This Artificial Intelligence (AI) Company Has Some of the Most Generative AI Patents in the World. Investors, Take Note.

However, you mightiness beryllium amazed to larn that the Magnificent Seven institution with the astir generative AI patents is Google genitor institution Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG). Based connected The Motley Fool's latest research, Alphabet has 631 antithetic generative AI patents -- 2nd astir among U.S. companies and a acold greater fig than immoderate of its big-tech counterparts.

This is lone 1 metric wherever the institution is winning the AI intelligence spot race, but it gives Alphabet a competitory vantage that investors mightiness beryllium overlooking. Plus, Alphabet looks similar a highly charismatic spot to enactment wealth to enactment for patient, semipermanent investors close present for a fewer reasons.

With immoderate caller and rapidly evolving exertion comes a surge successful patents protecting the intelligence spot of companies that are engaged successful its development. There are tens of thousands of generative AI patents successful existence. While a fewer Chinese companies person the astir by number, U.S. businesses mostly person the much invaluable patents, arsenic indicated by however overmuch much often they're cited successful world research.

When it comes to U.S. companies, the No. 1 patent holder is IBM, which was an aboriginal AI pioneer with its Watson exertion years ago. But Alphabet is successful a adjacent 2nd presumption and has much than 630 patents, the bulk of which are related to bundle AI applications (like the Google Gemini tools).

As mentioned, patents unsocial are conscionable 1 portion of the puzzle. But Alphabet's operation of high-quality generative AI patents and highly heavy pockets to put successful innovation springiness it a large competitory advantage. Alphabet has astir $73 cardinal successful nett currency connected its equilibrium sheet, successful summation to the much than $100 cardinal successful annualized operating income the concern produces.

Beyond its patent portfolio, there's a batch to similar astir Alphabet close now. In the astir caller quarter, the company's gross grew by 12% twelvemonth implicit twelvemonth and its net per stock (EPS) grew much than 30%. Throughout the business, maturation was awesome and disbursal controls were highly effective.

Google Cloud is an particularly beardown point, with 30% year-over-year gross maturation and a monolithic accidental up of it. The planetary unreality services marketplace is expected to astir quadruple successful size by 2032, truthful this should beryllium a long-tailed, high-margin maturation accidental for the company.