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Artificial Intelligence Stocks: 10 Companies Betting on AI

By U.S. News & World Report

Artificial intelligence is here to stay.

Reliable, pure-play artificial intelligence stocks are tough to find in this day and age. Plenty of blue-chip companies understand how vital AI will be in the future, but because it’s such a nascent area, other parts of their business are still the real moneymakers. That’s OK, though. While the following 10 companies might not be pure AI plays, many of them may be close to that level in just a few years as machine learning and deep learning become more sophisticated, useful, and impactful. Each following company is betting big on AI, and many of them are relying on artificial intelligence in important parts of their business already.

Facebook (ticker: FB)

Facebook aims to build the “best AI lab in the world,” where today’s top tech talent can solve the most challenging issues in the field. Its research has already paid off — Facebook has an AI-powered personal assistant, M, and facial recognition features that can sort, recognize, and tag entire groups of friends. M, offered within Facebook Messenger, can already perform a number of useful tasks like booking flights and contesting cable bills, as well as some not-so-useful ones like drawing very amateur-looking sketches. Still, Facebook, which began in a Harvard dorm room in 2004, is now without a doubt one of the top artificial intelligence stocks in the world.

Amazon.com (AMZN)

Amazon might traditionally be considered a hybrid between a retail and tech stock, but in time, “AI company” may be the most honest descriptor. Amazon’s Echo home speaker comes equipped with Alexa, an AI-powered virtual assistant that can recognize and answer questions, read news stories, read audiobooks, read the weather forecast, play music from Amazon Prime Music, Spotify, and Pandora, and of course order a lot of Amazon products. Alexa gets smarter every day, too — 1,500 new features and skills have been added through software updates since its late-2014 release. With millions of Echos in circulation, it’s one of the most successful consumer-facing AI products on the planet.

Alphabet (GOOG, GOOGL)

Alphabet is in many ways a quintessential AI company: Google search itself is partially powered by RankBrain, a deep learning technology that helps Google better understand queries and deliver relevant responses. On top of that, Google now has its own answer to the Amazon Echo, dubbed Google Home; its driverless car technology is powered by machine learning, and a Google-owned machine named AlphaGo beat the world champion in Go, an ancient, complex Chinese strategic board game, back in March. AlphaGo’s win was a victory for artificial intelligence as monumental (if not more monumental) than IBM’s 1997 chess triumph over Garry Kasparov.

Apple (AAPL)

Apple’s Siri virtual assistant software can do quite a lot: It can tweet and text on command, set a timer or alarm clock, make reservations, calculate one’s caloric intake, and, soon, hail an Uber. Considering Apple is rumored to be working on its own electric, autonomous vehicle, and it may well decide eventually to put those cars on the streets and look for fares, there’s a chance the seamless integration with Uber will be temporary. On Apple’s flagship product, the iPhone, some modest AI is already going on behind the scenes. Facial recognition in photos and suggested responses to texts are two examples — besides Siri — of in-phone AI.

Microsoft Corp. (MSFT)

Microsoft also acknowledges the value of artificial intelligence — and is betting on it accordingly. It recently acquired SwiftKey, which analyzes data to predict what a user is typing and what they’ll type next, for a reported $330.2 million. Since SwiftKey uses AI to do this, Microsoft also bought SwiftKey’s intellectual property and expertise. Microsoft is also wagering on a future heavy on chatbots, which will understand natural language and should dramatically increase the utility and functionality of mobile devices. There’s still a lot to learn, though: Microsoft’s Twitter (TWTR) chatbot Tay had to be taken down after a day when it began imitating hate speech users directed its way.

Nvidia Corp. (NVDA)

In many ways, Nvidia is the most pure-play artificial intelligence company on this list. The chipmaker decided early in the game to invest heavily in advancing the AI field by building chips tailor-made for deep learning. Its most recent AI-centric chip, the Tesla P100 GPU, cost $2 billion to develop and can work 12 times faster than Nvidia’s previous top-of-the-line model. That’s a major investment for a company with $5.16 billion in revenue over the last year, but if it continues building out its lead and forces larger rivals like Intel Corp. (INTC) to play catch up, it may reap huge rewards for shareholders.

International Business Corp. (IBM)

IBM’s Watson is one of the most recognizable names in artificial intelligence. Walloping two of the best “Jeopardy!” players of all time put Watson on the map, but IBM has much more practical — and profitable — plans for how to make the best of Watson’s deft data skills. Watson can read 40 million documents in 15 seconds, understanding grammar and context throughout, and can then answer multi-part questions on the material. It can help businesses analyze vast amounts of data, determine if there are problems, how to solve them, and where opportunities lie. In health care, IBM says Watson can see previously hidden data, improving quality and efficiency.

Baidu (BIDU)

China search giant Baidu aims to use AI in much the same way that Alphabet does. It’s reportedly planning to partner with a Chinese tourism company to test its driverless car technology soon. Baidu is also developing technology to automatically caption videos, recognize objects in a picture, and, unsurprisingly, answer natural language queries. Baidu, which has 663 million mobile monthly active users, is currently working on developing “AI technologies that we believe will have a significant impact on the lives of at least 100 million people” in its Silicon Valley AI lab.

Boeing Co. (BA)

Tech companies aren’t the only ones trying to harness artificial intelligence for commercial benefit. In 2015, aerospace giant Boeing inked a $7.5 million deal with Carnegie Mellon University to create the Aerospace Data Analytics Lab, which will use machine learning to churn through data and discover new industry insights. Boeing hopes that the partnership can show the company how to more efficiently design, build, and maintain planes, which could not only cut costs and increase output, but increase the selling price of the planes themselves. Imagine an aircraft that knows — by amalgamating data points generated by thousands of sensors — when it’s about to need a repair.

Tesla Motors (TSLA)

Elon Musk doesn’t elicit comparisons to Leonardo da Vinci by relying on the technologies of yesteryear. The Musk-founded Tesla Motors is investing heavily in artificial intelligence, which is already at work in its vehicles. Teslas can now drive themselves on the highway, park themselves, and understand certain voice commands. Tesla is currently hiring for the role of computer vision scientist, someone who will help the company develop “full scene understanding, general object detection and classification,” and “human intention direction.” While there was a fatal May accident involving a driver using Tesla’s Autopilot self-driving mode, Tesla’s autonomous technology is still pretty good — it was the first Autopilot fatality in 130 million miles.

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Artificial Intelligence Stocks: 10 Companies Betting on AI originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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