Welcome to the newest episode of our Hypergrowth Investing podcast! This week, Aaron and Luke dive right into the latest tech innovation that’s taken the internet by storm – ChatGPT.
It’s an AI-powered chatbot created by OpenAI. And in the few short days following its public release, it’s already demonstrated profound abilities.
It can edit code; tutor in math and physics; write articles, research papers, essays, and more. And it’s a powerful example of the AI Revolution’s global significance.
Indeed, the world is becoming increasingly automated – and AI is critical to this next generation of industrialization. We were already bullish on AI stocks. And ChatGPT’s success makes us even more bullish.
That’s because when it comes to automation, there are two main components – robotics and AI software. And as evidenced by ChatGPT’s robust capabilities, AI software has progressed exceptionally well. The same is true on the hardware side of things. Just within the last few months, we’ve seen Amazon (AMZN) and Walmart (WMT) automating their warehouses; Chili’s has implemented robotic servers; Domino’s (DPZ) delivers pizza using self-driving cars. The software and hardware underlying this trend are laying a solid foundation – one that should allow automation to take off.
But what’s at the core of AI? Data. Data is the currency of artificial intelligence – and the more data an AI model has, the better that model becomes. Imagine all the data that can be gathered from space! Right now, in fact, several companies have satellites in orbit that are capturing new streams of data; Data streams that can be integrated into AI modeling to improve, say, GPS. We could make autonomous cars infinitely better at self-driving. The sky is the limit!
Then there’s the economic value of AI on electric vehicles, as artificial intelligence can run simulations to produce an output to create a better battery. More to the point, AI could potentially uncover a method to create lithium without mining. This would allow for an abundance of lithium, making EV mass production possible on an unimaginable scale.
But hype and progress alone aren’t enough to propel this industry forward. Booms happen when technological advancements converge with a significant urgency. And right now, as we approach 2023, we face an uncertain economy and labor market.
On the date of publication, Seth Kuczinski did not have (either directly or indirectly) any positions in the securities mentioned in this article.