EPAZ - From AI to AI as a Service: What Stocks Are Driving the Hype?
(NewsDirect)
Many claims havebeen made about artificial intelligence (AI), including that it willeventually dominate most humanities fields. Others have responded toconcerns that the technology may cause millions of people to losetheir jobs by saying that AI is simply a tool to increase humanproductivity. AI as a service, or AIaaS, is already makingwaves.
AIaaSdescribes the ready-to-use AI solutions (typically software) with whichcompanies can implement and scale AI operations while spendingfractions of the cost of in-house AI infrastructure. The migration ofdata centers from in-house to cloud services offers the best analogy.Initially, companies maintained vast fields of servers, expendingmillions of dollars in annual costs. But once Amazon Web Services,Microsoft Azure, and Google Cloud came along, companies opted for datacenter infrastructure as a service.
In other words, AIaaS is a model where businessescan access AI technology and expertise through third-party providers.AIaaS providers typically offer a range of services, including machinelearning, natural language processing, computer vision, and predictiveanalytics, among others.
Although the model is fairly new, the market has already caughtthe scent of the immense growth potential of the AIaaS market, and itis taking necessary steps. The expanding value of the market is atestament to the activity. Different sources have different estimatesfor the market size, but they all agree that it is expandingrapidly.
Forexample, a MarketsandMarkets report valued the market at USD 1.13billion in 2017, noting that it would grow at a 48.2% CAGR to reachUSD 10.88 billion this year. Another report by Grand View Research estimated that the global AIaaS marketwas worth USD 5.61 billion in 2021. Furthermore, the report expectedthe market to expand at a 37.1% CAGR between 2022 and 2030.
The reports are inconsensus about the key drivers of AIaaS market growth. They cite therising demand for machine learning (ML) services in the form of APIsand SDKs as the primary growth driver. Also, there is a growing numberof innovative startups likely to inject more impetus into themarket.
The bigcorporations are already deeply invested in the market, include, DuosTechnologies (NASDAQ:DUOT), Nvidia (NASDAQ:NVDA), Microsoft(NASDAQ:MSFT), and Cloudflare (NYSE:NET). These companies serve theAIaaS market in different capacities, shifting investors'attention to their stocks.
Epazz Inc. is a rising star that any investorinterested in getting in on the ground floor of an AI company shouldcheck out.
Epazz, Inc. (OTC: EPAZ); Epazz develops utility softwareprograms for business enterprises, hospitals, and government andpost-secondary institutions in the United States. The company'ssolutions include project management, document management, andcompliance tracking services designed to improve business efficiencyand compliance.
Epazz's role in AIaaS primarily focuses on providingAI-powered predictive analytics solutions. The company's solutionsuse machine learning algorithms to analyze data and provide usefulinsights. For example, a hospital uses insights to identify trendsthat can help management deliver better patient services.
Epazz builds itsproducts on top of the foundation and plumbing that are provided byNvidia, Cloudflare, and Microsoft, among others. What makes EPAZspecial is that its services are as mission-critical as MSFT, NET, andNVDA's. On the one hand, the foundational technology ensures thatthe AIaaS industry is running efficiently and reliably, while on theother hand, EPAZ's services ensure its users can accomplish theirdaily operations without a hitch.
One of Epazz's core products is the AIpredictive Smart Charging Pad. The wireless charging pad utilizes AIto predict and optimize charging patterns for the company’s spin offdrone from Zenadrone, the ZenaDrone 1000. The smart charing pad isdesigned to adjust the charging output automatically based on thedevice being charged, ensuring each device receives optimal chargingpower without overcharging or undercharging.
Epazz's horizon forexplosive growth just expanded recently due to government efforts to flush Chinese-made drones out of itstoolbox. The US government has a major need for drones, and until afew years ago, China controlled the pipeline. It was inevitablebecause few competitive designs were being manufactured in theUS.
CEO ShaunPassley, Ph.D., said, “We are taking multiple pathways to become agovernment contractor of drones. It is a major opportunity for us, asChinese drones are banned in the US government. It has opened up majordemands for our drones.”
But now that Epazz is in the game and has a seriouslineup of drones, the government has more options and is choosing itsown people. Interestingly, the Epazz leadership is already positioningthe company to maximize the opportunity. The company, throughZenaDrone, is "taking multiple pathways to become a governmentcontractor of drones." Accordingly, ZenaDrone has alreadysubmitted Phase 1 SBIR proposals and should receive feedback in threemonths.
Lastmonth, the company received positive news, EPAZ was granted a patent for the technology inside the charging pad, as wellas the design. This means that EPAZ will not only earn from producingand selling the charging pads but also generate income from licensingthe technology and design.
CEO Shaun Passley, Ph.D., said, “We arebuilding a portfolio of Drone patents which not only protect ourtechnology, but creates added value which may gain the interest oflarger parties in the future.”
