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  • The AI pie
  • Just how rich are businesses getting in the AI gold rush?
  • Nvidia and Microsoft are not the only winners
  • BARELY A DAY goes by without excitement over artificial intelligence (AI) sending another company’s market value through the roof. Last month the share price of Dell, a hardware-maker, jumped by over 30% in a day because of hopes that AI will boost sales. Days later Together AI, a cloud-computing startup, raised new funding at a valuation of $1.3bn, up from $500m in November. One of its investors is Nvidia, a maker of AI chips that is itself on an extended bull run. Before the launch in November 2022 of ChatGPT, a “generative” AI that responds to queries in uncannily humanlike ways, its market value was about $300bn, similar to that of Home Depot, a home-improvement chain. Today it is $2.3trn, $500bn or so shy of Apple’s.

    The relentless stream of AI headlines makes it hard to get a sense of which businesses are real winners in the AI boom—and which will win in the longer run. To help answer this question The Economist has looked where value has accrued so far and how this tallies with the expected sales of products and services in the AI “stack”, as technologists call the various layers of hardware and software on which AI relies to work its magic. On March 18th many companies up and down the stack descended on San Jose for a four-day jamboree hosted by Nvidia. With talks on everything from robotics to drug discovery, the shindig showed off the latest AI innovations. It highlighted furious competition between firms within layers of the stack and, increasingly, between them.

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