#4 - AI Tech 2025 - The Mergers - The Money - and The Mayhem
How AI and Emerging Technologies Are Transforming Wealth Management and Investment Opportunities in Unexpected Sectors.
Hello wise investors I’m back for a Quant data driven analysis. [Full Disclaimer]
It’s easy to get lost in the hype, so I’ve made an effort to gather the most relevant findings and insights from recent public statements, analysts’ commentaries, and online discussions. I’ll look at:
The AI-driven M&A wave: How it’s progressed, who the biggest players are, and why.
The shift from big tech–dominated AI deals to a new reality in which AI infrastructure and data-management businesses are taking the lead.
The difference in AI approach: open-source vs. closed-source large language models and why each retains unique benefits.
The black box issue with complex neural networks and the growing call for greater explicability.
The global race in AI, chiefly between the United States and China, but with other countries also making inroads in specialized areas.
Five AI-related stocks that I think might ride these trends in 2025, with analysis of why they matter.
The AI M&A Boom and Its Shifting Focus
The AI landscape has undergone a seismic shift. The days when big tech giants dominated AI acquisitions are behind us. A new era has dawned, one where AI infrastructure and data management firms lead the charge in M&A activities.
The Evolution of AI Acquisitions
Back in 2020 and 2021, tech behemoths gobbled up AI startups to bolster their consumer products and secure valuable IP. Fast forward to 2023, and we witnessed a pivotal change. Infrastructure-oriented companies stepped into the spotlight, aggressively pursuing AI startups to build end-to-end AI solutions.
This shift reflects a deeper understanding of AI's potential. It's no longer just about flashy consumer-facing products. The real value lies in robust infrastructure, cutting-edge hardware, and sophisticated data orchestration. The future of AI hinges on the intricate plumbing beneath the surface.
Key Players in the New AI Ecosystem
AI Infrastructure Powerhouses
Infrastructure-centered enterprises have emerged as M&A juggernauts. They offer everything from raw GPU capacity to specialized development ecosystems. These companies understand that building a custom large language model for sensitive enterprise data requires a strong, reliable infrastructure partner.