Jeff, it’s terrific to have you back. Okay. Let’s start with AI: It’s the rage. It’s a fad. It’s a transformational technology. It’s the devil. What do you make of it and companies like C3 AI, Palantir Technologies, and one you know well, Schrödinger Inc. Are they overhyped or set to lead us into new world?— Richard K.
Hi Richard, it’s great to be back, thank you.
AI is most definitely all the rage. As I noted in my reply to Kazem, AI captured the interest of institutional capital and was almost entirely responsible for the run-up in the stock markets in the second half of this year.
And you’re right, it does feel like a fad. But it’s not. It is very real, and it is here to stay. And it’s going to be a major focus for me in Outer Limits, as well as in my future investment research publications. It will also be a focus for me as a tool for developing investment/trading strategies.
Since OpenAI’s release of ChatGPT about one year ago (it was released on Nov 30th, 2022), the world of AI completely transformed. While the technology wasn’t perfect when released, it was still a remarkable breakthrough and it set the standard for what’s called large language models (LLMs).
Within days after the release, industry insiders knew that the development was revolutionary. It resulted into a flood of venture capital investment into advanced AI related companies. This includes both AI software, as well as AI hardware (think semiconductors and computing systems) related companies.
It would be impossible for me to overstate the extraordinary progress that has been made in AI in just the past 12 months. This is an absolute gold rush, and AI is being pushed into just about every industry that we can think of.
Supply chain technology, food production, managing food waste, materials development, drug development and discovery, compliance, audit, semiconductors, nuclear fusion, robotics, self-driving cars, AI assistants, consumer electronics, and on and on. Every single one of these verticals, and many more, are all being impacted by the breakthroughs in AI.
The companies that you mentioned were ahead of the game. They were early to employ machine learning, a form of AI, to their application focus. These are very real, well-established firms that will benefit from further deploying the latest AI technologies into their industry verticals and existing customer base. And there are many more that are pushing the outer limits of what’s possible with AI.
It’s real. It’s tangible. And the potential of AI — when used for good, productive purposes — will give the world a path to incredible abundance, dramatically improved quality of life, and limitless, cheap, clean energy (nuclear fusion).
My goal is to make sure that all of us stay on top of these developments together in Outer Limits. We’ll figure out how to invest and profit from AI, and we’ll also better understand how it will impact our lives, our work, and our future generations.
Thanks again, Richard, we’ve got a lot to look forward to.
