AI’s ROI

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 22 June 2024

⏱️ 31 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In 2023, the AI industry spent an estimated $50 billion on Nvidia chips, with the purpose of training AI models. The payoff for all that spend, according to Sequoia Capital, is $3 billion in revenue. Is that a return worth bragging about? RIcky Mulvey talks with Fool analyst Asit Sharma about how investors might think about companies’ AI spend. They also discuss: - The rate of improvement for AI models - How non-Mag 7 companies are using AI - And one company that’s spending smartly on the new technology. Take a look at the Gartner Hype Cycle. Host: Ricky Mulvey Guest: Asit Sharma Producer: Mary Long Engineer: Tim Sparks Companies discussed: GOOG, MSFT, NVDA, ARM, AMD, ORCL Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	The basis of all this is that the processes are much more intensive on servers.
0:06.0	They cost a lot more because they're delivering some kind of magic to us that we didn't have before.
0:12.0	Now yeah, there's hallucinations in there. There is
0:14.4	perceived inaccuracy of some responses. It's early stages, but so far
0:19.6	companies are willing to invest and some consumers are willing to pay for this.
0:24.0	Many of us are getting it free as an offer just now and it is being integrated with
0:28.0	the products that we use every day, but the general gist of this is that people are willing to pay for that extra bit of magic.
0:38.3	I'm Mary Long and that's Osset Sharma. Artificial intelligence is everywhere, and all that data is expensive.
0:45.0	A KPMG survey suggests that 43% of US companies with over a billion dollars in revenue
0:50.0	plan to invest at least a hundred million in generative AI over the next 12 months.
0:55.8	But how to tell whether all that investment is actually paying off.
0:59.6	My colleague Ricky Mulvey caught up with Osset to talk about how investors might consider a company's AI spend.
1:05.2	They also discuss how non-Mag7 companies are using AI, the difference between large and small
1:10.9	language models, and the future of AI friendships.
1:15.0	So, Ausset, let's start with the positive.
1:20.0	I mean, artificial intelligence represents world-changing technology breakthroughs.
1:25.0	It's already you know providing a co-pilot at my job it's changed the way I search on the
1:30.0	internet probably for you as well if you're on Google which I assume you're not a
1:34.1	a bing guy right you're not you're not out there on the the ask-gives yahoo bing
1:38.1	platforms you read me right brother I am a Google person I don't anything against Bink. I do use it from time to time. But I'm a Google person first.
1:47.0	I'm trying to get us to this place where we're in the middle where we recognize the extraordinarily positives and also some of the risks that come with AI in this investment hype what I would call boom cycle
1:58.7	Let's start with the positive. What's AI allowing you to do that you weren't doing just a couple of years ago?
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Motley Fool, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Motley Fool and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.