The big tech chatbot AI wars

Alright, so today we’ve got:

• The chatbot AI wars.

• Intel to invest in Poland.

• Rivian is selling trucks out of its parking lot.

  Let’s take a look.

The Big Picture

It’s 1997 again, the early days of Yahoo Messenger. Chat is back and big time. The only difference being, now you can chat with an intelligence trained on data gathered from billions of humans. Where is Big Tech in the chatbot AI race?

In terms of LLMs or Large learning models: Meta’s working on Llama, Google released Palm-2, and is about to launch a new model - Gemini. Microsoft partner Open AI recently launched GPT-4, while Amazon‘s LLM is called the Alexa teacher model for now.

Using these models, Google is developing their chatbot, Bard, Open AI - ChatGPT, Amazon has Lex, while Meta’s chatbot isn’t here yet. Okay, so they’re all early versions of AI, also called weak AI. Here’s how they differ right now.

Meta's chatbot, which will use Llama, is trained on a dataset of text that allows it to identify and remove toxic language from chatbot conversations. Microsoft's chatbots are trained on a large dataset of customer interactions and can understand and respond to customer requests quickly and accurately. OpenAI's chatbot ChatGPT can generate text, code, translate languages, and write different kinds of creative content. It is designed to be creative and playful.

Google Bard is designed to be helpful and informative. It’s trained on a large dataset of user queries and can answer questions, provide information, and complete tasks. Google's chatbots are also designed to be personalized, and they can adapt to the individual needs of each user.

Amazon's chatbots are also designed to be integrated with other Amazon services, such as Amazon Alexa and Amazon Prime.

The number of parameters used in training LLMs means that the model can learn more complex patterns in the data, which can lead to better performance on tasks such as natural language understanding, answering questions, and text generation. However, more parameters also indicate that the model is more computationally expensive to train and deploy. At a point, the model may also not perform well on new, unseen data.

It’s still early days in chatbot AI, and there are tools and websites launching every week which use their APIs and build functionality in almost every business vertical you can think of.

Sector Sweep

Tech

• After signing a nearly $20 million deal with Spotify in late 2020, Meghan Markle and Prince Harry completed only one podcast project through their audio production company, Archewell Audio. Having failed to meet the necessary productivity targets for full payout, they ended their partnership with the streaming giant after 2 1/2 years.

• Intel plans to construct a $4.6 billion semiconductor assembly and test facility in Poland, expanding its European production network and aiding Europe's aspirations for increased self-sufficiency in chip manufacturing.

• The Biden administration is wrestling with identifying artificial intelligence threats to national security in light of the U.S.'s strategy to limit investment in Chinese advanced tech companies. Officials are formulating an executive order to restrict U.S. tech investment into geopolitical rivals, particularly China, in applications that could benefit Beijing's military.

Automotive

• Electric vehicle startup Rivian Automotive aims to reduce excess truck inventory by inviting potential customers to shop directly from its factory parking lot, following a surge in unsold stock of its R1T electric pickup.

Retail

• Facing stiff competition from discount grocers chosen by price-sensitive customers, Kroger witnessed a 4% fall in the stock after its earnings call.

• Retailers are leveraging new technology to update supply chain forecasting tools disrupted during the Covid-19 pandemic. Macy’s has increased its understanding of consumer spending habits and responsiveness to changes, which notably helped reduce excess inventory last year when consumer demand shifted towards workwear, leaving many competitors overstocked.

Commercial Real Estate

• The Westfield San Francisco Centre, hit hard by declining sales, occupancy, and foot traffic amid challenging conditions in downtown San Francisco, is being handed back to its lender as retailers like Nordstrom are closing down at the location.

That’s all for today folks. Do keep a lookout for our weekly email about stock deep dives and personal finance strategies this weekend.

BTW, do tell us how we did. Just hit us with a reply.

Cheers!

Memetic Universe

Technical day traders.