We recently compiled a list of the 10 AI News That Broke The Internet. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against the other AI stocks.
Should original content contributors be paid every time large language models use their work? OpenAI CEO Sam Altman believes they should, much like Name, Image, and Likeness (NIL) deals for college athletes, he said on Wednesday at the New York Times’ DealBook Summit.
“I think we do need a new [standard] for how creators are going to get rewarded. We need to find new economic models where creators can have new revenue streams”.
-Sam Altman
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Even though developing such an economic model will be complex, it is unclear how people getting paid for their original work could become a norm in the future even if it does. The news comes amidst ChatGPT, Altman’s AI chatbot, which has itself been under fire numerous times over the years over copyright infringement and unpermitted use of published articles.
“A particular passion of mine has always been, can we figure out how to do micropayments where, if you generate a story in the style of [a writer, they] can opt into that … and get paid for it.”
-Altman.
Regardless of Altman’s company facing criticism over copyright infringement concerns and ethical debates surrounding its AI models, the company continues to push boundaries in AI innovation, introducing groundbreaking tools and features that redefine the tech landscape. In its latest, OpenAI has introduced its buzzy AI video-generation tool, Sora, on Monday, December 9th.
Working similar to OpenAI’s image-generation AI tool, DALL-E, Sora will be able to develop a high-definition video clip each time a user types out a desired scene. The video generation tool will also be able to generate video clips inspired by still images and extend existing videos or fill in missing frames. As per OpenAI’s YouTube live stream, the tool will debut to U.S. users as well as to “most countries internationally” on Monday, December 9th. However, it also said that there is “no timeline” yet for launching the tool in Europe and the U.K., as well as some other countries.
In October, the company closed its latest funding round with a valuation of $157 billion, securing $6.6 billion from a wide range of investment firms and major tech companies. All of the company’s strategic initiatives and funding are part of a thoughtful growth plan for OpenAI as the company competes with other strong AI startups such as Anthropic, Elon Musk’s xAI, and other tech giants.
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).
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Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 99
Tesla, Inc. (NASDAQ:TSLA) leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. On December 9, Deutsche Bank named Tesla as a top 2025 pick, stating how the stock is well positioned in 2025. While the industry is set to face volatility under a Trump administration, the stock seems attractive for the firm. Deutsche analysts led by Tim Rokossa told clients how the company leads in autonomous driving technology. If it is successful in the execution of robotaxi rides in promised areas, the automaker will “unlock a new bar in autonomous driving that’s hard for others to replicate,” they noted. The analysts also believe that changes in [Inflation Reduction Act] or extra tariffs levied for imported parts would only strengthen Tesla’s relative competitive position.
“While there has been debate over the right approach to achieving full autonomy, our view is that true commercial success in robotaxi is achieved through end-to-end AI. As such, we believe Tesla is well positioned.”
-Deutsche Bank
Overall, TSLA ranks 2nd on our list of AI news that broke the internet. While we acknowledge the potential of TSLA 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 TSLA 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.