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Defying The Next AI “Hype Cycle”: An Approach To Strategic Investing

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Defying The Next AI Hype Cycle An Approach To Strategic Investing

AI’s influence is a topic that every investor is discussing. Additionally, businesses have been scrambling to adopt the newest AI technologies in an effort to stay ahead of the curve since the introduction of ChatGPT and other tools that have brought AI into the mainstream. When it comes to investing, we urgently need to adopt a more nuanced perspective on AI and related technologies.

For instance, a lot of AI tools like ChatGPT are by no means groundbreaking discoveries in computing or the study of the human mind. Tools for generative AI employ massive amounts of processing power on a wide range of data sets. And because of this fact, the hundreds of firms that have sprung up in the market offering ChatGPT-based solutions are probably going to fail.

That’s not to argue that businesses that properly apply generative AI won’t see enormous opportunities. It most definitely will. The crucial lesson here, though, is that tech investors shouldn’t jump at the chance to fund the “next best thing.” Given their accountability for valuing businesses that employ these technologies, they should exercise caution in igniting yet another hype cycle, as we have seen with artificial intelligence. It is necessary to say this in order to safeguard LPs and VC companies, as well as the startups and the larger tech industry.

Not Falling For “The Next Big Thing”

While it’s understandable that investors in technology are eager to see the next big thing, it’s important to keep an open mind while assessing possible prospects. With so much media coverage, it’s simple to make snap judgments on investments that don’t properly take into account a company’s long-term potential, its technology’s use cases, and other factors.

It is imperative for investors to inquire about the company’s long-term plan to ensure sustainable growth. The past’s investment success stories ought to serve as a sufficient cautionary tale about what occurs when big money is rushed into the most well-known businesses. Consider WeWork as an example. At its height, it was the most popular company, but due to the extreme overvaluations caused by careless investment, significant financial losses were the only likely consequence.

Before making an investment, all investors have an obligation to thoroughly examine technology companies. Why? Since following a fad too quickly may encourage people to make irrational investments that artificially inflate prices. Long-term, this only serves to disappoint partners, investors, and the businesses themselves. Naturally, the investors’ reputations may also be damaged.

Hazards On The Horizon

Needless to say, we need to take the time to carefully consider the risks associated with even the most alluring new technologies. A number of “ChatGPT startups” are cautionary examples of businesses that have a glossy exterior but nothing in the way of meaningful product innovation. As we’ve seen with those using OpenAI technology, many companies that promise to bring the next big thing instead end up building flimsy application layers on top of already-existing technologies. In the event that the underlying technology firm is dissolved, what would happen? This increased risk entails a decrease in long-term viability.

Securing The Future With Assurance

Never want to lose out on the next Google or Apple for their investments. Before getting ahead of ourselves, though, we should really consider the businesses we’re investing in. Is it the hype cycle or the enduring potential that excites us? History has shown us that fuelling an overhyped movement carries significant consequences for all parties involved.

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Threads uses a more sophisticated search to compete with Bluesky

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Instagram Threads, a rival to Meta’s X, will have an enhanced search experience, the firm said Monday. The app, which is based on Instagram’s social graph and provides a Meta-run substitute for Elon Musk’s X, is introducing a new feature that lets users search for certain posts by date ranges and user profiles.

Compared to X’s advanced search, which now allows users to refine queries by language, keywords, exact phrases, excluded terms, hashtags, and more, this is less thorough. However, it does make it simpler for users of Threads to find particular messages. Additionally, it will make Threads’ search more comparable to Bluesky’s, which also lets users use sophisticated queries to restrict searches by user profiles, date ranges, and other criteria. However, not all of the filtering options are yet visible in the Bluesky app’s user interface.

In order to counter the danger posed by social networking startup Bluesky, which has quickly gained traction as another X competitor, Meta has started launching new features in quick succession in recent days. Bluesky had more than 9 million users in September, but in the weeks after the U.S. elections, users left X due to Elon Musk’s political views and other policy changes, including plans to alter the way blocks operate and let AI companies train on X user data. According to Bluesky, there are currently around 24 million users.

