Editor’s Note: The following essay, originally titled “Investing in the Next Wave of Explosive AI Growth,” was first published in February 2024 and has since been updated to reflect the latest information.
In this year thus far, the unmistakable message from the premier AI chipmaker in the world, Nvidia (NVDA), is crystal clear – the AI Boom has arrived, and the momentum is only building.
Back in February, Nvidia reported a staggering 260% surge in revenue during the final quarter of 2023. Moreover, company executives hinted at a potential additional 230% increase in revenue for the current quarter, sparking intense interest from both mainstream media and investors in Nvidia’s remarkable growth trajectory.
March saw Nvidia launching its GPU Technology Conference (GTC) with a keynote address by CEO Jensen Huang. The highlight of Huang’s address was the introduction of Blackwell, Nvidia’s cutting-edge chip architecture set to pave the way for faster, smaller, and more advanced AI chips.
However, the industry’s key players, led by Nvidia, have already shifted their focus to what lies ahead – the era of AI 2.0.
Having closely monitored these developments, it is evident to us that AI 2.0 represents a pivotal advancement in the realm of AI, marking a significant inflection point.
Notably, Nvidia itself is placing a substantial bet on this upcoming phase.
But Nvidia is not alone in this endeavor.
Microsoft (MSFT), a global AI powerhouse, is also heavily investing in AI 2.0. Joining them are influential entities like OpenAI, Amazon (AMZN), Tesla (TSLA), and Samsung, as well as tech titans Elon Musk and Jeff Bezos.
These industry giants are committing substantial financial resources to drive AI 2.0 forward, signaling a compelling opportunity for others to participate in this transformative journey.
AI 2.0: Redefining Robotics
The question arises – what exactly is Artificial 2.0?
It entails the utilization of humanoid drones as AI entities in practical scenarios – a concept reminiscent of AI-powered drones depicted in futuristic films like “iRobot”.
While this concept may seem like a distant dream, the reality is that humanoid robots are already under development, heralding the arrival of a new era in AI innovation.
Need proof? Nvidia recently unveiled the Project GROOT Foundation AI model, tailored to enhance human-computer interactions, alongside the introduction of Thor, a new system-on-a-chip designed for mechanical applications.
This strategic move aligns with the significant investments by industry leaders such as OpenAI, Microsoft (MSFT), Tesla (TSLA), Amazon (AMZN), and Intel (INTC) in humanoid robotics. With Nvidia entering this domain, the emergence of potent humanoid robots seems imminent, presenting a compelling investment prospect in AI automation.
As we speak, Tesla is actively engaged in developing Optimus, a humanoid robot capable of tasks like folding clothes, making breakfast, exercising, and dancing.
Tesla envisions a future where such robots ubiquitously assist people worldwide in mundane activities like cooking, cleaning, and organizing.
Elon Musk has even suggested that in due course, Optimus could surpass Tesla’s core automotive business.
This vision is not confined to Musk alone. Jeff Bezos, the former CEO of Amazon, reportedly invested $100 million in FigureAI, a humanoid robotics company, underscoring his optimism for the potential of humanoid robots.
Interestingly, Amazon, Microsoft, Nvidia, Intel, and Samsung are among the prominent investors in FigureAI, collectively injecting substantial capital into this venture.
In Conclusion
The signs are unmistakable.
While the notion of AI-driven humanoid robots may seem like science fiction, the foremost AI visionaries view them as the next frontier – AI 2.0. Their collective investments of millions of dollars underscore their conviction in advancing this technology.
We are witnessing the dawn of the next phase in this technological revolution. The time is ripe to seize this opportunity.
Discover how you can partake in this journey by exploring some of our recommended stock picks.
As of the publication date, Luke Lango does not hold any positions in the stocks mentioned in this article.
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