AI Boom in the Tech Industry: Salesforce and the Race to the Top

The rapid development in the field of Artificial Intelligence (AI) in the technology sector continues its trajectory even recently. Last week, AI investments came into focus for the "Big Five" of the tech industry, whose total valuation now exceeds 10 trillion dollars. The recent earnings season highlighted how technological pioneers like Salesforce are increasingly investing in AI, while not shying away from further disruptions. Concerns about the returns on these highly costly AI investments have previously led to worried investor sentiment and, in some cases, significant stock losses. However, current results illustrate that patience with AI investments can indeed pay off. AI remains on the agenda for large companies as they demonstrate that they can use their investments profitably while maintaining their current profitability. As long as the necessary infrastructure continues to expand, experts see positive prospects for the broader trade in AI technologies. At the same time, executives of major AI companies have announced that their spending offensives in the AI sector will continue next year. In the race for supremacy, tech giants secure high-quality chips and establish extensive data centers, while also entering partnership agreements with energy suppliers. The goal is to convince Wall Street of the potentially higher profits that could be achieved through these investments. Ray Wang, Principal Analyst and Founder of Constellation Research, predicts that only a select group of technology companies will remain at the top in view of the high AI spending, which presents a superb starting position for financially strong companies. With increasing investments in AI, attention turns to the advancements of leading providers. One example is Perplexity, an AI-based search engine that uses large language models to answer queries. The company has announced a dedicated information center for the U.S. general elections, emphasizing its reliability, although occasional misrepresentations do occur.