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Irrational exuberance in AI with NVIDIA at record high

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American producer of microchips, NVIDIA is now the world’s most valuable company following a remarkable run on Wall St.

It is now value in the multiple trillions, outperforming APPLE, MICROSOFT and the rest of the stockmarket.

NVIDIA has been the beneficiary of the recent developments in Artificial Intelligence characterised by the performance of OpenAi’s ChatGPT program. Reports have emerged of a race between groups in the USA attempting to make smarter and smarter AI models. While up until now, performance had been limited by software design issues, performance of these AI models is just limited by access to computing resources.

IQ is a measure of intelligence in humans, and it has become apparent that it also serves as a reasonable measure of the intelligence of artificial intelligence systems. It has been discovered that IQ in these systems can be increased merely through the deployment of additional computing resources.

This has led to a crazy rise in the value of NVIDA.

However, what is not understood by the Stock market at this moment, is that computing resources on their own are not useful. They rely on electrical power. At the current rate of chip production, an exponential increase in power production is necessary to use these computing resources.

Of course, electrical power is not inherently adaptable to sudden dramatic increases in demand. So, when the demand for power exceeds it’s availability, NVIDIA will have some trouble.

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