- Wedbush estimates that artificial intelligence represents an $800 billion market opportunity over the next decade.
- In a new note to clients, the firm looked at how the AI boom will impact the market's top tech titans.
An "AI Game of Thrones" has broken out in the Big Tech industry, and a recent research note from Dan Ives of Wedbush has handicapped which mega-firms will benefit most.
Of particular interest is Tesla, the electric-vehicle maker led by Elon Musk, who has publicly expressed skepticism about how fast AI has developed. Ives noted that Musk himself threw his hat in the ring with the recent announcement of X.AI, which he intends to compete with major AI systems.
The Wedbush analyst sees Musk making a push to join the ranks of Microsoft, Google, and Amazon, citing the thousands of Nvidia graphics processing chips the multi-billionaire has already purchased in pursuit of large-scale language models.
Ives also has thoughts on how Musk's forays into AI can boost shares of his crown jewel: Tesla. He sees three ways its implementation can help drive stock gains in the future.
The first relates to the impact on Tesla's full self-driving service, for which AI can improve "performance optimization and redundancy," according to Ives.
Secondly, Ives said AI will enable Tesla to make further enhancements to its robotics systems, such as the company's humanoid robot Optimus.
"That could lead to further improvements of Tesla's supply chain by opening up limitless labor supply for production lines while improving its cost structure during a labor constrained environment," he wrote.
Ives' last argument is that Dojo — a custom supercomputing platform developed by Tesla — can have its training models fine-tuned more quickly as more attention and resources are spent on AI. This will, in tune, help Dojo further enhance the full self-driving initiative mentioned above.
"Overall, Tesla is in a great position to benefit from the implementation of Generative AI into its product suite and into its business model to further accelerate profitable growth," Ives concluded.