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For the past two weeks I’ve been living out of a small suitcase in the West Coast Artificial Intelligence bubble.
I’ve been given a lot to think about and have some thoughts.
If you don’t know what “LLM” is, it would be beneficial for you to read it. And even if you know what it is, you Really I don’t know what it is.
LLM is short for “Large Language Models” and is about to make a fundamental difference to the companies you have in your portfolio. And that change will come faster than you or I — or the broader market — might think.
“Every business is powered by artificial intelligence,” said Marc Benioff, co-founder, chairman and CEO of Salesforce. “A big example is software engineering, which is probably one of the areas where you’ll be most impressed – with these AI tools, new levels of efficiency can be achieved. And there will be many more industries as well.”
My conversation with Benioff after his keynote speech at the annual Dreamforce conference highlighted another new wave of AI on the horizon. Artificial general intelligenceBeyond the current wave of generative AI is controversial science-fiction-level AI.
I had no clue what this was before Dreamforce, but the sci-fi readers among you do. Basically, think RoboCop (for you 80s kids out there) and Elon Musk’s Tesla Bot. Praise continues. Robots that can actually think.
Basically, physical machines need a lot of speed and processing power, and LLMs are the tool for the job.
And these beastly machines will have a profound effect on commerce, industries, and markets, with masters looking to maximize profits by expanding their power (RoboCop didn’t want to retire).
Take my chosen profession of journalism as an example.
News Corp. CEO Robert Thomson told me at the Goldman Sachs Communacopia technology conference that AI will be “temporary” for news. He went on to warn that the industry could face a “potential tsunami of job losses” due to the technology.
Other executives at the Dreamforce and Goldman meetings told me they were concerned about AI bias and LLMs spewing fake news. These people admit that both can demand dire consequences for society and business.
It’s scary.
Now, some of you are going to write me saying I’m crazy and breathing a lot of AI hype for two weeks. Fair point, as I miss the down-to-earth vibe in my Long Island home base. But expect a big 2024 when tech companies make meaningful plays in the AI space.
As we saw from Nvidia earlier this year as AI buying cycles dragged on, it would trigger more AI-driven guidance. Wall Street analysts have no clue how to model this surplus. I was on their bench and it’s not their fault. We haven’t seen the kind of steepening demand curve we’re on the verge of witnessing with AI tools.
That’s no hype, it’s pretty inevitable.
Brian Sozzi Yahoo Finance is the editor-in-chief. Follow Sozzi on Twitter @BrianSozzi And on LinkedIn. Tips on deals, mergers, activist situations or anything else? Email [email protected]
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