Tag: AI

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Tech giant Samsung expects profits to jump by more than 900%

Semiconductor

Samsung Electronics anticipates its profits for the first quarter of 2024 to surge more than tenfold compared to the previous year.

This projection is due to the recovery in chip prices following a post-pandemic decline and a surge in demand for artificial intelligence (AI) related products.

As the world’s leading manufacturer of memory microchips, smartphones, and televisions, the South Korea-based Samsung reportedly plans to publish a comprehensive financial report on 30th April 2024.

Projected profit

The tech giant has projected that its operating profit for the January-March 2024 quarter soared to 6.6 trillion won ($4.9bn; £3.9bn), marking a 931% increase from the same period in 2023, surpassing analysts’ forecasts of approximately 5.7 trillion won.

Rebound in microchip prices

A rebound in global semiconductor prices, following a significant downturn the previous year, is expected to bolster its earnings. Over the past year, global memory microchip prices have reportedly increased by about 20%. The semiconductor division of Samsung typically generates the most revenue for the company.

The demand for semiconductors is projected to stay robust throughout the year, fueled by the expansion in AI technologies. Furthermore, the earthquake that struck Taiwan on 3rd April 2024 could potentially constrict the worldwide chip supply, possibly enabling Samsung to further elevate its prices.

Taiwan a key player

Taiwan houses several key chipmakers, including TSMC, which supplies Apple and Nvidia. Despite TSMC reporting minimal impact on its production from the earthquake, it did experience some operational disruptions.

Additionally, Samsung is poised to benefit from the sales of its newly launched flagship Galaxy S24 smartphones, introduced in January.

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Is Apple planning to build an AI robot?

Robotics

Reports indicate that Apple is delving into AI-powered robotics, aiming to innovate within the home robotics sector. A Bloomberg article reveals that the tech titan is exploring two fascinating initiatives.

Mobile Robot

Apple is reportedly exploring the development of a robot that can accompany its owner. Envision a congenial AI companion that travels with you.

Robotic Display

The project aims to develop a robotic mechanism capable of moving displays. Despite being periodically removed and reinstated on Apple’s roadmap; it is still in the preliminary research stage.

The projects are spearheaded by Matt Costello, Apple’s VP of Hardware Engineering, and Brian Lynch, the Senior Director of Home Hardware Engineering. Moreover, Apple’s AI team is developing algorithms to enable robots to navigate homes, potentially linking to the mobile robot initiative.

Apple’s foray into AI-driven home robots comes after shelving its electric vehicle project, marking an intriguing development. The company is exploring the integration of AI into AirPods and the possibility of creating smart glasses. Despite not launching generative AI tools as swiftly as some rivals, Apple is set to introduce some later this year.

In the realm of robotics, Apple enters a field with established entities like Amazon, Roomba, and Unitree, which have already introduced home robotics products.

Therefore, it’s worth watching for upcoming Apple AI products in the future!

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Nvidia has big AI ambitions in medicine and healthcare 

AI in healthcare

NVIDIA reportedly introduced about twenty or so new AI-driven tools tailored for healthcare at its 2024 GTC AI conference, securing partnerships with Johnson & Johnson and GE Healthcare for surgical and medical imaging applications.

For the AI chip pioneer, venturing into healthcare represents a decade-long development effort with substantial revenue possibilities.

The adoption of AI in drug discovery and research, a process that traditionally takes up to 12 years and costs billions, is accelerating rapidly.

The opportunities will be far reaching.

Nvidia one year chart

Dramatic price movement for Nvidia over a one-year period
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Apple reportedly being accused of monopolising smartphone market

U.S. vs Apple Lawsuit

The U.S. has reportedly initiated a significant lawsuit against Apple, alleging that the technology giant has monopolised the smartphone market and stifled competition.

The Justice Department claims that Apple has misused its dominance over the iPhone App Store to ‘lock in’ customers and developers. The company is also accused of taking unlawful measures to obstruct applications perceived as competitive threats and to degrade the appeal of competing products.

Apple has pledged to ‘vigorously’ contest the lawsuit and refutes the allegations.

A slowdown in iPhone sales in China, the reported dumping of an EV project, no iPhone AI interface to speak of and now a U.S. lawsuit to defend. Is Apple’s ‘crown of dominance‘ slipping ever-so-slightly?