Meta’s Threads introduced new features to counter Bluesky’s potential, such as an improved algorithm, a design modification that makes switching between feeds easier, and the option for users to select their own default feed. Additionally, it was observed creating Starter Packs, its own version of Bluesky’s user-curated recommendation lists.

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Apple’s own 5G modem-equipped iPhone SE 4 is “confirmed” to launch in March

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Tom O’Malley, an analyst at Barclays, recently visited Asia with his colleagues to speak with suppliers and makers of electronics. The analysts said they had “confirmed” that a fourth-generation iPhone SE with an Apple-designed 5G modem is scheduled to launch near the end of the first quarter next year in a research note they released this week that outlines the main conclusions from the trip. That timeline implies that the next iPhone SE will be unveiled in March, similar to when the present model was unveiled in 2022, in keeping with earlier rumors.

The rumored features of the fourth-generation iPhone SE include a 6.1-inch OLED display, Face ID, a newer A-series chip, a USB-C port, a single 48-megapixel rear camera, 8GB of RAM to enable Apple Intelligence support, and the previously mentioned Apple-designed 5G modem. The SE is anticipated to have a similar design to the base iPhone 14.

Since 2018, Apple is said to have been developing its own 5G modem for iPhones, a move that will let it lessen and eventually do away with its reliance on Qualcomm. With Qualcomm’s 5G modem supply arrangement for iPhone launches extended through 2026 earlier this year, Apple still has plenty of time to finish switching to its own modem. In addition to the fourth-generation iPhone SE, Apple analyst Ming-Chi Kuo earlier stated that the so-called “iPhone 17 Air” would come with a 5G modem that was created by Apple.

Whether Apple’s initial 5G modem would offer any advantages to consumers over Qualcomm’s modems, such quicker speeds, is uncertain.

Qualcomm was sued by Apple in 2017 for anticompetitive behavior and $1 billion in unpaid royalties. In 2019, Apple purchased the majority of Intel’s smartphone modem business after the two firms reached a settlement in the dispute. Apple was able to support its development by acquiring a portfolio of patents relating to cellular technology. It appears that we will eventually be able to enjoy the results of our effort in four more months.

On March 8, 2022, Apple made the announcement of the third-generation iPhone SE online. With antiquated features like a Touch ID button, a Lightning port, and large bezels surrounding the screen, the handset resembles the iPhone 8. The iPhone SE presently retails for $429 in the United States, but the new model may see a price increase of at least a little.

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Google is said to be discontinuing the Pixel Tablet 2 and may be leaving the market once more

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Google terminated the development of the Pixel Tablet 3 yesterday, according to Android Headlines, even before a second-generation model was announced. The second-generation Pixel Tablet has actually been canceled, according to the report. This means that the gadget that was released last year will likely be a one-off, and Google is abandoning the tablet market for the second time in just over five years.

If accurate, the report indicates that Google has determined that it is not worth investing more money in a follow-up because of the dismal sales of the Pixel Tablet. Rumors of a keyboard accessory and more functionality for the now-defunct project surfaced as recently as last week.

It’s important to keep in mind that Google’s Nest subsidiary may abandon its plans for large-screen products in favor of developing technologies like the Nest Hub and Hub Max rather than standalone tablets.

Google has always had difficulty making a significant impact in the tablet market and creating a competitor that can match Apple’s iPad in terms of sales and general performance, not helped in the least by its inconsistent approach. Even though the hardware was good, it never really fought back after getting off to a promising start with the Nexus 7 eons ago. Another problem that has hampered Google’s efforts is that Android significantly trails iPadOS in terms of the quantity of third-party apps that are tablet-optimized.

After the Pixel Slate received tremendously unfavorable reviews, the firm first declared that it was finished producing tablets in 2019. Two tablets that were still in development at the time were discarded.

By 2022, however, Google had altered its mind and declared that a tablet was being developed by its Pixel hardware team. The $499 Pixel Tablet was the final version of the gadget, which came with a speaker dock that the tablet could magnetically connect to. (Google would subsequently charge $399 for the tablet alone.)

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