AI will reshape the business world — here's where it's hitting first: Chart of the Week

AI will reshape the business world — here's where it's hitting first: Chart of the Week

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There seems to be little doubt that artificial intelligence’s transformative power will change the world significantly — but it isn’t going to do it all at once, and it looks to be coming for the ad business first.

This week, Google (GOOG) announced a chip that could rival Nvidia’s (NVDA) tech. And in chorus, Meta (META) also announced a chip of its own, giving both of these companies vertical integration to accomplish their objectives. You know what they are.

As Bank of America’s Justin Post wrote in a research note on the move, Meta’s main AI benefits are getting people to use the product more, with better video recommendations to increase ad spend via better ads that are better measured.

In April 2024, this is the vanguard of AI.

Much has been made about where our physics PhDs go after they graduate. As Zachary Quinto's rocket-scientist-turned-banking-analyst character in Margin Call explained to his boss’s boss: "The money here is considerably more attractive."

Big Tech has long since taken the economic pole position from other industries (like banking) with higher profits, pay, and prestige. Look at the "Magnificent Seven" and it’s not hard to see how they can pay for both top talent and as much R&D as the talent can handle.