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Capitalize On The AI Revolution: 3 Companies Making Strides In Machine Learning

|About:, Inc. (AMZN), CRWD, GOOG, GOOGL

ML algorithms learn through experience. They recognize patterns that can be later used to analyze new data.

Forward-looking firms are using ML to boost performance.

CrowdStrike combines ML and cybersecurity to identify the latest malware without prior knowledge of it. CrowdStrike's software can evolve along with hackers.

Google's TensorFlor lets developers create and train ML models for free. In addition, Google's Deep Mind ML technology has significantly reduced the amount of power needed to cool Google's data centers.

Amazon Web Services has a cloud-based ML platform called SageMaker. Similar to Google's TensorFlor, SageMaker lets developers quickly build ML models. Unlike TensorFlow, SageMaker is not free.

Artificial intelligence (AI) promises a lot, from self-driving cars to more precise diagnoses from doctors.

It’s also sure to be an economic moat for the companies who deploy it innovatively. Experts from the McKinsey Global Institute say AI is on track to add $13 trillion to the global economy by 2030.

Machine learning, a subset of AI, allows systems to improve themselves through experience - from trial-and-error, patterns and inferences. Machine learning will be crucial in driving the AI and smart automation that we demand in tomorrow’s software.

Investors interested in AI would be wise to watch these three companies who are making impressive machine-learning moves.

CrowdStrike Holdings, Inc. (OTC:CRWD)

CrowdStrike (NASDAQ: CRWD) released its IPO on June 12, and has more than doubled from its $34 per share offering price. Investors are attracted to the cybersecurity firm’s malware-detection capabilities, which couple machine learning and behavioral analytics (the traditional cybersecurity technique) to detect malware in devices used in corporate networks.

Machine learning enables CrowdStrike’s software to identify malware in devices without prior knowledge of the malware. As hacking tactics constantly evolve, so does CrowdStrike’s software. 

“Machine learning works because it can understand and identify malicious intent based solely on the attributes of a file — without prior knowledge of it, without signatures and without needing to execute the file to observe its behavior.” - CrowdStrike

Alphabet (GOOG)

Alphabet’s Google (NASDAQ: GOOG, NASDAQ GOOGL) uses AI to improve routine tasks for most internet users, including spam filters in Gmail and advanced search algorithms. It’s no surprise that many of Google’s engineers are trained in AI techniques, with Google CEO, Sundar Pichai calling the company “AI first.”

As for machine learning, Google offers TensorFlow, a software that allows developers to create and train machine-learning models. Google uses TensorFlow to improve its own search results, which in turn improves Google’s advertising revenues. The company allows developers to use TensorFlow for free in the hopes that clients will create smart apps and host them on Google Cloud. This draws developers from Microsoft and Amazon cloud services to Google Cloud.

In addition to this, Google has bought over 20 AI companies over the past few years. A notable company, DeepMind, experiments a lot with machine-learning solutions, from image and speech recognition to simulating human beings in video games. Google has used DeepMind's machine learning technology to lessen the amount of power needed to cool Google’s data centers by 40%, according to a DeepMind blog post.

Amazon (AMZN)

Amazon (NASDAQ: AMZN) shoppers are all too aware that the company uses AI algorithms to monitor people’s purchase history and predict what they are likely to buy. However, Amazon’s most notable driver for AI and machine learning is Amazon Web Services (AWS). AWS enables companies to access high-powered cloud storage and processing for a fraction of the cost of traditional options.

AWS has a machine-learning services platform, SageMaker. The cloud-based service is a popular tool for companies to quickly build, train, and deploy machine learning models. In fact, Amazon attributed its strong second-quarter revenue growth to the AWS division; AWS accounted for about 13% of Amazon's total revenue for the quarter. Revenue from AWS grew 37% from the preceding quarter, from $24 billion to $33 billion.”

Customers of AWS include T-mobile, General Electric, and the NFL, according to the AWS website.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.