D-Wave Quantum and Alphabet are investing heavily in artificial intelligence (AI) technology. However, only one company stands out as a superior AI investment.
D-Wave Quantum’s AI Edge
D-Wave Quantum’s focus on annealing quantum machines gives it an edge over competitors. This technology helps businesses optimize the training and development of AI and machine learning models. CEO Alan Baratz says “early evidence that annealing quantum computing could play a key role in helping AI/ML with more efficient model training, reduced energy consumption, and faster time-to-solution.” But so far, D-Wave’s sales have been slow, totaling only $3.7 million in Q3.
Alphabet’s AI Success
Alphabet is also investing heavily in AI, with a 83% year-over-year increase in capital expenditures. This has led to the company’s Gemini AI model reaching over 650 million monthly users and 70% of its Google Cloud customers adopting the technology. Alphabet CEO Sundar Pichai notes that “it’s amazing to think that in just two years, AI has evolved from simply reading text and images to reading the room.” With strong Q3 sales growth of 16%, Alphabet is a profitable business with growing revenue and operating income.
Choosing Between D-Wave Quantum and Alphabet
D-Wave Quantum may build up a position as a specialist in solving optimization problems, but its risk is that its business could collapse before achieving financial success. Alphabet has a cloud hanging over it due to the federal government’s court ruling on its Google ad network, which could lead to a revenue hit. However, Alphabet’s search and AI businesses are benefiting from the rise of AI, making it the better AI stock for long-term investors.
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Source: https://www.nasdaq.com/articles/better-artificial-intelligence-stock-d-wave-quantum-vs-alphabet