From Nasdaq: 2024-11-16 11:05:00

OpenAI’s latest model, Orion, falls short of expectations, signaling potential limitations in AI advancement towards artificial general intelligence (AGI). Other AI start-ups like Alphabet’s Gemini and Anthropic are also facing challenges with new models, indicating a possible slowdown in the industry. The need for substantial training data remains a key hurdle for further progress in advanced AI models.

The AI sector, particularly large language models (LLMs), is experiencing diminishing returns due to a lack of new training data sources. This could impact companies like Nvidia, whose GPUs are essential for training AI models. Despite high demand, the industry lacks a clear “killer app” for generative AI, leading to skepticism about inflated stock valuations and revenue expectations in the AI sector.

Nvidia’s stock remains strong despite challenges in AI model scaling, with the company set to report robust third-quarter earnings. While OpenAI’s Orion model is in post-training phase, other avenues for AI advancement beyond LLMs are being explored. Investors anticipate Nvidia’s continued growth, but the long-term impact of delayed AGI development on the stock remains uncertain.

Looking ahead, investors are advised to consider potential implications of the AI sector’s challenges on companies like Nvidia. Despite current market conditions, the future of AI technology and its impact on stock valuations could shift as the industry navigates through limitations and advancements in AI models. It’s essential to stay informed and cautious in assessing investment opportunities in the evolving AI landscape.



Read more at Nasdaq: OpenAI Has a Warning for Nvidia. Is the AI Bubble Bursting?