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AI in IN! But is it here to stay? Artificial Intelligence (AI) sounds like a word from a science fiction novel or new-age film. This intelligence of machines is supercharging the tech industry, and it appears that it is here to stay. Some chip executives and analysts see the AI boom as increasingly sustainable. For tech company Nvidia, the strength of the boom was evident (February 22) when it reported quarterly sales of $22.1 billion and forecast another $24 billion for its current quarter, each more than triple their year-ago periods and ahead of Wall Street’s bullish expectations, according to WSJ. In addition, AI is expected to drive a 37% reduction cost for businesses in 2024, and to increase productivity and increase revenues. Only time will tell. #AI #bigtech #economictrends

“GenAI: Too much spend, too little benefit?” This is how Goldman Sachs titled a 31-page report (linked in the first comment). It's about how gen AI might (or might not) deliver on the huge promises and expectations 🙃 The main conclusions of the report are: ☑️ Some think that genAI infra, like Nvidia GPUs, won't recover the huge investments. They think the investments won't reach positive ROI. ☑️ Some people are still bullish on the impact of genAI. They argue that investment figures are like those of past tech cycles (e.g., the internet). On parallel, we’ve seen the pace of innovation and product launches slightly decrease in the last few months (where is the GPT-4o new voice mode?). In any case, it feels like we are approaching what people call the "trough of disillusionment." What is the definition of: “A phase where, after initial hype and inflated expectations, interest begins to wane as experiments and implementations fail to deliver” Here’s our take about what’s going on: 1️⃣ We’ve gone too far too quickly. Projects like BabyAGI and AutoGPT have tried to delegate to LLMs tasks they’re not equipped to solve. This implied that the results were very unreliable. It eroded the trust of the people who tried these products. These conclusions have contaminated the perception of what genAI can actually do. 2️⃣ AI leaders have been too arrogant and unstable. Comments like “we’ll steamroll you..." have damaged how the industry sees people like Sam Altman. Dramas related to board movements, employee departures, company instability... hadn’t helped either. 3️⃣ We concentrated on technical feasibility, neglecting all other aspects. LLMs trigger great enthusiasm, prompting builders to dive into solutions. As we’ve said in previous posts, technical feasibility is only 1/3 of the equation. The other two-thirds are market viability, how we make money, and user desirability, how much customers want it. On the bright side: ✅ LLMs are still getting better. Meaning reliability keeps increasing at a steady pace. Also, there are more tools. For example, Langsmith and Humanloop. These tools are designed to help teams test, monitor, and improve LLMs. ✅ AI leaders are getting quieter. Meaning, they're making fewer promises, less hype, and fewer personal dramas. ✅ General comprehension level about genAI keeps growing. Lots of companies have invested on training their employees. This means likely millions of people now understand what genAI can do (and what can’t). What’s your take? Can you still believe that genAI can deliver what it has promised us? Please share in the comments 👇

Why Billionaires Are Shifting Their AI Investments from Nvidia to Two New Contenders In a surprising move, billionaires are reallocating their AI investments away from Nvidia and directing their focus toward two emerging tech giants in the industry. This shift marks a significant change in the market dynamics, signaling where the smart money believes the next big opportunities lie. While Nvidia has been a frontrunner in AI technology, these two companies are now capturing investor attention with their innovative approaches and robust growth potential. The strategic decisions by these high-net-worth individuals suggest that these companies have promising prospects for the future of artificial intelligence. Stay tuned as the AI landscape continues to evolve, and keep an eye on these rising stars. For those following the market, this could be a pivotal moment to consider how AI investments are shaping up. #AI #ArtificialIntelligence #TechInvesting #EmergingTechnologies #InvestmentStrategies #Innovation

AI Bubble - Might not burst just like .com bubble In 2022, AI sparked a tech gold rush, leading to massive investments in companies like NVIDIA. However, after a surge, NVIDIA lost billions in value, and other AI-heavy firms also saw drops. Unlike the dot-com bubble, these firms have solid business models but face challenges with high AI costs and slow revenue growth. Investors are shifting to smaller companies, expecting Fed rate cuts to ease borrowing. While AI isn't profitable yet, it's not likely to crash like dot-coms. Once companies figure out AI monetization, the hype and investments will likely return. Recently came across this counter intuitive article https://lnkd.in/dXgNUp8b What do you think about this ?

After Nvidia's latest blowout, here are 20 AI stocks expected to rise as much as 44% - Yahoo Finance: After Nvidia's latest blowout, here are 20 AI stocks expected to rise as much as 44%  Yahoo Finance http://dlvr.it/T3CbGm #ai #artificialintelligence

AI stocks are undergoing a massive correction. NVIDIA is down 15% and Microsoft is 8% lower since July 10, 2024. Companies have a challenge right now: how to implement AI and calculate the Return on Investment (ROI). The market is not sure just how much money generative AI can make for them. The downturn suggests that ROI could take years to be worthwhile (without any guarantees). At least this will help us avoid a crash like we saw in dot,com stocks around the millennium. At that time, market potential was more important and speculation ran wild. https://lnkd.in/gWDk24Ue

The AI Revolution Is Already Losing Steam 🚀 The initial excitement around AI is dwindling as practical challenges and limitations become apparent, leading to a slowdown in adoption and investment. 📉 Businesses are facing difficulties in integrating AI technology effectively. Many organizations encounter hurdles such as high costs, complex implementation, and a shortage of skilled personnel. 🤖 Despite the slowdown, experts believe AI will continue to progress. Its future impact may be more measured and focused on specific applications rather than broad technological disruption. Are we in the "Trough of Disillusionment" already? That seems quick... P.S. What are your thoughts on the current state of AI? Comment below. https://vist.ly/354fk wsj.com

The AI Revolution Is Already Losing Steam 🚀 The initial excitement around AI is dwindling as practical challenges and limitations become apparent, leading to a slowdown in adoption and investment. 📉 Businesses are facing difficulties in integrating AI technology effectively. Many organizations encounter hurdles such as high costs, complex implementation, and a shortage of skilled personnel. 🤖 Despite the slowdown, experts believe AI will continue to progress. Its future impact may be more measured and focused on specific applications rather than broad technological disruption. Are we in the "Trough of Disillusionment" already? That seems quick... P.S. What are your thoughts on the current state of AI? Comment below. https://vist.ly/354h6 wsj.com

The following summary is from someone on Reddit who shared this article. "The AI Investor hype bubble always seemed ultimately doomed. AI will be profoundly deflationary, and will likely lead us to end up dominated by a very different economic system than today, with a far smaller role for capitalism, stock markets, and investors. This article is interesting as it neatly illustrates the schizophrenia at the heart of the AI investor worldview. On the one hand, it berates people who made claims that 300 million jobs would be automated - because they've failed to live up to that "promise" to AI investors fast enough. What you never see is anyone joining the dots, and asking what sort of economic model society will evolve to when job automation is at that scale. (Hint: It probably won't have much room for high stock market or property prices, or prosperous investors)." There's been a lot of debate recently if BigTech's investment in Generative AI is sustainable or a good investment. Read it:

AI's transformative power is gaining recognition among CEOs, with cost reductions fueling widespread adoption 🚀. Tim Anderson's insights underscore AI's role in reshaping business, driven by efficiencies and innovations like Nvidia's pioneering applications. A pivotal moment for #AIOperations and strategic growth. #AI #BusinessTransformation