I still remember the day when I heard about a crazy new website called “Amazon” …
It returned in 1999. A close friend was raising two young children, and he started shopping on the Internet to save some time.
He was happy on how much time he was saving. And he was blown out that he could tap some keys on his computer … Then his purchase was delivered to his door after about a week.
Of course, Amazon then was slightly more than a glorious bookstore.
It was released by Apple a decade ago.
About one -third Americans had a cell phone at that time.
And only 12% of Americans had internet access.
These were the early days of the Internet revolution.
Even though people like my friends could tell that there was some value for new technology – no one would have guessed that it would eventually change our life.
Amazon is now a retail jugornot, the second for Walmart, with $ 1.6 billion in daily sales revenue.
Tech Juggernauts like Google, Facebook and Netflix emerged to make trillions of dollars in market capitalization and to create unprecedented fate for loyal investors.
But back in 1999 or 2000, it was impossible to know how diverse and profitable this new technology would be.
Rapid forward to 2024 – and we are back in the same position …
We are just through the exciting first phase of the AI Revolution.
And it is only a matter of time before this radical new technology changes our everyday life.
Before this happens, there are three important factors AI innovators will need to master.
(Third can surprise you …)
3 important factors for the next stage of AI Revolution
With the launch of Chatgpt on 30 November 2022, the first phase of the AI revolution was closed for the race.
The first “Killer App” of the Chatgpt AI revolution was.
It put the power of the big language model (LLM) in the hands of everyday internet users, and people loved it.
The site reached 100 million users in only two months, which proved that there was a market for the AI-operated tool.
A handful of mega-cap companies were clearly leading in this race as they already had a head start. These stocks are “luxurious seven”, which continuously raised their shares through 2023.
And while some of these magnificent seven shares are increasing, others are not.
So, in some ways, it seems that the initial “propagation” phase of the AI Boom is getting cold.
Like the internet boom of the early 2000s, consumers and investors are getting a sense of their early meanings and enthusiasm and are now trying to find the real value in AI.
Some investors are getting the value in hardware that will strengthen the AI revolution.
NVIDIA has a clear advantage in the region as it is the major manufacturer of the world of graphics processing units (GPU).
As the name means, these are important for creating GPU graphics, videos and images – the visual effects we see in Hollywood blockbusters and our favorite streaming shows. They are also important for 3D modeling, architectural design and dozens of other real world applications.
GPUs use a process called “parallel computing” to create magic. It contains thousands of individual core working in the sink to complete large -scale calculations simultaneously.
Where your computer’s CPU may have four or eight processor core, the latest NVidia card has 16,384 core which all are working together.
It is fine that the next level processing power AI programs will be required.
But hardware is nothing without good software. And this is where Microsoft is in the lead.
Microsoft was famous for a $ 10 billion deal with Openai, which created a chatgpt. And it has already begun to integrate AI assistants in platforms such as Bing and Skype.
With the installation of Windows at 72% of all computers worldwide, Microsoft has a huge advantage in dominating AI Copilot market.
Ben Ritz of Melius Research argued that Microsoft might already be the owner of “the most valuable AI Real Estate” and that the company’s advantage is not currently not quantitative. “
The AI Revolution’s hardware and software are already clear.
But it still leaves an important part of the formula. Every computer program, platform and absolutely important for online business …
Key to unlocking the next-level AI
Think about it…
Before you browse a single webpage or download a single email, you have to hit the “power” button of your computer and wait patiently as it boots.
If you are reading this article on a tablet or smartphone, then you have to remember to recharge your device at the end of the day.
Power is one such thing that is taken for most of us … because it always happens.
Flip on a light switch or plug into a charger, and you are good to go.
We rarely stop thinking about the effects of our daily browsing and scrolling.
The simple reality is that it takes On a large scale The amount of electricity to run and run the Internet on day to day basis.
Thunder said that Energy said, Internet activity soaked 800 terravat hours in 2022.
By 2025, IT industry is estimated to use up to 20% All Electricity was produced worldwide.
Compare with China – the world’s most populous country, with 1.4 billion inhabitants – which consumes only a slightly more power (26%of the total global market).
This is right … Your favorite website, apps and streaming services collectively consume almost the same power. Complete Country of China!
But these numbers are stunning, they still do not have a candle for unprecedented, electric-lung AI platforms that are right around the next corner.
This is why Amazon, Google and Microsoft have recently made commitments for landmark power projects, including small modular reactors (SMRS) and even a dormant reactor has been resumed on the three mile island.
Each of these big tech companies has felt that dominating the AI revolution in 2025 will not just be the best hardware or software … but also that about access to as much access to electricity as possible to run their huge research efforts …
For good profits,
Adam o’Del
Main investment strategist,
Money and market
