Fact: Not a Single Country is Ready For AI
Posted November 08, 2023
Imagine you're at the beach and you see a huge wave, like a monster from a movie, barreling towards the shore.
Just to give you an idea of the breakneck speed at which AI is moving…
In 2019, ChatGPT couldn’t count to ten. It would spit out complete nonsense. It couldn’t even formulate words.
It was a babbling baby in a crib.
I can ask a question philosophers and scientists have been puzzling over for CENTURIES -- "Why is the sky dark at night if the universe is full of stars?" (Olber’s Paradox) -- and it can instantly give me the reasons.
That’s 500 years of deep contemplation spit out in five seconds… without the use of ANY jargon… and in a way anyone can understand.
And from a FOUR YEAR OLD.
The Next 3 Years Will Define the Next 300
“We’re in the midst of potentially one of the greatest economic engines being invented,” says Alexander Wang.
Wang is the 26-year-old CEO of Scale.
Scale helps companies use their data as an input into the development of artificial intelligence models.
Having catapulted his company to a valuation of $7 billion, Wang, a college dropout, has become a pivotal voice in the AI industry -- and one of the youngest billionaires in the world.
When he started Scale at 19, he was inspired by Stripe and AWS. These are large-scale infrastructure companies that anticipated the problems that virtually every industry would have to deal with.
They made their products so easy to use that they became the default of the entire industry.
That’s what Wang set out to create for AI with Scale.
And he has some pretty intriguing predictions for this technology’s future.
Let’s run through a few.
ONE: The Paradigm Shift
“At minimum,” he said, “AI is a new way in which people will expect to interact with technology. In that way it’s at least another mobile.”
It will change the way we interact with the Internet. Likely, as we’re seeing, through some form of advanced chatbots, or personal AI assistants.
That’s the baseline: new consumer paradigm for technology.
But, of course, Wang thinks it will be much bigger than that.
For decades, the AI hype is that it’s the Holy Grail for unlocking human productivity.
What wasn’t clear is where specifically it will disrupt.
In 2023, we have a MUCH better idea.
TWO: AI’s Economic Tsunami
Think of all the businesses that do stuff for you, like banks, healthcare companies, insurance companies, and online shopping -- all together, they make a giant pile of money worth $16 trillion.
Remember the monster wave at the beach analogy?
That's AI coming for this $16 trillion.
Wang thinks AI is like that massive wave about to crash into those businesses, making them do their jobs way faster and better than ever before.
It's like giving them superpowers to get more done in less time.
“You can’t imagine an economic opportunity bigger than that.”
Soon, it’s going to be VERY clear on a customer experience and a financial level which businesses have embraced AI and which ones are lagging behind.
Services will get really smart and personalized. AI might help figure out exactly what you need before you even ask for it.
THREE: Data is the New (Crude) Oil
It’s become a cliche.
Data is the new oil.
Wang is bullish on data’s potential…
Wang reframes how we should think about data: he thinks of data as a raw material that, much like crude oil, isn't very useful in its unprocessed form.
However, once refined or processed, it becomes incredibly valuable.
Scale's role, as he sees it, is to transform raw data into a high-quality form that's ready to fuel the development of artificial intelligence, just like a refinery turns crude oil into gas and other useful products.
Any company that cracks this nut will become so valuable it will seem unrealistic.
FOUR: The Geopolitics of AI
Wang isn’t worried about AI becoming sentient.
He’s worried about humans misusing AI to harm other humans. He’s worried about massive labor displacement.
AI is an economic and geopolitical atomic bomb.
This has perhaps been an overused analogy, but it’s relatively useful.
Like the atom bomb, AI has the ability to both deter conflict and project hard power.
According to Wang, on top of shifting the dynamics of the economy…
It will also change the fundamental balance of military power.
“It feels to me like no matter how you slice it this technology, while today we think about it as a chatbot, is at the core of the balance of power globally for the next 50 years.”
Now, that's where the analogy stops being useful.
The atomic bomb was primarily a weapon of war. It went from a few uses to being something nobody wanted to see it being used again.
So it became a strong deterrent.
AI is the opposite.
It's primarily a productivity tool. Everyone will want to use it. And nobody knows what will emerge when we do.
We do have a pretty good idea of where to find the winners. (Not immediately obvious to most.)
Members of our Early Stage Crypto Investor and Altucher's Investment Network have a good idea of how bullish we are on AI.
Our team continues to look for the biggest "set for life" investment opportunities in AI.
Including -- in these pages -- some powerful side hustles coming down the pike.