Artificial Intelligence Reviving Technology Giants

MetaversePlanet October 19, 2023Last Updated: February 21, 2024

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U.S. technology giants saw a significant increase in market value, with a collective addition of $2.4 trillion, primarily fueled by the excitement around breakthrough artificial intelligence technologies.

The annual Euroscape report by the venture capital firm Accel pointed out that major tech companies, including Apple, Microsoft, Alphabet, Amazon, and Nvidia, experienced an average annual growth of 36% in their stock prices.

Artificial Intelligence Reviving Technology Giants

Nvidia, the U.S. semiconductor giant, has achieved a trillion-dollar valuation for the first time, with its market value now exceeding $1 trillion. Nvidia’s advanced chips play a crucial role in driving many cutting-edge creative AI models.

The Euroscape index, developed by Accel and covering major cloud and Software-as-a-Service (SaaS) companies including Salesforce, Palantir, and Unity, has seen a 29% increase year-to-date.

The last year proved to be a tough period for cloud and Software-as-a-Service (SaaS) companies, experiencing a $1.6 trillion decline in market values as investors redirected their attention away from technology stocks. However, the current trend indicates a favorable reversal.

The Nasdaq technology index has recuperated to 80% of its all-time highs in just 18 months.

The technology sector is currently abuzz with the debut of innovative artificial intelligence models, such as OpenAI’s ChatGPT, Google’s Bard, and Anthropic’s Claude

“Creative AI is truly transforming the software industry,” states Philippe Botteri, a partner at Accel.

The United States has been leading in securing financing for AI projects. OpenAI and Anthropic have both obtained billions in funding, with OpenAI at the forefront with a substantial $10 billion, followed by Infection with $1.3 billion.

In Europe, particularly in France, three AI-focused startups have taken the lead: Hugging Face has raised $235 million, Poolside has garnered $126 million, and Mistral AI has achieved $113 million in funding.