Leading Competitors in the AI Race

Massive investments in artificial intelligence companies are reshaping the high-tech industry. Former SOM Dean Ted Snyder and investor Logan Bender evaluate which leading companies are likely to maintain their advantage and which could be overwhelmed by the wave of innovation.

Professor Edward A. Snyder and Logan Bender taught Economic Analysis of High-Tech Industries from 2020 to 2024. They offer webinars and other materials on the topic through their website.

This article was originally published on Ted and Logan’s Briefings on High-Tech Industries in August 2025 and updated in October. The views expressed are the authors’ own.

The Magnificent Seven—Alphabet, Amazon, Apple, Microsoft, Meta, Nvidia, and Tesla—previously competed in distinct sectors. AI has altered this dynamic. These seven now face new competition from companies like OpenAI, Oracle, AMD, IBM, Palantir, Anthropic, and Salesforce.

Throughout the history of capitalism, no other new technology has attracted as much investment as AI. Alphabet, Microsoft, Amazon, and Meta alone are projected to spend $400 billion on capital expenditures in 2025, primarily on AI.

The competition is intensifying, and investors are scrutinizing total AI investments, vision, use cases, human capital, and returns on early investments.

A fundamental question arises: Can all of the Magnificent Seven and others succeed in AI?

Our answer is no. What was stated in the first webinar of our series in April aligns with recent business press analysis: the leading edge cannot accommodate so many winners.

Which companies are excelling in the early stages of the AI race?

Key points to watch going forward: