This is an excerpt from today’s Morning Brief. sign up Every morning you will receive the following message in your inbox:
There seems to be little doubt that the transformative power of artificial intelligence will profoundly change the world, but it won’t happen all at once and appears to be first in the advertising business.
This week, Google (GOOG) announced a chip that could rival Nvidia’s (NVDA) technology. And in response, META announced its own chip, allowing both companies to vertically integrate to achieve their goals. You know what it is.
As Bank of America’s Justin Post writes in a research note on the move, the main benefit of Meta’s AI is that it will increase ad spending through better, better-measured ads. Get people to use your product more with good video recommendations.
April 2024, this is a pioneer in AI.
There’s a lot of debate about where physics Ph.D.’s go after graduation.Zachary Quinto plays a rocket scientist turned bank analyst. margin call He explained to his boss’s boss, “The money here is much more attractive.”
Big Tech has long since snatched economic pole position from other industries (such as banks) with higher profits, salaries, and prestige. Look at the Magnificent Seven and you’ll see how they can pay for both top talent and as much research and development as that talent can accommodate.
If Allen Ginsberg had lived after 1997, he might have said something like, “I saw some of the greatest minds of my generation being hired by Google to sell programmatic advertising.” People think there isn’t. Or, as early Facebook investor Peter Thiel put it in his 2013, “He wanted flying cars, and instead he ended up with 140 characters.” If you can’t beat them, join them.
But beyond the “kid-of-the-moment” struggles of our ancestors who put humans on the moon, laid communications cables across the oceans, and made medical advances, cutting-edge technology is The simple fact is that if a company is trying to do something like this: Deliver more personalized advertising tailored to your interests.
It remains to be seen whether Meta has ambitions to spread cutting-edge AI technology across the industry. But as Mark Zuckerberg once described his business, “Senator, we run advertising.”
For Google, the transition from its core advertising sales products (search and Gmail) to cloud computing will be interesting. So is Microsoft, whose OpenAI ChatGPT alliance could be seen as a marketing tool for its computers.
All of this applies to the theory described on this page. Last year, Miles Udland wrote that we think AI is either too small or too big. And this is difficult because it means threading the needle in a specific industry before the technology expands throughout the economy.
Another Bank of America analyst, Alkesh Shah, wrote this week that “investors often overestimate the magnitude of technology disruption in the short term and underestimate it in the long term.” There is.
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