Is Artificial Intelligence Scalable?

Many of  the mathematical models on which Artificial Intelligence, AI is based were formally called statistics/econometrics, now they are also called machine learning.

The problem with these mathematical, scientific models is that they are tailor made and hence difficult to standardise and scale and subsequently sell as a commercial software product. This is the reason why firms have not been hiring on constant payroll statisticians,  modellers and econometrician. That is, until 9 years ago, when in 2013 Artificial Intelligence exploded.

Companies like Palantir Technologies Inc or simply Palantir are an example how Artificial Intelligence and big data analysis can be scale. 1 year ago Palantir was valued at more than 40 billion USD. Actually, much of the work done by Palantir Technologies is still project based, that is tailor made, but also a large part of Palantir's revenue comes from scaled artificial intelligence software products.

Actually, the problem is on a deeper, scientific level. The problem with all those statistical models is that they are linear and rely on staff like p-value, t-statistics and so on, which also have a linearity problem.

Translation, one cannot be 100 % certain, that the statistical relationship the model shows is not due to a fluke, luck.

So Artificial Intelligence, AI can be disrupted, I think, if a "genius" makes a breakthrough first in the scientific methods underlying statistics/econometrics/machine learning/Artificial Intelligence, AI models and also a software coding quantum leap.

Easier said than done, but the company that does that could become the world's most valuable company, because Artificial Intelligence or AI is the future.

How to Disrupt Cloud Computing?

Cloud computing is a market currently with around 100 billion USD yearly revenue run rate and growing with more than 20 % year on year.

Analysts project that cloud computing could become a 700 billion USD revenue a year market.

In my opinion, the forecast actually could turn out a bit conservative, if looked back upon in 20 years time.

Cloud computing is slowly becoming computing or the new way to work, play computer games, store and share information.

It is strange that, given its size cloud computing is dominated by only three corporations, namely Amazon with AWS, Microsoft with Azure and Alphabet, Google owner with Google Cloud.

Many new startup companies are analysing, entering and trying to win market share in cloud computing.

In my opinion, the best way to tackle the cloud computing market is to be innovative, provide a breakthrough service, which nobody possesses and which is based on a unique technology edge.

I can think of two examples - GitLab and HashiCorp. GitLab offers a GitHub like product, but based on open source code, which brings in amazing agility, adaptability and flexibility. HashiCorp provides an ingenious way to integrate many cloud computing offerings onto one site. HashiCorp's service is quite smart and unique and could revolutionise the cloud, I think.

GitLab offers a platform beloved by innovative technologists or other wise called tech geeks :-).

And all the new and breakthrough services are first used by technology enthusiasts.

On the cloud hardware front,  I would mention Arista Networks which provides circuits, routers and switches for cloud computing. Arista Networks already sports a very large yearly revenue and net profit margins of around 30 %.

In short, the future is in the cloud. And whoever gets in cloud computing could reap great rewards.

GitLab and HashiCorp Cloud Stocks Valuation

GitLab could rise 7 times in value from its current market capitalisation in the next 7-10 years. HashiCorp can increase its market capitalisation by 4.5 times in the next 7-10 years.

GitLab and HashiCorp are essentially leveraged, innovative investments in cloud computing. Especially in the Infrastructure as a Service, IaaS, the largest segment of the cloud, by far.

Just a fact: Both Goldman Sachs and NASA are using GitLab. GitLab is also betting on open source code, which is yet to live up to its huge potential.

HashiCorp's modular structure offering of integrating cloud services is also a hugely intriguing and possibly extremely profitable and already fast growing business niche in the IaaS cloud.

GitLab, in addition is nimble, agile, lean, fast, possessing disruptive technology, possessing young, highly educated software developers user demographic and in an already huge and growing above 20 % year on year  market with the potential to change everything - cloud computing.

All in all, cloud computing is the future of computing. And in the cloud, there is still underdeveloped space for many new young technology startups entrants.

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Snapchat Possible Future Valuation

Snap Inc., the owner of the Snapchat application could substantiate a valuation of 250 billion USD, up from 53.91 billion USD currently.

Meta Inc., Facebook's owner is under scrutiny from regulators due to alleged abuse of monopoly power and trying to sway Meta's applications viewers toward certain views.

Outside Snapchat, there just isn't another credible, innovative large scale social network that could fill the void left, if Meta's Facebook and Instagram influence declines. Twitter is a possible contender, but Twitter has made large inroads into news, media users, but has not done well winning the young user demographic.

