(#16) AI for breakfast, lunch and dinner; Chinese free apps dominate the USA; Twitter valuation
Chat GPT might have the same effect at the Gutenberg press. Only last week we had at least 10 company announcements on AI.
Foxconn and EVs
After learning to produce iPhones for Apple now the Taiwanese companies want to be a player in the next chapter: EVs.
Now, there are two main problems with that:
1/ an iPhone has fewer components than a car (and the knowledge came from Apple and was later used to deliver products to other companies: Google, Microsoft, Sony, etc); each component comes with its details and knowhow
2/ it needs guidance. (not even Apple knows how to enter into this game). LINK
Tesla will launch Model 2
When? Probably in 1-2 years and will deploy the know-how shown at their Investor Day event from four weeks ago.
How will they reach better pricing, in the range of $25k? Basically, through vertical integration, robot automation, spare parts redesign, and other steps. LINK
Why is this important? If GM, Ford, and VW want to have a profitable EV they should start now to rethink their business model and their approach to building EVs. Ford lost $3bn last year on their EV division. Ouch! LINK
Always tell the truth
The first value of each company is saying the truth. Hindenburg Research, a company specializing in forensic financial research, has a detailed report on Block. The main conclusion is that:
“Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping. The “magic” behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics.”
Now, 3 main takeaways:
1/ I have never trusted their always-absent and leftist CEO - Jack Dorsey; we can see now pretty clear how Twitter was manager and what the Twitter files reveal
2/ The fintech space is overvalued and Stripe is the best example
3/ Being listed on the stock exchange and lying in numbers is 100x more problematic than doing that when you are a private company.
As a result, Hindenburg Research shorted Block’s shares. Hindenburg Research, Twitter files, Stripe
TikTok is a step closer to being banned
Last week, TikTok’s CEO, had a hearing in the US House of Representatives and it not went well. My ideas on this topic:
1/ Tiktok (Bytedance) has the merit of moving most of the Social Media attention from text and images to video. Also, moving our attention from our network of friends and family to the entire world, thanks to the algorithms.
2/ All non-Chinese Social Media apps are banned in China. Why shouldn't the rest of the world do the same?
3/ The app has so many tracking options, that is posing a security issue (hence this hearing)
4/ Nobody can control what the algorithm shows, not even Oracle
5/ Most US citizens take news from TikTok. Imagine the power to change the information narrative: from Taiwan to 5G.
6/ All tech Chinese companies have a board member from the Communist party which overrules the power of any private entity. We should not be naive about this and all the implications. Some of the CEOs wanted to prove the opposite and now they are in prison (most of them), dead (a few), or in exile (hello, Jack Ma!)
You can draw your own conclusion on this. Hearings; Beginnings
Snap and the lack of focus
The company rolls out augmented reality tools for fashion retailers in the latest commerce push. LINK
Three takes on Snap:
1/ The company was severely damaged by Apple’s Track Transparency because its business model relied much more than known on brand advertising
2/ The company will (probably never) be able to develop its own AI engine, like META (because this is very cash intensive)
3/ Finally, while there is value in providing a shopping experience, Snap is famous for its lack of focus. For me, the company is more like Twitter before being acquired by Elon.
Wallmart and ads
Amazon realized $38 bn revenue from ads in 2022, more than from the Prime service. Why not Wallmart can try to catch at least a slice of that market? LINK
Social Media is harmful to teens
Now, this is not rocket science and we all could have figured it out by now. The pandemic just accentuated this trend. LINK
From “Software eats the world” to “Did We Overeat on Software?”. LINK
Elon Musk apparently said that Twitter’s valuation is $20 bn. Knowing Elon and knowing some finance Elon says that the company is valued what less than $10 bn. LINK
Chips are ruling the world
Hopefully, the US will maintain its core competitive advantage in the chip supply chain. LINK 1, LINK 2
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The global society is having its Gutenberg moment. LINK
What was announced in the last 7 days:
Bing Image Gen
Github Copilot X
Chat GPT plugins
Nvidia DGX Power
Microsoft’s Notion Killer: Loop
Chat GPT is everywhere
Who killed the metaverse? I’d say that it didn’t have the chance to take off. Instead, LLMs (Chat GPT & co) and top Chinese apps are the new winners.
Nvidia is becoming a platform
NVIDIA NeMo - a cloud service for enterprise hyper-personalization and at-scale deployment of intelligent large language models (LLMs)
NVIDIA Picasso is an accelerated cloud service for enterprises that need custom generative AI models for creating high-res, photorealistic images, videos, and 3D content
NVIDIA BioNeMo service is a cloud service for early-stage AI drug discovery, offering tools to quickly customize and deploy domain-specific, state-of-the-art biomolecular models at scale through cloud APIs. LINK
Goldman Sachs estimates that 300 million white-collar jobs will be automated with Chat GPT. LINK
Temu was the most downloaded app in the USA, Shein is going to a $100 bn market valuation and TikTok will reach the “$1 trillion club” …if will not be banned.
Next batch of questions:
- How can you integrate ChatGPT into your existing systems and workflows?
- What are the limitations of ChatGPT, and how do you work around them?
- What are the use cases where ChatGPT can be applied effectively?
- Are you developing a plug-in for it?
Are you already working around these questions? You should!
AI for trips. Now, you can ask an AI what to do in a specific city:
5 great places for dinner on a weeknight
I’d like to spend a day here
5 restaurants that are recommended for a date
Give me a 3-day itinerary.
You should try it! LINK
An AI-generated photo of Pope Francis in a gigantic white puffer coat.
Levi’s and AI. The company will experiment with supplementing its human models with AI-generated models later this year. LINK
Zoom’s new AI features help you catch up on meetings you’re late to. LINK
What platforms to watch in this space:
Harvey: AI-powered legal platform
Kumo.AI: predictive analytics platform
Pathway Medical: smart doctor assistant
Luma AI: 3d models
Sana: knowledge management platform
All of these will eventually become plug-ins and will be integrated into Chat GPT. LINK
Purchasing power parity and GDP per capita, in 2022:
1/ Romania will overtake Hungary and Portugal this year in terms of GDP per capita
2/ Romania will overtake Spain in 4-6 years and Italy in a maximum of 10. LINK
CO2 emissions by region
Nothing will change if China will not change.
The Chinese have identified America’s Achilles heel: apps. LINK
Rolls-Royce had a good 2022, with a 57% year-on-year increase in profit, mainly driven by its civil aerospace division.
Gen Alpha’s influence starts now (those born after 2010). Main takeaways:
1/ The lives of Alphas are deeply digital
2/ Alphas are already influencing purchasing
3/ Parents emphasize healthy eating, but they prefer McDonald’s
4/ Travel-happy parents are bringing Alphas along. LINK
The State of Food & Beverage in the USA. LINK
a16z published their annual data report on Marketplaces. LINK
Top Entertainment Trends for 2023. LINK
The 2023 workplace trends report. LINK
Blackberry is now a movie and had a trailer. LINK
Airpords die very fast and you can’t do anything; also, they are bad for the environment. LINK
What killed Credit Suisse? LINK
Binance and Its CEO were sued by CFTC over US regulatory violations. The industry will continue its crisis. LINK
Bitcoin and Ether are now commodities, says CFTC.
CountThings is a very successful app that counts things. It costs $120/month.
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