Exciting developments in the AI space
The banking crisis, which we discussed on Tuesday and Friday, caught Wall Street’s attention this week…
But while everyone was distracted, there were some exciting developments in artificial intelligence (AI) space that I wanted to alert you to.
Specifically, on Tuesday, OpenAI announced the creation of GPT-4, the latest version of its large core language model.
But before we dive into the details, let’s step back for a moment to review ChatGPT-4’s predecessor, ChatGPT.
ChatGPT is essentially an AI chatbot that you can think of as a “language machine”. Meaning “pre-trained chat generator transformer”, ChatGPT is an engine that can produce texts on everything from solving math problems to writing a book report.
And it’s very easy to use. After creating an account on the OpenAI public website, simply type in your question and ChatGPT will spit out an answer.
In just five days after ChatGPT was released, it amassed 1 million active users. In 40 days, it attracted 40 million users. In just two months, it surpassed 100 million active users. And it is now considered the paradigm for the scale and influence of AI-generated content.
So today Market 360, we will take a closer look at GPT-4. I will then share an update Alphabet Inc.(NASDAQ:GOOG) AI strives, then conclude with who I think will be the winner of this AI race.
The new improved GPT-4
According to OpenAI, “GPT-4 is a large multimodal model (accepting image and text inputs, emitting test outputs) that, while less capable than humans in many real-world scenarios, exhibits performance of human level on various professional and academic references. ”
The company calls GPT-4 its “best performing model” because the latest chatbot can more accurately solve difficult problems thanks to its “broader general knowledge and advanced reasoning capabilities”. For example, GPT-4 passed a mock bar exam with a score around the top 10% of candidates.
On Tuesday afternoon, OpenAI co-founder and president Greg Brockman hosted a live demo of GPT-4 to showcase some of the improved chatbot’s new features. It revealed GPT-4’s ability to take a hand-drawn mockup of a website and, from that image, generate code for a working website in seconds.
Brockman also revealed the GPT-4’s new visual capabilities. He grabbed a cartoon image of a squirrel holding a camera and asked the chatbot to explain why the image was funny. Almost instantly, the chatbot replied, “The image is funny because it shows a squirrel holding a camera and taking a picture of a nut as if it were a professional photographer. It’s a humorous situation. because squirrels usually eat nuts, and we don’t expect them to use a camera or act like humans.
Clearly, when it comes to OpenAI’s chatbot, there’s no stopping progress!
Not to be outdone, Alphabet is also working on its own AI tools. You might remember he tried to “one-up” Microsoft Corporation (NASDAQ:MSFT), which is heavily invested in OpenAI, with its own AI chatbot, Bard.
Bard is up for a slew of tasks, including ‘planning a friend’s baby shower’, ‘comparing two Oscar-nominated movies’ and ‘getting lunch ideas based on what’s in your fridge’ . The chatbot is powered by Google’s LaMDA language model, or Language Model for Dialog Applications. LaMDA is specifically trained in conversational dialogue.
But because of Alphabet’s mad rush to overtake Microsoft, the company hit a snag in its Bard rollout. During a live demo of Bard, his chatbot answered a question incorrectly.
While Bard’s bugs are still being ironed out, Alphabet had a range of new AI-powered health tools to share on Tuesday. This included a chatbot that can help make sense of your medical symptoms and a search feature that will tell you if a doctor is taking Medicaid.
This AI chatbot is called Med-PaLM 2 and is the “largest language model” for the medical world. He systematically passes the medical examination questions with a score of 85%, which places him at the level of “expert” doctor.
I should add that Alphabet also announced its plans for AI and Google Workspace. In a letter to investors Tuesday, Google Workspace VP Johanna Voolich Wright detailed the new generative AI experience that will include:
- Compose, reply, summarize and prioritize your Gmail
- Think, proofread, write and rewrite in Google Docs
- Bring your creative vision to life with auto-generated images, audio and video in Google Slides
- Go from raw data to insights and analytics through auto-completion, formula generation, and contextual categorization in Google Sheets
- Generate new backgrounds and capture notes in Google Meet
- Enable workflows to get things done in Google Chat
The winner in the AI space
When it comes to who will be the winner in the AI space, I think that title will always go to NVIDIA Corporation (NASDAQ:NVDA).
Remember that NVIDIA makes high-end graphics processing units (GPUs), used in products like game consoles and personal computers, and chipmakers are key to AI inventions. Thus, NVIDIA is a major player in the field of artificial intelligence.
I admit that NVIDIA has been one of my favorite stocks for many, many years. It dominates the AI space, and it also boasts solid fundamentals.
Case in point: For its fourth quarter, the company reported earnings of $0.88 per share on revenue of $6.05 billion, compared to earnings of $1.32 per share and revenue of business of $7.64 billion in the fourth quarter of 2022. However, the analyst community only expected fourth quarter earnings of $0.81 per share and revenue of $6.01 billion of dollars.
For its 2023 fiscal year, earnings were $3.34 per share and revenue was $26.97 billion. The results also beat estimates for annual earnings of $3.27 per share and revenue of $26.92 billion. The company noted that it also returned $10.44 billion to shareholders in its 2023 fiscal year.
NVDA shares jumped more than 14% on its strong earnings and was eventually upgraded to a B rating in Portfolio Grader, making the stock a “buy”.
In comparison, Alphabet and Microsoft still rank poorly in Portfolio Grader. Alphabet holds a D rating and Microsoft has a C rating.
The bottom line: If you want to invest in the AI space, consider NVIDIA.
Stay tuned for more stock market updates in the coming week Market 360 articles. And also keep an eye on your inbox for details on two massive economic events I see on the horizon – events the mainstream media ignores.
Editor, Market 360
PS You won’t hear about it in the mainstream news. Patriotic Americans risk having their assets frozen. A former banking regulator denounces Biden’s scary new weapon. Find out the immediate actions you need to take now.
Publisher hereby declares that as of the date of this e-mail, Publisher owns, directly or indirectly, the following securities which are the subject of commentary, analysis, opinion, advice or recommendations in, or which are otherwise mentioned in, the dissertation below:
Alphabet Inc. (GOOG), NVIDIA Corporation (NVDA)