Today’s News

The rampant artificial intelligence (A.I.) boom has investors on edge as they are completely transfixed on finding the next hot stock to explode out of the market. But Goldman Sachs Group Inc. has a much different approach when it comes to the A.I. trade. “Forget today, think long-term” is a motto that the bank has been standing by as they focus on productivity increases from the A.I. sector instead.

The bank’s analysts, including Ryan Hammond and David Kostin, devised a basket of firms with the largest potential long-term Earnings Per Share (EPS) boost via A.I.’s ability to create a more productive workforce, lower labor costs, or both. Using the 2024 consensus earnings estimate as a baseline, the team found that the median stock in their index (ticker GSTHLTAI) could see its earnings per share some 72% higher via AI-related productivity increases.

The analysis adds to an onslaught of recent efforts from academia and Wall Street alike to understand AI’s colossal market impact. Productivity is but one A.I.-linked factor that investors weigh during stock evaluation, but in a market obsessed with ChatGPT and seemingly nothing else, the Goldman analysis lends one more tool to determine winners from losers.

Any such projections are usually accompanied by plenty of caveats. For one, it’s unclear when each company might see these EPS gains and when or how the markets would react. Goldman analysts expect a “meaningful macro impact” from A.I. sometime between 2025 to 2030, but the stock surges of individual companies could happen before A.I. alters any given firm’s operations, given that valuations tend to be forward-looking.

Other related news include:

Musk And Zuckerberg To Attend Schumer’s Forum

Senator Chuck Schumer plans to bring together several technology industry chiefs to discuss the ramifications of A.I., including Elon Musk and Mark Zuckerberg, who have made their rivalry globally known.

Others attending the closed-door meeting in September are Sundar Pichai, the chief executive officer of Alphabet Inc.’s Google; Microsoft Corp. CEO Satya Nadella; Nvidia Corp. co-founder Jensen Huang, and former Google CEO Eric Schmidt, according to Schumer’s office.

Databricks In Talks To Raise Funds To USD 43 Bln Valuation

Databricks Inc., the closely held software maker widely viewed as a candidate to go public, is in discussions with T. Rowe Price about a new funding round that would value the company at a projected USD 43 billion, two people familiar with the matter said.

The talks are preliminary and could fall apart as a cloud of uncertainty still shrouds the matter, sources claim. Identities of the sources are deliberately hidden because the discussions are held in private as details are currently being ironed out. If the round is successful, Databricks’ valuation would be considerably higher than the USD 38 billion it reached two years ago in funding led by Counterpoint Global.

ChatGPT Steps Up On Revenue Push

OpenAI has officially launched its corporate version of ChatGPT with added features and privacy safeguards, the startup’s most significant effort yet to attract a broad mix of business customers and boost revenue from its most-known product.

As with consumer versions of the company’s A.I.-powered chatbot, users can type in a prompt and receive a written response from ChatGPT Enterprise. The new tool includes unlimited use of OpenAI’s most powerful generative A.I. model, GPT-4, as well as data encryption and a guarantee that the startup will not use data from its customers to develop its technology. It also offers the ability to type in much longer prompts, which permits a more accurate response.