AI Companies in the Race: SoundHound AI or BigBear.ai?

In the dynamic world of Artificial Intelligence (AI), there are currently two promising companies with a market value of under 10 billion dollars in the spotlight: SoundHound AI and BigBear.ai. Both started the year with a market value of under 1 billion dollars. However, the stock price of SoundHound has already increased eightfold in 2024, raising the market value to nearly 7 billion dollars. The exciting question now is: should investors continue to bet on SoundHound, or might BigBear.ai offer a similar success story in 2025? A crucial aspect in assessing smaller stocks is their growth potential. SoundHound AI positions itself as a pioneer in AI-driven voice interactions. With its technology that enables natural and conversational interactions, it has already established itself in the automotive and hospitality markets. The recent acquisition of Amelia, a provider of AI conversation platforms, expands SoundHound's ability to penetrate new sectors such as retail, healthcare, and finance. Particularly promising is the perspective of acting as a comprehensive AI commerce voice platform that can answer complex industry-specific inquiries. Frost & Sullivan recently recognized SoundHound’s Amelia platform as a market leader in the healthcare sector, an area with a projected value of 2.34 billion dollars by 2027. BigBear.ai, on the other hand, focuses on the U.S. defense industry and was formed through the merger of BigBear and NuWave. Following further strategic acquisitions, the company went public in 2021 via SPAC.