The dominance of major US technology companies in the field of artificial intelligence
While rapid advances in artificial intelligence have the potential to reshape the economy and society, it is noteworthy that artificial intelligence is largely dominated by US companies.
It seems that the potential offered by artificial intelligence for security, efficiency, and the realization of economic and social goals has become one of the most important elements of the digital economy today.
First of all, powerful servers and large amounts of data are needed for artificial intelligence. Large US companies such as Google, Microsoft and Meta stand out because they own both.
While many countries and companies are looking for ways to benefit from this technology, well-known US companies such as Microsoft, Meta and Alphabet, which dominate the market as pioneers in the field of artificial intelligence applications and developments, attract attention.
Market size in artificial intelligence is expected to exceed $1 trillion in 2030
While experts predict rapid growth in the field of artificial intelligence in the coming years, companies are competing for the “best minds” in this field.
According to Grand View Research’s research, the current market size of 196.6 billion dollars in artificial intelligence last year is expected to reach 1 trillion 800 billion dollars in 2030, with an average annual growth of over 36 percent.
Trillion dollar market caps
Excitement about the developments in artificial intelligence in technology accelerates the rise of the shares of companies that focus on this field, especially chip manufacturers, in the markets.
The speed of developments in this field excites investors with the new income opportunities it offers and the profit potential resulting from efficiency improvements.
It seems that investors’ interest is especially concentrated around the shares of large technology companies such as Apple, Alphabet, Microsoft, Amazon and Meta.
Microsoft is the largest company in the USA with a market value exceeding $3.19 trillion.
While Apple is the second most valuable company in the country with 2.91 trillion dollars, the market value of Alphabet, the parent company of Google, which has been focusing on artificial intelligence for about seven years, is recorded as 2.18 trillion dollars.
Amazon, which has focused on artificial intelligence and machine learning for more than 20 years, has a market value of 1.8 trillion dollars.
Google’s parent company Alphabet made a net profit of approximately $74 billion in 2023, while Microsoft announced a profit of more than $72 billion. Meta’s annual profit was almost $40 billion last year.
Global competitiveness will depend on artificial intelligence
While data on artificial intelligence investments of US companies is kept secret, according to the calculations of management consultancy company EY, research and development (R&D) expenditures of large US technology companies reached 68 billion euros in 2023.
The billion-dollar market caps and profits of major US tech companies allow them to expand their technological leadership and outpace their competitors.
US companies are acquiring small companies or investing in their businesses for technological knowledge and skills.
While economies and societies are becoming critically dependent on these companies, experts emphasize that this situation is especially sensitive in the field of artificial intelligence.
Stating that artificial intelligence technology will play a key role in every field of the economy, experts point out that global competitiveness will depend on this technology, that today’s basic research determines the applications of tomorrow, and that nations that lag behind in basic research will also fall behind in applications.