AI cracks the stock market

PLUS: xAI's record-breaking funding round

Welcome, AI enthusiasts.

Brace yourselves, Wall Street — a new study just revealed that AI can outperform even the most seasoned financial analysts.

Is this the beginning of a new era for investing, or a recipe for some serious market mayhem? Let’s investigate…

In today’s AI rundown:

  • Study: AI shows stock-picking prowess

  • xAI’s record-breaking funding round

  • Easily create stunning AI images

  • Researchers develop AI sign language

  • 6 new AI tools & 4 new AI jobs

  • More AI & tech news

Read time: 4 minutes

LATEST DEVELOPMENTS

AI RESEARCH

Image source: Midjourney

The Rundown: A new study from the University of Chicago found that LLMs like GPT-4 can successfully perform financial statement analysis and even outperform human analysts in predicting the direction of future earnings.

The details:

  • Researchers provided GPT-4 with standard, anonymized statements and a prompt to mimic how analysts process financial information.

  • GPT-4’s insights outperformed professional analysts in predicting future earning trends, despite not having access to qualitative info.

  • The model’s performance also matched and even slightly exceeded other state-of-the-art models trained specifically for earning prediction tasks.

  • The study also found that the model’s ability came from its analysis of trends, ratios, and economic reasoning — not from training data.

Why it matters: This study not only shows that AI is about to drastically alter the financial industry, but also challenges assumptions about the tech's limits in judgment-based tasks. Soon, everyone will have access to an AI financial expert, democratizing information and analysis and changing how non-experts operate in the markets.

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XAI

Image source: xAI

The Rundown: Elon Musk’s xAI just officially announced the company’s Series B funding round, raising a whopping $6B from major investors to challenge OpenAI and other competitors in the AI race.

The details:

  • The record-setting Series B funding round values the company at $24B post-money, just a year after its launch in July of 2023.

  • xAI said the funds will be used to ‘bring the company’s first products to market, build out advanced infrastructure, and accelerate R&D’.

  • The company is also hiring across its engineering and research division, with a reported pay higher than other competitors.

  • The startup is also reportedly planning to build its own AI supercomputer by fall 2025, which would require 100,000 of Nvidia's H100 chips.

Why it matters: Elon Musk just predicted that AGI is coming next year — and now armed with a huge war chest, xAI can secure the compute necessary to continue scaling. The biggest winner of the announcement is Nvidia, who’ll be more than happy to provide the shovels for Elon’s AI gold rush.

AI TRAINING

The Rundown: Freepik Pikaso makes generating AI images beginner-friendly by allowing users to select from a variety of predefined styles, colors, framings, and lighting effects.

Step-by-step:

  1. Create a free account on Freepik Pikaso’s website. New users get up to 20 free daily AI images.

  2. In the main menu, select “Run” under the “AI image generator” option.

  3. Customize image settings, including style, color, framing, and lighting, and enter a detailed prompt describing a desired image.

  4. Click “Create,” and after a few seconds, a screen will be populated with a variety of AI images.

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At Imagine AI Live, you’ll:

  • Participate in hands-on workshops led by AI experts

  • Network with leaders from top AI companies like Abacus, Gradient, and Groq

  • Explore AI showcases with cutting-edge demos and solutions

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AI RESEARCH

Image source: SignLLM

The Rundown: Researchers just introduced SignLLM, the first multilingual Sign Language Production (SLP) AI model capable of generating avatar videos of sign language gestures from prompts across eight languages.

The details:

  • The researchers first developed Prompt2Sign, a multilingual sign language dataset optimized for training on upper-body movements.

  • The SignLLM AI model was then trained on the dataset, with two modes enabling video avatar generations in multiple languages from prompts.

  • In tests, SignLLM outperformed all other sign language AI models on sign-related tasks across all eight languages in the training data.

Why it matters: SignLLM and broader AI-related data are potentially huge steps in making sign language more accessible for deaf and hard-of-hearing people around the world. And the best part is that this is just scratching the surface of what will be possible for assistive tech in the near future.

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QUICK HITS

Helen Toner and and Tasha McCauley penned an op-ed for The Economist, with the former OpenAI board members arguing that AI companies cannot govern themselves and stricter third-party regulation is needed.

AI researcher Kai-Fu Lee doubled down on his 2017 prediction that AI would displace 50% of jobs by 2027, saying white collar jobs will be eliminated faster than blue collar work.

Google’s ‘X’ moonshot lab has reportedly been reined in, with budget cuts and the rise of ChatGPT pushing the tech giant to focus on AI and search engine efforts.

Meta AI chief Yann LeCun clapped back at Elon Musk’s xAI hiring announcement, replying with a series of remarks taking shots at previous Musk commentary.

Netflix CEO Ted Sarandos said he doesn’t believe filmmakers and actors will lose jobs to AI, but that a ‘person who uses AI well’ might take the job instead.

Rows secured $8.7M in funding to expand its AI-powered spreadsheet app, aiming to enhance data integrations and grow into new markets.

THAT’S A WRAP

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