Colin’s note: Distractions.

Social media and news channels are buzzing with stories about OpenAI firing its former CEO Sam Altman.

But this bit of industry gossip is nothing more than a distraction.

The headline that really should’ve caught everyone’s attention last week from OpenAI wasn’t about Sam Altman. It wasn’t about the board. No, it was actually something that underscores a point we’ve been hammering home here for months.

It’s the roadmap for how AI will play out. Hardware… software… everywhere.

Using that simple roadmap, every recommendation that I’ve made in my Near Future Report advisory is higher. Every stock we’ve recommended has gone up.

My software pick from last month is up 26%. The month before that, we singled out the best AI software play, besides Microsoft. That stock is up 10%. Our top semiconductor play is up 9% since August.

That’s all thanks to my roadmap. Today, I explain exactly how to profit from this roadmap.

Click on the video link below to find out. Or, if you prefer, you can read the transcript below, which my team has edited for flow.

And as always, I love to hear your feedback. So, send your thoughts and comments to [email protected].

Ladies and gentlemen, if you’re looking for a single word to capture the chaos of the artificial intelligence (“AI”) world the last week, it’s this: distraction.

Picture this… It was a late Friday afternoon the week before Thanksgiving. It’s the kind of time you’d expect to be really quiet in Silicon Valley.

But not this time.

OpenAI – the company at the pole position, the center of this AI revolution – dropped a bombshell.

As you already know, Sam Altman, their CEO, was shown the door. He’s gone. He got the boot, he’s out of here, and no one saw this coming.

The move sent a shockwave through the entire tech industry. It’s not every day you see a CEO like this, especially a high-profile one, get fired like that. The move also set off a real domino effect, triggering a string of resignations from other top executives at OpenAI. It was kind of like watching a house of cards collapse.

The latest I saw was the staff of OpenAI was threatening to quit if Sam wasn’t brought back. And who knows what’s going to happen here?

But here’s the real kicker, this whirlwind of drama at OpenAI was just a distraction.

Yes, these boardroom battles and the internal politics of OpenAI, grabbed our attention. I’d be lying if I said I wasn’t glued to X – or Twitter – all weekend looking for updates. But here’s where the plot thickens a little bit.

We’re not just observers of this, we’re investors. Our focus isn’t just on the drama, it’s on the bottom line, or our bottom line.

We should be looking at this unfolding drama through the lens of an investor looking for opportunity and profit. The real story for us isn’t who’s in or who’s out at OpenAI. It’s about understanding the AI landscape and where the real moneymaking opportunities are going.

The headline that really should’ve caught everyone’s attention last week from OpenAI wasn’t about Sam Altman. It wasn’t about the board. No, it was actually something that underscores a point that we’ve been hammering home here for months.

The development of AI, like every major technological revolution before it, follows a predictable path.

It starts with hardware. Hardware is that tangible, physical foundation of technology. From there, software is built on top of that. Software is the brains of the operation. And eventually, technology becomes everywhere, and it’s like a fabric of our daily lives like a cell phone or the internet.

Hardware, software, everywhere. That’s the pattern we’re going in here. OpenAI’s announcement last week is a clear signal that we’re still in the very early innings of the hardware buildout. And no, no, I’m not talking about Sam Altman getting the boot.

Think about this. OpenAI, the leader in the field of AI, announced that it’s now turning away paying customers. Yes, last week, OpenAI had to pause subscriptions to its popular ChatGPT Plus software. Paying customers are now directed to a waiting list.

Why would any company in their right mind do that? And the answer is simple: OpenAI can’t handle the demand.

And this isn’t just a minor hiccup, it’s a clear sign of an industry that is still ramping up, still laying down its hardware foundation. It’s a clear indication that we’re just at the beginning of something monumental here.

OpenAI software is so popular, the company doesn’t even have enough computing power or hardware to meet the demand it’s seeing. And that’s impressive, considering most of Microsoft’s multibillion-dollar investment into OpenAI is allegedly in the form of server credits.

So in other words, Microsoft is giving OpenAI access to its servers in exchange for a stake in the company.

So what does all this mean?

The investment cycle into AI hardware is just beginning. The popularity of AI software is just beginning and it’s accelerating.

Even Elon Musk took notice on his social media platform, X, saying, “Yikes,” to the fact that Microsoft is just a single company investing in AI hardware. It’s spending $50 billion per year on its data center buildout.

That’s going to require a lot of computer chips, networking cables, and energy, and that’s just Microsoft. Now, imagine what Google, Amazon, Meta, IBM, Oracle, all of those are going to spend.

And look, you can choose to focus on the negative headlines around AI, the drama, or the distractions. I’m going to stay focused on where the money is going.

About six months ago, I started giving public recommendations for a flagship product that I call the Near Future Report. Every recommendation that I have made is higher. Every stock we’ve recommended has gone up.

Our software pick from last month, last month, is up 26%. The month before that, we singled out the best AI software play, besides Microsoft. That stock is up 10%. Our top semiconductor play is up 9% since August.

Earlier this month, just a couple of weeks ago, we recommended two semiconductor stocks. Both of them are up 7%. And look, some of you guys don’t want to pay for research, I get it. We’ve recommended the SMH Semiconductor ETF numerous times here in the newsletter and on the channel.

It’s easy to be distracted in these markets. The media, other investors, the government, shoot, even the companies themselves like OpenAI are all creating distractions.

This investment cycle we’re seeing in AI doesn’t come along very often. Microsoft is committing $50 billion a year to AI data center buildout, and it still can’t meet the demand OpenAI is seeing.

I want you to profit from this. If you’re interested in subscribing to the Near Future Report, you can go here to learn more. The cost is less than a dollar a week for your first year.

Otherwise, I’ll do my best to keep you updated on this historic investment cycle for free at my YouTube channel (go here to visit The Investor Channel) here at The Bleeding Edge.

So aside from turkey, family, and maybe a little shopping this week, don’t let the distractions around AI keep you from profiting.

There are going to be a lot of distractions, there’s going to be even more profit. So until next time, that was The Bleeding Edge. My name is Colin Tedards. Hope you have a great week and I’ll see you again soon.

Regards,

Colin Tedards
Editor, The Bleeding Edge