• AI KATANA
  • Posts
  • A history-lover’s guide to the market panic over AI

A history-lover’s guide to the market panic over AI

Also: In the Age of A.I., What Makes People Unique?

Author

AI KATANA
August 07, 2024

Morning!

Today’s newsletter delves into the historical perspective of the AI market panic, drawing parallels to past speculative bubbles. We review the impressive performance of the Ryzen AI 300-series CPUs, which excel in traditional computing despite their AI focus. Joshua Rothman discusses the unique human qualities that AI cannot replicate. We also cover the impact of Kim Beom-su’s arrest on South Korea’s fintech and AI sectors, Reddit’s upcoming AI-powered search feature, and YouTube’s new AI tool to assist content creators. Lastly, we highlight Savvy Wealth’s significant Series A funding to enhance AI-driven wealth management. Stay tuned for more updates and insights on the ever-evolving world of AI and technology.

Sliced:

  • 📚 A history-lover’s guide to the market panic over AI

  • ✅ Ryzen AI 300 performance review: Impressive CPUs, even if you don’t care about AI

  • 👩🏻 In the Age of A.I., What Makes People Unique?

  • 🇰🇷 Tech tycoon’s arrest dents South Korea’s fintech and AI ambitions

  • 🧪 Reddit to test AI-powered search result pages

Andrew Odlyzko, a professor of mathematics and a specialist in the history of speculative bubbles, explores the current market panic over AI by comparing it to past technological manias. Odlyzko draws parallels between today’s investments in generative AI and historical bubbles such as the 19th-century railway manias and the late-1990s telecommunications bubble. He notes that while these earlier technologies had clear paths to profit, AI’s financial potential remains uncertain. Instead, he likens AI more closely to the telegraph and electric lighting booms of the 19th century, where initial investments led to eventual market adjustments. Odlyzko emphasizes that past investment booms often saw government backing, whereas today’s AI investments are fueled by wealthy tech firms. Despite the current volatility, he suggests that AI’s long-term impact is unpredictable, echoing Roy Amara’s adage that we often overestimate technology’s short-term effects while underestimating its long-term potential. The ongoing market fluctuations may merely be trimming the excesses of an overhyped sector, leaving room for AI’s future promise to unfold.

The Ryzen AI 300-series CPUs, despite the focus on their AI capabilities, stand out for their solid performance in traditional computing tasks. Reviewed in an Asus ZenBook UM5606W, these processors show noticeable improvements over previous Ryzen 7000- and 8000-series chips, offering better CPU and GPU performance along with good power efficiency and battery life. While the AI features are still evolving, and some AI software does not yet fully utilize these capabilities, the Ryzen AI 300-series chips remain a strong choice for consumers seeking reliable and efficient laptop CPUs. The review highlights the balanced approach of these processors, excelling in core functionalities and ensuring compatibility with a wide range of applications and operating systems.

👩🏻 In the Age of A.I., What Makes People Unique?

In a world increasingly dominated by AI, Joshua Rothman explores what makes humans unique and valuable. With AI’s growing capabilities in generating creative content, solving complex problems, and performing tasks at superhuman speeds, the distinction between human and machine intelligence becomes blurred. Rothman discusses how philosophers and ethicists like Shannon Vallor emphasize the importance of human virtues—such as courage, empathy, and integrity—that AI cannot replicate. These human qualities require continuous cultivation and are integral to our existence and decision-making. The article argues that while AI can mimic certain human activities, it lacks the depth and lived experiences that define true human essence. As AI continues to evolve, it’s crucial to reassert and understand the irreplaceable aspects of human nature to avoid losing sight of what truly makes us human.

The recent arrest of Kim Beom-su, founder of Kakao, on stock manipulation charges has significantly impacted South Korea’s fintech and AI ambitions. Kim, formerly the nation’s richest person, is accused of undermining a rival’s tender offer during Kakao’s takeover of K-pop label SM Entertainment. This development casts a shadow over Kakao, a key player in South Korea’s digital economy, and highlights ongoing issues with corporate governance in the country. If convicted, Kim will have to relinquish control of Kakao Bank, complicating the company’s efforts to expand its AI-driven digital services. This turmoil not only affects Kakao’s extensive business network but also intensifies scrutiny of the broader relationship between business, politics, and law enforcement in South Korea. As Kakao shifts focus from aggressive expansion to stabilizing its core operations, the incident underscores the challenges domestic firms face in competing against international tech giants while navigating local regulatory landscapes.

Reddit is set to test AI-powered search result pages that will feature AI-generated summaries at the top, aiming to help users explore content more deeply and discover new communities. This initiative, announced by Reddit CEO Steve Huffman during an earnings call, is part of Reddit’s broader strategy to integrate AI into its platform, following its partnerships with OpenAI and Google. The AI-powered search will use a combination of first-party and third-party technology and is expected to roll out later this year. This move aligns with Reddit’s ongoing efforts to enhance user experience and engagement, as evidenced by the success of its AI-powered language translation feature.

🧑🏽‍💻 AI Jobs

🛠️ AI tools updates

Running AI models locally on your Mac, Windows, or Linux PC, such as Meta’s Llama 3.1, offers numerous benefits including enhanced data privacy, greater customization, cost savings, and offline capability. Using platforms like Ollama, you can manage and run a variety of models without relying on third-party cloud services. This setup allows developers and researchers to fine-tune models, adjust hyperparameters, and experiment with different configurations. Integrating AI models with IDEs through tools like Continue can streamline development workflows. For more demanding applications, leveraging powerful GPUs on Linux systems can handle larger models effectively. Running AI locally ensures data security, flexibility, and control, making it an attractive option for innovation and development.

YouTube is testing a new feature, “Brainstorm with Gemini,” integrated into YouTube Studio, designed to assist content creators by providing AI-generated prompts for content ideas, trends, and thumbnail suggestions. This feature, powered by Google Gemini and based on Google Search activity, aims to enhance content creation by offering creators new perspectives and insights. While the tool is currently in a trial phase, with feedback being collected from users, it could potentially streamline the brainstorming process for creators. However, there are concerns that an overabundance of AI-generated ideas might overwhelm users and stifle creativity.

💵 Venture Capital updates

Savvy Wealth, a digital-first platform for financial advisors, has secured an additional $15.5 million in funding, closing its $26.5 million Series A round. Led by Canvas Ventures with participation from Thrive Capital, Brewer Lane Ventures, Index Ventures, The House Fund, and Alumni Ventures, this investment will advance Savvy Wealth’s AI-powered technology platform, expand its product and engineering teams, and recruit entrepreneurial advisors to its affiliate RIA, Savvy Advisors. Since its 2021 inception, Savvy Wealth has grown rapidly, managing over $700 million in client assets and projecting to surpass $1 billion this year. The platform features Co-Pilot, an AI-powered CRM, digital onboarding, marketing and lead generation, and automated investment management solutions. This funding highlights the transformative potential of AI in enhancing advisor efficiency and client services, aiming to modernize the wealth management sector.

🫡 Meme of the day

⭐️ Generative AI image of the day