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🍯 Investing in AI Has Been (Really) Good

🍯 Investing in AI Has Been (Really) Good

PLUS: Meta's New AI Chip and Google Predicts Floods with AI

Honey Tree
May 23, 2023

Welcome to Honey Tree, the newsletter that makes learning about AI sweet and simple. The world of AI can be fast-paced and confusing, so we’re here to help.

And the best part is we’re all natural.

Plus, if you’re a student or looking for a new job, check out our Honey Board at the end of the newsletter for open jobs and internships!

Here’s what what we got for today:

💰 AI Boosts the Stock Market
🖥️ Meta’s New AI Chip
🌧️ Google Uses AI to Predict Upcoming Floods
🤣 Sweet Memes
🍯 Honey Board

💰 Investing in AI Has Been Good…Really Good

AI companies might be recession proof.

Thanks to a small number of companies involved in AI, the S&P 500 has rallied 9% this year.

Here’s the catch: Microsoft, Google, Apple, and Meta are solely responsible for the S&P 500’s return this year. If AI stocks were removed, the index would actually be down over 1%.

Stocks on the rise this year:

— Microsoft (MSFT) is up 32% (and is the second-largest US company by market value).

— NVIDIA (NVDA) is up 110% thanks to their chips being instrumental to the AI boom.

— The Global X Robotics & Artificial Intelligence ETF (BOTZ.O) is up almost 30%.

The future looks promising: Goldman Sachs believes the S&P 500 could soar by 30% or more in the next decade, as AI increases productivity.

🖥️ Meta’s New Chip and Supercomputer

It seems like Meta’s in the AI race for the long haul, as the company has made some major announcements recently…

Their first custom silicon chip designed for running AI models. The MTIA chip, which stands for Meta Training and Inference Accelerator, “provides greater compute power and efficiency than CPUs”.
The second phase of their 16,000 GPU supercomputer which is called Research SuperCluster(RSC) AI Supercomputer. Along with the MTIA chip, RSC will enable Meta to launch larger, more sophisticated AI models at scale.
A next-gen data center that has an AI-optimized design, supports liquid-cooled AI hardware, and has a high-performance AI network connecting thousands of AI chips together.
A new coding assistant called CodeCompose that will compete with Github’s Copilot.

Other AI News from Meta:

Remember Meta’s AI for advertisers announcements (see here)? Well, now advertisers can use AI Sandbox to test out tools early on.

Currently, AI Sandbox has three offerings:

1. Text Variation: Generates multiple versions of text to highlight the important points of an advertiser’s copy, giving advertisers choice to try different messages for certain audiences.

2. Background Generation: Creates background images from text inputs, allowing advertisers to try various backgrounds more quickly and diversify their creative assets.

3. Image Outcropping: Adjusts creative assets to fit different aspect ratios across multiple surfaces, like Stories or Reels, allowing advertisers to spend less time and resources on repurposing creative assets.

🌧️ Predicting Floods with AI

AI isn’t just for making money or helping advertisers on Meta. Google has upgraded their AI platform that predicts flooding in countries around the world.

Google launched Flood Hub in 2018 in India and Bangladesh, and expanded to 18 other countries in 2022.

Flood Hub has been upgraded: The platform now works in 80 countries (helping 460 million globally) and can predict a flood up to 7 days in advance - which is up from 48 hours in advance.