AI Bubble Or Business Revolution? Essential Business Insights [Forbes]
General Motors Company (GM)
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Source: Forbes
Skepticism is appropriate about two issues: the assertion of a bubble, and the valuation of companies in new fields. Bubbles are hard to identify in real time, though underlying demand may be easier to see. Underlying fundamentals are extremely positive for artificial intelligence companies, with two major economic activities almost certain to prove strong. Companies producing large language models (LLMs) will be a major engine of productivity across a very wide swath of business, non-profits and government. In addition, a multitude of companies are developing specialized applications that use LLMs to improve productivity in specific tasks, such as billing or product design. In addition to these two major approaches, small language models for specialized tasks have been developed, though it's less certain that this approach will beat specialized apps connected to LLMs. But strong fundamentals do not always justify sky-high company valuations. The trick is to figure out how high th
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