Artificial intelligence put to the test by the market
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Daniel Steck Head of Equity Research
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Le Temps
Featured in Le Temps, Daniel Steck, Fund Manager and Analyst at Piguet Galland, shares his perspective on emerging signs of tension within the artificial intelligence sector.
According to an investigation published by The Wall Street Journal, OpenAI has reportedly fallen short of its internal targets in terms of users and revenue, casting doubt on the current market momentum.
Despite the massive success of ChatGPT, which is approaching one billion users, growth appears to be slowing, raising questions about the sector’s ability to sustain its colossal investments.
Competition reshaping the landscape
In this environment, competition is intensifying rapidly. Google, with Gemini, and Anthropic are gaining ground, illustrating a gradual redistribution of market dynamics.
🎙️ Daniel Steck notes:
“Market shares are likely to shift back and forth between these players as new iterations of language models are developed.”
He compares this evolution to the streaming industry, where Netflix saw its leadership challenged by the arrival of new entrants.
Markets highly sensitive to signals
Financial markets reacted swiftly to these developments. Several technology players, including SoftBank, Oracle and Nvidia, recorded notable declines.
This volatility reflects heightened investor expectations, with increasing focus on the delivery of tangible growth.
Monetisation: the real test
Despite these uncertainties, the medium-term outlook remains constructive.
🎙️ Daniel Steck adds:
“The recent introduction of advertising will enable OpenAI to monetise a platform that has already achieved massive adoption more rapidly.”
The ability to generate revenue from such a vast user base will be a key factor in the months ahead.
Towards a more mature phase
Rather than a downturn, this phase may signal a transition towards a more mature industry, where only players capable of combining innovation with robust business models will succeed over the long term.
Authors
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Daniel Steck brings nearly twenty‑five years of experience in the financial sector. He began his career in financial analysis at Lombard Odier, focusing in particular on the healthcare sector, before continuing at Reyl & Cie as an analyst and portfolio manager. He joined Piguet Galland in 2018 as a Senior Portfolio Manager, where he is responsible for managing equity funds and thematic certificates invested in Switzerland and North America.
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Le Temps
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