We recently compiled a list of the 10 AI News That Broke The Internet. In this article, we are going to take a look at where Snowflake Inc. (NYSE:SNOW) stands against the other AI stocks.
Should original content contributors be paid every time large language models use their work? OpenAI CEO Sam Altman believes they should, much like Name, Image, and Likeness (NIL) deals for college athletes, he said on Wednesday at the New York Times’ DealBook Summit.
“I think we do need a new [standard] for how creators are going to get rewarded. We need to find new economic models where creators can have new revenue streams”.
-Sam Altman
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Even though developing such an economic model will be complex, it is unclear how people getting paid for their original work could become a norm in the future even if it does. The news comes amidst ChatGPT, Altman’s AI chatbot, which has itself been under fire numerous times over the years over copyright infringement and unpermitted use of published articles.
“A particular passion of mine has always been, can we figure out how to do micropayments where, if you generate a story in the style of [a writer, they] can opt into that … and get paid for it.”
-Altman.
Regardless of Altman’s company facing criticism over copyright infringement concerns and ethical debates surrounding its AI models, the company continues to push boundaries in AI innovation, introducing groundbreaking tools and features that redefine the tech landscape. In its latest, OpenAI has introduced its buzzy AI video-generation tool, Sora, on Monday, December 9th.
Working similar to OpenAI’s image-generation AI tool, DALL-E, Sora will be able to develop a high-definition video clip each time a user types out a desired scene. The video generation tool will also be able to generate video clips inspired by still images and extend existing videos or fill in missing frames. As per OpenAI’s YouTube live stream, the tool will debut to U.S. users as well as to “most countries internationally” on Monday, December 9th. However, it also said that there is “no timeline” yet for launching the tool in Europe and the U.K., as well as some other countries.
In October, the company closed its latest funding round with a valuation of $157 billion, securing $6.6 billion from a wide range of investment firms and major tech companies. All of the company’s strategic initiatives and funding are part of a thoughtful growth plan for OpenAI as the company competes with other strong AI startups such as Anthropic, Elon Musk’s xAI, and other tech giants.
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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A software engineer at work, surrounded by a wall of computer monitors connected to a ‘Data Cloud’ platform.
Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 71
Snowflake Inc. (NYSE:SNOW) is an enterprise software giant and an AI Data Cloud company. On December 9, Telsey Advisory raised the firm’s price target on Snowflake (NYSE:SNOW) to $220 from $170 and kept an “Outperform” rating on the shares. The analyst told investors in a research note that the company’s core data warehouse market is facing intense competition, and there is uncertainty about what the Iceberg open-table format means for the company. The issue with the Iceberg’s open format is that it allows multiple platforms, not just Snowflake, to access and manage the same data seamlessly. This reduces vendor lock-in, meaning customers can switch between Snowflake and competitors more easily. While investors are deeply concerned about this issue, the positive facet is that the firm’s fieldwork has been marginally improving on Snowflake as an AI beneficiary. Moreover, it believes it has been making the right moves in investing in AI-related product innovation.
Overall, SNOW ranks 4th on our list of AI news that broke the internet. While we acknowledge the potential of SNOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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