What is Magnificent 7? The history of the Big Tech abbreviation behind it
What is Magnificent 7?
The Magnificent 7 are the giants of the technology industry: Apple, Amazon, Alphabet (Google), Meta (formerly Facebook), Microsoft, NVIDIA, and Tesla. NVIDIA, and Tesla. These companies have led the evolution of technology in recent years and continue to grow.
This new abbreviation for the seven leading companies in the technology industry has been recognized for their work in advanced technology, particularly in AI.
Tesla and NVIDIA were added to the Big Tech group of companies toward the end of 2023. The reason for this is the expansion of service possibilities due to the development of technology. Until now, Big Tech has consisted of a group of companies focused on Internet services; the EV and self-driving space, such as Tesla, is more promising than ever, and GPU and semiconductor companies, such as NVIDIA, are essential for learning generative AI, such as ChatGPT, and can tech companies, forming a demand that they can sell to tech companies at a price they are willing to say. This focus on AI and tech-enabled related services and products is what makes up the Magnificent 7.
Meaning and origin of the word Magnificent 7
The word “Magnificent” means “magnificent,” “grand,” “splendid,” or “magnificent. Thus, “Magnificent 7” could be directly translated as “seven great companies. It is an appropriate term to describe the big tech companies that are making rapid progress in the United States.
The term Magnificent 7 comes from its use in the 2016 American western action movie “The Magnificent Seven”. The film is also a remake of the 1960 film “Seven in the Wilderness,” based on Akira Kurosawa’s 1954 film “Seven Samurai.”
Changes in Abbreviations of U.S. Big Tech Groups of Companies
Even before the term “Magificent 7” was used, there were several abbreviations for U.S. Big Tech. We would like to discuss those transitions as well.
GAFA
This abbreviation, which began to be used around 2018, refers to Google, Apple, Facebook, and Amazon.
You will often see this abbreviation GAFA in Japanese newspapers. In fact, the abbreviation FANG, described below, was more common in the United States.
Google started as an Internet search company, Apple as an electronics company, Facebook as a social networking service, and Amazon as an e-commerce company. Since then, each company has experienced rapid growth and has come to stand out from the pack in terms of global market capitalization in the 2010s.
Then, they expanded into various fields such as cloud services, VR, artificial intelligence, online advertising, and self-driving, and now GAFA is developing services with each of them as a competitor.
FANG (FAANG)
FANG is an acronym named after the initials of Jim Cramer Facebook, Amazon, Netflix, and Google in 2013. It symbolizes a dominant position in the market; when it is called FAANG, it includes Apple.
The difference between FANG and GAFA is that Netflix is included and Apple is excluded. The difference between FANG and GAFA is that Netflix is included and Apple is excluded. This may be due to the fact that, globally, Netflix dominated the market as an Internet service, while Apple competed with Microsoft in PCs and Google’s Android in smartphones, and was not completely dominant.
GAFAM
GAFA plus Microsoft, an abbreviation commonly used to refer to Big Tech until the introduction of Magnificent 7.
In 2022-2023, with the general availability of generated AI being advanced by OpenAI, the provider of ChatGPT, all companies were focusing on development; Microsoft developed Copilot and also made a move to acquire OpenAI (unsuccessfully as a result). Google has developed a generative AI called Gemini (Bard), which it combines with Goole’s vast search data. Apple is also working to implement generative AI in its iPhone and Mac products.
Note: What is FAAA?
FAAA is a collective acronym for “Facebook,” “Alibaba,” “Amazon,” and “Alphabet,” referring to technology giants in different regions. These companies also play an important role in the global business and technology evolution.