Is the GenAI Glass Half Full Or Empty with Deirdre Bosa, Michael Dempsey & Jonathan Godwin | Okay, Computer.
Sep 25, 2024
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Deirdre Bosa, the host of CNBC's TechCheck, joins Dan Nathan to dive into the evolving landscape of AI investments, uncovering the implications of tech giants like Google and Amazon backing companies such as Anthropic. They debate the longevity of generative AI while discussing rapid revenue growth at firms like OpenAI. Later, Michael Dempsey and Jonathan Godwin share insights on using AI in climate tech and advanced materials, all while exploring market dynamics and potential overcapacity in AI infrastructure.
The podcast delves into the rapid growth and evolving valuations of AI companies like OpenAI and Anthropic, raising concerns about sustainability and profitability.
Skepticism surrounding the AI bubble echoes historical tech investment cycles, emphasizing the importance of practicality in AI's industry applications.
Innovative applications of AI in advanced materials, particularly by companies like Orbital Materials, showcase its potential to address significant technological challenges.
Deep dives
Emerging Financial Tools and Trends in AI Investment
Current offers modern banking solutions that simplify money management, including a new feature called paycheck advance, allowing users to receive funds before payday. The discussion reflects on the evolving landscape of financial technology, emphasizing the importance of understanding user needs and market dynamics. As the technology sector navigates AI developments, there are implications for investors and firms assessing deal flows and potential IPOs. The potential resurgence of IPOs this year could be indicative of shifting investor sentiment and increasing activity within the ecosystem.
Valuation Dynamics of AI Companies
The conversation delves into the valuation challenges of AI companies like Anthropic and OpenAI, with significant investments from tech giants intensifying competition. Despite rapid valuation increases, there is skepticism regarding the sustainability of these valuations, especially when considering revenue growth projections. Predictions suggest Anthropic anticipates a revenue increase to one billion dollars by 2024, yet such figures raise questions about profitability and market demands. This suggests a need for clearer paths to revenue generation amid the hype surrounding AI technologies.
The Role of Skepticism in Technology Cycles
Skepticism pervades discussions around the AI bubble, reminiscent of past technology cycles, where excess investment often leads to disillusionment. Analysts reference historical responses to technological shifts, emphasizing that not all companies survive such phases. As firms like Goldman Sachs navigate the landscape, they balance enthusiasm for AI with caution about its long-term viability. This dynamic carries a message: while AI holds transformative potential, it is crucial to assess its practical implementation across industries.
Research and Development in Advanced Materials
Attention shifts to Orbital Materials, a company focused on developing advanced materials driven by AI and scientific research. The discussion highlights the intricacies of applying AI models to refine and advance material design, particularly in fields like semiconductors and sustainable technologies. The release of Orb, an innovative model that outperforms existing technologies, signifies progress in merging AI with practical applications in material sciences. This advancement underscores the importance of integrating AI capabilities to tackle significant challenges within the physical industry sector.
Market Insights and Future Dynamics in AI
The evolving narrative of AI investments highlights a potential shift in market dynamics as firms re-evaluate their strategies in the face of increased competition and technological advancements. Investors seek to understand the barometer of value creation amid rampant optimism, needing to identify how AI can effectively transform industries beyond traditional models. The opportunity for innovative companies focused on environmental sustainability and technology transformation is increasingly critical. The integrative approach to AI across multiple applications could redefine industries and consumer engagement while addressing pressing global challenges.
Dan Nathan is joined by Deirdre Bosa, host of CNBC's TechCheck, to discuss the latest in AI investments, including Google and Amazon's funding in Anthropic, and how these valuations are evolving. They also banter about a New York Times article scrutinizing the future impact of generative AI. The episode highlights the rapid revenue growth in companies like OpenAI and Anthropic, growing interest and skepticism towards AI from big players like Goldman Sachs, with insights from Jim Covello. The conversation touches on consumer applications of AI, such as the use of models from companies like OpenAI and Anthropic by platforms like Perplexity. Bosa explores the strategic moves by Microsoft to train its own AI models and the broader implications for the AI market.
After the break, Dan Nathan is joined by Michael Dempsey, managing partner at Compound VC, and Jonathan Godwin of Orbital Materials, discussing their innovative approach using AI for advanced materials and climate tech. The episode wraps with a look at potential overcapacity in AI infrastructure and shifting strategies in major tech firms.
Further Reading
Will A.I. Be a Bust? A Wall Street Skeptic Rings the Alarm. (NYT)