The company aims to solidify its lead inpredictive drone technology with a recent agreement with OpenAI. ZenaDrone, Inc., an Epazz, Inc.subsidiary, is upgrading the predictive engine in the ZenaDrone 1000to OpenAI'sPredictive AI Analytics. Given OpenAI's successwith ChatGPT and the Bing search integration, there is no doubt thatthis upgrade will be a game-changer.
In other words, Epazz has a lot going on, enough tochallenge the behemoths in the AIaaS space, including MSFT and NET.Considering the sector is still making baby steps, there is plenty ofroom for pleasant surprises.
Looking at the current AIaaS landscape, one caneasily dismiss Epazz ostensibly because of the immense competition thebig corporations present. However, this attitude immediately changeswhen one considers that Epazz is a niche business with the potentialfor complete domination. Epazz does not face serious competition inthe smart drone technology sector.
Duos Technologies (NASDAQ:DUOT): DUOTprovides AI-based intelligent security and analytical technologysolutions, focusing on the rail and transportation industries. Theyinclude intelligent predictive analytics, video analytics, and machinelearning algorithms that help to improve safety, security, andoperational efficiency.
The company announced mid-last month that a Class 1 customer in Mexicohad integrated 30 of its AI models into their operations. The purchasecomes when Duos Technologies' business is flourishing, with therevenue base growing significantly in January this year.
Duos Technologies reported $15.4 million in revenues for FY2022, an 86%increase year-over-year. In addition, the company expects to add between $5 million and $6 million in thecurrent financial year. As a result, the stock price is on a steeptrajectory – up 146.67% year-to-date.
Nvidia (NASDAQ:NVDA): Nvidia may notbe an AIaaS company per se, but its products build the industry'score. The chipmaker is a leading provider of graphics processing units(GPUs) and AI chips. In other words, Nvidia is responsible for thehardware aspect of the AIaaS industry.
The company's GPUs are widely used in AItraining and inference, providing high performance and energyefficiency. NVDA also offers software tools and libraries that make iteasier for developers to build and deploy AI applications.
Thanks to the AIaaShype, especially after the successful launch of OpenAI's chatbot,ChatGPT, NVDA stock has been an investor favorite. It is up 62.18%year-to-date and 292.56% over the past five years.
Microsoft(NASDAQ:MSFT): Microsoft is among the biggest players in thebroader AI and cloud computing industries. It is well-known for itsWindows operating system and Office productivity suite, but it hasalso made significant investments in AI technology over the pastdecade.
MSFT's role in AIaaS primarily focuses on providingcloud-based AI services through its Azure platform. Azure is theprimary competitor of Google cloud and Amazon Web Services.
But perhaps theclearest indication that MSFT was all in the AIaaS sector is thecollaboration with OpenAI to launch Bing Chat, an integration ofChatGPT into Bing search to create a chat mode in the search engine.Since the integration, Bing has seen more people download the mobile app . Interestingly, just800,000 downloads of Bing's mobile app were recorded in 2022. Thefigure jumped in the week since the integration was announced, with apeak of more than 150,000 downloads daily. More people are also usingthe Bing search engine on desktops.
Due to the Bing-ChatGPT integration effect, theMSFT stock is up 4.11% year-to-date. Bing search is also predicted toclaw back some more share of the search engine market fromGoogle.
Cloudflare (NYSE:NET): No one would want to use AIaaSsolutions if they did not come with a security guarantee. In thisregard, Cloudflare ensures that cloud-based activities are secure andreliable. The company provides cloud-based security, performance, andreliability solutions for websites and applications. The solutionsinclude various services, such as content delivery, DDoS protection,and a web application firewall.
The solutions extend into AIaaS, wherebyCloudflare's machine learning algorithms are deployed to analyzewebsite and application traffic. As such, engineers can detectpotential security threats and block malicious traffic in real-time.NET also offers various other AI-powered services, such as botmanagement and image optimization.
In other words, Cloudflare is responsible for theplumbing that ensures AIaaS runs efficiently. Given its centrality tothe AI wave, NET has seen significant growth over the past year. Thecompany's fourth quarter FY2022 revenue came in strong, increasing42% year-over-year to $274.7 million. The stock has also benefitedimmensely, growing 233.39% over the past five years and 39.49%year-to-date.
Conclusion
Undoubtedly, AIaaS has the potential to make good returns forthose who get in early. However, the companies that will dominate arethose that are ready to get their hands dirty today. ChatGPTrevolutionized how the world looks at the promise of AI, and companieslike Microsoft, Nvidia, Cloudflare, Epazz, and Duos are lining up toclaim the front-row seat to the show. However, given the fluid natureof technological advancements, it may not come as a surprise for nichebusinesses like Epazz, Inc. (OTC: EPAZ) to find their way in theAI-driven boom.
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