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AI: We Have Five Years
Nvidia, Apple, Elon Musk
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Good Morning!
It’s the last day of November. Are you getting geared up for Christmas? Here’s what’s going on today:
👉 Nvidia suggests AI could compete with humans in 5 years
👉 November has been a historical month for bonds
👉Elon Musk attacks advertisers
Off we go!
NVIDIA: We Have 5 Years
During a talk at The New York Times’ DealBook summit, Nvidia's CEO, Jensen Huang, highlighted the rapid advancement of artificial intelligence (AI) in relation to human capabilities.
He suggested that in the coming five years, we might witness AI systems capable of performing tasks at a level comparable to human intelligence, particularly if artificial general intelligence (AGI) is measured by a computer's ability to complete tasks in a way that is competitive with humans.
Nvidia is currently experiencing significant growth in its business, driven by an increased need for powerful graphics processing units (GPUs). These GPUs are essential for training AI models and managing substantial tasks in various sectors, including automotive, architecture, electronics, engineering, and scientific research. This demand also extends to the requirements of OpenAI's ChatGPT.
The company's financial performance reflects this trend, with Nvidia's revenue in the fiscal third quarter showing a threefold increase. Net income rose dramatically to $9.2 billion, up from $680 million in the previous year.
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Source: The Information
Huang forecasted that the AI sector's competitive landscape will give rise to readily available AI solutions.
These tools, he anticipates, will be adaptable across various fields. Businesses in distinct sectors, ranging from semiconductor manufacturing and software development to pharmaceutical research and radiology, will customize these AI resources to suit their specific requirements.
🎯 GRIT TAKE: Artificial intelligence will be the… upgrade to VIP to read the full GRIT take.
BONDS: Historical Month
Throughout a challenging year for the US bond market, November stood out as a month of historical importance. There was a notable increase in the values of Treasuries, mortgage debts, and agency, marking the most remarkable monthly achievement since the 1980s. This rally brought much relief to bond investors who were bracing for what could have been a third year in a row of losses - a situation unprecedented in the history of the Treasuries market.
This growth sparked a robust rally across various sectors, including stocks, credit, and emerging markets. Additionally, even the lesser-known, high-risk cryptocurrencies, which usually struggle in high-yield periods, saw substantial gains.
Source: NewYorker
The continuation of this rally into December and beyond into 2024 hinges on whether the primary factors driving it persist. These factors include indications of a slowing economy and inflation and the expectation that the Federal Reserve may cease increasing interest rates.
MUSK: “Go f*** yourself”
At the 2023 DealBook Summit in New York, Elon Musk, who is the owner of the social media platform X (previously known as Twitter), expressed his disregard for advertisers withdrawing from the site due to his posts of antisemitic content.
Musk was direct in his response to the situation, stating, “If somebody’s going to try to blackmail me with advertising? Blackmail me with money? Go f***. Is that clear?” During his speech, he specifically acknowledged Disney CEO Bob Iger, who was present in the audience, with a pointed “Hi Bob!”
Source: Axios
Furthermore, Musk suggested that his supporters might also boycott these advertisers in retaliation. He warned, “The whole world will know that those advertisers killed the company, and we will document it in great detail.”
For the first time since his comments ignited worldwide criticism, Musk apologized for his tweets. The post was the “worst and dumbest I’ve ever done,” said Musk.
Headlines You Need To Know: 🎙
Henry Kissinger dies at the age of 100
Ford reinstates guidance after strike
Microsoft joins OpenAi board
Bob Iger says Marvel movies had little guidance
What one Swiss bank can tell us about troubles
Citadel and its peers are piling into the same trades
China’s economy faces a sour end to the year
SoftBank-backed solar company is first to qualify for Biden credits
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From Rejecting $6B to the Brink 💥
This company was insulted by a $6 billion offer and is now almost bankrupt.
Groupon burst onto the scene in 2008, seizing the daily deals market with an innovative model: Offering limited-time deals with significant discounts on everything from meals to spa treatments. The idea was simple but impactful, demanding a minimum number of buyers for each deal to activate. By 2010, Groupon was a tech sensation, famously turning down a $6 billion offer from Google.
The company soon faced challenges. The initial excitement around daily deals began to fade as customers and businesses experienced ‘deal fatigue.’ Groupon also found itself in a fiercely competitive market, and some of its deals failed to offer real value, leading to customer dissatisfaction. In fact, Groupon was selling some products for cheaper than the wholesale cost of them, which had a massive impact on Groupon’s retailers.
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Source: Insider
However, the critical issues lie within the company itself. Groupon’s rapid expansion led to a scattered business focus. They ventured into too many markets too quickly, diluting their brand and straining their resources.
Groupon stock is almost down 100% since the IPO, and the company is trying to fight off bankruptcy.
Chart of the Day
📊 At the last November meeting, the FED noted that December could bring the final hike in the tightening cycle.
Source: Bloomberg
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GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
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Source: @wallstreetoasis
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