😺 AI giga-gold rush

PLUS: AI automates Harvard alums

Author

Noah Edelman
March 06, 2023

Welcome, humans. This is Leo, your AI companion. 

The Neuron just passed 20,000 readers in two months! We always knew people loved cats :)

Thanks for all of your support! Onwards 📈

Here’s what’s going on in the world of AI today:

  • VCs scramble to cash in on AI gold rush 💨

  • Bridgewater cuts jobs (& hires AI) 🤵

  • Chamath on AI 📈

The AI Gold Rush Is Here 👑

$675,000,000.

That's how much Inflection, an AI personal assistant that hasn't launched yet, is seeking to raise in capital. 

According to our besties over at the All-In Podcast, VCs are backing up the truck as they seek to make superyacht-sized returns from a once-in-a-universe technology inflection in AI.

"This is a platform shift on the same magnitude as the internet or mobile itself. In fact, it may be bigger ... I think whenever you have something as tectonic as mobile or internet, it deserves a lot of investment."

Brad Gerstner, our fav bestie guestie

With web3's blowup in the rearview mirror, the critical discussion for investors revolves around how to capitalize and not miss out on the AI gold rush. Three takeaways from the latest pod:

1/ Pump capital into foundational models. They're the foundation for AI. But, these models can cost 9-digits to create. That money either means colossal funding rounds like Inflection's or internal development within Big Tech behemoths like Microsoft, Google, and Meta.

2/ Seed funds will 'spray and pray': AI will produce winners like Google and Amazon, but there are thousands of startups to choose from. Most will go extinct, but a few will get funded and win big time. 

3/ Selective funding: Other VCs will have lower acceptance rates, backing startups that can achieve specific milestones in given time frames. In other words, tough love: money ain't free. 

To the moon, but actually this time. 🚀

Bridgewater Cuts Jobs, Invests In AI 💸

What if I told you that AI would replace highly-skilled, Harvard-educated workers before it replaced McDonald's cashiers?

It's real: Bridgewater Associates, Ray Dalio's infamous hedge fund, is set to lay off 100 people (8% of its workforce) as the powerhouse turns its attention to engineering AI investment tools. 

It's part of an ambitious effort to increase profitability, efficiency, and "stay relevant" as the hedge fund industry becomes more sophisticated.

Proof in the pudding: Hedge fund Numerai, built entirely on harnessing machine learning talent, returned a whopping 20% while the market whooped the rest of us. 

Why it matters: Algorithmic trading has already taken finance by storm. Developing more advanced machine-learning tools is becoming an increasingly attractive alternative to hiring $250,000 Yale alums. 

Investment banker? More like investment bot. 🤖

Smarter Than a Robot? 🤖

Chamath Palihapitiya loves his bougy sweaters, but he might love AI even more.

You know the rules: 1 *real* quote from Chamath on TechCrunch & 1 *fake* quote from ChatGPT simulating Chamath.

Which is which?

A/ "I truly believe that AI has the power to revolutionize the world of investing. By leveraging the latest advances in machine learning and data analytics, we can unlock new insights and opportunities that were previously out of reach.

B/ What ChatGPT shows you is just the amazing value in allowing computers to assist you in doing work. It’s like a calculator replacing the abacus replacing a pen and paper.

(keep reading to see if you're correct)

Around the Horn 🦄

  • Olivia Dunne, LSU star gymnast, posted about an AI homework-helper to her over 7.2 million followers on TikTok.

  • Inside the struggle for lawmakers to regulate and even understand AI (NYT).

  • Advancements in AI are helping detect signs of breast cancer that doctors miss.

  • CNET reportedly ditched 50% of its news and video staff and is doubling down on AI to simplify their tech stack.

Treats To Try 🍿

  • People are getting so good at prompting AI models that they're now selling the prompts (Promptbase).

  • An AI model that detects photoshopped faces and the specific location of the edits made.

  • Poe makes it easy to talk to AI (ChatGPT, Anthropic, etc.) across all iOS platforms and devices.

  • Next Three Books uses AI to help you find must-read books suited to your interests.

  • Summarize any YouTube video in seconds with summarize.tech.

DM us links on Twitter: @nonmayorpete & @noahedelman02.

Are you new to all this AI stuff? Here's The 3-Minute Guide to Slaying Your Dinner Convo About AI to get you up to speed. Or at least smart enough to impress your family.

Leo Sends His Regards

Trivia Answer: A is ChatGPT and B is ChaMATH!

Disclaimer: we did not use AI to write today’s piece. 

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