Of course the presidential election looms over everything, and I’ll just say one thing: Any executives or investors counting on President-elect Donald Trump keeping the vast majority of promises he has made are not as smart as they think they are. Maybe they just want their taxes and regulations cut, and they may well get those.
Venture capitalists Marc Andreessen and Ben Horowitz, who believe we will now be entering a wonderland of building under a Trump administration, wonder if generative AI models are hitting their limits. A few other people have been baying at the moon about this for a while, so it’s worth pondering what that means for the current boom.
Nonetheless, even if the current approach by some to create AGI isn’t the right way to go, that doesn’t mean there isn’t utility for users today, so investors keep pouring the money into AI companies such as Anthropic, Perplexity and Physical Intelligence.
Speaking of big spending, those plans by Amazon, Meta and Google to jumpstart nuclear plants to power all that AI? They could take a while.
An open letter by Blue Duck Capital Partners to Amazon management this week calls for stock buybacks, more explanation of AI spending, and better management of its original-content ambitions — few of which seem all that compelling ways to spur innovation.
It’s still not entirely clear what’s going on with Supermicro’s books, but investors don’t like the signs one bit as its stock tanked again this week as its revenue missed estimates as well. Other earnings reports came in decidedly mixed. Arm and Qualcomm did pretty well partly on AI momentum, and so did GlobalFoundries, but NXP not so much. Cloudflare and Akamai also provided disappointing guidance.
Broadcom expanded its VMware private-cloud options, which could prove good timing for the special edge needs of AI.
Next week is KubeCon + CloudNativeCon in Salt Lake City. TheCUBE will be there and SiliconANGLE will have the news and analysis. I’ll be at BoxWorks in San Francisco too. Earnings reports slow down, but next week we’ll be looking at Cisco Systems and Applied Materials, among a few others.
TheCUBE Research analysts John Furrier and Dave Vellante discuss this and other news in more detail on this week’s theCUBE Pod, out now on YouTube.
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Source: https://siliconangle.com/2024/11/08/generative-ai-hitting-ceiling-maybe-investors-dont-care/
