The Economics of ChatGPT: Can Large Language Models Turn a Profit?
On Wednesday, June 5, something amazing happened on the U.S. stock market. Nvidia (NASDAQ: NVDA) became the first computer "hardware" stock to reach a $3 trillion valuation, largely on the success of its semiconductor chips for artificial intelligence functions.
Previously, only computer software makers such as Apple and , who ordinarily earn higher profit margins than hardware makers, had hit this mark. But thanks to the astounding profit margins Nvidia has been able to earn on its AI chips, it has joined the $3 trillion club as well.
But not all the news is good. Sounding a cautionary note last week, ARK Investment head Cathie Wood warned investors that for Nvidia to deserve its rich valuation, "AI now has to play out elsewhere" and prove its value both to the companies that are developing artificial general intelligence and to the customers buying their services. Failing this, demand for AI chips will wither, and with it Nvidia's valuation.
Source Fool.com