The battle for supremacy on artificial intelligence development and innovation is heating up. While the US appears to have an edge on fundamental AI research and technology, China is also hitting the mark with breakthroughs in efficiency and accessibility. Just days after the US touted a $500 billion Stargate project aimed at strengthening its edge with the construction of data centres; France has also made it clear it is ready to join the big boys club amid the AI boom.
President Emmanuel Macron has reiterated that France’s artificial intelligence sector is to receive a $112.6 billion private investment, which underscores the spending spree around revolutionary technology.
Macron’s $112.6 billion plan is a great thing for the European AI ecosystem, according to Victor Riparbelli, CEO of the British AI startup Synthesia. However, he added that more is required to make sure the continent can compete with tech giants like the U.S. and China.
“We need to set the right foundations for Europe to thrive as an ecosystem. It’s great that we invest more in infrastructure. I don’t think it’s the sole solution to the problem. There are lots of other things we need to worry about as well. But what I think is really great, is there’s political will to actually do something,” Riparbelli said on CNBC.
While Chinese AI startup DeepSeek has shown it is possible to develop AI models while spending the least amount possible, countries and tech giants are not showing any signs of going slow on AI capital expenditure. Companies are spending billions of dollars on data centres, advanced semiconductors, equipment, and power sources as the AI arms race heats up.
CNBC reports that tech giants are poised to spend close to $325 billion combined, on AI technologies and data center build-outs in 2025. It will be a significant improvement from the $230 billion spent in 2024. Amid the high AI spending spree, tech giants expect it to result in a boon in their cloud offerings, expected to be major growth drivers in the future.
“On the Capex part, it’s important to remember that we employ a hybrid kind of approach where we do things internally and we have certain partners that we do business with externally where the Capex would appear in their respective businesses,” CEO Tim Cook said on an earnings call last year.
Even though the spending spree triggers worries of a potential bubble in the AI space, it’s also given rise to unique investment opportunities. Companies exposed to the development of data centres, clean sources of power, AI equipment, and solutions have been on the roll despite the recent DeepSeek scare.
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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Top 10 AI Stocks Amid Soaring AI Capital Expenditure
10. CLPS Incorporation (NASDAQ:CLPS)
Number of Hedge Fund Holders: 2
CLPS Incorporation (NASDAQ:CLPS) provides information technology (IT), consulting, and solutions to banking, insurance, and financial institutions. On February 7th, the company confirmed the launch of Nibot, a next-generation Robotic Process Automation product designed to automate business processes while ensuring seamless interaction between multiple applications.
Through data analysis and predictive modeling, Nibot will further integrate with AI to enable intelligent decision support. Nibot can automate the management of tiresome daily business processes, integrate with a variety of systems with ease, and assist clients in realizing the full benefits of digital transformation.
This will help companies identify bottlenecks in their business processes, make well-informed decisions, and put improvements into place. With its sophisticated visual process designer, which enables the quick creation of intricate automation workflows via drag-and-drop functionality and a pre-built template library, Nibot sets itself apart from other global RPA products.
9. Rezolve AI Limited (NASDAQ:RZLV)
Number of Hedge Fund Holders: 3
Rezolve AI Limited (NASDAQ:RZLV) is a technology company that offers retail and engagement technology solutions that acts as an instant transaction tool for mobile devices. The company has been integrating artificial intelligence into its technology solutions to better serve brands, media houses, banks and mobile network operators.
While at the forefront of AI-driven commerce solutions, Rezolve has echoed Softbank’s $40 billion investment in OpenAI, announced on February 7th. According to Rezolve AI Limited (NASDAQ:RZLV), the investment, which values OpenAI at $300 billion, reaffirms the artificial intelligence potential across various industries. Rezolve AI’s strategic positioning, particularly in the $30 trillion retail sector, demonstrates its significant value and potential to capture a major share of this rapidly growing market, especially as AI adoption picks up speed at an unprecedented rate.
“SoftBank’s investment into OpenAI reinforces what we’ve known all along – AI is reshaping industries at an extraordinary scale,” said Daniel M. Wagner, CEO of Rezolve Ai. “However, while OpenAI is developing foundational AI models, Rezolve Ai is focused on applying AI in real-world, high-impact commercial environments. Our solutions are already transforming how businesses engage with consumers, personalize experiences, and drive revenue growth.”
