What is Semantic AI
Semantic AI (SAI) is a new brand of AI algorithms which generates near-human insights. As opposed to the traditional machine learning algorithms SAI deals with the true underlying meaning of the data. In financial markets, this translates into digging into the meaning that a company/asset has in the world of finance. Instead of treating each company as a bunch of numeric metrics like return rate, earnings etc SAI analyzes what a company produces, what goes into each product, which company produces those materials (supply chain) and which company/entity buys the products (clients). SAI also considers entities such as interest rates, political developments, local and global events and investors who invest in the company. You probably have noticed that this kind of data encapsulates all the knowledge that we have about any given company. This is exactly what Assets 360° contains. In addition to this, we have designed properiotry Graph Neural Network (GNN) which extracts the meaning of this data and truly understands the essence of a given asset and its relation to the wider financial world. In the next section, we describe how such a GNN sees our data and how it reasons about it.
Tesla: A Case Study
Let's look at one specific company that has been garnering a lot of attention: Tesla Inc. The valuation has skyrocketed over the last year. But is the current valuation warranted? What is the right price for Tesla's shares? To answer this question, we need to map-out a reasoning process backed by data. Here is the kind of reasoning within reach of Atlas 4's AI technology:
Tesla is chiefly an automaker in the EV industry. However, EVs are not the only product Tesla offers. The company is also involved in manufacturing EV-related products, such as rapid charging stations. It also manufactures lithium-ion batteries used, not only in EVs, but in the energy sector through Tesla Powerwalls used for energy storage.
In terms of the automotive industry, Tesla's closest competitors are in the EU and China. While Volkswagen and BMW are present in the EV market,
the real competition comes from three EV manufacturers in China: BYD,
BAIC and SAIC. Together, these three companies surpass Tesla in terms of
market share and expand into functional territories Tesla hasn't even entered (i.e. military vehicles and public transportation). Tesla is also
active in EV charging technology. In this domain too, companies in China and Europe are posing an increasingly bigger risk to Tesla's market share.
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