We recently compiled a list of the Top 12 AI Stocks Taking Wall Street by Storm. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against the other AI stocks.
Is heavy regulation the right approach toward artificial intelligence? According to U.S. Vice President JD Vance, not quite. Instead, Vance is convinced that “massive” regulations on artificial intelligence could strangle the technology, rejecting content moderation as “authoritarian censorship”. On a similar note, the US and the UK have declined to sign the final statement of a recently held AI summit that said AI should be inclusive, open, ethical, and safe.
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With the AI arms race in full swing, countries appear to prioritize competition rather than safety and inclusivity. Vance has said that the United States intends to remain the dominant force in AI, strongly opposing the European Union’s strict regulatory approach.
“We believe that excessive regulation of the AI sector could kill a transformative industry. We feel very strongly that AI must remain free from ideological bias and that American AI will not be co-opted into a tool for authoritarian censorship.”
-Vance told the summit of CEOs and heads of state in Paris, as reported by Reuters.
Vance also noted criticizing the “massive regulations” created by the EU’s Digital Services Act as well as Europe’s online privacy rules. According to him, these rules will only translate to endless legal compliance costs for smaller firms.
“Of course, we want to ensure the internet is a safe place, but it is one thing to prevent a predator from preying on a child on the internet, and it is something quite different to prevent a grown man or woman from accessing an opinion that the government thinks is misinformation”.
-Vance.
Judging by these discussions and the news that the UK and US have declined to sign the international AI declaration, UN Secretary-General António Guterres has rightly warned that AI is transforming our world already, but its power rests “in the hands of a few”.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On February 10, the company took on a new initiative, in partnership with OpenAI, Roblox Corp., and Discord, raising more than $27 million to provide free, open-source tools for improving child safety online. Robust Open Online Safety Tools, or ROOST, was launched at the Artificial Intelligence Action Summit in Paris. The new non-profit organization aims to bring together major technology companies and philanthropies to build safety infrastructure for the AI era.
The founding partners of this partnership include Eric Schmidt, Discord, OpenAI, Google (GOOGL), Roblox (RBLX), John and James Knight Foundation, AI Collaborative, Patrick McGovern Foundation, and Project Liberty Institute. According to Eric Schmidt, a founding partner of the organization and former chief executive officer of Google, ROOST promises to address “a critical need to accelerate innovation in online child safety”.
“ROOST ushers in a new era of collaborative safety innovation. By making robust safety tools accessible to all through open source, we’re creating a more pluralistic and secure digital future in the age of AI. We thank our founding partners and supporting partners for their invaluable contributions to this mission.”
– Camille François, President of ROOST and Professor at Columbia University.
Overall GOOGL ranks 3rd on our list of the AI stocks that are taking Wall Street by storm. While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.