As tools like ChatGPT by OpenAI become more popular, a larger debate has been ignited among AI businesses in the United States over content creation and copyrights. AI startup OpenAI, the most valuable private firm in the world, recently won an important battle in this regard when a New York federal judge on November 7 dismissed a lawsuit against the company that alleged that the startup had misused articles from news outlets Raw Story and AlterNet to train its large language models. A spokesperson for the startup said in a statement following the ruling that OpenAI had built their AI models using publicly available data, in a manner protected by fair use and related principles, and supported by long-standing and widely accepted legal precedents.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The win is likely to further boost the future prospects of OpenAI, a startup that is already investing in other AI ventures. Latest reports, published by news agency Reuters, claim that the company was part of a funding round for Physical Intelligence, a startup that is developing foundational software for robots, earlier this week. The robot startup managed to raise more than $400 million in funding through the round. This valued the firm at more than $2 billion. Jeff Bezos and venture capital firms like Thrive Capital and Lux Capital were also part of the funding round. Research by venture capital firm Accel suggests that funding of AI and cloud companies in the US, Europe, and Israel is estimated to hit $79.2 billion by the end of 2024.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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11. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 38
Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. On November 7, Wells Fargo analyst Aaron Rakers raised the price target on the stock to $175 from $170 and kept an Underweight rating on the shares. The advisory noted the company delivered better-than-expected Q4 results plus Q1 2025 guide. However, it added that key tenets of its relative Underweight rating remained unchanged, namely a cautious stance on AI PC ramp with increasing competition, Apple 5G modem concern and Arm license dispute.
