SearchGPT unlikely to go anywhere. OpenAI’s latest attempt to take on Google is probably more about generating revenue and reducing losses but given Bing’s failure to make a dent in Google, it looks doomed to failure. Google has an enviable position in search with a 90% market share and an advertising business that generates well over $200bn in annual revenues...
Zuckerberg undercuts an industry. Meta Platforms has just dropped a bomb on the generative AI industry by offering more than OpenAI does and doing so for free. Combine this with the substantial cash burn going on at many of these startups and one can rapidly see how there is going to be a serious problem. Meta Platforms offering models to...
Game changer that will be largely ignored. Nvidia AI Foundry is a consequential announcement as it looks like it has been designed to maintain Nvidia’s dominance in AI when CUDA is no longer the control point in the AI ecosystem. However, I am pretty certain that the timing of the announcement and the complexity of the topic will ensure that...
Big disconnect between words, numbers, investments and revenues. Alphabet reported solid Q2 2024 results, but anyone would think from the commentary that all of the revenues were coming from its new AI products rather than advertising (75%), cloud (12%) and subscriptions (11%). I suspect the generative AI services make up a tiny percentage of the revenue despite massive investment and...
Valuations are still going up. Cohere, one of the current group of white-hot AI startups has raised money at $5.5bn confirming that the market’s appetite for overvalued paper remains unabated ensuring that when the correction comes, it is going to hurt some players. Cohere is a little bit different than many of its peers such as Anthropic or Mistral in...
From the ashes of Russia comes something interesting Nebius may not seem very exciting on the surface, but outside of AI infrastructure, the company also has some of the non-Russian Yandex assets which could be more interesting when the current craze around generative AI calms down. Yandex was viewed as the Russian Google and while it operated mostly in Russia,...
The race to the bottom is beginning. OpenAI’s smaller GPT-4o Mini promises to kick off a race to the bottom in terms of pricing as it is only slightly inferior to GPT-4o but is 60% cheaper which is likely to trigger a spiral of price cuts as users realise that there is not much that separates all these models from...
AI party spoilt by China. TSMC reported good results and narrowed its guidance to the top end of the range in a move that added confidence that the AI bubble will not pop yet and prevented the Taiwan-listed shares of TSMC from emulating the 5% – 10% correction witnessed in US markets yesterday. Revenues / EPS were TWD593bn /...
ASML bucks the Chinese trend. Excellent results from ASML indicate that China is still buying as much equipment as it can get its hands on but potential further tightening of restrictions from The USA threatens to turn equipment in China into very expensive doorstops. ASML reported Q2 24 revenues / EPS of €6.2bn / €4.01 ahead of estimates of...
Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.
Tesla FSD – The Mannequin.
A dummy will be launched. The idea that Full Service Driving (FSD) will be a commercial reality in 2025 remains a fantasy but Mr Musk will strengthen the resolve of his fans with the launch of a vehicle that will look like FSD but lack the intelligence to offer FSD in any commercial capacity. In its most recent earnings report,...