The bear case against Nvidia and artificial intelligence

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Artificial intelligence: Nvidia will struggle to sustain its growth as AI interest wanes

Already a subscriber?Does anyone in Silicon Valley know the saying “the bigger they are, the harder they fall”? Perhaps it’s just a matter of time before they will.

This recent tweet from Google sums up where they’ve gone wrong: “The Gemini era is here – helping you do more with the magic of Google AI.”No, Google. AI isn’t “magic”. And to frame it as such – even in a tweet – is already leading to disappointment. Further down the value chain, away from the glow of Nvidia, lurk signs of discontent.

How to get there? First, tech companies need to identify where their hype machine has gone wrong. They didn’t set expectations for AI’s capabilities too high; they framed its use as being too general purpose. OpenAI’s and Google’s AGI goals are even grander, so much so that they’ve lost all meaning, from creating abundant wealth for humanity, according to Altman, to solving climate change and curing cancer, according to Hassabis.

 

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