At the risk of repeating myself ad nauseam, this is as good a time as any to remind ourselves how little we know about the present and how completely unexpected events can be in the future.

Our story so far: The technology sector has been booming for well over a decade. Software, mobile, e-tail, big data, LLM, and now AI have all been in growth mode.

Expectations have been that this is the story of the next generation. Powerful semiconductors and sophisticated software will drive the demand for freestanding, energy-hungry data centers.

That was upended by a scrappy China-based hedge fund that created an innovation to perform the functions of ChatGPT but with much less semiconductor horsepower needed. Free and Open Source, it created an order-of-magnitude decrease in costs.

At one point yesterday markets were off 3-4%, NVIDIA was down almost 20%, and nearly a trillion dollars in market cap

Keep reading this article on Barry Ritholtz - The Big Picture.

Leave a Reply