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Anticipated Demand and Synthetic Data Driving AI Growth
The growth in AI is largely driven by anticipated demand for AI clusters, leading to high revenue for companies like Nvidia. The models built using these clusters are expected to generate substantial revenue in the future. However, there is a possibility that this optimistic scenario may not materialize. One of the key bottlenecks in AI development is data, but efforts are being made to address this through the use of synthetic data. Synthetic data involves training models on generated data rather than traditional, real-world data, as demonstrated by AlphaGo Zero's success in mastering the game of Go without human data. By leveraging synthetic data, it is believed that significant advancements can be made in language models and other AI applications.