AI Update
We will have a longer AI piece within the next week or so regarding broadly-defined AI, which consists of a heck of a lot more than Gen AI. Specific to Gen AI, we are obviously in a bubble which is deflating from both a Market Cap and end-customer demand standpoint (too many bugs as I detailed earlier this year HERE, and as Microsoft is learning HERE, which was reflected in MSFT’s Copilot numbers HERE). That said, the accelerated Gen AI infrastructure build will continue for OpenAI, Google, Anthropic, Nvidia and Groq, at least into early next year. I simply do not expect to see significant Gen AI-related Revenue at the Application layer in the near-term. Nor do I anticipate Gen AI making step function contributions on the cost reduction side for that matter (see overly optimistic video with former Google CEO and OpenAI investor Eric Schmidt HERE). Google DeepMind CEO Demis Hassabis has more realistic expectations for Agentic AI and Gen AI (HERE).
Speaking of Groq, the company recently completed a $640 million capital raise, has more than 420,000 developers using Groq’s developer cloud (closed beta) and the company has deployed more than 14,000 LPUs, with another 300,000 in-process. Watch this interview with Groq founder and CEO Jonathan Ross HERE.
OpenAI’s forthcoming GPT model - GPT Next - will be released this calendar year.
Today Google (GOOGL) released AlphaProteo, a new AI system that designs proteins that successfully bind to target molecules. Read more about AlphaProteo HERE.