Welcome, humans.
Today we're investigating whether ChatGPT can beat the stock market. To the moon?! 🚀
Here’s what’s going on in the world of AI today:
- 📊 ChatGPT vs. the stock market
- 💬 Reddit will charge for its data
- 🍟 Microsoft is developing its own AI chips
- 🔎 A search engine for all your apps
AI Battles The Stock Market 📈
Twitter has been obsessed with one question about AI: can it make me money? After all, if ChatGPT can beat English, can it beat markets?
In short, the answer is no. At least not yet. The Wall Street Journal recently reported on investors' struggle in prompting AI for investment advice.
- One reason is that pricing and market data are inherently limited in size, unlike the nearly unlimited data used to train large language models.
- And in markets, historical data isn't everything. Markets move up and down in unpredictable waves driven by emotions, real-time decisions, and abrupt political climates.
But there is some hope. Two academic papers are showcasing ChatGPT's capabilities to gauge market sentiment at a similar level as those kids you call analysts:
1/ The first paper found that ChatGPT did well at predicting market movement from Federal Reserve statements.
It does even better after being trained on historical examples (i.e., Jerome Powell raises rates 25bps ... again).
2/ The second paper prompted ChatGPT to decipher corporate news headlines. Not only were its interpretations spot on, but they were correlated with "the stock's subsequent moves."
Why it matters: AI models might not outperform Warren Buffett anytime soon. However, they are increasingly emerging as valuable tools for quants and retail investors to parse through information.
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Reddit Will Start Charging For Its Data
Who ever thought a Reddit conversation would be worth something?
Big companies like Google, OpenAI, and Microsoft are already scraping Reddit conversations to train their large language models. Now, it's time to cash in.
In the coming weeks, Reddit plans to charge companies for access to its vast database of conversations through an API.
Its rationale is: we have unlimited data (the Reddit wormhole is real), and conversations happen in real-time on our platform.
Why it matters: A new business model is on the horizon that focuses on selling extensive data collections designed to train and develop advanced language models like ChatGPT.
First people wanted their data back. Now companies do:
“Crawling Reddit, generating value and not returning any of that value to our users is something we have a problem with. It’s a good time for us to tighten things up.”
Steve Huffman, Reddit CEO
Around the Horn 🦄
- Microsoft will start developing its own AI chips to power language models as it diversifies away from Nvidia's GPUs.
- Will AI developers soon have to submit identification to governments?
- Casey Neistat used ChatGPT to write an entire vlog script (and then posted it!).
- Chegg launched CheggMate, a conversational AI assistant designed to empower students.
- Adobe added multiple new AI features to its Lightroom editor including an AI-enhanced denoise feature.
- NVIDIA released some pretty darn good text-to-video research.
Treats To Try 🍿
- Klu is an AI-powered search engine that finds information hidden in all your apps.
- Room Design lets you upload a room and receive interior design ideas.
- Aomni is an information retrieval AI agent that can find, extract, and process any data on the internet.
- InfraCopilot is a design tool that knows how to define, connect, scale your infrastructure-as-code
- SnackPrompt lets you discover and use ChatGPT prompts.
DM us links on Twitter: @nonmayorpete & @noahedelman02.
PS: Treats to Try are new products/projects that we think are cool. We're hard at work compiling our list of "vetted" AI products (reviews, pros, cons). Stay tuned!
Wednesday Wirings 💸
- Safe Security raised $50 million to fund AI and machine learning solutions for cybersecurity.
- Mediwhale raised $9 million for its AI-powered retina scanning solution to diagnose cardiac and kidney disorders.
- Distyl AI raised $7 million to help large companies leverage generative AI and LLMs in their workflows.
- SwitchOn raised $4.2 million for its AI system that helps manufacturing companies discover factory plant-level obstacles.
- Portrait Analytics raised $3 million for its generative AI research platform for investment analytics.
A Cat's Commentary 😻
That's all we have for today!
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