Snapchat is fresh, innovative and rides one of the main mega trends of our time - video consumption.

Young users love Snapchat yellow colour, innovative stories feature, camera company vision, agility to bring new features and so far its pure, clean, untainted by controversy public image.

Snap Inc., may currently be unprofitable, but if Snap Inc. continues growing revenue in excess of 40 %, profits will soon appear and actually become sustainable, which would support a much larger market capitalisation for Snap Inc., than the current 53.91 billion USD.

In short, Snapchat is the young and fresh future of social media, in my humble opinion. Quick, easy, hustle free, photos and pure, clean social connection experience is what Snapchat provides.

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Cloud Computing Perspectives

Cloud computing is slowly becoming ubiquitous and the cloud is simply the future of computing.

Actually, given the many and great options available like Amazon's AWS, Microsoft's Azure and Google's Cloud now, the question is not how to build the computing infrastructure.

Actually, one of the great advantages of the cloud - the fact that firms can choose and pay as they go for cloud computing services is turning into one of its major drawbacks. If a corporation chooses all three major providers of cloud computing, namely Amazon's AWS, Microsoft's Azure and Google's Cloud by selecting different services, the matter of running all that particular corporations' data and processes in one data lake or one processing platform can become a huge problem.

The problem with many technology companies is that every technology firm is trying to draw the corporation or consumer into its single walled garden ecosystem, so it can extract maximum revenue from a corporation or consumer. Amazon, Microsoft and Alphabet are all striving for cloud monopoly or at the very least, if a firm uses their cloud, these technology giants seem to make it deliberately difficult to use the other technology firms' cloud simultaneously.

A firm, Hashi Corp is trying to solve this by using the strategy of providing a modular solution for cloud computing, where companies can cherry pick different cloud services by different providers and run the from one single internet site. But it easily transpires that Hashi Corp is also trying to become a monopoly power by creating one modular walled garden.

As Peter Thiel, the famous technologist and investor has stated: "Every business is striving for monopoly power".

Another young technology company, GitLab is providing the tools for the cloud having created an internet site for code repository, collaboration, team work, sharing ideas and ultimately creating quality software code to power the internet and cloud computing.

It is interesting that one of the bedrock ideas of technology is that it is/must be inclusive and in the same time technology companies proclaim they are the pinnacle of fair competition, but ultimately all tech players are playing and trying to win the age old game of "Monopoly".

This ambition for a monopoly is actually fostering competition in a strange way, because as soon as one big technology corporation gains a dominant market share, many new ambitious startup technology firms start eyeing and analysing the market, ultimately to see a huge opportunity. Information technology is the future as it saves corporations and ultimately people time, effort and money or in short information technology makes life better.

With a little help of the anti monopoly agencies of the governments world over, information technology will continue to thrive as an industry.

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Cryptocurrencies, Warren Buffett and Peter Thiel

Just today Peter Thiel criticised Warren Buffett's negative stance on Bitcoin and other cryptocurrencies.

That said Warren Buffett has a large stake in the Brazilian cryptocurrency bank Nubank.

I think both Warren Buffett and Peter Thiel are right, but in a different time span. But may be Peter Thiel has not followed Warren Buffett long enough to know that arguably the world's greatest investor changes his mind and opinion on investments from time to time. And Buffett's Berkshire Hathaway does own a large stake in Apple which makes around half of its 140 billion USD investment portfolio. Berkshire Hathaway owns Amazon, as well.

In my opinion, Bitcoin, other cryptocurrencies and the related blockchain algorithm will thrive in the future, because they provide efficiencies.

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GitLab Versus GitHub

GitLab and GitHub are both online code-repositories for software development and team work to produce quality software code.

The main difference is that GitHub is owned by Microsoft, which paid 7.5 billion USD to acquire GitHub, while GitLab is an independent startup.

Another crucial difference is that GitLab is open source, while GitHub is closed source software.

As most independent young technology companies, GitLab is open source, quick, agile, smart, lean, productive and flexible which ensured its current success as Goldman Sachs and NASA are GitLab clients, among many others.

Microsoft has a history of not governing too well its acquisitions, allegedly stifling them in large, multinational corporate bureaucracy.

So GitLab has a competitive advantage for now. 

Actually, the Infrastructure as a Service segment of the cloud computing market where both GitLab and GitHub operate offers huge promise and many new entrants can become billion USD valuation companies if they make  successful inroads into cloud computing.

If GitLab is an example, all they need is a technology edge, good management, agile software development and speedy progress.

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