Tech-focused AI Companies
Some AI companies exist to develop technology and nothing else. They set up and operate R&D centers only, and their founders and CEOs typically hold product class expertise.
How they make money
The goal is technology superior to their competitors’, because that raises the Intangible Asset (Technology) on the balance sheet — and a stronger balance sheet lets them raise capital by issuing new shares.
They are also eager sellers. Selling technology funds further research, and their customers are companies for which buying is more cost-effective than researching — which gives a latecomer a way to catch up quickly.
What becomes of them
- They may start manufacturing. A tech-focused AI can decide to roll out products of its own, and years of research give it a real advantage in competing for market share.
- They may be acquired. Larger corporations find them attractive targets, and one can end up assimilated into a bigger group.
For a stock trader: their share prices are highly volatile. Technology leadership is the entire business, so losing it costs them their competitive advantage and their market value almost at once.
Related improvements
Acquire technology from the CEO’s office
Reaching the menu for acquiring technology from other companies used to require hiring a Chief Technology Officer and going through the CTO office. It is now available from the CEO office, with no CTO to hire.
Technology acquisitions make the news
Technology-related news for your own company, or any other, appears on the History page of the Corporate Detail Report.
Technology breakthroughs
Tech-focused companies experience breakthroughs from time to time. The R&D project completes instantly, at 10–30 points above the original tech level target.