Sony Invests In Start-Up To Boost Artificial Intelligence

In a bid to develop its artificial intelligence (“AI”) capabilities, Sony Corporation (NYSE:SNE) announced an investment in a U.S. technology start-up, Cogitai. The financial details of the deal were kept under wraps.

The investment comes at a time when technology stalwarts such as Facebook, Inc. (NASDAQ:FB) , Apple Inc. (NASDAQ:AAPL) and Google (NASDAQ:GOOGL) are spending aggressively on AI initiatives.

California-based Cogitai was founded a year ago by three researchers, and works with technology that enables machines to learn constantly and autonomously from interaction with the real world.

The companies believe that the next step in AI field is the development of autonomous cognitive development systems that can continually learn from experience and react appropriately in a wide range of task domains.

Such systems will enable machines to accumulate knowledge and skills by interacting with the real world, and share their knowledge, understanding and skills with each other.

Sony used to be a forerunner in the field of AI, having launched robotic dog AIBO in 1999 and humanoid robot QRIO in 2003.

However, in the present day scenario, Sony is somewhat lagging behind in the arena. Its AI momentum got stalled as it grappled with intense price competition and a decade-long struggle for profitability in its core consumer electronics business. Its last AIBO and QRIO robots were produced in 2006.

Since then, Sony has turned around its electronics operations through consistent restructuring, and is now looking to regain its technological competitiveness.

The investment in Cogitai looks set to jumpstart its AI capabilities. In fact, Sony expects the collaboration to result in a product/service as early as next year. Eventually, the company plans to build its AI business into a major revenue source.

Sony currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same space is Dolby Laboratories, Inc. (NYSE:DLB) , sporting a Zacks Rank #1 (Strong Buy).