Ark Invest said big tech companies will face fierce competition in the coming years, with new players in the software and data management fields grabbing market share. Major U.S. companies such as Microsoft, Amazon, Google, and Oracle are leading the way in the rise of artificial intelligence. Their cloud computing platform houses some of the most advanced artificial intelligence models and chips, and investors have rewarded the stocks accordingly over the past two years. However, Rahul Bhushan, managing director of Ark Invest Europe, told CNBC’s “Squawk Box Europe” that companies like Palantir Technologies are well-positioned to disrupt the technology landscape currently dominated by giants such as Amazon Web Services, Microsoft Azure and Google Cloud. Palantair is a top ten holding of the Ark Innovation Fund. “When you look at the AI stack today, a lot of the focus is on the silicon and the hardware, and that’s where 80% of the value has been accumulated so far in the last two and a half years,” Bhushan explained. However, , he emphasized that the real opportunities lie further down the AI stack, especially in software-centric companies. Data analytics company Palantir appears to be providing customized artificial intelligence and data services to its customers compared to off-the-shelf products from big tech giants. Ark’s Bhushan said the value of Palantir’s services becomes even more compelling when combined with artificial intelligence capabilities. “Most organizations have data all over the place. They’re in different silos. They’re in legacy systems. They’re in different formats. So Palantir steps in and it consolidates all this data,” notes Bhushan. “Then you layer on top of artificial intelligence, where it can not only derive insights from it but actually recommend actions.” Databricks is privately held and is owned by the Ark Venture fund, while Kratos is primarily known for its work in the defense sector, Bhushan said. Known for their similar positioning, the two companies offer attractive investment opportunities. PLTR 1Y line v
