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AI Market Is Expected To Grow From $40.36 Billion In 2020 To $997 Billion By 2028 #ArtificialIntelligence #ChatGPT #OpenAI #Microsoft

Build Collaborate

The AI industry is experiencing rapid growth, driven by increasing adoption in various industries. According to a report by Fortune Business Insights, the global AI market size is expected to grow from $40.36 billion in 2020 to $997.77 billion by 2028, with a Compound Annual Growth Rate (CAGR) of 33.2% during the forecast period.

This remarkable growth is attributed to the rising demand for AI technology in industries such as healthcare, automotive, and others.

North America is expected to hold the largest share in the AI market, followed by Europe and the Asia Pacific. This growth can be attributed to the presence of key players in the region and the increasing adoption of AI technology in various industries.

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MAJOR PLAYERS IN AI:

The AI industry is witnessing intense competition among major players such as IBM Corporation, Microsoft Corporation, Alphabet Inc., Amazon Web Services, Inc., and Intel Corporation. These companies are adopting various strategies to expand their market share and stay ahead of the competition.

One strategy adopted by these companies is partnerships and collaborations. For example:

  • IBM has partnered with several companies to develop AI-powered solutions for various industries such as healthcare, finance, and transportation.
  • Microsoft has partnered with leading companies in the automotive industry to develop autonomous vehicles powered by AI.

Such partnerships and collaborations help these companies to leverage their expertise and resources and develop innovative solutions.

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BIG PLAYERS IN AI ARE CREATING OPPORTUNITIES FOR SMALL BUSINESSES

Big players in the AI industry such as Microsoft and OpenAI are creating opportunities for smaller developers in several ways; however, the most compelling strategies are:

  • Big players in the AI industry, such as Microsoft and OpenAI, provide open-source tools and frameworks that smaller developers can use to build and deploy AI applications.
  • Big AI players offer APIs that smaller developers can integrate into their own applications, enhancing their functionality.
  • Big players in the AI industry often invest in and acquire smaller AI startups and companies, which provide opportunities for smaller developers to collaborate with and learn from industry experts.
  • Startups create opportunities for smaller developers to innovate and create new AI applications while contributing to the continued growth of the AI industry.

MERGERS & ACQUISITIONS:

Mergers and acquisitions are another strategy adopted by major players in the AI industry. For instance:

  • Alphabet Inc. acquired DeepMind, a leading AI research company, to strengthen its position in the AI industry.
  • Intel Corporation acquired Nervana Systems, a startup specializing in deep learning, to enhance its AI capabilities.

Large and small acquisitions, alike, help multinational corporations to acquire new technologies and talent and expand their market share.

RESEARCH & DEVELOPMENT INVESTMENT 

Major players in the AI industry are also investing heavily in research and development to develop new AI technologies and applications. For example:

  • Amazon Web Services, Inc. has developed Amazon SageMaker, a fully managed service that enables developers to build, train, and deploy machine learning models quickly and easily.
  • In 2019, Microsoft initially invested $1 billions in ChatGPT developer, OpenAI. In January 2023, it invested an additional $10 billion.
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Posted April 28, 2023

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