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The Want for Pace in 3 Charts

December 31, 2024
in Investing
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I got here throughout a stunning tweet not too long ago. Test this out:

I take advantage of about ¾ of those day by day.  (No, I don’t have a Snapchat account!)

But none of them had been round simply 20 years in the past.

It’s onerous to think about what life will appear like 20 years from now, a lot much less 5 years from now.

One strategy to clarify the speedy development this century is a precept referred to as Moore’s Regulation.

Within the Sixties, Intel’s founder Gordon Moore observed that laptop chips might maintain twice as many transistors each two years.

Moore’s Regulation was born out of this remark.

Right now it has come to imply that computer systems get extra highly effective, smaller and cheaper over time as their components shrink.

Roughly doubling in energy each two years.

Semiconductor corporations use this “two-year rule” to plan their work.

They know they should create higher chips each two years or different corporations will get forward of them.

And this “two-year rule” has been surprisingly constant.

Check out this chart posted on X by Steve Jurvetson, an early VC investor in Tesla and SpaceX.

It reveals the accuracy of Moore’s Regulation all the best way again by the start of the twentieth century:

Turn Your Images On

In his phrases:

“NOTE: this can be a semi-log graph, so a straight line is an exponential; every y-axis tick is 100x. This graph covers a 1,000,000,000,000,000,000,000x enchancment in computation/$. Pause to let that sink in.”

He’s saying Moore’s Regulation is so highly effective that an correct illustration of it might make this chart taller than a 10-story constructing.

But what’s occurring at this time with AI is totally blowing it away…

Hyper Moore’s Regulation

Nvidia’s CEO, Jensen Huang, not too long ago launched an idea he calls “Hyper Moore’s Regulation.”

He believes AI computing efficiency has the potential to blow previous Moore’s Regulation and double and even triple yearly.

And he could be proper.

From Ankur Bulsara:

“If Moore’s regulation is a 2X exponential curve, NVIDIA’s final 8 years have been a 2.34X exponential curve. Not solely is AI compute rising exponentially, it’s a *steeper* curve than Moore’s regulation. Possibly essentially the most consequential scale issue this decade.”

Turn Your Images On

This implies AI know-how is turning into sooner and extra clever at a tempo we’ve by no means seen earlier than.

And I feel the very best instance of that is OpenAi’s new mannequin launch.

Again in September of 2024, OpenAI launched a brand new kind of AI computing mannequin totally different from the standard giant language fashions (LLMs) it launched with ChatGPT.

It’s referred to as OpenAI o1, and it was designed to spend extra time reasoning earlier than responding.

This capacity permits it to unravel tougher issues in science, coding and math.

Per the corporate’s press launch:

“We educated these fashions to spend extra time considering by issues earlier than they reply, very similar to an individual would. By way of coaching, they study to refine their considering course of, attempt totally different methods, and acknowledge their errors.”

And it’s already confirmed to be extremely efficient, exhibiting PhD-like intelligence for sure duties.

Once more, OpenAI was launched simply 3 months in the past…

But it surely has already been up to date. OpenAI introduced their new o3 mannequin this month.

Right here’s what Reddit consumer MetaKnowing posted when it was launched:

Turn Your Images On

What does all this imply?

The poster above believes that we’ve already achieved synthetic normal intelligence or AGI.

However Sam Altman defines AGI as:

“Mainly the equal of a median human that you might rent as a co-worker.”

So I don’t consider we’re fairly there but.

However I do consider it might occur as early as this yr.

And whether or not you’re simply beginning out within the workforce, you’re already retired or anyplace in between…

The subsequent few years might make the final 20 appear like a heat up act.

Regards,

Ian King's SignatureIan KingChief Strategist, Banyan Hill Publishing



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