will understand all the activities of individuals and perform certain tasks for them. This move can potentially be a threat to Google, Amazon, and other big companies.
"There will be one company that creates a personal agent that will understand all your activities and will read your messages. It will read the stuff you don't have time to read," he said at the Goldman Sachs and SV Angel’s AI Forward conference in San Francisco.
What Other Companies Take Benefit from AI Growth
Many other big companies that are involved in the development of AI technologies are reaping profits as well. For example, the market value of chip manufacturers like American AMD or Taiwanese TSMC has increased up to 10% after Nvidia's announcement. The AI growth has also affected companies that deal with computer infrastructure, such as wire manufacturers or cooling system providers.
It's predicted that during the next years, the demand for graphic processors (GPUs) will increase by $10-15 billion. And as GPUs should be complemented with certain components like switches, routers, and some other types of chips, the market for such equipment is expected to grow by 40% annually over the next few years and reach nearly $9 billion by 2027.
With that, we should remember that hardware needs software
. Whereas there are some companies like Nvidia that offer their own platforms (CUDA), others turn to third-party companies to create programs for managing data (Datagen, Pinecone, Scale AI) or deploying large language models (HuggingFace, Replicate). The main "customers" of such services are tech giants like Amazon, Alphabet, and Microsoft which are planning to spend around $120 billion on AI solutions this year. The majority are expecting to expand their cloud capabilities.
Luckily, there are many cloud-focused startups that are ready to take on new AI challenges. One of the brightest examples is Lambda, which got approximately $44 million in investments in March and achieved a market value of around $200 million.
What Tech Giants Are Doing to Stay Relevant?
There is doubt the rise of ChatGPT will only make Big Tech
more powerful. With all the hype surrounding ChatGPT, tech giants are vying for a place in an AI-powered chatbot game. And the thought the competition will be, the more advanced AI products we will get.
Let's check out how the companies are struggling for their place under the sun and what they are doing to outperform famous ChatGPT.
Microsoft entered the ChatGPT game swiftly and vigorously: it bought in. The company invested $10 billion into OpenAI to amp up its own model. Leveraging its investment in OpenAI, Microsoft utilized the technology behind ChatGPT to develop a supposedly "even more powerful" AI tool.
Microsoft has already launched the Bing
search engine, which aims to revolutionize online searches. Additionally, Microsoft incorporated AI-powered tools into its Edge browser.
Beta testers of the "new" Bing asked questions like "Can you suggest places to visit in Paris?" or "What's the best apple pie recipe?" and received detailed responses containing tourist destinations or recipe instructions.
Google quickly responded to Microsoft's AI chatbot release and unveiled its own AI chatbot called Bard
Powered by Google's in-house language model, LaMDA, Bard is touted as a conversational AI service that utilizes web information to deliver fresh and high-quality responses.
Google lets users use Bard for diverse tasks, including baby shower planning, comparing Oscar-nominated movies, and generating recipe ideas based on available ingredients.
Currently, the chatbot is accessible to a limited test group, with broader availability expected in the upcoming weeks.
Meta, the parent company of Facebook, Instagram, and WhatsApp, has also ventured into the realm of AI. The company created Galactica
, a language model aimed at assisting scientists and researchers with article summaries, math problems, molecule annotation, and more.
Although Meta claims to have trained Galactica on an extensive dataset of over 48 million scientific papers and references, the scientific community criticized Galactica for producing biased responses. That's why, Meta quickly took the chatbot offline after only a few days.
Yet, Meta has more AI initiatives in the pipeline. Meta’s CEO, Mark Zuckerberg, revealed the establishment of a dedicated AI team responsible for creating “AI personas” to assist people. Additionally, Meta plans to introduce text- and image-based AI tools for WhatsApp, Instagram, and Messenger.
Baidu, often referred to as China's Google, has established its dominance by capturing over 75% of the Chinese search market. While its cloud business continues to grow exponentially, Baidu has invested significantly in AI-driven autonomous driving research. With ambitious plans for 2023, the company aims to create "the world's largest autonomous ride-hailing service area."
In addition, Baidu has directed its resources toward the development of Ernie
, a chatbot service intended to compete with ChatGPT. However, the initial pre-recorded demonstration of Ernie left analysts and users worldwide disappointed, leading to a 10% drop in Baidu's stock. Nevertheless, the company quickly rebounded when it announced that 30,000 businesses had already signed up to participate in the service's trial phase.
Anthropic, an AI research company founded by former OpenAI employees in 2021, is diligently working on its own chatbot competitor named Claude
. Despite not having a public release yet, Anthropic got a $300 million investment from Google in late 2022.
Claude is expected to become a strong competitor to the OpenAI system, demonstrating a greater inclination to reject inappropriate requests. However, Claude still exhibits some limitations, including occasional factual errors and mathematical mistakes.
Currently, Claude is only accessible to companies as an early-access product, with no availability for the general public.
Source: Big tech and the pursuit of AI dominance (economist.com)
What Can Businesses Expect from Further AI Development?
As you see, tech giants like Microsoft, Google, Amazon, Apple, and Meta are intensifying their focus on AI and making significant investments in the field. It’s worth noting that Microsoft has already integrated AI into its software, including Teams, Word, and Excel. Alphabet and Google have also announced similar upgrades for Gmail and Sheets. Meta enhanced its social networks with AI, while Google launched its own Bard AI chatbot.
Tech giants are also incorporating AI into their operations to enhance efficiency. For instance, Microsoft's finance department utilizes AI to automate invoice approvals, whilst AI-assisted productivity programs are being integrated into various products and services.
AI becomes a foundational layer for building various software applications across tech giants and smaller companies all across the globe. This ongoing AI revolution suggests that new AI products will enter the market soon, pushing businesses to put significant resources into AI to stay ahead of the competition.
Ultimately, the tech giants are competing fiercely in the pursuit of AI dominance, investing heavily in research, talent acquisition, and product integration.
Source: Big tech and the pursuit of AI dominance (economist.com)
What This Means for Java Developers
The solid investments in talent acquisition create a greater demand for professionals with expertise in AI and related technologies, including Java. Java developers who can create new AI-driven software and platforms or leverage AI frameworks, libraries, and APIs will be highly sought after.
But as AI continues to advance, Java developers may need to expand their skill set
too. So, your learning journey should continue once you complete the CodeGym course.
This ongoing AI revolution is just the beginning, and its impact on various industries and society as a whole is expected to grow significantly in the future. A career in AI fields will definitely open up avenues for growth and advancement for Java developers.
As AI becomes increasingly pervasive, professionals with a strong grasp of both Java and AI can take on leadership roles and shape the direction of AI-driven projects. So, why not jump on this AI bandwagon ASAP?