We recently compiled a list of the 10 AI Stocks That Wall Street Is Betting On. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against the other AI stocks.

Elon Musk has been pressing hard to halt OpenAI’s transition into a for-profit entity. But the high-stakes legal battle isn’t seemingly working out in his favor. In the latest news, a U.S. judge has denied the billionaire's request for a preliminary injunction to pause OpenAI's transition to a for-profit model. However, she did agree to a fast-track trial in the fall of this year to address his claims against OpenAI and its CEO, Sam Altman.

According to U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, Musk doesn’t have "the high burden required for a preliminary injunction" to block the conversion of OpenAI. However, Rogers wrote in the order that she wanted to resolve the lawsuit quickly given "the public interest at stake and potential for harm if a conversion contrary to law occurred."

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The filing noted that even though the plaintiffs “failed to meet their burden of proof for the extraordinary relief requested,” other aspects of Musk’s lawsuit against OpenAI can proceed. Currently, OpenAI is overseen by a non-profit parent that Elon Musk recently offered to buy. However, the company's board unanimously rejected the $97.4 billion offer to buy OpenAI.

Since Musk has become Altman’s chief adversary, he has been putting obstacles in OpenAI’s path to becoming a for-profit entity, claiming that the AI startup will deviate from its original mission of developing artificial intelligence for the benefit of humanity. OpenAI and Altman have denied these accusations, stating that the shift is essential to raise capital and effectively compete in the rapidly evolving AI industry.

OpenAI has welcomed the judge's recent decision, stating that the lawsuit by Musk, who launched rival startup xAI in 2023, has "always been about competition". Meanwhile, Marc Toberoff, a lawyer for Musk, said they were pleased the judge "offered an expedited trial on the core claims driving this case".

“We look forward to a jury confirming that Altman accepted Musk's charitable contributions knowing full well they had to be used for the public's benefit rather than his own enrichment.”

-Marc Toberoff.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points  (see more details here).

A user's hands typing a search query into a Google Search box, emphasizing the company's search capabilities.

Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On March 6, Google Cloud, a suite of public cloud computing services that provides AI, infrastructure, developer, data, security, and collaboration tools, announced that it is teaming up with SLB and Project Innerspace to accelerate the adoption of global geothermal energy.

The new partnership will integrate  SLB’s geothermal consulting services, Project Innerspace's innovative GeoMap that identifies potential locations for geothermal energy development, and Google Cloud’s scalable infrastructure, BigQuery and Vertex AI, allowing the companies to pinpoint and develop promising geothermal resources around the world. BigQuery is a data warehouse, while Vertex AI is a machine learning (ML) platform.

"This collaboration paves the way for widespread geothermal deployment on a global scale and will help meet future energy needs. By bringing Project Innerspace's GeoMap, built on Google Cloud's AI and data technologies, and SLB's expertise in geothermal energy, businesses will have access to the tools and experience needed to grow geothermal energy programs around the world."

-Kyle Jessen, managing director, Energy Sector, Google Cloud.

Overall GOOGL ranks 3rd on our list of the AI stocks Wall Street is betting on. While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

 

Disclosure: None. This article is originally published at Insider Monkey.