Articles, Streams, and Books
February 11, 2024
7 Weekend Reads
What We’re Streaming
The Reading List
7 Weekend Reads
Sam Altman Seeks Trillions of Dollars to Reshape Business of Chips and AI
“The OpenAI chief executive officer is in talks with investors including the United Arab Emirates government to raise funds for a wildly ambitious tech initiative that would boost the world’s chip-building capacity, expand its ability to power AI, among other things, and cost several trillion dollars, according to people familiar with the matter. The project could require raising as much as $5 trillion to $7 trillion, one of the people said. The fundraising plans, which face significant obstacles, are aimed at solving constraints to OpenAI’s growth, including the scarcity of the pricey AI chips required to train large language models behind AI systems such as ChatGPT.”
In Big Tech’s backyard, California lawmaker unveils landmark AI bil
“The new bill, sponsored by state Sen. Scott Wiener, a Democrat who represents San Francisco, would require companies training new AI models to test their tools for “unsafe” behavior, institute hacking protections and develop the tech in such a way that it can be shut down completely, according to a copy of the bill. AI companies would have to disclose testing protocols and what guardrails they put in place to the California Department of Technology. If the tech causes “critical harm,” the state’s attorney general can sue the company.”
Google Prepares for a Future Where Search Isn’t King
“Today Google announced that the chatbot it launched to counter OpenAI’s ChatGPT, Bard, is getting a new name: Gemini, like the AI model it’s based on that was first unveiled in December. The Gemini chatbot is also going mobile, and inching away from its “experimental” phase and closer to general availability. It will have its own app on Android and prime placement in the Google search app on iOS. And the most advanced version of Gemini will also be offered as part of a $20 per month Google One subscription package. In releasing the most powerful version of Gemini with a paywall, Google is taking direct aim at the fast-ascendant ChatGPT and the subscription service ChatGPT Plus. Pichai is also experimenting with a new vision for what Google offers—not replacing search, not yet, but building an alternative to see what sticks.
With Disney’s magic, Fortnite is poised to win the metaverse
“The metaverse, a tech buzzword sandwiched in between the hype eras of NFTs and AI, is still being built, regardless of what we’re calling it. And in light of news this week, one company is increasingly positioned to dominate the near future. Epic Games and Disney revealed Wednesday that they are designing an “entertainment universe” together full of Disney-flavored games to play and things to buy. The multiyear project will deploy Epic’s under-the-hood technology and Fortnite’s social gaming ecosystem to bring characters from Disney’s vast intellectual property vault to life. Disney invested $1.5 billion for a chunk of Epic in the deal.”
Almost 60% of U.S. Adults Don't Have Retirement Savings, Data Shows.
So it's easy to see why only 41% of U.S. adults report that they currently have retirement savings, according to New York Life's latest Wealth Watch survey. For many, there just isn't money left over to save after paying those monthly bills.”
Shampoos and soaps are mostly water. Here’s why you should buy them without it.
“As customer demand shifts, and single-use plastic bans loom, manufacturers are now racing to reformulate their products. In the process, customers are rediscovering the appeal of earlier formulations for home and personal care products. Once limited to co-ops or health food stores, these products are now appearing in the aisles at Target and Walmart.”
Classic Rolex? Yawn. Meet the New Class of Status Watches.
“When smartphones can track your vitals, fire up your washing machine and, incidentally, tell the time, an analog watch can seem redundant. Analog models endure because, as Lam has found, they let folks express themselves. When you default to a snoozily predictable style, you miss an opportunity to spike your look with personality and score bragging rights.”
What We’re Streaming
We invite you to listen to our own Chris Versace’s conversation with Christopher Savoie, the founder and CEO of Zapata AI. Zapata has been working with AI for industrial applications since 2017. Savoie shares how his start in molecular biology and working with machine learnings for sequencing gave rise to the formation of Zapata and its use of rich analytics with real-time data and large language models to address customer-specific problems.
