AI

AI Begins And Ends With Nvidia

Despite the massive buzz on AI, only a few core companies that power the Age of AI will succeed. The high capital costs of research and development investment, the time required to take a product to market, and the ability to cross competitive moats create a massive barrier to entry.  In fact, only a few vendors have shown significant profits in AI:

Can an actor copyright their face or their voice? To protect against Generative AI, they might have other legal options.

Most professional services firms have operated in a pyramid model where the most senior owner of a P&L would have a staffing ratio of 1:3 to 1:5 and their next reports would have a staffing ratio of 1:5 to 1:10.  This pyramid structure would continue until the last level.

Enter AI And The Real Fourth Industrial Revolution

Running out of ideas to inspire, a false fourth industrial revolution was coined by the World Economic Forum. The move to digitization and digital transformation was a necessary half-step to the move towards AI.  While some will now profess that the Fifth Industrial revolution is AI, AI is more exponential than the internet or the fake fourth industrial revolution.  The dawn of the fourth industrial revolution begins with AI. This Cognitive Era will be with us for decades to come

Two Year IPO Drought Coming To An End

In 2023, only 148 companies completed an initial public offering (IPO). This was the worst year on record and followed a 15% decline from the number of IPO's in 2022, another disappointing year.  In 2023, ARM was the sole blockbuster tech IPO. 

After a brutal two years with a paucity of tech IPOs, the market is poised for a resurgence in 2024.