Chris Curl,
Editor
May 9, 2024
In a recent interview, Eric Schmidt, co-founder of Schmidt Futures and the Special Competitive Studies Project, shared his insights on the future of Artificial Intelligence (AI), the technology race among tech giants, and various strategic partnerships shaping the industry.
Schmidt stated that the advancements in AI are currently "underhyped," emphasizing the significant impact of non-human intelligence’s emergence on the global stage.
"I hate to tell you, but I think this stuff is underhyped. Not overhyped because the arrival of intelligence of a non-human form is really a big deal for the world."
He forecasted that the transformations AI is expected to bring about are likely to happen within the next five years, a timeline accelerated by the advancements and investments in the field by major tech corporations.
"We used to say 20 years. Now within 5."
Schmidt also explored the competitive landscape, mentioning OpenAI's collaboration with Microsoft (NASDAQ: MSFT) which involves significant financial investment, Google's (NASDAQ: GOOG) active participation, and Meta's (NASDAQ: META) release of a large language model, LLaMA, into the open-source realm.
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NVIDIA (NASDAQ: NVDA) emerged as a key player, dominating the hardware aspect due to its nearly monopolistic hold on the software stack essential for AI development. Despite the competition, Schmidt sees room for other companies like AMD (NASDAQ: AMD) and Intel (NASDAQ: INTC) to play catch-up.
"The big winner right now is still NVIDIA because they have a virtual monopoly on the software stack between the hardware and the software that everyone is using."
Large tech firms such as Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) were discussed for their potential in the AI race, with Amazon partnering with Anthropics (a company Schmidt has invested in) and Apple continuing to innovate independently. The conversation also touched on the regulatory landscape, with Schmidt advocating for regulation over litigation amid the DOJ's ongoing lawsuits against big tech firms.
"Google is not about blue links, it's about organizing the world's information. What better tool than the arrival of AI to do that better."
The interviewer raised concerns about the possible monopolization of information by AI, to which Schmidt responded optimistically, envisioning AI as a tool for enhancing the efficiency of information organization and monetization, particularly in advertising. He downplayed fears surrounding AI, citing its potential to address significant challenges like cancer and climate change through advancements in science.
Addressing AI's energy demands, Schmidt remained optimistic about the technological solutions to potential energy shortages, suggesting that AI could lead to more efficient energy use and resource allocation across industries.
"The reason I'm saying it's underhyped is you're seeing the future of reasoning, the future of human interaction, the future of research, the future of planning is being invented right now."
My colleague John Carl and I also see the writing on the wall when it comes to AI. That’s why we started Digital Dispatch. In it, we highlight key AI infrastructure plays as well as companies poised to profit massively from blockchain, space, and medicine.
We just wrapped up our second quarterly Tech Summit where we dive into these themes in-depth. You can check it out here.
Keep coming back,
Chris Curl
Editor, Daily Profit Cycle