Famously known as the “godfather of artificial intelligence”, British-Canadian computer scientist Professor Geoffrey Hinton has recently warned that the pace of technological change today is much faster than was initially anticipated. As a result, there is a 10% to 20% chance that artificial intelligence will wipe out humanity within the next three decades. Previously, he had said there was only a 10% chance of technology doing so.
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Despite such warnings, companies are racing to lead the AI arms race. OpenAI, for instance, which is also known as the company that started the race itself, has recently outlined plans to revamp its structure. The company said that it would create a public benefit corporation so that it would make it easier to raise more capital.
Reuters reported the news back in September, which had sparked debate among corporate watchdogs and tech moguls regarding whether the company would be able to allocate its assets to the nonprofit arm fairly, and whether the company would be able to strike a balance between making a profit and breeding public good as it develops AI.
“We once again need to raise more capital than we’d imagined. Investors want to back us but, at this scale of capital, need conventional equity and less structural bespokeness. The hundreds of billions of dollars that major companies are now investing into AI development show what it will really take for OpenAI to continue pursuing the mission”.
-OpenAI
The company plans to turn its for-profit branch into a Delaware public benefit corporation (PBC), aligning its structure with rivals such as Anthropic and Musk’s xAI, which use a similar structure and have recently raised billions in funding.
“The key to the announcement is that the for-profit side of OpenAI ‘will run and control OpenAI’s operations and business. This is the critical step the company needs to make in order to continue fund raising,” Luria said, although he added that the move did “not necessitate OpenAI going public”.
-DA Davidson & Co analyst Gil Luria.
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A computer screen showcasing Artificial Intelligence and Machine Learning algorithms at work.
10. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On December 26, Wedbush analysts issued an “Outperform” rating on the stock with a price target of $75. According to analyst Dan Ives, companies will be spending more on artificial intelligence in 2025, and since Palantir is already a very strong government business, it is going to be a big winner when it happens. This is because the company’s software can take complex data and helps enable “data-driven-decision-making…with expanding use cases for its marquee products leading to a larger partner ecosystem with rapidly rising demand across the landscape for enterprise-scale and enterprise-ready generative AI,” Ives wrote.
