SoundHound and Microsoft Continue the Frenzy of AI Talk. And Now You Can Converse with Systems Like ChatGPT. Out Loud.

SoundHound SOUN –6.95%  AI, a company that provides artificial intelligence-based voice interfaces for cars and other devices, announced last week that it would add voice-enabled access to generative AI applications like ChatGPT, a wildly popular chatbot developed by Open AI, which went into action in November.

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The announcement last Tuesday morning, is likely to fuel the flames of an already red-hot stock and sector, as investors continue to seek out opportunities to take advantage of the AI trend. In after-hours trading, SoundHound's (ticker: SOUN) shares rose by another 13% to hit $4.56 in after-hours trading, after a 43% jump on Monday.

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As of late November 2022, ChatGPT was trading at $1.28 per share at the time the service was launched. A merger between SoundHound and SPAC was carried out in April 2022 to take the company public.

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A number of other stocks related to artificial intelligence such as BigBear.ai (BBAI) and C3.ai AI -9.22% (AI) have also made huge gains in recent sessions.

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A new conversational artificial intelligence service based on the company's project LaMDA, for Language Model for Dialogue Applications, was announced by Alphabet GOOGL +1.56% on Monday. This new service is called Bard, and it is based on the company's own ongoing project LaMDA, for Language Model for Dialogue Applications. Bard's CEO Sundar Pichai said that the company will draw on information from the web, which is a point of differentiation from the company's ChatGPT application, which, at this point, relies on a vast but not unlimited training model that does not take into account current events.

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It has been announced that Microsoft MSFT +2.61% will hold a press conference in Seattle at 10 am Pacific time on Tuesday - during which Open AI is expected to announce the expanded use of regenerative machine learning software, possibly including that of Microsoft's Bing internet search engine.

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Ives believes Microsoft could become a more serious competitor in search in the coming years, according to Wedbush analyst Dan Ives.

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Despite the fact that Bing has only roughly 9% of the search market today, he predicted that the integration of this unique ChatGPT tool and algorithms into the Microsoft search platform could result in major share shifts away from Google and towards Redmond in the future. “Microsoft is looking to win this AI battle between Big Tech giants over the coming years, and this is evident from the fact that OpenAI's co-founder and CEO Sam Altman will be on the podium with Nadella at this event."

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As part of its announcement last fall, SoundHound AI unveiled a conversational artificial intelligence platform called Dynamic Interaction, designed for restaurant ordering systems and other applications. “Moreover, Dynamic Interaction will allow users to enjoy effortless, voice-enabled access to generative AI through its user interface, which means users will be able to find relevant information and ideas by simply speaking naturally," the company said on Tuesday.

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Earlier this week, the company released a demo, which focuses specifically on in-vehicle applications that are relevant to the automotive industry. It has been noted by SoundHound that it has reached agreements with 17 automotive brands in the last two years in order to make use of its conversational AI platform.

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SoundHound isn't specifically announcing an agreement to work with ChatGPT, so it's important to keep in mind that this is just an announcement. A spokesperson for the company said, as a response to a query from Trade Algo's, "We're actually planning a future announcement that will go into more detail about where the responses of the generative AI portion of the service will come from, but they'll be similar to the responses that ChatGPT would offer," he said.

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In order to demonstrate how the system would work, the company offered an example.

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Imagine that you are planning a day trip to the Bay Area. It is shown in the example above that the driver asks, “Can you help me plan a fun day of hiking in San Francisco for tomorrow? ” The app responds with an itinerary suggestion, not in text, but in audio.

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“It is recommended that you begin your hike at the Land's End trailhead. A walk along this trail will provide you with amazing views of the Pacific Ocean and the Golden Gate Bridge. You may then wish to visit the ruins of the Sutro Baths, an old public bathhouse that has now been converted into a park with trails and scenic views of the surrounding area. Then, after your hike, you can enjoy the beautiful sunset over the ocean from the famous Seal Rocks, where you will be able to finish your hike.”

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The exact same question was asked by Trade Algo to ChatGPT as a point of comparison. One of the first suggestions was for a scenic coastal trail that offers breathtaking views of the Golden Gate Bridge, the Pacific Ocean, and the Marin Headlands at Lands End.

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Whatever AI you ask, it was a nice hike.