We recently compiled a list of the 15 AI News That Broke The Internet. In this article, we are going to take a look at where SAP SE (NYSE:SAP) stands against the other AI stocks that broke the Internet.
One conversation gaining traction in Silicon Valley these days is how the advancement of Generative AI models is slowing down. Deirdre Bosa takes a look at the matter in CNBC’s TechCheck, revealing how rapid genAI advancements are now showing signs of deceleration. She notes how the quality of improvement in OpenAI’s upcoming model, Orion, is expected to be smaller than the leap from ChatGPT-3 to ChatGPT-4. This smaller advancement is largely due to a limited supply of training data, a key factor that could significantly affect how investors view AI companies.
READ ALSO: 15 AI News That Should Not Be Ignored and 10 Trending AI Stocks on Latest Analyst Ratings and News
Nevertheless, OpenAI CEO Sam Altman has boasted on X that ChatGPT is now the eighth-biggest website in the world by traffic. As of October, ChatGPT had 3.7 billion visits, versus Perplexity’s 91 million visits, and Google Gemini’s 292 million visits. Nevertheless, the plateau in technology advancement doesn’t necessarily mean a slowdown. For instance, Mark Zuckerberg proposes that there is a lot of opportunity to build consumer enterprise applications on top of the existing technology.
While that is certainly an option, Reuters has reported that artificial intelligence companies are seeking a new path to smarter AI due to the plateau. Ilya Sutskever, co-founder of AI labs Safe Superintelligence (SSI) and OpenAI, told Reuters recently that scaling up pre-training for AI models, which involves using large amounts of unlabeled data to learn language patterns, has reached a plateau.
“The 2010s were the age of scaling, now we’re back in the age of wonder and discovery once again. Everyone is looking for the next thing. Scaling the right thing matters more now than ever”.
-Sutskever
In light of this, researchers are now looking at a technique called “time testing compute” for improving models during the “inference” phase when such models are being used. The technique will allow the model to test different options instead of giving a single answer. The implications of the technique are far-fetched, having the potential to change the competitive landscape for AI hardware.
Recent AI Developments
Fortune predicts that GenAI funding is going to decelerate this year. However, it also believes that the industry’s recent breakthroughs are among the most profound technological advancements of our time. Regardless of the slowdown in GenAI models, artificial intelligence continues to be a breakthrough in many industries today.
In its first, an artificial intelligence company will be helping publishers rather than attempting to steal its work. While AI isn’t much appreciated in journalism because it seemingly uses journalist work to feed chatbot’s data demands and in turn diverts lesser traffic to the publisher, one startup, founded by Twitter engineers, believes that AI could be a valuable player in the media industry instead. Particle, an AI newsreader, will help readers better understand the news with the help of AI technology, offering more than just a summary.
In other developments, Perplexity, an AI-powered search engine, says it will begin experimenting with ads this week.
“Ad programs like this help us generate revenue to share with our publisher partners. Experience has taught us that subscriptions alone do not generate enough revenue to create a sustainable revenue-sharing program. Advertising is the best way to ensure a steady and scalable revenue stream.”
– Perplexity wrote in a post on its blog.
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 data centre room with cloud technology, illustrating the enterprise application software services.
SAP SE (NYSE:SAP)
Market Capitalization: $268.86 billion
SAP SE (NYSE:SAP) is a multinational software company that develops business software, including e-business and enterprise management software, consults on organizational usage of its applications software and provides training services. This market leader in ERP software leverages AI to enhance its enterprise resource planning (ERP) solutions.
On November 11, Business Wire reported that Information Services Group, a leading global technology research and advisory firm, has launched a research study to assess providers in the evolving SAP services ecosystem. This news comes at a time when SAP is enhancing its AI capabilities. The report, SAP Ecosystem 2025, is scheduled to be released in April 2025, allowing enterprise buyers to use report information to evaluate their current vendor relationships, potential new engagements, and available offerings, and letting ISG advisors recommend providers to the firm’s buy-side clients. In September, SAP SE (NYSE:SAP) acquired WalkMe, a leading digital adoption platform company, to enhance its AI capabilities and copilot Joule. Additionally, it continues to push for the adoption of S/4HANA, its digital core, ahead of the planned sunset of its ERP Central Component (ECC) in 2027.
Overall SAP ranks 3rd on our list of AI stocks that broke the Internet. While we acknowledge the potential of SAP 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 SAP 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.