We recently compiled a list of the 10 AI News Making Waves Today. In this article, we are going to take a look at where Hewlett Packard Enterprise Company (NYSE:HPE) stands against the other AI stocks that are making waves today.
Is the AGI bubble about to burst? According to Margaret Mitchell, chief ethics scientist at the AI startup Hugging Face, it is to some extent. The crux of the matter is that, while essential for building more advanced systems, high-quality, human-made training data is lacking. Additionally, minor improvements to AI technologies such as ChatGPT are failing to justify the enormous costs associated with building and operating new models. That said, Bloomberg reports that three of the leading AI companies are now witnessing diminishing returns from their costly efforts to build newer models of artificial intelligence products.
READ ALSO: 10 AI Headlines Making Waves Today and 15 AI News You Must Read Today
It is reported that the upcoming iteration of Google’s Gemini software is falling short of internal expectations. Likewise, Anthropic has also been experiencing delays in releasing its highly anticipated Claude model, 3.5 Opus. Moreover, OpenAI’s Orion is reportedly not meeting its desired performance expectations. Although market commentary may indicate otherwise, a Google DeepMind spokesperson has noted that the company is “pleased with the progress we’re seeing on Gemini and we’ll share more when we’re ready”. On the other hand, Bloomberg reports that companies such as OpenAI and Anthropic have declined to comment. In turn, Anthropic pointed out to a podcast featuring Chief Executive Officer Dario Amodei.
“People call them scaling laws. That’s a misnomer,” he said on the podcast. “They’re not laws of the universe. They’re empirical regularities. I am going to bet in favor of them continuing, but I’m not certain of that”.
According to Amodei, many factors may come in the way of reaching more powerful AI in the next few years, but companies who are optimistic about artificial intelligence will most likely find a way around them. As the race to develop more advanced AI continues, recent developments in the field highlight both the challenges and breakthroughs that are shaping its future.
Latest Events in AI
According to a report from Bloomberg, OpenAI is on its way to launch a new artificial intelligence agent codenamed “Operator”. The AI agent will be able to take actions on a person’s behalf, such as writing code or booking travel. The tool is reportedly released in January as a research preview.
In other news, a Google chatbot has seemingly responded in a non-sensical manner to a Grad student in a back-and-forth conversation they were having about aging adults. The grad student was seeking homework help when the chatbot responded in a threatening manner. The response from the chatbot appeared disconnected from the context and lacked coherence, raising concerns about the current limitations of large language models (LLMs). While LLMs have made significant advancements, this incident underscores the need for further refinement in ensuring their reliability and accuracy in handling complex and nuanced topics.
“Large language models can sometimes respond with non-sensical responses, and this is an example of that. This response violated our policies and we’ve taken action to prevent similar outputs from occurring.”
– Google in a statement to CBS News
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 woman programmer in a modern office working with multiple computer servers.
Hewlett Packard Enterprise Company (NYSE:HPE)
Market Capitalization: $27.28 billion
Hewlett Packard Enterprise Company (NYSE:HPE) is an American multinational technology company offering solutions that allow customers to capture, analyze, and act upon data seamlessly. The company offers high-performance computing (HPC) systems, AI software, and data storage solutions that help run complex AI workloads.
On November 13, Hewlett Packard Enterprise Company (NYSE:HPE) announced its new high-performance computing and AI infrastructure portfolio for service providers and large enterprises. The portfolio encompasses HPE Cray Supercomputing EX solutions along with two other systems that are designed to optimize large language models (LLMs) training, natural language processing, and multi-modal training. The portfolio is based on HPE’s 100% fanless direct liquid cooling system architecture, claiming to use 37% less power to keep servers cool.
“Service providers and nations investing in sovereign AI initiatives are increasingly turning to high-performance computing as the critical backbone enabling large-scale AI training that accelerates discovery and innovation. Our customers turn to us to fast-track their AI system deployment to realize value faster and more efficiently by leveraging our world-leading HPC solutions and decades of experience in delivering, deploying and servicing fully-integrated systems.”
– Trish Damkroger, senior vice president and general manager, HPC & AI Infrastructure Solutions at HPE.
Overall HPE ranks 6th on our list of the AI stocks that are making waves today. While we acknowledge the potential of HPE 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 HPE 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.