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Nvidia plan to enhance AI induced success

AI GPU

Nvidia have announced a new generation of artificial intelligence chips and software for running AI models. It’s called: The Blackwell B200 GPU

Blackwell B200 GPU

The Blackwell B200 is the successor to Nvidia’s Hopper H100 and H200 GPUs.

It represents a massive generational leap in computational power.

AI Performance: The B200 GPU delivers 4 times the AI training performance and 30 times the inference performance compared to its predecessor.

Transistor Count: It packs an impressive 208 billion transistors, more than doubling the transistor count of the existing H100.

Memory: The B200 features 192GB of HBM3e memory with an impressive bandwidth of 8 TB/s.

Architecture: The Blackwell architecture takes over from H100/H200.

*Dual-Die Configuration: The B200 is not a single GPU in the traditional sense. Instead, it consists of two tightly coupled die, functioning as one unified CUDA GPU. These chips are linked via a 10 TB/s NV-HBI connection to ensure coherent operation.

*Dual-die packaging technology is used to pack two integrated circuit chips in one single package module. It doubles functionality levels.

Process Node: The B200 utilizes TSMC’s 4NP process node, a refined version of the 4N process used by Hopper H100 and Ada Lovelace architecture GPUs.

The Blackwell B200 is designed for data centres and AI workloads but will likely be available to expect consumer in the future, although these may differ significantly from the data centre model.

Grace Blackwell GB200 Superchip:

Nvidia’s GB200 Grace Blackwell Superchip, with two B200 graphics processors and one Arm-based central processor

This superchip pairs the Grace CPU architecture with the updated Blackwell GPU.

It’s another addition to Nvidia’s lineup, combining CPU and GPU power for advanced computing tasks.

Nvidia continues to push the boundaries of accelerated computing, and these new GPUs promise remarkable performance improvements for AI and other workloads.

Onwards and upwards for Nvidia and the advancement of AI.

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Apple and Alphabet reportedly in Gemini AI talks

AI mobile phone

Apple playing AI catchup

Apple is reportedly engaged in negotiations to acquire a licence for Google’s Gemini, a generative AI platform, with the intention of integrating it into iPhones. These ongoing discussions may result in Gemini enhancing iPhone software with new features later this year.

The terms, branding, and implementation details have not been finalised. This potential partnership could significantly impact the AI capabilities of future iPhones.

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EU passes world’s first major ‘act’ to regulate AI

The European Union (EU) has made history by approving the world’s first comprehensive regulatory framework for artificial intelligence (AI).

Artificial Intelligence Act

Known as the Artificial Intelligence Act, this groundbreaking legislation is expected to serve as a global signpost for other governments grappling with how to regulate this fast-developing technology.

The AI Act takes a risk-based approach, categorizing AI applications based on their risk levels. It prohibits certain high-risk uses, emphasizes transparency, and aims to keep AI development human centric. This landmark regulation should help set a precedent for responsible AI deployment worldwide.

The regulation is expected to become enforceable in May 2024, after passing final checks and receiving endorsement from the European Council.

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Is AI driving a market bubble or is there so much more yet to come?

Tech bubble

As tech giant Nvidia soars on hype around artificial intelligence (AI), and as global stock indexes claim record highs, debate has grown about whether the stock market has entered a ‘bubble.’

An AI bubble of boom

We are reminded of the dotcom bubble where investment was rife in anything tech – so, are we now potentially facing a new tech bubble – an AI bubble of boom?

That’s generally seen as a period in which asset prices inflate rapidly, potentially beyond their core value; and risk crashing just as fast.

Other AI stocks are chasing the dream too adding to the hype. However, some are in the slow lane playing catch-up and this may suggest there is much, much more to come.

The likes of AMD, Intel, Amazon, OpenAI, Arm and a myriad of other tech companies big and small have much more AI to bring to the tech table.

Let’s use Nvidia as an example of a potential stock bubble

If we look at the valuation of Nvidia, justifiably it is actually very high, too high even – that’s the first sign of a potential problem, valuation. The second issue is investor positioning – whenever you have a market bubble, investors are very clustered or very concentrated, either in one market or in one sector as a whole.

Nvidia one year chart as of 29th February 2024. Price 791

Nvidia one year chart as of 29th February 2024. Price 791

Sectors

It doesn’t matter which markets you look at – the U.S., Europe or Asia markets – the problem is the same. We now have an historic valuation between the tech sector, the AI sub-sector of the tech sector, and the rest of the market.

