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The Want for Velocity in 3 Charts

admin by admin
December 31, 2024
in Investments
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The Want for Velocity in 3 Charts
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I got here throughout a stunning tweet lately. Examine this out:

Turn Your Images On

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

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

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

One solution to clarify the fast development this century is a precept known as Moore’s Regulation.

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

Moore’s Regulation was born out of this remark.

At present it has come to imply that computer systems get extra highly effective, smaller and cheaper over time as their elements 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 via 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 present with AI is totally blowing it away…

Hyper Moore’s Regulation

Nvidia’s CEO, Jensen Huang, lately 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 may be proper.

From Ankur Bulsara:

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

Turn Your Images On

This implies AI know-how is turning into quicker 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 normal massive language fashions (LLMs) it launched with ChatGPT.

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

This potential permits it to resolve harder issues in science, coding and math.

Per the corporate’s press launch:

“We skilled these fashions to spend extra time considering via issues earlier than they reply, very similar to an individual would. Via coaching, they be taught to refine their considering course of, strive 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 person 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 would rent as a co-worker.”

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

However I do imagine it might occur as early as this 12 months.

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

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

Regards,

Ian King's Signature
Ian King
Chief Strategist, Banyan Hill Publishing





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