Reuters reports that AI-related companies lost $190 billion in stock market value on Tuesday following disappointing earnings reports.
Thank god the bubbles finally starting to burst. I am tired of hearing about ‘AI’.
Right??? I swear every damn app is trying to shoehorn in some sort of AI nonsense just to hop on the bandwagon.
A lot of them aren’t actually implementing anything, they’re just changing words on their product description.
Like a spell checking addon suddenly rebranding itself as “AI”.
From the very start of all this, it never made sense to call any of this “artificial intelligence”, but that marketing stuck, and now we’re trying to retroactively apply it to very basic things like text suggestion, further diluting the meaning of the term.
I agree with the first part of your comment, AI is the new buzzword.
But AI is the correct term for LLMs and other technologies using neural networks. That’s what computer scientists have been calling them for decades. The sentient AI concept that we have comes from SciFi. I’d argue that the correct term is what experts have been calling it for years.
This misses the fact that even the experts have been using “AI” to refer to whatever technology used to seem impossible, until it becomes commonplace. Before LLMs there were heuristic algorithms, and then expert systems, and then intelligent agents and then deep learning. As the boundaries of what is deemed achievable expand, the definition of AI moves to just beyond the frontier.
You’re not going to stop hearing about AI. Perhaps AI companies won’t be so high-profile, but AI itself is being integrated into lots of things and it’s not going to go away. The only thing that’s happened here is that it’s proving to be not quite so profitable as expected being an AI-specific company.
Edit: Perhaps not even that, the article appears to be neglecting to mention that this is part of a trend across the whole stock market rather than something AI-specific.
AI isn’t new. Algorithms “are” ai. All apps always used it. But it’s changed from algorithms to AI.
AI is just a specific subset of algorithms, also not that new - first concept are from 1960 or so (from memory don’t quote me) with perceptron. New is parallel computing power of modern chips - that allows for far better performance.
Absolutely is. It’s fucking outstanding how big corps are eating it up.
Alrogithm corp = nothing new, boring low evaluation
Change it’s name to:
AI corp= 1 BILLION DOLLARS!
I don’t think that’s necessarily true. We aren’t hearing about “blockchain,” “crypto,” or “NFTs” every day anymore either even though they all still exist.
I don’t see it where it’s part of a broader stock market trend. Sp500 is up 1.25% today, 1.52% for the past 5 days, and 4.74% for the last month. Those are spectacular numbers (for people with stock market portfolios).
AI crashing in its own little corner is fine by me.
The current state of AI development is going to cost a ton of money until its maturity. Any company that is in “AI” right now is either intentionally spending billions of dollars to solve AGI, which will ultimately open up trillions in marketplace solutions, or is using the press to market fledgling AI “solutions” or “integrations” with fancier versions of narrow AI.
AGI is in its infancy and is progressing on an exponential curve. The first time anyone heard of ChatGPT was 14 months ago and , with proper prompting, it’s already easy to use to write college level essays and is passing higher education tests like SAT, GRE, medical exams, CPA certifications, and the bar. Think of what will happen when it hits its toddler stage, let alone adolescence or maturity.
Any way you look at it, the days of hearing about AI are just starting and it will dominate the press in the next decade.
or we might be failing to understand severe limitations with this model which would ultimately reach its ceiling very short of anything that can reason
LLMs don’t really fall under AGI, they’re still static statistical models. Some RL algorithms might be on the track of AGI, but I’m not sure about that.
Of course its a hype right now. But at the same time AI improved my daily working live in the past year so much! I can outsource a lot of annoying tasks to AI and focus on the more creative tasks and everything strategic.
Can you expand on how AI improved your workflow? The only positive experience I’ve had with AI has been Githib’s copilot in my VS Code instance. All the other ai interactions I have are pretty terrible.
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Githubs Copilot
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ChatGPT for larger coding tasks (its better at explaining what it does)
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Deepl.com/write for proofreading and better texts.
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Artificial Insemination 2024
That’s a weird take given the actual numbers and relative results per company, but ok.
Microsoft’s price didn’t change much at all and is still trading at a 35 P/E ratio (17% higher than Apple’s) despite being neck and neck in the race for the largest company in the market and allegedly not having its AI efforts actually change product usage. Clearly the market is still pricing it as if it’s going to grow more somehow.
AMD is down, but since when is AMD an “AI company”? That’s Nvidia through and through, who is still double digit percentage points up from a month ago, and trading at a 81 P/E ratio. The market losing faith in Nvidia’s competition seems more like the opposite of this headline, given it’s the key area where Nvidia has a market advantage over AMD.
Google, whose revenue is 90% ads, is down in response to falling short on ad sales. Which if anything may be a result of increased chatbot usage reducing search volume and Google’s chat offering being the Bing of AI chatbots.
This is clickbait analysis.
not having its AI efforts actually change product usage
Are you ignoring Github Copilot?