Investors are very clustered in this tech sector. However, some leading commentators say of tech that this is not hype – this is real. It most probably is, for now, and with much more to come from the smaller tech and AI companies that have yet to show their true AI value. But all bubbles burst in the end.

Pop!

There is certainly plenty of room for AI to grow – it’s in its infancy – but the question is: ‘how and when will the bubble burst? Because, in my humble opinion, it most certainly will.

We may not see a dramatic market crash like 1999-2000 or 2007/2008, but an investor rotation out of areas of concentration into the broader market will likely happen.

If you look at the bubbles of 1999-2000, and then in 2007/2008, one key characteristic was investor leverage. And we had, whether it was retail investors or institutional investors, a very high level of leverage, and that was either through borrowings or it was through derivatives.

The AI tech boom has legs but there will almost inevitably be a rotation from AI to other sectors – that will then adjust the overvalued AI sector. And it could pullback quite hard.

Be ready!

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Google’s woke AI needs fixing!

Chatbot learning

Google’s ‘Woke’ AI Problem needs attention

In recent days, Google’s artificial intelligence (AI) tool, Gemini, has faced intense criticism online. As the tech giant’s answer to the OpenAI/Microsoft chatbot ChatGPT, Gemini can respond to text queries and even generate images based on prompts. However, its journey has been far from smooth.

The AI answer is wrong

The issues began when Gemini’s image generator inaccurately portrayed historical figures. For instance, it depicted the U.S. Founding Fathers with a black man, and German World War II soldiers included both a black man and an Asian woman.

AI answer from Google’s Gemini Chatbot

Google swiftly apologized and paused the tool, acknowledging that it had “missed the mark.”

It gets worse

But the controversy didn’t end there. Gemini’s text responses veered into over-political correctness. When asked whether Elon Musk posting memes was worse than Hitler’s atrocities, it replied that there was “no right or wrong answer.” In another instance, it refused to misgender high-profile trans woman Caitlin Jenner, even if it meant preventing nuclear apocalypse. Elon Musk himself found these responses “extremely alarming.”

Nuance

The root cause lies in the vast amounts of data AI tools are trained on. Publicly available internet data contains biases, leading to embarrassing mistakes. Google attempted to counter this by instructing Gemini not to make assumptions, but it backfired. Human history and culture are nuanced, and machines struggle to grasp these complexities.

Political bias

Google now faces the challenge of striking a balance: addressing bias without becoming absurdly politically correct. As Gemini evolves, finding this equilibrium will be crucial for its survival.

After all, it’s not just about AI, is it? It’s about navigating the delicate intersection of technology, culture, and ethics.

Definition of nuance – I asked ChatGPT for its definition…

Nuance refers to the subtle, intricate, or delicate aspects of something. It encompasses the fine distinctions, shades of meaning, and context-specific interpretations that add depth and complexity to a situation, conversation, or piece of art. In essence, nuance recognizes that not everything can be neatly categorized or expressed in black-and-white terms; rather, it acknowledges the richness and variability of human experiences and ideas. Whether in literature, politics, or everyday interactions, appreciating nuance allows us to navigate the complexities of life with greater understanding and empathy.

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Google halts Gemini AI image generator after it created inaccurate historical content

Gemini chatbot illustration

Google on Thursday 22nd February 2024 said it is pausing its Gemini artificial intelligence (AI) image generation feature after saying it offers ‘inaccuracies’ in historical pictures

Users had been reporting that the AI tool generated images of historical figures, like the U.S. Founding Fathers as people of colour, calling this inaccurate.

Google posted a statement on Thursday 22nd February 2024, saying that it will pause Gemini’s feature to generate images of people and will re-release an ‘improved’ version soon.

Is Google struggling to keep up with the AI race?

The image generator tool was launched at the start of February 2024 through Gemini, which was orignally called Bard.

It is facing challenges at a time when Google is trying to catch up with Microsoft-backed OpenAI project, Copilot.

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S&P 500 hit new all-time high and Nasdaq closing in on record

S&P 500 new high

The S&P 500 surged to a new all-time high on Thursday 22nd February 2024

Microchip maker Nvidia reported much stronger-than-expected quarterly results, lifting tech sector and markets higher.

