1/ Artificial intelligence is a fascinating topic. But can be incredibly difficult to read about. It's too abstract and unfocused! You can't put a finger on #AI. It's religion, philosophy, and existential dread all wrapped up into a bunch of techno-utopian speak.

2/ But it's so important to understand. In this weeks long take, I try to break things down and look at AI and it's potential impact on #finance and more.

https://lex.substack.com/p/long-take-openai-backed-with-1b-by

3/ The top 10 most valuable public companies today are worth $8 trillion, and are 70% technology companies.

The global conflict of the next century is defined not by the savagery of the World Wars... but by who builds the hearts and brains of our technological titans.

4/ China will leverage its full national strength to build out global infrastructure in bandwidth, blockchain, and artificial intelligences. @OpenAI OpenAI started out as a non-profit initiative with $1 billion in funding to make sure we don't end up in the bad timeline.

5/ But it is hard to be an idealist in a capitalist world, and the entity recently switched into a for-profit status.

6/ Our takeaway is that OpenAI created a natural language processing algorithm that is yielding unbelievable results from a machine learning approach called a Transformer model.

7/ This natural language processing robot has ingested the language content of the entire Internet, and is able to probabilistically answer queries using this corpus.

8/ If we take at face value the $1 trillion cost opportunity, which potentially yields an 80% savings and allows for a $200 billion annual cash flow, that would imply an enterprise value space for a $2 trillion financial AI company.

9/ I invite you to read more in this weeks long take. https://lex.substack.com/p/long-take-openai-backed-with-1b-by