Prediction: This Synthetic Intelligence (AI) Firm Will Be Acquired in 2025

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Over the past couple of years, abnormally excessive inflation together with rising borrowing prices impressed some companies to focus extra on inside efforts and push off any concepts about acquisitions or particular tasks.

However now that inflation is cooling and the Federal Reserve has begun to taper rates of interest, company stability sheets are strengthening.

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Furthermore, I feel it is solely a matter of time till the Federal Commerce Fee (FTC) chairwoman, Lina Khan, resigns earlier than President-elect Trump is sworn into workplace. One in all my important predictions for 2025 is that mergers and acquisitions will see a comeback amid an bettering macroeconomic image and the excessive chance that management on the FTC adjustments underneath the incoming administration.

One firm that I see as a lovely acquisition candidate is SoundHound AI (NASDAQ: SOUN), which makes a speciality of voice-recognition assistants powered by synthetic intelligence (AI). Under, I will element why speech recognition is a vital element of the AI ecosystem, and discover why SoundHound AI seems to be like a logical acquisition prospect.

Voice-enabled AI makes use of pure language processing (NLP) and machine studying to coach gadgets to grasp and course of phrases and phrases. Widespread purposes of this expertise embrace Web of Issues (IoT) home equipment equivalent to good thermostats or assistants like Amazon‘s Alexa.

The AI embedded in these instruments might help you set reminders, acquire basic data by asking a query, and even change the temperature all through your property — all by leveraging your voice and eradicating any handbook or bodily steps in between.

Based on Statista, the worldwide complete addressable market (TAM) for speech recognition is estimated to achieve $15.9 billion by 2030 — barely greater than double what it’s price at the moment.

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Whereas there may be clear demand for AI-powered speech recognition, which companies are literally investing on this expertise? The reply might shock you.

Picture supply: Getty Photographs.

Along with Amazon, the businesses listed under have invested considerably into AI voice assistants during the last a number of years:

  • Alphabet: Much like Amazon, it additionally has a line of smart-home merchandise. The corporate’s Google Residence gadgets are basically a direct competitor to Amazon’s Alexa, whereas the corporate’s smart-home merchandise — together with audio system, thermostats, doorbells and locks, and way more — are offered underneath its Nest model.

  • Microsoft: A few years in the past, the corporate acquired a developer of AI voice recognition referred to as Nuance for practically $20 billion. Nuance gained traction in just a few essential finish markets, however primarily centered on healthcare. For Microsoft, the deal represented a chance to leverage a brand new kind of expertise whereas additionally permitting the corporate to cross-sell its numerous providers — explicit its Azure cloud computing infrastructure — to main organizations already working with Nuance. Its associate OpenAI has additionally been experimenting with voice-powered AI instruments. Though it is nonetheless early days, Microsoft seems to be effectively positioned within the speech recognition phase of the AI panorama.

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