The conversation turns to generative AI with Savoie explaining how it can drive productivity with diverse examples ranging from engineering and construction to financial products like annuities, and race car driving strategies. Versace and Savoie then discuss why generative AI is the latest in a line of tools like the Internet that will alter how we work, driving productivity along the way. Savoie also shares why GPT 4 may not be the product some are hoping it will be and why multiple, smaller language models working together, not one model “to rule them all”, will help companies address their specific problems and needs.
The Reading List
The Word is Murder by Anthony Horowitz
"One of the most entertaining mysteries of the year. It’s also one of the most stimulating, as it ponders such questions as: Which is of greater interest to the reader, the crime or the detective? And: Is the pencil truly mightier than the butcher knife?”
New York Times bestselling author of Magpie Murders and Moriarty, Anthony Horowitz has yet again brilliantly reinvented the classic crime novel, this time writing a fictional version of himself as the Watson to a modern-day Holmes.
Think Again: The Power of Knowing What You Don't Know by Adam Grant
Chip War: The Fight for the World's Most Critical Technology by Chris Miller
Don’t be a stranger
Thanks for reading and if you have a suggestion for an article or book we should read, or a stream we should catch, email us at info@tematicaresearch.com. The same email works if you want to know more about our thematic and targeted exposure models listed below.
The strategies behind our Thematic Models:
Aging of the Population - Capturing the demographic wave of the aging population and the changing demands it brings with it.
Artificial Intelligence – Software, chips, and related companies that facilitate the collection and analysis of large data sets and autonomous generation of solutions given non-machine language prompts.
CHIPs Act – Capturing the reshoring of the US semiconductor industry and the $52.7 billion poised to be spent on semiconductor manufacturing.
Cloud Computing – Companies that provide hardware and services that enhance the cloud computing experience for users, such as co-location, security, and edge computing.
Consumer Inflation Fighters - Companies poised to benefit as consumers stretch the disposable spending dollars they do have.
Core Holdings – Companies that reflect economic activity and are large enough to not get pushed around by day-to-day market trends. Low-beta, large-cap names able to better withstand economic turmoil.
Digital Infrastructure & Connectivity -The buildout and upgrading of our Networks, Data Storage Facilities, and Equipment.
Data Privacy & Digital Identity - Companies providing the tools and services that verify authorized users and safeguard personal data privacy.
EPS Diplomats - Profitable large capitalization companies proven to produce above-average EPS growth and provide investors with the benefit of multiple expansions.
EV Transition - Capturing the transition to EVs and related infrastructure from combustion engine vehicles.
Guilty Pleasure – Companies that produce/provide food and drink products that consumers tend to enjoy regardless of the economic environment and potential long-term health hazards associated with excessive consumption.
Homebuilding & Materials – Ranging from homebuilders to key building product companies that serve the housing market, this model looks to capture the rising demand for housing, one that should benefit as the Fed returns monetary policy to more normalized levels.
Luxury Buying Boom - Tapping into aspirational buying and affluent buyers amid rising global wealth.
Market Hedge Model – This basket of daily reset swap-based broad market inverse ETFs protects in the face of market pullbacks, overbought market technicals, and other drivers of market volatility.
Nuclear Energy & Uranium – Companies that either build and maintain nuclear power plants or are involved in the production of uranium.
Precision Ag & Agri Science – Companies that look to address shrinking arable land by helping maximize crop yields utilizing technology, science, or both.
Rebuilding America - Turning the focused spending on rebuilding US infrastructure into revenue and profits.
Safety & Security – Targeted exposure to companies that provide goods and services primarily to the Defense and security sectors of the economy.
Space Economy – Companies that focus on the launch and operation of satellite networks.
The strategies behind our Dividend Income Models:
Monthly Dividend Model – Pretty much what the name says – this model invests in companies that pay monthly dividends to shareholders.
ETF Dividend Model – High-yielding ETFs that provide a range of exposures from domestic equities, international equities, emerging market equities, MLPS, and REITs.
ETF Enhanced Dividend Model – A group of high-yielding ETFs that utilize options to enhance yield through collecting option income.