$7 trillion would be enough.
My article “AMD and Nvidia Boil the Ocean” got a lot of attention, and now OpenAI CEO Sam Altman is seeking $7 trillion to take AI to the next level. It has been communicated and acknowledged.
It sounds like the Dr. Evil meme from the yet-to-be-produced Austin Powers movie, but the demand is there. This amount is equivalent to the combined GDP of Japan and the UK. This is a budget comparable to World War III, and, although the numbers are not completely reliable, it is more than the total cost of World War II.
Perhaps this is because the battle for AI supremacy is World War III. In the race for dominance there is no second place and the ultimate tool is intelligence, which is why naked apes came to rule the earth after all.
So I feel somewhat guilty at this point to point out that this is a great opportunity to make money. There’s no point in lamenting that less intelligent people will end up mastering some pretty genius hardware. If you think humanity is doomed, the only way to survive is to save New Zealand bunker money from whatever comes next. If AI is going to boil the ocean, there will be more than enough economic expansion to sit around before Arnold Schwarzenegger shows up looking for a kid called John Connor. terminator movie.
The calculation is as follows: AI = Computing = Energy.energy = money
Therefore, AI will cause a kind of economic meltdown. Either way, it means you’ll make a lot of money.
Whether you are a company or a nation, we cannot stop doing everything we can to implement the maximum amount of AI. If you hold back, you will lose everything to your competitors. We cannot stand by and watch ourselves become as stupid as a box of stone compared to our neighboring countries.
When the king of AI comes along and demands a sum of money equal to a significant portion of the total US national debt, it feels like something big is happening, and it’s not worth being pessimistic about it. Nothing is gained by being passive-aggressive. At the very least, AI should lead to impressive economic growth, which is good news for investors. Artificial muscles in the form of machines put most of the population out of work within a few decades of their invention, but the new jobs are much more valuable and lives have been vastly improved, so it’s a step in the right direction. There are many.
Here are some things to think about: We know that artificial intelligence reduces the amount of natural stupidity in systems and that this “NS” exists everywhere and it would be great if we could get rid of it.
So the question is what to invest in?
I remain extremely bullish Advanced Micro Device AMD And of course Nvidia Stock market beauty pageants don’t need supporters. The silicone will all be bright red, so even a contrarian play will look something like this: intelINTC should work. We are returning to a boom-bust scenario unlike anything we’ve seen in a generation, and it’s likely to expand even more significantly. This is my main point. AI will create a turbulent economic era in which anxious people have little competition.
The only question to consider before accepting this idea is whether the AI is real. Is ChatGPT a one-off phenomenon that will captivate the broader, underdeveloped AI scene with its incredibly accessible performance?
AI used to be like fusion power, something that has been on the brink of revolution since the 1960s. But I don’t think large-scale language models and generative AI are a fluke. I believe that AI is here and will continue to develop and create new capabilities.
AI will be like dot.com on steroids. Whereas the dot-com bubble was a breakthrough in the marriage of art and science, words and photography, and computing, AI is simply a brutal technology. Dot.com is Leonardo’s art and invention, and the AI is Boulton and Watt powering ships and emptying flooded mines.
Applications of AI are extremely valuable, but their demands on resources dwarf those that came before. Since AI cards require about the same power as humans, we can begin to adjust our expectations given that AI can be used by anyone, anywhere.
It’s not just the AMD/Nvidia companies that will prosper; the entire AI supply chain will grow significantly, all the way back to the companies that extract energy from the earth, all the way to 50 million miles of new cables. In any case, the IEA says new electrification will be needed, including a provider of large air-conditioned sheds to house the huge data centers that will emerge.
The driving force behind what happens next is that no matter how efficient AI becomes or how advanced the technology becomes, there will never be enough AI. Just like in chess, most things in life cannot be solved, but you can overcome them by being smarter than your opponent. Therefore, there is no limit to demand and there is no option to put a cap on supply.
So the way to invest is to think, “If Sam Altman had $7 trillion, what would he spend it on?” Whatever it is, whether it’s what we need to build a new AI utopia or the companies that provide it, its value has increased significantly. But even if you don’t get the money, there’s still investment, just not a single monolith.
The next big thing is here, and it’s the biggest one yet. When it comes to investing, nothing beats a one-sided bet. And here it is.
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