“AI systems can pose profound risks to society and humanity.”
That was the message from an open letter signed by Elon Musk and dozens of other tech founders and Ivy League professors.
It goes on to ask, “Should we risk loss of control of our civilization [to AI]?”
The authors are calling for a halt of AI development for six months.
As readers may know, Musk was one of the original backers of OpenAI, the company behind ChatGPT. He invested $100 million when the organization was just getting off the ground. So, why the sudden change of heart?
I think I know what Musk is up to…
In business, they call this “regulatory capture.”
That’s when a small group of companies convinces the government to pass regulations to keep out new competitors.
We call it “slamming the door behind you.”
We’ve seen this in the pharmaceutical, tobacco, and auto industries. All three have helped Congress craft laws to make it more costly for new competitors to enter these markets… in the name of safety, of course.
The goal is to cause just enough fear and panic that the industry becomes regulated, but not prohibited.
As investors, seeing this in AI means it’s a big enough opportunity for the tech elite to band together and shut newcomers out. Or, at the very least, it’s an attempt to slow down the progress of the upstarts.
That means time is running out. Once regulations are in place, opportunities to profit from AI will come down to a handful of stocks. We may only have six to 12 months to find those stocks with the biggest upside.
Let me explain.
An AI License?
The “Godfather of AI” Geoffrey Hinton recently left Google after decades of work in the field to warn the public of the potential dangers of AI.
OpenAI’s CEO Sam Altman asked Congress on May 16 to hand out licenses to AI language models like his own ChatGPT.
And a majority of Americans are buying into these fears. According to CNBC, 55% of Americans believe AI will threaten our existence.
Meanwhile, Tesla, OpenAI, and Google are continuing development of their own AI.
Tesla has its autopilot and self-driving AI… its humanoid Optimus robot or “Tesla bot”… and its Dojo supercomputer for AI and machine learning.
Microsoft invested $10 billion in OpenAI in January. The company quickly rolled out features on Bing and Office that incorporate AI.
And Google is rolling out Bard, its AI rival to OpenAI’s ChatGPT.
If you were to only listen to what these tech executives said, you’d think AI is too dangerous to keep developing.
But they haven’t paused development. They’re forging ahead while telling others to wait. And it’s paying off.
Microsoft is up 44% this year. Google is up 40%. And Tesla is up 109%.
Incredible Growth Ahead
The stock market has seen plenty of fads. Trends like NFTs, internet-of-things, metaverse, and wearables come and go with the news cycle.
But AI is undeniable because it has to be adopted by nearly every company to stay competitive.
To get there, tech companies are going to have to buy a lot of new hardware.
That’s why last week, chipmaker AMD projected the total market for AI servers would grow from $30 billion this year to over $150 billion by 2027. That’s a 5x increase in just five years.
Tech companies wouldn’t be buying all of this hardware if they didn’t see a return on their investment.
Make no mistake, tech giants like Tesla, Alphabet, Microsoft, and Meta have plans to make hundreds of billions off AI.
That’s why Wall Street has piled into these names this year.
But I’m looking beyond the big names.
The tech giants are going to bring products and services to market that will make nearly every company more efficient.
The early adopters will be the first to see larger profits. That means higher dividends and bigger returns for early investors.
And they’ll need integrators to help them use this AI technology.
Most of these companies haven’t seen their stock prices skyrocket.
That’s why I’m hard at work researching every company that’s getting in early on AI. Over the coming weeks, I’ll share the best opportunities to profit from AI with you.
Editor, The Bleeding Edge