S&P 500

The S&P 500 gained just over 2% to close at 5087, notching its best day since January 2023. The Nasdaq Composite advanced 2.96% for its best day since February 2023, closing at 16041 and ever closer to its all-time high.

Nasdaq

The tech-heavy index is very close now to its all-time closing high of 16,057.44.

Dow

The Dow Jones Industrial Average surged 456 points to surpass 39000 for the first time ever and close at a new high of 39069.

Other tech names were also higher. Meta and Amazon gained about 3.9% and 3.5%. Microsoft and Netflix each advanced more than 2%.

Nvidia driving tech gains

Shares of Nvidia climbed around 16% to an all-time high after the company said total revenue rose a massive 265% from a year ago.

Nvidia, which has become one of the largest U.S. companies by market capitalization, also forecast another stellar revenue gain for the current quarter.

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Nvidia revenue is up 265% latest figures show and stock gains 15%

AI chip

The excitement surrounding artificial intelligence (AI) technology appears to show few signs of abating

The technology company at the heart of the AI chip boom reported its Q4 earnings after the stock market’s close on Wednesday 21st February 2024, beating expectations for both earnings and sales. The company’s total revenue is up 265% from a year ago.

Investors are looking to Nvidia’s latest quarterly earnings report to see whether the company’s meteoric growth can last.

Nvidia one year share price as at 22nd February 2024

Nvidia one year share price as at 22nd February 2024

AI chips

Nvidia makes powerful computer chips that power popular AI tools like OpenAI’s ChatGPT and Microsoft’s Copilot. High demand for those chips has propelled the company into the exclusive trillion-dollar club.

As of market close on 21st February 2024 the company’s market cap sat at $1.667 trillion, putting it behind Alphabet’s $1.779 trillion market cap. It’s also behind Microsoft and Apple, which hold market caps of $2.988 trillion and $2.819 trillion, respectively.

Nvidia’s stock price has been on an upward trajectory so far this year. Shares have gained by nearly 40% since the beginning of 2024. On top of that, they’ve soared by over 225% in the last 12 months.

Although short-term demand for Nvidia’s AI chips has been strong, major companies such as Microsoft and Meta have indicated interest in buying them from other companies.

If you had invested $1,000 in Nvidia

If you had invested $1,000 in Nvidia five, 10 or 24 years ago, here’s how much your investment would be worth now.

$1,000 in Nvidia five years ago, your investment would have increased by an eye-watering 1,015% and be worth around $17,542 as of 20th February 2024.

If you had invested $1,000 in Nvidia 10 years ago, your investment would have soared by about 22,340% and be worth around $148,226 as of 20th February 2024.

But, if you had invested $1,000 in Nvidia in January 1999, when Nvidia first went public, your investment would have grown by around 277,708% and be worth close to $2,784,065 as of 20th February 2024.

AI has only just started.

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Big tech vows action on ‘fake’ AI in elections

Fake AI news

Most of the world’s largest tech companies, including Microsoft, Amazon and Google have agreed to tackle what they are calling deceptive artificial intelligence (AI) in elections

The tech accord

The twenty companies have signed an accord committing them to fighting voter-deceiving content. They say they will deploy technology to detect and counter the material.

The Tech Accord to Combat Deceptive Use of AI in 2024 Elections was announced at the Munich Security Conference on Friday 16th February 2024.

The issue has come into sharp focus because it is estimated up to four billion people will be voting this year in countries such as the U.S., UK and India.

Technology to mitigate risk

Among the accord’s pledges are commitments to develop technology to mitigate risks related to deceptive election content generated by AI, and to provide transparency to the public about the action firms have taken.

Other steps include sharing best practice with one another and educating the public about how to spot when they might be seeing manipulated content.

Signatories include social media platforms X, Snap, Adobe and Meta, the owner of Facebook, Instagram and WhatsApp.

Proactive

However, the accord has some shortcomings, according to computer scientist Dr Deepak Padmanabhan, from Queen’s University Belfast, who has co-authored a report on elections and AI.

But he reportedly said they needed to take more proactive action instead of waiting for content to be posted before then seeking to take it down.

That could mean that realistic AI content, that may be more harmful, may stay on a platform for longer compared to obvious fakes which are easier to detect and remove, he suggested.

Target

The accord’s signatories say they will target content which deceptively fakes or alters the appearance, voice, or actions of key figures in elections.

