Operating at the Intersection of Technology and the Capital Markets
Tag: Deep Learning
Artificial Intelligence tools such as Google Assistant are only as good as the information you share with it. Artificial Intelligence at its core is automation based upon predictive analytics. Whether it is predicting the next word in a sentence, suggesting what movie or book you may like to watch or read next, predicting what wine … Continue reading Personalized AI Is Only As Good As The Personal Information You Share
Management teams are working through 2024 operating budgets and hopefully have figured out that interest rates will remain elevated for 2024. Companies carrying meaningful debt have no choice but to assume elevated interest will remain for the foreseeable future (we believe a 5 handle makes sense for the 10-year). In terms of the People budget, … Continue reading 2024 Enterprise Software Budgets: Gen AI To Get Axed?
Should OpenAI file for an IPO this year or next, the questions to ask are: 1.) What percentage of OpenAI's revenue is recurring? 2.) What are customer renewal rates? My push back on OpenAI's rumored $1 billion revenue run rate is that much of that revenue is tied to companies that are experimenting with Gen … Continue reading What Percentage of OpenAI’s Revenue Is Recurring?
Some of the hyperbole that I hear around AI - Generative AI in particular - simply does not make any sense. For example, one of the things I hear from the Financial Media is that AI will help facilitate a soft landing. How so? AI can't create demand out of thin air. Reducing the cost … Continue reading AI Can’t Create Demand Out of Thin Air
A look at Google Trends suggests that "Generative AI" may be losing its luster - at least insofar as the Google search term "Generative AI" is concerned. When measured over the past 90 days, the search term peaked on June 6th (see Google Trends chart below). Source: Google Trends Source: Google Trends
Now that Microsoft (ticker: MSFT) has received approval to acquire Activision (ticker: ATVI, better luck next time Lina Khan), I am curious as to what kind of operating leverage Activision may enjoy as Generative AI is deployed more deeply throughout the organization post-deal close. Video game publishers have been using AI for years to render … Continue reading Generative AI Across Activision Post-Deal Close
Advanced automation / AI offers a real customer value prop. AI has been deployed for decades. However, the hype around Generative AI is a different beast. It will take decades for Generative AI to generate the Economic Value required to justify the valuation run enjoyed by companies such as Nvidia (NVDA shares up 280% since … Continue reading Generative AI Hype vs. Reality
A fully automated IPO process is not on the immediate horizon, but technology isn't the barrier, institutional adoption is. IPO Price: Venture Firms know their cost basis, where comps were priced, company positioning, where the equity markets sit, all of which become inputs into the valuation model. The difficult part to replace with automation is … Continue reading The AI IPO Is Coming
The mistake that NVDA investors are making beyond the AI bubble euphoria is that they believe NVDA Revenues (expected to be approximately $11 billion in Q2) will be up and to the right in perpetuity driven by demand for Generative AI capability. Generative AI will not be the gift that keeps on giving. Below we … Continue reading Nvidia and Generative AI Hype
The way I see Generative AI playing out across the enterprise will be that companies will lean on AWS, Azure and Google Cloud Platform (GCP) for Core Generative AI services. The simple truth is that most enterprises do not have the knowledge or resources available to build proprietary large language models (LLMs) that underpin Generative … Continue reading AWS, Azure and Google Cloud Will Lead Generative AI
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