The Dangers of the A.I. Gold Rush

The Stock Market Bubble is looking might frothy in 2023. 💣 Military A.I. surges.

Scale A.I. wins a robotics contract, May 19th, 2023.

Hello Everyone,

A.I. is undergoing a gold-rush, a metamorphosis of relationship towards large language models (LLMs). BigTech companies won’t self regulate because they see A.I. as their next enterprise cash-cow.

What could possibly go wrong?

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There are so many good surveys on A.I. recently. "According to the data, 61% of respondents believe that AI poses risks to humanity, while only 22% disagreed, and 17% remained unsure," wrote Reuters. Some 50% of workers think their company is hiding how they will use AI, a new survey found. Workers are concerned about the effect AI will have on their jobs and the industry they work in. And how about the centralization of the stock market around the same names? (see my Poll)

A.I. could spur a productivity decade, but at what cost? Sparks of AGI? Large language models lack non-linguistic knowledge, which is critical for understanding the underlying reality that language describes.

Half of a group of office workers recently surveyed say they're worried their companies are not letting them know about how AI will be implemented in the workplace, a new survey found. 

Source: Zokri, 2023.

"I do think the introduction of large language models [and] artificial intelligence, is going to create a productivity boom that we've only seen a few times in the last 75 years," Jones said.  - Paul Tudor Jones

The A.I. gold rush on the stock market looks like a bubble of 2023. The hype is not rational given the relatively immaturity of the A.I. enterprise sector and what GPT can really do in the world.

Stock Market Gold-Rush

The five biggest stocks on the S&P 500 are now worth nearly $9 trillion – or almost 25% of the benchmark index. That's not just monopoly, it's monopoly capitalism in a supposed A.I. Boom.

Those companies include Apple, Microsoft, Alphabet, Amazon, and Nvidia. And it's getting a bit crazy.

Investors view these companies among the best positioned to benefit from A.I. in the years ahead. Nvidia is up 116% so far this year alone, Meta is up 98.5%. This suggests that these valuations aren't sustainable and are really getting unrealistic again.

The entire stock market is too centralized in these so-called A.I. stocks. Apple is relatively poor in A.I, but it's app walled garden tax means OpenAI gives 30% of its app revenue to Apple, and since Microsoft gets 75% of the revenue, it's actually Microsoft paying a tax to Apple just for ChatGPT's viral popularity.

This is a joke and a bubble waiting to pop. GPT technologies won't change the world over night, Generative A.I. is not a mature technology.

Recently I was watching Yuval Noah Harari summarize and speculate on 'AI and the future of humanity'. There are a number of questions related to this discussion, including: "In what ways will AI affect how we shape culture? What threat is posed to humanity when AI masters human intimacy? Is AI the end of human history? Will ordinary individuals be able to produce powerful AI tools of their own? How do we regulate AI?"

"There won't be anything in AI that replaces the gene," Buffett said recently during an annual shareholder meeting. "I'll state that unqualifiedly," he added. - Warren Buffett

As much as I like to cover Artificial Intelligence, rumors of a catastrophically disrupted world are overblown and BigTech media is itself distorting the picture. But not all exaggerations are without merit of being alarmed about, and I am talking about how the A.I. goldrush is funding military applications in A.I.

"The advent of artificial general intelligence is called a singularity because it is so hard to predict what will happen after that. It's very much a double-edged sword," Musk said during his automaker's annual shareholder meeting. - Elon Musk