It will also seek to deal with audio, images or videos which provide false information to voters about when, where, and how they can vote.

We have a responsibility to help ensure these tools don’t become weaponised in elections, Brad Smith, the president of Microsoft is reported to have said.

These measures, in my opinion, are a sticking plaster and will not stop the spread of dishonest and fake news!

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Energy hungry data centre power solution

AI data centre

The use of nuclear reactors for data centres is a controversial and complex topic that has both advantages and disadvantages

Nuclear reactors can provide a reliable, stable, and carbon-free source of electricity for power-hungry data centres, which are essential for the operation of various applications, such as artificial intelligence (AI).

Grid overload

Nuclear reactors can also reduce the dependence on the existing grid, which may be vulnerable to blackouts, fluctuations, or cyberattacks. On the other hand, nuclear reactors require a high initial investment, as well as strict safety and regulatory standards. Nuclear reactors also pose potential risks of radiation, waste disposal, and proliferation. Moreover, nuclear reactors may not be suitable for all locations, as they may face public opposition, environmental concerns, or geopolitical issues.

Small Modular Reactor (SMR)

One of the possible solutions to these challenges is to use small modular reactors (SMRs), which are advanced reactors with about a third of the power generation of a traditional, large nuclear plant. SMRs are designed to be more flexible, scalable, and cost-effective than conventional reactors, as they can be built off-site and transported to the desired location. SMRs can also be integrated with renewable energy sources, such as solar or wind, to create a hybrid system that can balance the power demand and supply.

However, the technology of SMRs is still in its early stages of development and deployment, and there are currently no data centres in the world that use built-in nuclear reactors. Therefore, it remains to be seen whether nuclear reactors will become a common or viable option for future data centres. The decision to use nuclear reactors for data centres should be based on a careful evaluation of the benefits and risks, as well as the alternatives and trade-offs, of each specific case.

It has been calculated that a ‘norma’ data centre (whatever that is), needs 32 megawatts of power flowing into the building. For an AI data centre, it’s closer to 80 megawatts.

AI systems are using all this extra electricity simply because they are doing so much more processing than standard computing. They are chewing through far more data.

As AI continues to develop, so too will the power requirement needed to run these monsters.

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OpenAI unveils new AI software that lets you create realistic video by typing a descriptive sentence

Video

The new AI tool from OpenAI named Sora, can generate realistic videos from text prompts.

OpenAI has developed a new AI tool named Sora that can generate highly detailed videos of up to 60 seconds from descriptive text prompts.

The tool has raised concerns about its potential misuse, particularly in the creation of deepfakes and disinformation.

On the other hand, it is a remarkable achievement in the current AI arena and created in such a short space of time.

OpenAI has stated that it is working with experts in areas like misinformation, hateful content, and bias, who are testing Sora.

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Arm taking its place in the AI race

AI chip stock up

Arm’s strong growth forecast has led investors to declare it an AI darling

Arm shares soared 29% on Monday, extending last week’s rally as investors continue to applaud the chipmaker’s better-than-expected third-quarter earnings and its position in the artificial intelligence boom.

Up 93% since 8th February 2024

Arm is now up 93% since it reported quarterly figures on 8th February 2024. There is no obvious reason for the 29% climb on Monday. The fear of missing out (FOMO) could be playing a part in the meteoric share price move.

The stock has almost tripled since Arm’s initial public offering in September 2023, closing at $148.97 and is now worth almost $153 billion, that’s a little more than $30 billion below Intel’s market cap.

Arm 1 year chart showing huge gain in February 2024

Arm 1 year chart showing huge gain in February 2024

AI demand fuels Arm’s success

Last week, Arm said it could double the price for its latest instruction set, which accounts for 15% of the company’s royalties, suggesting it can expand its margin and make more money off new chips. It also said it was breaking into new markets, such as cloud servers and automotive, due to AI demand.

Its royalty strength combined with Arm’s optimistic growth forecast has made the company the latest AI darling among investors, despite a higher earnings multiple than Nvidia or AMD.

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Are AI investing trading bots taking over? It’s a little bit alien to me

Alien investing

AI ‘trading bots’ are software programs that use artificial intelligence (AI) to analyse market data, generate trading signals, and execute trades automatically.

