According to Ark Invest, established technology giants are expected to face significant competition in the upcoming years as new players in software and data management begin to capture market share. Leading U.S. companies like Microsoft, Amazon, Google, and Oracle have been at the forefront of artificial intelligence advancements, with their cloud computing platforms hosting some of the most sophisticated AI models and chips. As a result, these companies have experienced increased investor interest over the past two years.
Rahul Bhushan, managing director of Ark Invest Europe, mentioned on CNBC’s “Squawk Box Europe” that firms such as Palantir Technologies have the potential to disrupt the current tech landscape dominated by names like Amazon Web Services, Microsoft Azure, and Google Cloud. Palantir is a significant holding within Ark’s Innovation fund.
Bhushan pointed out that much of the recent focus in AI development has been on hardware, which has captured a substantial portion of the sector’s value over the past two and a half years. However, he believes that true opportunities exist further along the AI development chain, specifically within software-focused companies.
Palantir, a company specializing in data analytics, delivers customized AI and data services as opposed to the more generic offerings from large tech firms. Bhushan highlighted that Palantir’s value proposition is enhanced when combined with AI capabilities, as it can address issues faced by organizations with decentralized and incompatible data systems. Palantir consolidates this data and applies AI to extract insights and propose actions.
Additionally, Bhushan identified Databricks and Kratos as companies well-positioned for growth, presenting compelling investment opportunities. Databricks is included in the Ark Venture fund, and Kratos is primarily recognized for its contributions to the defense sector.
