A number of years ago, while seating on a Board of a nonprofit applying to the government for grants – we tailored the grants to the main themes of the political party. When the election changed the political party, the themes changed and so did the tailoring of the grants, but the program for the children was essentially the same. We are all exposed to the shiny new gadget, and someone gets excited which means people have to adapt to it. In Silicon Valley, the shiny new gadget is Artificial Intelligencer or AI.
In an article by Erin Griffith and Cade Metz of the New York Times News Service, due to the release of ChatGPT and people beginning to see what could become, there is a new gold rush in AI.
The lab which released OpenAI is in talks with financial partners to raise more money which value the company at $29 billion. The reason is this type of AI has the potential to change and reinvent basic items from search to photoshop and graphics to digital assistants. The possibility is there but how to monetize it is not.
According to PitchBook.com which tracks financial activity across the industry, in 2022 investors spent $1.37 billion in AI companies across 78 deals.
Investors at Sequoia Capital wrote that generative AI had the potential to generate trillions of dollars of economic value.
There are more than 450 startups working on generative AI and the venture capital investors are looking for the next big thing. Companies such as Replika, Character.AI, You.com and Radical Ventures have been deluged with interest.
Linking to dividend paying stocks, there is always a shiny gadget somewhere that offers wonderful potential. The trick is understanding how revenues or money is made with the shiny gadget. Individually you might see one or two gadgets, but those with money to invest see hundreds. With dividend paying stocks, time is on your side. Time to evaluate or make a decision, time to incorporate the shiny gadget into the company, time to ensure profits continue to pay dividends. Most of us are excited by the shiny new gadget, but do not rush in.
There are more questions than answers, till the next time – to raising questions.