We recently compiled a list of the Top 14 AI Stocks on Wall Street: News and Analyst Ratings. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against the other AI stocks.
In an update on the bid by an Elon Musk-led consortium to buy the non-profit that controls OpenAI, Musk’s lawyers have reportedly stated in a court filing that they will withdraw the $97.4 billion bid if the AI startup drops its plans to become a for-profit entity.
Musk is trying hard to keep OpenAI from becoming a for-profit entity, even filing a case against Altman in August. Musk co-founded the artificial intelligence startup with Sam Altman but left the company in 2018 after a disagreement with Altman and other cofounders over OpenAI’s direction and funding.
The filing noted that Musk will withdraw the bid if the OpenAI board is “prepared to preserve the charity’s mission and stipulate to take the ‘for sale’ sign off its assets by halting its conversion. “
Otherwise, “the charity must be compensated by what an arms-length buyer will pay for its assets.”
-The filing in U.S. District Court, Northern District of California, said, as reported by Reuters.
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In its filing with the same court on Wednesday, OpenAI said that Musk’s bid to buy OpenAI contradicts the arguments he is making in court that the startup’s assets cannot be transferred for private gain. It seems to be “an improper bid to undermine a competitor.” Even though Musk seemingly wants OpenAI to retain its non-profit structure, OpenAI noted that in his bid, he wants OpenAI to be sold to himself.
“In this Court, Musk argues that OpenAI, Inc.’s assets cannot be ‘transferred away’ for ‘private gain. But out of court, those constraints evidently do not apply, so long as Musk and his allies are the buyers. Musk would have OpenAI, Inc. transfer all of its assets to him, for his economic benefit and that of his competing AI business and hand-picked private investors.”
-OpenAI said in a legal filing.
It is to be noted here that OpenAI is under no obligation to consider the bid.
“The independent Board’s sole fiduciary duty is to the mission of ensuring AGI benefits all of humanity. Respectfully, it is not up to a competitor to decide what is in the best interests of OpenAI’s mission.”
-Andrew Nussbaum, counsel to the OpenAI Board at Wachtell, Lipton, Rosen & Katz.
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.
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A customer entering an internet retail store, illustrating the convenience of online shopping.
Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com Inc (NASDAQ:AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions. As reported on February 13, Morgan Stanley managing director Brian Nowak told Yahoo Finance that Amazon’s seemingly unnoticed robot push is widening its competitive lead in retail. This could boost its profit margins significantly.
“This is, I think, the most underappreciated part of Amazon’s story — the potential retail leverage to come [from its robot investments]”.
-Nowak on Yahoo Finance’s Opening Bid podcast
Nowak revealed that Amazon has developed six significant next-generation fulfillment centers and has industrial robots that can increase efficiencies across storage, inventory management, and other processes. Forbes reported that these robots are powered by complex AI systems that empower them to navigate complex warehouse environments. According to Nowak, considering 30% to 40% of Amazon’s US units are fulfilled through next-generation robotics-enabled warehouses by 2030, the company could avail $10 billion-plus savings. Nowak from Morgan Stanley has an “Overweight” (or Buy equivalent) on Amazon’s stock with a $280 price target.
Overall AMZN ranks 1st on our list of AI stocks that are trending on Wall Street. While we acknowledge the potential of AMZN 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 timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
