Two artificial intelligence-focused stocks that could significantly boost your investment portfolio
In the ongoing AI revolution, tech giants and start-ups continue to pump substantial funds into AI infrastructure. Notably, Microsoft is planning to invest a staggering $80 billion in AI data centers this year, indicating a persistent trend in heavy AI investment. While investing in the major AI players may seem sensible, smaller companies with strategic offerings can also be intriguing prospects.
One such company is Cloudflare (NET 0.09%), which is setting its sights on AI inference with its extensive network of AI-capable servers. Additionally, DigitalOcean (-1.41%) is aiming to extend its developer-friendly cloud platform into the AI domain. As the AI industry evolves, these companies might gain significant advantages from their respective AI ventures.
Focus on AI Inference
Cloudflare anticipates that the AI market will shift towards AI inference, considering that current AI training methods might be reaching a significant ceiling. The company has built its AI-centric products around running AI models close to users using its Workers platform, enabling developers to optimize performance by deploying code across Cloudflare's global network.
The Workers AI extension supports a host of AI models capable of handling various tasks like image classification, translation, and text generation. Cloudflare also offers an AI Gateway, which helps developers manage and optimize AI models running on external platforms like Microsoft Azure and OpenAI, offering an on-ramp for AI developers.
Keeping it Simple
DigitalOcean is a traditional cloud provider offering virtual servers and a range of cloud services, shattering complexity in a crowded industry. DigitalOcean was a bit late to the AI party but has recently made significant strides in the AI domain with the acquisition of Paperspace. Now, DigitalOcean offers GPU-backed virtual servers and tools to deploy popular AI models without configural headaches, appealing to smaller companies interested in AI.
DigitalOcean's GenAI platform is currently in early availability and is designed to seamlessly train, fine-tune, and deploy AI agents for customers, requiring minimal expertise in AI and machine learning programming. By tapping into a broad base of more than 600,000 paying customers, DigitalOcean aims to expand its AI offerings while making the technology more accessible to this target audience.
Reportedly, Cloudflare is deploying AI technologies to capitalize on the anticipated shift towards AI inference, investing significantly in its Workers platform and AI Gateway. Microsoft, with its $80 billion AI investment, is a key player in the finance of AI development. Despite this, smaller companies like Cloudflare and DigitalOcean offer intriguing prospects due to their strategic AI offerings. DigitalOcean, for instance, is simplifying AI accessibility by offering GPU-backed virtual servers and AI tools, making it easier for smaller companies to leverage AI capabilities.
