In recent news reported by Reuters, a U.S. congressional commission proposed a Manhattan Project-style initiative to fund the development of AI systems that will be as smart, or even smarter, than humans. The proposition is amid the intensifying competition from China over advanced technologies.
“We’ve seen throughout history that countries that are first to exploit periods of rapid technological change can often cause shifts in the global balance of power. China is racing towards AGI … It’s critical that we take them extremely seriously”
– Jacob Helberg, a USCC commissioner told Reuters
Helberg, while recognizing that energy infrastructure is a significant bottleneck for training large AI models, suggests that streamlining the permitting process for data centers is one way of enabling a public-private partnership that could accelerate AI development.
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This news follows a rumor that artificial intelligence models are hitting a “wall”. Separate sources, including Reuters, The Information, and Bloomberg, have reported that companies such as OpenAI are failing in their next endeavors. Unnamed sources have claimed that OpenAI’s Orion is “so far not considered to be as big a step up from OpenAI’s existing models as GPT-4 was from GPT-3.5.”
However, OpenAI is pushing back on these rumors, stating that there is “no wall”. Despite having not reached a wall, analysts do admit that it’s possible to have reached a turning point.
“We haven’t seen a breakthrough model in a while. Part of it is that we’ve exhausted all the human data, and so just throwing more compute at the same data may not yield better results.”
– Gil Luria, managing director at investment group D.A. Davidson
Gary Marcus, NYU professor emeritus and outspoken critic of AI hype, has this to say:
“The economics are likely to be grim. LLMs will not disappear, even if improvements diminish, but the economics will likely never make sense…”
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15. Penguin Solutions, Inc. (NASDAQ:PENG)
Penguin Solutions, Inc. (NASDAQ:PENG) is a leading AI infrastructure provider for organizations looking to build and operate state-of-the-art generative AI facilities.
On November 19, Penguin Solutions, Inc. (NASDAQ:PENG) announced the latest additions to its OriginAI® infrastructure solution, the company’s AI factory infrastructure offering. The additions include the latest NVIDIA and AMD GPUs, and Dell Technologies AI-optimized hardware, combining top-tier GPU servers, networking, and storage options with Penguin’s easy-to-use cluster management software and services. Through the OriginAI solution, companies can scale their AI infrastructure deployments, achieve faster access to ROI, and reap the competitive benefits of AI technology.
“Our Penguin OriginAI solution has been established as the go-to answer for making AI both attainable and efficient. Adding the latest GPU technology from industry leaders AMD and NVIDIA, alongside an option for Dell servers, storage and networking, gives organizations the ability to tailor their AI infrastructure to specific workloads and business requirements and maximize their ROI”.
– Pete Manca, president of Advanced Computing at Penguin Solutions.
14. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 36
SAP SE (NYSE:SAP), a market leader in ERP software, leverages AI to enhance its enterprise resource planning (ERP) solutions.
On November 19, SAP and Microsoft highlighted their collaborative vision for redefining workplace productivity at Microsoft Ignite, an annual conference for developers. The vision involves the seamless integration of SAP’s AI copilot, Joule, and Microsoft 365 Copilot. The integration will allow users to perform tasks and surface insights from both systems through either copilot so that they don’t have to switch between applications. This integration marks a new benchmark for cross-functional productivity, and a limited preview of this integration is expected before the end of 2024.