By last account, Google retained 85% market share of search, a monopoly. With the Microsoft integration of ChatGPT, even though it’s a biased leftist POS AI, there is a good chance Google will shed market share. Microsoft is calling this their biggest product innovation in 15yrs.
Shares of GOOGL shed 7.7% today, about $100b in market cap lost due to this excursion by Bill Gates and Co. The subsequent result of this disruption has been a legging in, if you will, into any stock AI related. I had been researching this area for sometime, mostly because Stocklabs uses its own AI for our algorithms.
The point here is this: in spite of the NASDAQ down 200 and the world crumbling beneath our feet, this sub-sector has taken off. I tried to lose money, but failed. I did close down 16bps with a fully long book in tow, now hedged with 20% weighting in SQQQ.
My booked PNL by day. Observe the excellence.
At any rate, just like in all feverish melt ups, there will be drama. But with drama, just like how we played the COVID stocks, there will be scams and companies taking this salient and pretending to be inside of it.
To be clear: there is no better trading area of the market than in stocks like SOUN, VERI, BBAI, AI, MARK, and RGTI — just to name a few. Moreover, these stocks might even double and triple from here, as people speculate how Google might fend off this Microsoft attack on their core business. The search wars have reopened, following 2 decades of Google supremacy. I do recall a time when Bing and Askjeeves and Looksmart tried to compete — but they ultimately failed. But this MSFT is different and now equipped with superior technology, so be on the lookout for major whips and saws — as people scramble around for the next AI play.
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I wonder if your AI working inside Stocklabs is a leftist leaning POS. I bet it (I almost wrote “he”, silly me) has green trans woke bias. Don’t let your children near it. They might lose their gender!
AI is useful but on the internet I would say unwanted. Just leads to hum-drum; being a massive compendium of human responses. Average Joe, welcome to your new brain, or adolescent, or child. Might as well be a SOMA pill.
AI is already laying waste to large swathes of of the computer industry. MSFT core marketing strategy since the 1980s was to monopolize software development, especially independent developers. GOOG was successful in breaking their monopoly.
BUT while you were sleeping, MSFT bought Github and weaponized the software development domain. The AI-as-coding-buddy wars have begun, and MSFT is racing to the forefront.
Google is in trouble, but not in an obvious way. Indirectly MSFT is luring away the development community, especially at the corporate level. If GOOG loses this war, they’ll have to turn out the lights.
Ask ChatGPT to write a web-server in C or C++. Don’t like the first one? Ask them to write an optimized version. You will be amazed. Within a very short time, AI will become indispensable for developers. The possibilities boggle the mind and the rewards are potentially unimaginable.
Historically software, not hardware, has been the main obstacle to the delivery of new technologies. AI is about to obliterate this historical norm.
Ultimately, AI has the potential to make possible a single, universal programming language that that is equally effective on any hardware platform from system to application level. That language will be … English.
nah .. GOOGL will kick MSFT ass over time