‘I meant Artificial Intelligence Investing not ‘Alien’ Investing (AI)’

AI trading bots are becoming more popular among investors who want to take advantage of the speed, accuracy, and efficiency of AI technology. But is this a good thing for the future of investing?

Pros

AI ‘trading bots’ could transform the world of investing

  • Enabling more accessible and affordable trading for everyone, regardless of their experience, knowledge, or capital.
  • Enhancing the performance and profitability of trading strategies, by optimising entry and exit points, managing risk, and adapting to changing market conditions.
  • Providing more diverse and innovative trading opportunities, by exploring new markets, assets, and strategies that human traders may overlook or ignore.
  • Reducing the emotional and psychological biases that often affect human traders, such as fear, greed, overconfidence, and regret.

Cons

AI ‘trading bots’ also pose some challenges and risks

  • Increasing the complexity and volatility of the markets, by creating feedback loops, amplifying trends, and triggering flash crashes.
  • Exposing traders to technical glitches, security breaches, and malicious attacks, by relying on software and internet connectivity that may malfunction or be compromised.
  • Raising ethical and regulatory issues, by creating potential conflicts of interest, information asymmetry, and market manipulation.

Conclusion

AI ‘trading bots’ are not a mystical ‘get rich quick solution’ that can guarantee success in the world of investing. They are tools that require careful selection, evaluation, and supervision by human input and for the human trader to maintain ultimate control.

We should always be aware of the benefits and limitations of AI technology.

Alien investing
Are AI investing trading bots taking over? ‘I meant Artificial Intelligence Investing not ‘Alien’ Investing (AI)’
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AMD enters AI-powered PC race as artificial intelligence demand grows

AI power

U.S. microchip giant Advanced Micro Devices (AMD) is investing in AI PCs to take on the likes of Nvidia and Intel and Arm as the AI race gains momentum.

As the AI market expands so too will AI powered personal computer (PC). These are personal computers embedded with processors specifically designed to perform AI functions such as real-time language translation. Intel has already announced its AI powered chip for the PC.

Tech research firm Canalys in a December report said the boom in generative AI is expected to boost PC sales as consumers are seeking devices with AI features, predicting that 60% of the PCs shipped in 2027 will be AI-capable.

AI tech interest explodes

An explosion of interest in AI was sparked by the launch of ChatGPT in November 2022 as the chatbot went viral for its ability to generate human-like responses to users’ prompts.

Microsoft was quick to adopt the Technolgy and incorporate AI into its Bing search engine. Other companies such as Amazon, Alphabet (Google), Arm, Meta, Tesla and Apple are all heavily involved in AI development too.

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Neuralink implants brain tech device in human for the first time

Brain tech implant

Elon Musk’s neurotech startup Neuralink implanted its device in a human for the first time on Sunday 28th January 2024, and the patient is ‘recovering well,‘ the entrepreneur said in a post on X, on Monday 29th January 2024.

The company is developing a brain implant that aims to help patients with severe paralysis control external technologies using only neural signals.

Neuralink began recruiting patients for its first in-human clinical trial in the autumn after it received approval from the U.S. Food and Drug Administration to conduct the study back in May 2023, according to a blog post.

Musk, in an X post on Monday 29th January 2024 said that Neuralink’s first product is called Telepathy.

If the technology functions well, patients with severe degenerative diseases such as motor neurone disease could someday use the implant to communicate or access social media by moving cursors and typing with their minds.

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Microsoft hits $3 trillion market cap in intraday trading

Microsoft market cap of $3 trillion

Microsoft’s market cap surpassed $3 trillion in intraday trading Wednesday after the stock climbed more than 1% and hit around $404 per share. The stock lost some ground throughout the day to close at: $402 per share.

The achievement comes nearly two weeks after Microsoft eclipsed Apple as the world’s most valuable public company on 12th January 2024. However, Apple has reclaimed top spot – its market cap closed at around $3.01 trillion on Wednesday 24th January 2024.

Microsoft share price 24th January 2024 – $402.00, 1year chart

Microsoft share price 24th January 2024 – $402.00, 1 year chart

Microsoft shares are up more than 7% year to date as investors remain bullish about the company’s investments in artificial intelligence.

It is strongly expected that Microsoft will deliver good results in the Q2 earnings report, because of its leadership position gained in generative AI.

