What you need to know
- The latest trends in tech indicate AI might not be performing as well as initially expected.
- OpenAI is reportedly on the brink of bankruptcy, projecting $5 billion in losses within the next 12 months.
- NVIDIA’s value is slipping through the cracks due to the delayed shipment of its much-anticipated Blackwell chips.
- Investors have also raised concerns that the vast resources invested in cutting-edge technology aren’t reflected in profits.
As a seasoned researcher with over two decades of experience in the tech industry, I’ve witnessed countless transformations and trends come and go. The latest developments in AI have been nothing short of intriguing, to say the least.
Artificial Intelligence (AI), particularly its generative form, is increasingly being used across industries such as education, technology, healthcare, music, and others. This technology significantly alters the way we operate, potentially displacing certain jobs. For example, NVIDIA’s CEO, Jensen Huang, predicts that coding might no longer be a viable career choice for future generations due to the rapid growth of AI.
Elon Musk, a significant investor in technology, hinted at an imminent technological leap that could revolutionize our world. However, he cautioned that this milestone may not materialize due to the immense power requirements it demands. While artificial intelligence (AI) promises endless possibilities and uncharted potential, its excitement might be fleeting, given the numerous challenges it faces.
Beyond needing significant amounts of water and power, current research suggests that AI could be a temporary trend. Furthermore, it’s predicted that approximately one-third of all AI projects will be discarded after their initial proof of concept. This perspective is shared in a recent edition of Blood In The Machine newsletter, which highlights potential problems that may signal the start of the decline for generative AI.
According to Brian Merchant’s analysis in the Blood in the Machine newsletter and who is also a technology columnist for the Los Angeles Times, we have reached the peak of generative AI as a commercial tech phenomenon. The excitement surrounding it seems to be dissipating due to its frequent unreliability and negative vibes. It feels like the air is leaking out from a balloon that’s been inflated but not properly tied off, suggesting either a sudden crash for the tech sector similar to an untied balloon let go or a gradual deflation accompanied by awkward popping sounds, much like a balloon being deliberately pinched by a mischievous teenager.
In time, the Merchant expresses a blasé attitude towards generative AI, stating, “It was anticipated that enterprise AI would be the primary source of revenue for generative AI companies, but it’s becoming increasingly evident that it’s not significantly improving efficiency and, at its worst, is actually counterproductive.”
AI is clinging on by a thread
In line with Merchant’s assertion, Microsoft has been under scrutiny by its investors due to their significant investments in AI ventures that have yet to yield substantial profits. On the other hand, NVIDIA has greatly benefited from the surge in AI technology, given the skyrocketing demand for AI processors. This boom propelled NVIDIA into the ranks of the top three most valuable companies globally, even surpassing Microsoft and Apple at one point to hold the prestigious title.
It appears that the chip manufacturer is currently facing some major problems, such as the postponement of their highly anticipated Blackwell chips. This setback may negatively influence both their market standing and stock prices. Notably, NVIDIA’s stocks have already decreased by 5% due to these issues. Nevertheless, CEO Jensen Huang assures us that the problem will be addressed swiftly.
As a seasoned investor with over two decades of market experience under my belt, I find myself cautiously watching NVIDIA’s current trajectory. Having witnessed tech bubbles and their aftermath in the past, I can’t help but feel a sense of déjà vu as we seem to be in another AI bubble that has been ongoing for nearly two years now. The only tangible outcomes so far have been AI-powered tools like Copilot and ChatGPT, which, while impressive, may not justify the current market valuation. I believe it’s prudent to brace ourselves for a potential decline in NVIDIA’s value over the next few months. Caution is always better than regret when it comes to investing.
The true significance of it is still a matter of discussion, depending on whether you view it as an expensive investment or not. According to NVIDIA’s CEO, we have already moved past AI-driven chatbots and may be on the verge of a new era in AI with self-driving vehicles and humanoid robots.
1) It’s worrying that many key leaders at OpenAI, including top executives, are leaving the company, especially since it is a leading figure in AI technology. Notably, CEO Sam Altman is among the few original founders still with the organization behind ChatGPT. The recent departure includes researcher John Schulman, who has chosen to work for competitor Anthropic to focus on ensuring AI acts ethically and responsibly, a concept known as “AI alignment.”
From a dedicated fan’s perspective, Elon Musk, the visionary billionaire, has recently re-filed a lawsuit against OpenAI and Sam Altman, accusing them of a significant betrayal of the company’s original mission. The lawsuit also includes claims of racketeering. Musk argues that OpenAI manipulated a “pretense for humanitarian purposes” to secure funding for AI development. Moreover, Musk claims that OpenAI’s latest AI models represent Artificial General Intelligence (AGI), which violates its current partnership agreement with Microsoft.
In other news, it’s being predicted that OpenAI could face bankruptcy and stand to lose around $5 billion over the next year. Financial experts are recommending that the company may require extra funds to stay in business.
Interestingly, July saw a significant surge for ChatGPT on mobile platforms, generating an impressive $28 million in earnings as reported by Appfigures. This growth can be attributed to the excitement generated by OpenAI’s GPT-4o launch in May, leading to a remarkable increase in both revenue and download figures.
Multiple studies suggest that artificial intelligence may ultimately lead to human extinction. A prominent AI expert has provided estimates of this likelihood, which are worryingly high at a 99.9% probability. This expert posits that the only means to prevent such an outcome is by refraining from creating AI in the first place. I suppose we can only anticipate how events will unfold over time.
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2024-08-08 21:41