As the artificial intelligence revolution sweeps the globe, analysts are touting this latest trend as one with massive potential. On Friday, economist Raoul Pal took to Twitter to also offer his take on AI.
AI As A “Deflationary Shock”: The emergence of OpenAI’s GPT-4, Alphabet, Inc.’s (NASDAQ:GOOGL) (NASDAQ:GOOG) PalM-E and StabilityAI is literally a “nuclear deflationary bomb” and is by far and away the biggest “deflationary shock” the world has ever seen in the shortest-ever period, Pal wrote. He added that the rise of such AI tools is “the biggest technological shift humanity has ever faced,” probably “exceeding that of the nuclear bomb itself.”
PalM-E, a large language model like GPT, was announced by Google in April 2022. The multinational technology company has touted the tool’s capacity to carry out all sorts of text generation and task editing. StabilityAI, on the other hand, is an open-source AI company whose tool, Stable Diffusion, is a deep-learning, text-to-image model that was released in 2022 and primarily used to generate detailed images based on text descriptions.
OpenAI recently closed a $10 billion deal to integrate its GPT-4 LLM with Microsoft Corp.’s (NASDAQ:MSFT) Bing.
Disruptive Potential: “The disruption to knowledge workers is beyond our imagination, both good (productivity) and bad (less jobs),” Pal tweeted, noting that he foresees a systemic shock, given the opportunities AI offers by leveling the playing field for poorer countries.
“The genie is out of the bottle and it is not going back in,” he wrote.
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