Microsoft due to announce Q2 figures on 30th January 2024

Microsoft due to announce Q2 figures on 30th January 2024
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A new powerful AI is coming but the techies have no clue as to what it will look like

AGI

That’s reassuring then, and they are creating it

Leaders at some of the world’s leading artificial intelligence (AI) companies are expecting a form of AI on a par with, or even exceeding human intelligence to arrive sometime in the near future. But what it will eventually look like and how it will be applied are unknown.

Artificial General Intelligence or AGI is coming soon

Leaders from OpenAI, Microsoft and Google’s DeepMind, and many other major tech companies debated the risks and opportunities presented by AI at the World Economic Forum in Davos, Switzerland in January 2024.

AI has become the talk of ‘town’ around the world through 2023, mainly due to the success of ChatGPT, OpenAI’s popular generative AI chatbot, brought to us by Microsoft. Generative AI tools, like ChatGPT, are powered large language models, algorithms trained on vast quantities of data, but are not AGI.

Executives at some of the world’s leading artificial intelligence companies see ‘artificial general intelligence,’ or AGI, a hypothesized form of AI with intelligence on a par or better than humans. This prospect is both exciting and worrying.

Concern

AI and AGI have created concern among governments, corporations and public consultation groups worldwide, owing to the risks around the lack of transparency of AI systems; social manipulation through computer algorithms; job losses due to increased automation; surveillance; and data privacy and worse… the lack of human control!

Extinction event possible

Many industry leaders in technology have warned that AI could lead to an ‘extinction-level’ event where machines become so powerful they get out of control and wipe out humanity.

A new powerful AI is coming but the techies have no clue as to what it will look like

Several prominent technology leaders, including Elon Musk and Steve Wozniak for example, have called for a pause in AI development, stating that a moratorium would be beneficial in allowing society to catch up.

Turing test

AI chatbots like ChatGPT have passed the Turing test, a test called the ‘imitation game,’ which was developed by British computer scientist Alan Turing to determine whether someone is communicating with a machine and a human. The one big area where AI is lacking is common sense.

It has been reported on many occasions, that the tech world is taking steps to ensure that the AI race doesn’t lead to a ‘Hiroshima moment.‘

Will AGI be created in the image of humans?

Let’s hope not.

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The Magnificent Seven

Magnificent Seven

The Magnificent Seven is a term coined to describe the seven most valuable and popularly owned tech companies in the U.S. stock market.

It was also a 1960’s movie…

The Seven

Apple (AAPL)

The world’s largest software company, known for its iPhone, iPad, Mac, Apple Watch, AirPods, and other devices, as well as its services such as iCloud, Apple Music, Apple TV+, and App Store.

Microsoft (MSFT)

The world’s largest software company, known for its Windows operating system, Azure cloud services, LinkedIn social media platform, Office professional software suite, and Xbox gaming brand.

Alphabet (GOOGL)

The parent company of Google, the world’s leading search engine, as well as other businesses such as YouTube, Google Cloud, Google Maps, Google Ads, and Waymo.

Amazon (AMZN)

The world’s largest online retailer, as well as a leading provider of cloud computing services through Amazon Web Services (AWS), and a major player in digital entertainment through Amazon Prime Video, Amazon Music, and Kindle.

Meta Platforms (META)

The former Facebook, the world’s largest social media network, as well as the owner of other popular platforms such as Instagram, WhatsApp, Messenger, and Oculus.

Nvidia (NVDA)

The world’s leading manufacturer of graphics processing units (GPUs), which are used for gaming, artificial intelligence, cloud computing, and cryptocurrency mining, as well as other products such as Nvidia Shield, GeForce Now, and Omniverse.

Tesla (TSLA)

The world’s most valuable automaker, known for its electric vehicles, battery products, solar panels, and self-driving technology, as well as its visionary founder and CEO, Elon Musk.

Market dominance

These seven companies are not only dominant in their respective fields, but also at the forefront of innovation and growth in the tech sector. They collectively make up some 30% of the S&P 500 index and more than half of the Nasdaq 100 index. 

They have also delivered impressive returns for investors over the past five years, with Nvidia and Tesla leading the pack with more than 800% gains. The Magnificent Seven are often compared to the FAANG stocks, which include four of the seven companies, but exclude Microsoft, Nvidia, and Tesla, and include Netflix instead. 

