We are starting to get to the overhype stage of AI in the short term because the sub-sector has gone too far too fast in such a short period of time.
Software company Oracle (ORCL) needs to be mentioned as another AI participant chomping at the bit.
ORCL has been quite the laggard for some time as their warehouse cloud system was considered behind the times.
It’s fair to say that the stock has benefited the most from the AI hype simply because its stock was priced so cheaply before it caught the AI bid.
Now they have finally told us how they will integrate generative AI into their products and this has triggered strong interest in the stock.
Oracle is offering its enterprise customers a way to build their own generative AI apps leveraging a company that is similar to OpenAi called Cohere.
Oracle will be embedding Cohere's generative AI technology into a bevy of its products and Cohere will be using Oracle's cloud to train, build, and deploy its generative AI models.
Cohere doesn't have an exclusivity contract with Oracle. Fellow investor Salesforce, for instance, already offers a service that embeds Cohere's chat capabilities into Salesforce. This is just one of the many AI tools Salesforce offers customers.
Oracle does have some of its own homegrown AI technology and uses it for features like its "autonomous" database where its cloud software detects and automatically solves problems.
Cohere is the only partner Oracle announced to power its generative AI services for customers.
Perhaps the main reason Cohere has emerged as an alternative to OpenAI is that it was founded by Aidan Gomez.
He was a research intern at Google Brain in 2017 when he co-authored a paper on a way of training AI models to improve their abilities to understand language.
His sharp ideas have become the basis for the generative AI tech that has so engulfed the industry today, including some models used by OpenAI.
Along with cofounders and fellow AI experts Nick Frosst and Ivan Zhang, Gomez founded Cohere in 2019 to bring Google-quality AI to the masses.
Oracle said that Cohere’s large language models will be directly integrated into Oracle’s cloud applications.
The company will add generative AI features not only to its flagship enterprise resource planning software, but also to applications for human resources, supply chain management, and customer experience management.
The tsunami of AI short-term hot money diving into stocks has been a boon for the tech this year.
The Nasdaq has gone from strength to strength and outpacing the other indices has meant it’s been the only game in town in 2023.
With the likes of Tesla in the green for 13 straight sessions, it’s hard to see when this pandemonium ends.
Surely, there will be a pullback at some point but the good news keeps getting shoved in my face and traders are inclined to buy.
The regional bank crisis also provided an extra swath of liquidity that was largely pumped into the stock market and the Fed’s quantitative tightening dramatically curtailed.
Even though tech stocks are oversold including Oracle, my analysis has shown that traders are waiting for any and every dip to add to their long tech positions.
Put ORCL down as another tech stock to buy on the dip.
