We recently published a list of Stay Ahead: 9 Key AI News Updates You Need to See. In this article, we are going to take a look at where Snowflake Inc. (NYSE:SNOW) stands against other key AI news updates you need to see.
A very adaptable tool, generative artificial intelligence has been used in various fields. As a result, it could develop into a general-purpose technology that can evolve into a machine capable of carrying out any task that a human can. Given that the generative AI market is growing at a compound annual growth rate of 34.20%, according to Research and Markets, it has sparked an arms race between companies and, most recently, between countries.
A week into office, President Donald Trump rolled back Biden-era artificial intelligence safety and security measures. The rollback is part of the new administration’s bid to speed and accelerate generative AI development as the US seeks to win the AI race against China.
To maintain global leadership in AI technology, “we must develop AI systems that are free from ideological bias or engineered social agendas,” Trump’s order says.
Trump’s Executive Order overturned President Joe Biden’s 2023 policy, which required AI developers to perform safety testing and report findings to the government prior to releasing systems that could endanger public health, national security, or the economy.
According to the Trump administration, the Biden policy “established unnecessarily burdensome requirements for companies developing and deploying AI that would stifle private sector innovation and threaten American technological leadership.”
Additionally, the Biden executive order demanded that deepfakes be watermarked, that government agencies establish AI testing standards that consider national security threats, and that federal law enforcement and intellectual property regulators change how copyrighted works are used in AI training. The previous administration “hampered the private sector’s ability to innovate in AI by imposing government control over AI development and deployment,” according to Trump’s executive order.
The removal of the safety and security measures is being portrayed as a floodgate, opening for AI development, which could hasten advancements in the still-emerging field but also present risks. Nevertheless, the Consumer Federation of America and Mozilla have written a letter urging the White House to maintain “key rules” for transparency and testing in artificial intelligence.
“Without guardrails like testing and transparency on an AI system before it’s used — guardrails so basic that any engineer should be ashamed to release a product without them — seniors, veterans, and consumers will have their benefits improperly altered and their health endangered,” they wrote. “We call on you to keep key rules about testing and transparency for safety- and rights-impacting AI in place.”
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 software engineer at work, surrounded by a wall of computer monitors connected to a ‘Data Cloud’ platform.
Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 71
Snowflake Inc. (NYSE:SNOW) provides a cloud-based data platform for various organizations. Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products. On January 30th, reports emerged indicating that the company plans to acquire startup Redpanda as it looks to strengthen its data analysis offerings amid the artificial intelligence revolution.
The deal comes as Snowflake Inc. (NYSE:SNOW) has benefited from the artificial intelligence sector’s increased demand for cloud services over the previous two years. The company recently partnered with Anthropic, an AI company, to expand its cloud services. It’s also developing AI agents, programs that can carry out repetitive tasks on their own, as part of its AI offerings, much like other major technology companies like Microsoft Corporation and Salesforce.
Similarly, on January 28th, Snowflake Inc. (NYSE:SNOW) confirmed signing a strategic partnership with Alloy.ai, a leading data integration and retail analytics solutions provider. The two companies are coming together to make it easier for customers to make business decisions and drive innovations. It will also allow consumer brands to connect to the alloy.ai marketplace of over 350 retailer data integrations.
Overall, SNOW ranks 4th on our list of key AI news updates you need to see. As we acknowledge the growth potential of SNOW, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
