It’s been less than two years since ChatGPT was released to the public — but the economic impact of the AI is already undeniable.
Everywhere from your doctor’s office to your financial advisor to the football game on TV, AI is being used behind the scenes. It’s optimising creative content, managing timetables and streamlining operations. Most importantly, AI is creating an incredibly exciting time for the markets… Unlocking huge developments and money-making opportunities.
Here’s the latest AI news…
Meet “the World’s most POWERFUL AI chip”
AI chip leader, Nvidia is arguably the “hottest AI stock” at present…
The company’s “must-have” H100 AI chip turned it into a multitrillion-dollar company…
One that’s worth more than Meta, Alphabet and Amazon today.
Now, Nvidia’s is looking to enhance its leading AI position with its “next-gen superchip” to meet the high demand for powerful computing.
Called “Blackwell B200 GPU”, this AI chip enables companies to build and run real-time generative AI at up to 25x less cost and energy consumption than its predecessor (H100).
At the same time, Nvidia’s introducing software to simplify AI deployment, moving towards becoming a platform for software development akin to Microsoft and Apple.
The GB200 processor, part of the Blackwell series, offers a substantial leap in AI performance, aiming to support the training of larger and more complex AI models.
The entire Blackwell system will help unlock breakthroughs in data processing, engineering simulation, electronic design automation, computer-aided drug design, quantum computing and generative AI — all BIG MONEY industry opportunities for NVIDIA.
While pricing hasn’t been established yet, Nvidia said its new Blackwell system could cost between $30,000 and $40,000.
Companies expected to adopt Blackwell are Amazon Web Services, Dell Technologies, Google, Meta, Microsoft, OpenAI, Oracle, Tesla and xAI.
And then there’s Intel’s BIG investment grant…
$8.5 billion to help the US dominate global chip production…
Remember the CHIPS Act?
The law that funds research and manufacturing for chips in the US.
Well, recently the White House announced Intel will receive up to $8.5 billion to increase chip making in the US.
This would be the single largest grant to a chipmaker under the program.
These funds will help Intel expand its facilities in states like Arizona and Ohio with the goal of putting the US ahead in advanced chipmaking. It will also help reduce the US’s reliance on foreign countries’ technology.
Despite facing competition from companies like Nvidia, AMD, and Qualcomm, Intel remains important because it both designs and manufactures chips.
This capability is rare since most competitors outsource their manufacturing.
All in all, this investment will help US produce roughly 20% of the world’s leading-edge chips by the end of the decade.
And now…
Saudi Arabia – the next major player in AI?
Recent reports suggest Saudi Arabia plans to develop a $40 billion AI investment fund.
That enormous sum dwarfs even the largest US funds and would be second globally only to Japan’s investment firm, SoftBank.
This move highlights the global rush towards AI and the country’s ambition to diversify its economy.
Saudi Arabia’s Public Investment Fund is in talks with top Silicon Valley firms, including venture capitalist’s Andreessen
Horowitz, about potential partnerships.
If successful, this fund would make Saudi Arabia the world’s largest AI investor!
In the past, the Saudi fund has made significant investments globally, including in companies like Uber and Bank of America.
Meanwhile, Andreessen Horowitz, known for backing major tech firms like Facebook and Airbnb, manages $35 billion and has a strong focus on AI startups.
These developments provide just an inkling of the potential growth in the AI market. That’s why you should not ignore the potential profit opportunities that AI can unlock. To follow our tips and what AI stocks we are buying right now, make sure you sign up to our South African Investor service.
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