The players that develop and provide them are active in an important and fast-growing market with high barriers to entry, and since AI capabilities become more and more important for defense tech as well, there’s significant potential for business expansion, as more capable chips are needed in the future.

Artificial Intelligence is being used in the creative arts in a variety of ways, including:

• In visual arts, its text to image generation. Here, users just want to create something and write prompts (text-based instructions) that are then turned into images by AI. In this space, companies, such as Midjourney and Stable Diffusion, are among the leaders. The above image, for example, was created by me with one of these services, using the following prompt: A robot painting a van Gogh painting.

• In film/video, AI can do similar things — creating video output from prompts. This is a lot more complicated and requires a lot more computing power, and the outputs sometimes still feel and look unreal. At least so far, Artificial Intelligence is better at creating still images than at creating moving images from prompts. Sora from OpenAI is one of the key players.

• AI also can create music via prompts from users. In fact, there are Spotify (NASDAQ: SPOT) artists that are entirely AI-created, such as the band “The Velvet Sundown” with millions of streams. Boomy, and Aiva are among many players that have music creation AI tools on the market.

Artificial Intelligence is also used in less obvious ways. AI tools can help optimize animations made by humans. For example, they can help writers by improving the grammar and structure of what they write, and AI tools can help improve sound quality in recordings.

Where to Invest Now

Many companies that offer text-to-image, text-to-video, etc., aren’t publicly traded yet. There are, however, alternatives:

Established players, like Adobe (NASDAQ:ADBE), offer AI tools that can be used to edit images and videos using the company’s Photoshop and Illustrator products.

Since image generation, and especially video generation, results in heavy computing power loads, there’s a lot of demand for high-end chips. Companies that provide these, like NVIDIA (NASDAQ: NVDA) or Advanced Micro Devices (NASDAQ: AMD), should benefit significantly, as growing AI art means more data centers are needed.

Other data center players, like Arista Networks (NASDAQ: ANET) or Broadcom (NASDAQ: AVGO), will benefit for the same reasons.

Investors that are interested in broader exposure to the world of tech and Artificial Intelligence can take a look at our top picks.