This July, OpenAI hit it its first $1 billion revenue. However, even hitting revenue milestones isn’t helping the artificial intelligence startup tackle pressures from AI compute demands.
OpenAI finance chief Sarah Friar talks about these challenges.
“It is voracious right now for GPUs and for compute. The biggest thing we face is being constantly under compute. That’s why we launched Stargate. That’s why we’re doing the bigger builds.”
-Friar told CNBC’s Squawk Box
According to Friar, growing compute demands risk diversification and supply increase, which explains expanded builds with Oracle and Coreweave. She also mentioned that Microsoft is still, very much involved.
“Microsoft will be an important partner for years to come, and I think we are very intertwined because of our IP,” Firiar said. “Remember, Microsoft AI products are built on OpenAI technology.”
That said, OpenAI’s growth is accelerating at lightning pace, with CEO Sam Altman anticipating spending trillions on datacenters to meet demand.
“Our bet is, our demand is going to keep growing, our training needs are going to keep going, and we will spend maybe more aggressively than any company who’s ever spent on anything ahead of progress.”
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. The hedge fund data is as of Q1 2025.
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10. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 45
Hewlett-Packard Enterprise Company (NYSE:HPE) is one of the 10 Must-Watch AI Stocks for Investors. One of the biggest analyst calls on Wednesday, August 20, was for HPE. Evercore ISI added the stock to the “Tactical Outperform” list stating that it’s bullish ahead of earnings in early September.
The potential for upside is due to the recent uptick in networking spending.
“We believe HPE is well positioned to report upside to Jul-qtr expectations and guide the Oct-qtr above what current pro forma estimates reflect post Juniper close.”
The firm maintains an Outperform rating and $28 price target on the shares.
Hewlett Packard Enterprise Company (NYSE:HPE), an American multinational technology company, provides high-performance computing systems, AI software, and data storage solutions for running complex AI workloads.
9. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) is one the 10 Must-Watch AI Stocks for Investors. On August 19, Fujitsu announced signing of a new licensing agreement with Palantir Technologies Japan for the Palantir Artificial Intelligence Platform (Palantir AIP).
The agreement will allow Fujitsu to offer Palantir AIP, Palantir’s software program designed to integrate generative AI into business operations, to its customers in Japan with global expansion expected in fiscal 2025.
Fujitsu will also be combining Palantir AIP with Fujitsu Uvance, its business model that strives to solve societal issues, to simplify and facilitate business transformation for its customers.
This integration ensures unified support for generative and agentic AI tasks such as scenario simulation, root cause analysis, and proposal generation and business processes optimization. It also supports integration with Fujitsu’s AI services, enhancing Japanese language capabilities and industry-specific functionalities.
The two companies collaborated first back in 2020, with a major focus on data integration and digital transformation support in the Japanese market. The two then went on to sign an agreement in 2023 whereby Fujitsu received the right the market and distribute Palantir Foundry, a software platform for integrated management of large-scale data.
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.