# Millions & Billions
## OpenAI Tesla and IBM

### News

#### IBM invests in Huggingface
- Arvind Krishna CEO of IBM
- Froze thousands of jobs earlier this year
- 3900 layoffs planned
- 7800 positions frozen
- Says AI could take over 30% to 50% of repetitive tasks (and do them better than humans)
- $235M Series D Funding Round
- Hugging Face now worth $4.5B
- They have collaborated on WatsonX
- Doubling down on AI

#### Tesla Giga Computer
- Turned on HPC cluster worth $300M
- Powered by 10000 Nvidia H100 compute GPUs
- Primarily for FSD and other HPC workloads
- Elon has said they will invest $4B in more AI
- Plan is to invest over the next 2 years
- Investing another $1B into Dojo supercomputer
- Doubling down on AI

#### OpenAI Revenue Explodes
- On track to generate more than $1B in revenue
- Up from $28M in revenue last year
- >35x in revenue growth
- ChatGPT costs $700k per day (estimated)
- Not sure if they are cash positive
- Microsoft entitled to 75% of revenue
- Could take a decade to pay it off
- That timeframe may shorten quite a lot
- Looks like their investment paid off!

### Analysis

#### AI Investment Growth
- Global AI Investment
- 2020: $30B
- 2021: $66.8B
- 2022: $92B
- 2023: ???
- 2025: $200B (Goldman Sachs forecast)
- Current opinions mixed
- Some signs of investment slowing or accelerating
- But we’re only in September
- Consensus seems to be things are chugging along more or less as expected

#### Tech Layoffs New Jobs
- 150000+ US tech layoffs as of June
- Total unemployment remains at 3.5%
- Government source (MLS)
- About 375k open jobs as of January
- Forecasts said 272k new tech jobs in 2023
- Remains to be seen… (not a government source)
- AI expected to destroy 85M jobs by 2025
- But create up to 97M jobs
- Net gain of 12M
- Not a government source so take it with a grain of salt
- That’s a LOT of reskilling!
- Generative AI job postings up 20% in May
- Maybe it’s a wash? So far so good.
- Just make sure you’re up to date on Generative AI tools

#### Public Sentiment
- Reuters/Ipsos poll: 61% of Americans view AI as a potential threat to human civilization
- Pew Research poll: 58% of Americans more concerned than excited about the rise of AI
- Economist/YouGov poll: ~75% of Americans believe AI should be regulated by government
- 79% Democrat
- 73% Republican

### Conclusion

#### Predictions
- AI investment may cool slightly
- OpenAI lawsuits seem to have spooked the markets
- Still turning red hot fast
- This will be brief if at all
- Americans are largely united on regulations fears
- Regulatory capture still a primary concern
- Rarely see this much consensus!
- State of jobs right now seems good
- Post-Labor Economics will have to wait (and UBI)
- Keep your eyes open though we’re in for an interesting future
- Many industries are being disrupted (tech marketing translation copywriting etc)

### Takeaways
- Skill up! 
- Learn to use AI tools
- Learn the basics of AI
- Job market transformation is actively happening
- I’m happy to do remote training groups ping me
- Might do paywalled training not sure
- Reminds me of early 2000’s with the rise of Microsoft and developer and IT certifications
- Voter solidarity
- Americans are rarely this united on something
- Don’t count the chickens yet
- CONSTANT VIGILANCE!
