Is heavy regulation the right approach toward artificial intelligence? According to U.S. Vice President JD Vance, not quite. Instead, Vance is convinced that “massive” regulations on artificial intelligence could strangle the technology, rejecting content moderation as “authoritarian censorship”. On a similar note, the US and the UK have declined to sign the final statement of a recently held AI summit that said AI should be inclusive, open, ethical, and safe.
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With the AI arms race in full swing, countries appear to prioritize competition rather than safety and inclusivity. Vance has said that the United States intends to remain the dominant force in AI, strongly opposing the European Union’s strict regulatory approach.
“We believe that excessive regulation of the AI sector could kill a transformative industry. We feel very strongly that AI must remain free from ideological bias and that American AI will not be co-opted into a tool for authoritarian censorship.”
-Vance told the summit of CEOs and heads of state in Paris, as reported by Reuters.
Vance also noted criticizing the “massive regulations” created by the EU’s Digital Services Act as well as Europe’s online privacy rules. According to him, these rules will only translate to endless legal compliance costs for smaller firms.
“Of course, we want to ensure the internet is a safe place, but it is one thing to prevent a predator from preying on a child on the internet, and it is something quite different to prevent a grown man or woman from accessing an opinion that the government thinks is misinformation”.
-Vance.
Judging by these discussions and the news that the UK and US have declined to sign the international AI declaration, UN Secretary-General António Guterres has rightly warned that AI is transforming our world already, but its power rests “in the hands of a few”.
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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12. Confluent, Inc. (NASDAQ:CFLT)
Number of Hedge Fund Holders: 39
Confluent, Inc. (NASDAQ:CFLT) is a technology company that provides data streaming platforms. On February 11, the company announced a major expansion in its partnership with Databricks, a global data, analytics, and artificial intelligence company. The partnership will integrate Confluent’s complete Data Streaming Platform and Databricks’ Data Intelligence Platform, providing enterprises with real-time data for AI-driven decision-making. Owing to new integrations between Confluent’s Tableflow and Databricks Unity Catalog, businesses will be able to manage and analyze data seamlessly, and efficiently build AI applications.
“Real-time data is the fuel for AI. But too often, enterprises are held back by disconnected systems that fail to deliver the data they need, in the format they need, at the moment they need it. Together with Databricks, we’re ensuring businesses can harness the power of real-time data to build sophisticated AI-driven applications for their most critical use cases.”
– Jay Kreps, co-founder and CEO, Confluent.
11. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 45
ON Semiconductor Corporation (NASDAQ:ON), or onsemi, is a semiconductor manufacturing company that provides intelligent sensing and power solutions. On February 10, the company announced its fourth quarter and fiscal year 2024 results. It reported adjusted earnings per share of $0.95 for the fourth quarter, missing the analyst consensus of $0.97 by $0.02. Meanwhile, revenue came in at $1.72 billion, which was below the expected $1.76 billion.
It has also forecast first-quarter revenue below Wall Street expectations due to weakening demand for its automotive chips as customers cut back on orders due to economic uncertainty. Onsemi expects first-quarter revenue between $1.35 billion and $1.45 billion, as compared to analysts’ estimates of $1.69 billion, according to data compiled by LSEG. Despite disappointing results, CEO Hassane El-Khoury remained optimistic about the company’s long-term prospects and its “differentiated intelligence power and sensing solutions”.
“As we continue to navigate this market downturn, our actions over the last four years have proven we are a structurally different company that is well-equipped to navigate prolonged volatility. While 2025 remains uncertain, we remain committed to our long-term strategy. We will maintain our financial discipline, streamline our operations and continue to deliver high-value, differentiated intelligent power and sensing solutions that position onsemi to emerge even stronger.”
-Hassane El-Khoury, president and CEO, onsemi.