Microsoft’s performance was actually strongest in their Azure services in their earnings report, and I can’t think of any AI products tied directly to that part of their business
Although to be fair, their big push now is baking copilot directly into Windows 12, so it would be fair to think their long term outlook is tied to that service
Didn’t they already bake it into 11? I’m not caught up with 12 having only recently gotten 11 but dang.
What a clickbait “article”. The whole stock market is correcting insane growth of last year and in fact the company with the biggest AI investments (Microsoft) crashed the least!
It’s rewording the real article from Reuters: https://www.reuters.com/technology/ai-companies-lose-190-billion-market-cap-after-alphabet-microsoft-report-2024-01-31/
growth
Swelling, more like
It’s not a toomah!
All scams come to an end when they run out of marks to steal from.
Look at the reuters article cited: https://www.reuters.com/technology/ai-companies-lose-190-billion-market-cap-after-alphabet-microsoft-report-2024-01-31/
Jan 30 (Reuters) - AI-related companies lost $190 billion in stock market value late on Tuesday after Microsoft (MSFT.O), opens new tab, Alphabet (GOOGL.O), opens new tab and Advanced Micro Devices (AMD.O), opens new tab delivered quarterly results that failed to impress investors who had sent their stocks soaring. The selloff following the tech giants’ reports after the bell underscored investors’ elevated expectations following an AI-fueled stock market rally in recent months that propelled their shares to record highs with the promise of incorporating the technology across the corporate landscape.
I don’t know that I would say this has anything inherently to do with AI…
The reuters article for AMD specifically: https://www.reuters.com/technology/high-flying-chipmakers-hit-after-amds-forecast-falls-short-2024-01-31/
Jan 31 (Reuters) - High-flying semiconductor stocks slipped on Wednesday after Advanced Micro Devices’ (AMD.O) disappointing current-quarter revenue forecast added to investor worries over sluggish demand for non-AI chips
…
That overshadowed the company near doubling its AI processor projections to $3.5 billion for 2024.
This is such clickbait. They just added up the total stock decline in every company that has any involvement in AI. They call Google and Microsoft AI companies.
AI is clickbait, too, so does that mean they cancel each other out or is the clickbait twice as strong?
By the way errors are dealt with in physics, I think the error only adds up. So double the clickbait.
No shit that was a bubble. Fun for all of two seconds but application in its current form is niche/sketchy at best. There is lots of promise for the future of AI but right now it just makes things more complicated and end results are unreliable.
bubbles like this can set back that future by decades though…
I think AI is going to be ok.
lets hope so
The companies didn’t lose that money. Their investors didn’t even lose that money. A number went down temporarily, that’s all.
I remember YouTube videos or podcasts where presenters said that we’d have very advanced AI by GPT-5 and singularity is just around the corner. Marketing stuff of these companies pushing language models made us all fools (including me). Now finances are catching up to all this bullshit.
The same thing was said about self-driving. I recall arguing with people on reddit back in like 2018 who called me an idiot because I didn’t believe we’d have full autonomous driving within the next few years. I swear these people jump from one fad to the next and dive into each one head first.
Uh yes, they do. It’s the same group of people falling for this stuff over and over. Crypto, NFTs, Self Driving, AI now. What’s important to them is being able to point at this stuff and make a wojack face
If / then / switch / while
All of these are examples of what executives are calling AI there are many scams its hilarious.
Grifters gunna grift they face no clawbacks from lying to investors.
“AI Winter is coming”
-Ned Stark
I’ll never forgive D&D for what they did to that show. It was omnipresent in public consciousness for like a decade, and they fucked the last couple seasons so badly it’s now all but forgotten. It’s almost impressive in a depressing kind of way.
Oh we try to forget…
I was a huge fan. Watched it from season one on. Even had a House Stark banner. Now I don’t even think about it unless I see it mentioned on social media. Married with Children and Aqua Teen Hunger Force spontaneously pop into my mind 10 times more often than Game of Thrones.
Tbf, I don’t think we as a society think about Aqua Teen Hunger Force nearly enough.
That nice lady is in the Beacon 23 show.
Shame.
Does that have anything to do with the IP power grab that is apparently under way? I’ve seen the propaganda and the mood seems to be that AI should be monopolized by the few super rich.
I thought the mood was that everything should be monopolized by the super rich.
If the last 40 years has taught us anything, it’s that the time is always right to short ai companies
Artificial Intelligence at this stage is Artificial Ignorance. It’s not ready to be unleashed onto anyone who blindly trusts anything they read.
Listening to Peter talk about GPT as if it was an all comprehending oracle when he was interviewed on Hannah Reloaded was unsettling, because I know he’s not alone in thinking it’s (paraphrased) “a pattern detecting intelligence, that can see things we can’t” my brother in Christ it is a better Markov chain engine.
lol rekt
based
23 skidoo
