By Auren Hoffman, CEO, SafeGraph
There are three different types of Machine Learning and Artificial Intelligence companies: The Superrich, the Servicers, and the Innovators.
- Superrich: Companies that do machine learning and have their own data.
- Servicers: Companies that do machine learning on other people’s data.
- Innovators: Companies that do machine learning and have to get access to data.
All three of these type of companies can be massively successful and each one has a distinct flavor.
The Superrich are companies like Google, Facebook, Baidu, Tencent, Amazon, Microsoft, and others. There are very few of these companies in the world but they have a massive advantage over everyone else in the machine learning space because they have access to vast amounts of clean, structured data. Engineers that do machine learning can do what they do best, predict the future.
The Servicers help other firms make use of large amounts of data. These companies comb through data (sometimes unstructured) and develop insights. These companies are essentially service firms because they work directly with the data of their customers. One of the most successful Servicers is Palantir Technologies which made a name of itself helping government organizations make sense of the data. Salesforce.com also is creating initiatives to do this.
The Innovators. These are companies that are working on a specific problem but don’t have access to their own data and are not service-oriented companies that help others. These are companies that want to use data to cure cancer, creating self-driving car technology, and predicting the stock market (like hedge funds). Some of these firms, like Two Sigma Investments and Point72 Asset Management, spend hundreds of millions of dollars on data because unlike the Superrich, they do not generate tons of data themselves.
Read the source article at Forbes.