$800Bn crash 📉 (AI infra in fire); Nvidia is a 🫧 bubble: Hedge fund
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#BlackMonday: The global market has crashed badly and that reminds us of the famous quote
"In a recession, money returns to its rightful owners."
One of the key drivers behind this crash among tech companies is the lack of clarity on RoI over AI spends.
Top AI News
Magnificent 7 set to shed $800 billion in value: Nvidia tumbled 7%, and Microsoft and Meta Platforms fell 3% as worries about a potential U.S. recession compounded investor concerns about massive spending to build AI infrastructure.
OpenAI cofounder joins rival Anthropic + OpenAI president, Greg Brockman is on an extended leave of absence. And product leader, Peter Deng has quit too.
Nvidia’s AI tools heavily rely on internet video data. A recent report reveals that Nvidia collects data from various popular websites like Youtube and platforms to train its AI products. The company maintains that its practices are within legal bounds.
YouTuber files class action suit over OpenAI’s scrape of creators’ transcripts:
As [OpenAI’s] AI products become more sophisticated through the use of training data sets, they become more valuable to prospective and current users, who purchase subscriptions to access [OpenAI’s] AI products. Much of the material in OpenAI’s training data sets, however, comes from works that were copied by OpenAI without consent, without credit, and without compensation.
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Nvidia is a bubble: Hedge fund
Hedge fund Elliott Management has told investors that Nvidia is in a “bubble”, and the AI technology driving the chipmaking giant’s share price is “overhyped”.
The Florida-based firm, which manages about $70bn in assets, said in a recent letter that it was “sceptical” that Big Tech companies would keep buying the chipmaker’s graphics processing units in such high volumes, and that AI is “overhyped with many applications not ready for prime time”.
Many of AI’s supposed uses are “never going to be cost-efficient, are never going to actually work right, will take up too much energy, or will prove to be untrustworthy”, - via
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