ChatGPT Launch Gets $5.4 Trillion Flooded Into Top 10 AI Startups
Equities surge to all-time highs as a result of AI interacting with technology.
The late 2022 release of OpenAI's innovative large language model (LLM) platform sparked a major resurgence in the artificial intelligence (AI) sector. Finbold research reveals a staggering increase: the market capitalization of the top 10 AI companies has ballooned by $5.4 trillion in just over a year, reaching a combined value of $10.314 trillion. While Nvidia (NASDAQ: NVDA) stands out as a major winner, with its market cap growing by nearly $2.5 trillion, the gains are widespread. For instance, Microsoft's (NASDAQ: MSFT) partnership with OpenAI propelled it to surpass Apple (NASDAQ: AAPL) as the world's most valuable company in early 2024. Other companies like Meta Platforms (NASDAQ: META) and IBM (NYSE: IBM) have also seen significant growth. However, the data highlights a trend of concentrated gains. NVIDIA accounts for almost half of the total increase, and the top 3 companies hold a dominant 78.64% share of the market capitalization within the top 10 AI companies.
AI: A Promising Tool
While companies like NVIDIA and Microsoft have achieved impressive results with AI, simply incorporating the technology isn't a guaranteed path to success. A prime example is Tesla. Despite Elon Musk's vision of AI-powered self-driving cars, Tesla's market cap has dropped significantly since the launch of ChatGPT. This highlights that the true impact of AI on business performance remains to be seen as the technology continues to develop.
As Justinas Baltrusaitis, a co-author of the research, pointed out: “However, Finbold’s analysis shows that AI is not a guaranteed path to growth, as evidenced by the mixed performance of different firms in the sector. Though some - NVIDIA most prominently but others, such as Meta and Palantir (NASDAQ: PLTR) - have found their stocks driven to great highs thanks to their involvement with the technology, some have declined despite their best efforts.”
In the end, despite the industry's early triumphs, as the sector develops, it will be difficult to determine the full influence of AI technology on business and the stock market.
Read the full story with statistics here: https://finbold.com/5-4-trillion-floods-into-10-leading-ai-companies-market-cap-since-chatgpt-debut/
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