I still remember the day I heard about a crazy new website called “Amazon”…
This was back in 1999. My best friend was raising two young children. He had just started shopping online to save time.
He eced about how much time he is saving. And he was blown away when he could tap some keys on his computer… and then he had his purchase delivered to his doorstep about a week later.
Of course, Amazon was just a glorious bookstore at the time.
This was 10 years before Apple released its first smartphone.
About a third of Americans had cell phones at the time.
And only 12% of Americans have access to the internet.
These were the early days of the Internet revolution.
People like my friends could have said that new technology has some value, but no one would have guessed how much it would change our lives in the end.
Amazon is currently the second largest retail juggernaut after Walmart, selling revenue of $1.6 billion every day.
Tech juggernauts such as Google, Facebook, Netflix have appeared, creating trillions of dollars in market capitalization, creating an unprecedented fate for loyal investors.
However, in 1999 or 2000 it was impossible to know how diverse and profitable this new technology was.
Fast forward to 2024 – and we’ll soon be back to the same position…
We went through an exciting first stage of the AI revolution.
And it’s only a matter of time before this radical new technology changes our daily lives.
Before that happens, there are three important factors that AI innovators need to master.
(The third might surprise you…)
Three key factors for the next stage of the AI revolution
With the launch of ChatGpt on November 30th, 2022, the first phase of the AI revolution led to race.
ChatGpt was the first “killer app” of the AI revolution.
It put the power of large-scale language models (LLM) into the hands of everyday internet users, and people loved it.
The site reached 100 million users in just two months, proving that there is a market for AI-powered tools.
The race was revealed as a handful of mega-cap tech companies had already gotten a head start. These stocks are “epic 7s” that have seen stocks steadily rise through 2023.
And while some of these spectacular seven stocks are rising sharply, others aren’t.
So, in a sense, it appears that the first “hype” phase of the AI boom has been cooled down.
Similar to the internet boom of the early 2000s, consumers and investors have overcome their initial sense of adoration and excitement, and are now trying to find true value with AI.
Some investors find their value in hardware that bolsters the AI revolution.
Nvidia has distinct advantages in this area as it is one of the world’s leading manufacturers of graphics processing units (GPUs).
As the name suggests, these GPUs are important for creating graphics, videos and images. Renders visual effects you can see on Hollywood blockbusters and favorite streaming shows. It is also important for 3D modeling, architectural design, and many other real-world applications.
GPUs use a process known as “parallel computing” to achieve magic. It includes thousands of individual cores synchronized to complete large-scale calculations at the same time.
If your computer’s CPU may have four or eight processor cores, the latest NVIDIA cards have 16,384 cores all running in tandem.
It’s exactly the next level of processing power that requires AI programs.
But the hardware is nothing without good software. And that’s where Microsoft is leading.
Microsoft has made its $10 billion deal famous with Openai, the company that created ChatGpt. They are also beginning to integrate AI assistants into platforms such as Bing and Skype.
With Windows still installed on 72% of all computers worldwide, Microsoft has a great advantage in dominating the AI Copilot market.
Ben Reitzes of Melius Research argued that Microsoft could already “own the most valuable AI real estate,” and that the company’s benefits “cannot be quantified at the moment.”
There are already clear frontrunners in both the hardware and software of the AI revolution.
But it still excludes important parts of the formula. What is absolutely important for all computer programs, platforms, and online businesses…
Key to unlocking next level AI
Think about it…
Before browsing one web page or downloading one email, you need to press the “Power” button on your computer and wait patiently for it to start.
If you are reading this article on a tablet or smartphone, don’t forget to charge your device at the end of the day.
Power is something that most of us take for granted… because it’s always there.
You can turn the light switch or plug in the charger to do so.
I rarely think about the effects of daily browsing and scrolling.
The simple reality is that it takes Large scale The amount of power to run and run the Internet on a daily basis.
According to Thunder Energy, in 2022, internet activity absorbed 800 terawatts of electricity.
By 2025, the IT industry is projected to use up to 20% all Electricity produced all over the world.
Compare it to China, the world’s most populous country and has 1.4 billion residents. This consumes only a small amount of electricity (26% of the global market overall).
That’s right… all of your favorite websites, apps and streaming services together. whole The country of China!
But as impressive as these numbers, they still don’t hold candles on the unprecedented, power-hungry AI platform around the next corner.
That’s why Amazon, Google and Microsoft have recently committed to groundbreaking nuclear projects involving small modular reactors (SMRs), reopening dormant furnaces on the three-mile island.
Each of these large tech companies realized that dominating the AI revolution in 2025 would not only have the best hardware and software, but also access as much power as possible to promote enormous research efforts.
For good profits,
Adam Odell
Chief Investment Strategist,
Money and the market