Magnificent 7 tech stocks

Some analysts suggest that the Magnificent Seven capture the current state and future potential of the tech industry. But is it now time to rotate out of tech into other areas that have been neglected. I wouldn’t be surprised to see the bull market charge on but with other ‘less’ loved companies leading the way.

It has been calculated that the combined market cap value of these seven companies is some $9 trillion.

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AI cannot patent UK inventions

Patent

The UK Supreme Court has upheld earlier decisions to reject a bid to allow an artificial intelligence to be named as an inventor in a patent application.

Dr Stephen Thaler (an ‘inventor’), had sought to have his AI, called Dabus, recognised as the inventor of a food container and a flashing light beacon. But in 2019, the Intellectual Property Office (IPO) rejected this, saying only a person could be named as an inventor. The decision was then backed by both the High Court and Court of Appeal. The IPO argued, and courts have supported the view, that only ‘persons’ can have patent rights, not Artificial Intelligence.

Now five Supreme Court judges have dismissed a bid to reverse those decisions, concluding that ‘an inventor must be a person’, and that an AI cannot be named as an inventor to secure patent rights.

The judgement does not deal with the issue of whether Dabus did in fact invent the food container and light.

This issue will likely be debated for some time yet – maybe an AI court of the future could decide?

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I asked AI to write a Christmas poem…

Father Christmas

And this is what it came up with… (exactly as it was written)

Christmas is a time of joy
A time to celebrate and enjoy
The birth of our Savior and King
Who came to earth to bring
Peace and love to all mankind
And hope for those who seek and find

Christmas is a time of grace
A time to forgive and embrace
The ones who hurt us or make us sad
And remember the good times we had
With family and friends who are dear
And wish them all a happy new year

Christmas is a time of light
A time to shine and delight
The world with our gifts and talents
And share our blessings and abundance
With those who are in need or alone
And make them feel they have a home

The image was AI generated too.

Merry Christmas and A happy New Year!

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Nasdaq hits new all-time intra-day high!

Nasdaq

The Nasdaq Composite index reached a new all-time intra-day of 16,764 points on Monday 18th December 2023. 

This was a remarkable achievement for the index, as it surpassed its previous record of 16,729 points. The Nasdaq Composite index has been on a strong uptrend since March 2020, when it bottomed out at 3,193 points amid the COVID-19 pandemic. 

Nasdaq 100 index chart -18th December 2023

Nasdaq chart

Since then, the index has recovered thanks to the rapid development and adoption of vaccines, economic stimulus measures, digital transformation trends, consumer demand for online services and products and through the arrival of AI.

The Nasdaq is one of the most popular and widely followed indexes in the world, as it tracks the performance of over 3,000 companies listed on the Nasdaq stock exchange.

The Nasdaq is known for its high concentration of technology and innovation stocks, such as Apple, Microsoft, Amazon, Google, Facebook, Tesla, and many others.

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Intel unveils new AI chip

AI micro chip

Intel’s new chip will go head-to-head with Nvidia and AMD

Intel unveiled new computer microchips on Thursday 14th December 2023, including Gaudi3, a chip for generative AI software.

Intel also announced Core Ultra chips, designed for Windows laptops and PCs, and new fifth-generation Xeon server chips. Intel’s server and PC processors include specialized AI parts called NPUs that can be used to run AI programs faster.

AI race

AI models, like OpenAI’s ChatGPT, run on Nvidia GPUs in the cloud. It’s one reason Nvidia stock has been up nearly 230% year to date while Intel shares have risen 68%. And it’s why companies like AMD and, now Intel, have announced chips that they hope will attract AI companies away from Nvidia’s dominant position in the market.

Gaudi3 will compete with Nvidia’s H100, the main choice among companies that build huge factories of the chips to power AI applications, and AMD’s forthcoming MI300X, when it starts shipping to customers in 2024.

CEO Gelsinger

‘We’ve been seeing the excitement with generative AI, the star of the show for 2023,’ Intel CEO Pat Gelsinger reportedly said at a launch event in New York where he announced Gaudi3 along other chips focused on AI applications.

Intel upping the anti with its Gaudi AI chip. The AI PC to become the new AI start of 2024 and beyond!

‘We think the AI PC will be the star of the show for the upcoming year,’ Gelsinger added. And that’s where Intel’s new Core Ultra processors, also announced on Thursday, will come into play.

Let the battle commence.