Analysis of Potential Entry Into Edge AI Software

With a recent boom in the popularity of Large Language Model (LLM) chatbots such as ChatGPT, the generative Artificial Intelligence (AI) landscape has seen a massive increase in market size. Along with this boom in generative AI, other sectors of AI have seen massive growth as well. One such area of interest is the Edge AI software market. Because this market is so new, there is an immense amount of room for growth and profit since most firms have yet to obtain a firm foothold in this space. Therefore, it makes sense that Company X is seeking to enter this market. With the successful release of Product O, an open-source AI development and optimization program, and Product G, a program for the development and deployment of computer vision models, Company X is seeking to understand the market landscape, overall potential returns, and broad applications for contingency in various scenarios before making further investments into this market. Through our in-depth analysis of the market, which examines current competitors, and includes top-down and bottoms-up analyses, we were able to create a detailed picture of potential market states, their effects on our recommendation, and the initial outlay needed for Company X to actively pursue our recommendation. As for our final recommendation, we believe that Company X should continue to market Product O to draw users into Company X’s hardware ecosystem, similar to what Apple did with the iPhone, which will allow Company X to obtain a greater market share and long-term user loyalty. Software-hardware synergies will continue to drive an increase in Company X’s overall profits. This secondary source of hardware sales will be insulated from the cyclical nature of the CPU market, allowing for less variability in revenues during market downturns. This decrease in the hardware sales cycle should lead to higher stock prices and increase stakeholder confidence. Successful implementation of these strategies boosts the success of future Company X product launches and stops any competitors from entering the market, solidifying Company X’s hold on its market share.