fung_derf
5日前
Tech, power, and some other stocks were jolted on January 27 when a Chinese generative artificial intelligence (AI) company released the latest version of a free, large-language model (LLM). Many mega-cap tech stocks—some of the Magnificent 7 in particular—had their worst day in years. Since then, most of the hardest hit stocks recovered some of their losses.
Here’s what you need to know about the latest AI news and how it might impact investors.
Artificial intelligence competitor emerges
A foreign startup launched its V3 LLM back in December. On January 27, the same company released its new R1 model (which was built upon the V3 model) and quickly became a top downloaded app.
The company reported that the open-source LLM reportedly cost just $5.6 million and it appears to be functionally competitive to other AI tools.1 That being said, that figure is related to the last training run of the model, and we don’t have a full accounting of the entire spend picture. In addition, the cost doesn’t incorporate the costs associated with the open-source LLM models that were used to train R1.
Speed to market was another factor that took some investors off guard. Instead of taking months or years to pretrain the LLM, as has been the case with other models, R1 reportedly took just 2 months. Again, it is worth noting that the model was built using more reinforcement learning—building on top of existing models—making it faster to train and more efficient than one with no previous versions.
The news reinvigorated conversations about AI spend and within the AI community about whether algorithmic efficiency, represented in this case by the R1 LLM, may be a more efficient approach than brute-force computational power. The latter has been a driving factor behind massive spending by hyperscalers on big-data centers, chips, and power generation.
Investing implications
The R1 model raised questions about the estimated cost of building out AI going forward. Due to the compute costs for the R1 LLM appearing to be a fraction of that of other large foundational model builders, semiconductor and hardware stocks (which have far outperformed the broad market over the past several years) were rattled upon the news. Some power stocks, which have benefited from computational energy needs, were also impacted.
Source: FactSet, as of January 28, 2025.
While it’s still early, there was some rotation into software stocks from semiconductors, given the potential implication that new models could potentially be built on the backs of existing ones using more software and less hardware-intensive processes.
fwb
3週前
SoundHound AI Share Price Prediction For Next Months and Years
The Economy Forecast Agency
https://longforecast.com/soun-stock
he Economy Forecast Agency (EFA) is specialized on long-range financial market forecasts. We use reliable models for long-term forecasting crude oil prices and precious metals prices, exchange rates, interbank interest rates, stock indices and some other macroeconomic indicators. The horizons of forecasts are 5, 10 and 15 years. Long-term investments need accurate forecasts of economy development indicators. The Economy Forecast Agency is independent from any banks, funds and other market players. We provide with original forecasts based on our unique methodology.
Methodology
Our specialists use mathematical and statistical methods of prediction based on the existing historical data. They take into account the following factors with varying degrees of importance: cyclic recurrence, knowing correlation of market indicators, changes in the availability and attractiveness of the instrument for speculators, electronic and algorithmic trading growth, regulatory intervention degree and frequency of significant events over time
fung_derf
3週前
And THAT is what you wanted to say?? I'm seeking YOUR attention? I told you to put me on ignore, instead you said you were going to start following me. Apparently you couldn't even do that right.
So, to summarize, you attack people all over the internet, then when you're called out for it, WE are the ones who have the issue in your head.
I did read some of your posts on other boards to learn about what type investor you were. You aren't any kind. You just travel around making snide comments, but providing no value to anyone.
And now, when it's obvious you should be saying that you're wrong, even though you are some mysterious unknown alias, you haven't got the honor to do it.
I wonder how many people in your life you've given poor advice to and not taken responsibility for it.
fwb
4週前
The Economy Forecast Agency
SoundHound AI Share Price Prediction For Next Months and Years
https://longforecast.com/soun-stock
he Economy Forecast Agency (EFA) is specialized on long-range financial market forecasts. We use reliable models for long-term forecasting crude oil prices and precious metals prices, exchange rates, interbank interest rates, stock indices and some other macroeconomic indicators. The horizons of forecasts are 5, 10 and 15 years. Long-term investments need accurate forecasts of economy development indicators. The Economy Forecast Agency is independent from any banks, funds and other market players. We provide with original forecasts based on our unique methodology.
Methodology
Our specialists use mathematical and statistical methods of prediction based on the existing historical data. They take into account the following factors with varying degrees of importance: cyclic recurrence, knowing correlation of market indicators, changes in the availability and attractiveness of the instrument for speculators, electronic and algorithmic trading growth, regulatory intervention degree and frequency of significant events over time.