Nvidia shares are up 7% today as I write. At a P/E of 88, according to IB. Of course this is simply a manifestation of the “AI” mania. As far as I am concerned, this is a case of a naked Emperor. The LLMs are far too erratic for serious use.
Google’s hastily rolled out AI Overview feature is disastrously broken, returning searches claiming that people should spread glue on pizzas, eat rocks, and that it’s safe for pregnant women to smoke cigarettes.
Sure they are fun, but let’s see a real business case, taking into account the massive energy and capital costs. I note that there is now an Xprize for useful applications for quantum computing. Yes, there are plenty of applications for machine learning. But generative AI? The main application seems to be writing college papers. But isn’t that plagiarism?
- Paraphrasing plagiarism means rephrasing someone else’s ideas to present them as your own.
- Patchwork plagiarism means stitching together parts of different sources to create your text.
Financial Reality 