Corona Del Mar, CA
What could you do with $700,000 per day? According to analyticsindiamag.com, that's how much it costs OpenAi to operate ChatGPT. That's a quarter billion dollars per year. The analyst believes it could force OpenAi to close its doors.
Microsoft will front them billions because as Mark Cuban pointed out:
"I am telling you, the world’s first trillionaires are going to come from somebody who masters AI and all its derivatives and applies it in ways we never thought of."
Chat's biggest problem is that it's completely censored by "The Man" and is in no way politically agnostic. Just type in something controversial and you'll see. Didn't Hal 9000 freak out because it was told to lie? Anyhoo, the writer of the article does what many analysts do: They take a snapshot of the present, and then draw a straight line to the future. For example, our compute fees were through the roof for the first two years of The Boss' existence.
I was personally floating the company out of my pocket -- no outside investors or loans. It wasn't $700k per day, but it was enough to hurt.
Then the programming team optimized the software...and then recently, our costs were cut to a fraction because the C# compiler made the code run smarter - due to advancements in .NET machine learning and moving to Linux servers.
That's right...the AI made the AI faster. And that's what you're going to see over the next few years. You're going to witness AI making the AI faster.
Microsoft is using AI to make an AI chip to make the AI chat models run faster and cheaper. They should call it TurduckenAi.
Pretty soon it'll be using the sped up (and cheaper) AI chat models to create the next AI chat that creates the next AI chip...in a loop that gets faster and faster. You get the picture.
In order to be the first in the industry to offer super computing tools to retail clients, I had to operate at a loss with the rock solid confidence that compute fees would quickly fall. Not only that, but the experience of working with AI would give way to new breakthroughs in trading.
That also happened.
We had a MASSIVE breakthrough using alternative data sources (and also disproved many of the widely cited stats like AAII sentiment and index put/call numbers). Then we had another breakthrough allowing the AI to pick which strategies to trade. I'm still gathering an average percent income statistic since things are happening so rapidly, but here's one of our member's performance on the year using our AI tools (up 27% since January with extreme consistency and super-low volatility):
So what comes next?
I'll tell you all about it next week!
See you then...