The Alternative Data Podcast The 2nd Abraham Thomas Episode
Oct 5, 2024
Abraham Thomas, co-founder of Quandl and a seasoned angel investor, returns to discuss the seismic shifts AI and large language models bring to alternative data and hedge funds. He dives into how these technologies could reshape investment strategies, pinpointing potential winners and losers in the process. Abraham shares his journey as an angel investor, emphasizing data proliferation's impact on business models and the nuances of leadership in an AI-enhanced finance world. He also explores the future of alternative data sourcing and its implications for market players.
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Episode notes
Data and Software Economics
- Data and software are two sides of the same coin, with software's value increasing as data storage costs decline.
- This dynamic has driven the success of software companies like Google, Facebook, and Amazon.
AI's Impact on Data and Software
- AI disrupts the data-software balance by being both a consumer and producer of data, increasing software production.
- This shifts value back towards data, as seen in market performance, and highlights the scarcity of compute resources like NVIDIA chips.
LLM Capabilities in Finance
- LLMs excel at processing large text datasets, enabling faster reactions and automation of simple financial tasks.
- Their ability to handle diverse data types expands their potential beyond just language processing.