When something is new or new to the general public, it is often expensive and early adopters pay extra. As the general public believes it needs to have the new item or gadget there is a rush to provide to them and eventually prices come down and the new item is embraced by the general public till the next innovation. Along these lines, AI software is new to the general public and the adoption is becoming rapid.

In an article by Karen Weise and Cade Metz of the New York Times News Service, similar to other new gadgets and products, the race to build generative AI systems, the tech industry has been bigger is better, no matter the price tag. Now that AI is in the general public, the expectations are that more and more products and services will use the generative AI, companies are embracing AI technologies that are not as powerful, but costs less and that can be a good trade off for many users.

Microsoft has introduced 3 smaller AI models that are part of a technology family the company has named Phi-3. The smallest model can fit onto a smartphone and can run on chips that are not Nvidia’s or the AMD type.

Chatbots are driven by large language models or LLMs. The system does analysis on digital books, news articles, chat logs and other text culled from across the internet. By pinpointing patterns in all that text, the system learns to generate text on their own. To do this process requires considerable computing power and that is expensive.

This is the reason why the large technology companies are building data centers

The smaller models are a trade-off between power and size. Researchers believe the smaller models can at least approach the performance of the leading chatbots such as ChatGPT an Google Gemini.

Linking to dividend paying stocks, in every industry there are trends and cycles, the big cycle at the moment is generative AI. The generative AI is the new part, the AI has been used in many companies for a long time, but it was limited to a few users particularly trying to match ads to consumers to raise spending or when your app says the offers best suited to you to open your wallet. As months go by, the generative AI will be in most products and that can be a very good thing to allow for better decisions. One very good decision is lose less money which means depend on both dividends and capital gains. In the universe of companies there is much choice and most of us cannot buy every company, how do you choose?

There are more questions than answers, till the next time – to raising questions.