GM Money Masters, 👋
The US is unwilling to give up its edge in the technology industry. It is about to award billions of dollars in subsidies to encourage tech companies to set up semiconductor factories on American soil. That is your taxes at work, folks.
Google is about to make all of us expert multi-media artists. It does not matter if your art teacher almost failed you, this AI model will surely make you a modern-day Picasso.
And once your newfound artistic talent is bringing in some cash, consider buying eco-friendly EVs. Just be reminded that EVs are basically like your Windows computer, it will do all sorts of weird stuff unless you download and install the newest update.
Let’s start the party! 🥳
MONEY MASTERY BRIEF
- 💲 Chip Makers Will Receive Subsidies for New Factories
- 💡 Google Says Let There Be Light
- 🚘 Tesla Recalls 200,000 EVs
💲 Chip Makers Will Receive Subsidies for New Factories
The Biden administration is right on the money on this one. The US government is set to award billions of dollars of subsidies to chipmakers to encourage tech companies to build new plants stateside.
Possible recipients of the subsidies include Intel (NASDAQ: INTC), Taiwan Semiconductor Company Manufacturing Co (TSMC)(TPE: 2330), Micron Technology (NASDAQ: MU), Texas Instruments (NASDAQ: TXN), and GlobalFoundries (NASDAQ: GFS).
Intel already has ongoing projects in Arizona, New Mexico, Ohio, and Oregon which could cost more than $43 billion. While TSMC is spending more than $40 billion for a couple of plants in Phoenix.
The announcement is expected to happen before the State of the Union address on March 7.
The US has a Chips and Science Act of 2022 which authorized $280 billion in funding to boost local research and production of semiconductors. It also included a $39 billion subsidy for domestic chip manufacturing. It is aimed at making sure that the US retains its edge in technology by boosting local manufacturing, which also helps the administration’s agenda of making sure China does not catch up.
Advanced semiconductors are at the heart of almost all modern technology like smartphones, AI, and weapons systems. The majority of chip fabrication is being done outside of the US with a big chunk of it in Taiwan. By boosting local production, the US is securing its economy from geopolitical events that could cut off supply chains.
Joe Biden’s approval rating might be in the dumpster, but let us give this one to him. For once he is spending on the right stuff. Bravo!
💡 Google Says Let There Be Light
Are you a frustrated multi-media artist? Is your imagination better than your finished artwork? Don’t fret, Google (NASDAQ: GOOGL) has something in the works that could help you realize your dreams. It is called Lumiere – the French word for light.
What exactly is Lumiere? It is a cutting-edge text-to-video and image-to-video AI model from Google. It is not the first AI model to have this capability, but it creates a more realistic video with just a prompt. Landscapes and characters move seamlessly, which is hard to do with other AI models.
Aside from text-to-video and image-to-video features here are the other things Lumiere can do:
- Stylized generation – Give Lumiere a reference image and the AI will generate images and videos based on the style of your sample.
- Video Stylization – Do you want to change a character in your video into something else with just a prompt? In the sample from Lumiere below, the person running was changed into colorful toy bricks.
- Cinemagraphs – users can animate the selected content of an image. The samples from Lumiere show how it works.
- Inpainting – Do you want to change the clothes of the character in your video? Lumiere makes it easy.
Are you loving Lumiere yet? Unfortunately, it is not yet available for public use. Researchers are still fine-tuning the AI model. Yeah, that is a bummer but it does give something to look forward to. One day even artistically-challenged individuals should be able to share their imagination with the world.
If you are thinking of getting some sweet Google shares, we have an exclusive report 👉 here.
🚘 Tesla Recalls 200,000 EVs
One of the best features invented for cars is the reverse camera. It eliminates blind spots and makes parking easier. However, this is not the case for some Tesla units. The EV maker is recalling 200,000 vehicles because of a malfunctioning backup camera. According to reports the camera wouldn’t engage when the car is in reverse – which pretty much negates the primary reason why it was there in the first place.
The US National Highway Traffic Safety Administration (NHTSA) said that a software glitch is the culprit.
The recall affects certain 2023 models of Model Y, Model S, and Model X vehicles. Affected vehicles have Tesla’s “Full Self-Driving” computer 4.0 and run software version 2023.44.30 through 2023.44.30.6, or 2023.44.100. Fortunately, an over-the-air software update can quickly fix the problem.
So far, no accidents have been reported due to the faulty camera, which is a big relief since drivers haven’t forgotten how to use their rear-view mirrors.
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$10 billion. Jeff Bezos’ ex-wife MacKenzie Scott reportedly sold more than 65 million Amazon shares in 2023. It would have been worth around $10.4 billion today.
Apple (NASDAQ: AAPL) enthusiasts will be happy to hear this. According to Bloomberg columnist Mark Gurman, the next generation of iPads and MacBook Airs with M3 chips are coming out at the end of March. The reporter also noted that the manufacturing of these products is already happening overseas. Full story
Tesla (NASDAQ: TSLA) is spending $500 million to build a giant Dojo supercomputer cluster at Gigafactory in Buffalo, New York. Dojo is a powerful supercomputer designed by Tesla to train its AI programs like autonomous driving and the humanoid Optimus. According to Musk, half a billion dollars is a huge sum, but it is only equivalent to a 10k H100 system from Nvidia. Full story
Samsung (KRX: 005930) is including Baidu’s Ernie bot in its Galaxy S24 smartphone series in China. The South Korean company’s smartphone will use the Chinese-developed AI to help with text summarization, organization, and translation. Samsung has been losing to Apple and other local brands and its inclusion of Ernie in its product is seen as an effort to appeal to the existing users of the AI model. Full story
Cloud Service Providers like Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) are being asked by the US government to disclose foreign clients who are using their platforms for AI development. Under the proposal, cloud service providers are expected to reveal the names and IP addresses of their foreign customers. This move is part of the Whitehouse’s effort to mitigate security threats posed by AI development. Full story
Microsoft‘s (NASDAQ: MSFT) early investment in artificial intelligence will give it a substantial lead over Apple. This is the belief of 13 institutional investors who think that the software giant will overtake Apple in the next five years. However, the battle between the two tech titans might be for second place, because of possible continued strong performance from chipmaker, Nvidia (NASDAQ: NVDA). Full story
Reddit is looking at a $5 billion valuation for its planned IPO in March. The social media platform’s current valuation is estimated to be below this number but hopes are still high because of successes in the tech industry and the expected Fed rate cuts. Full story
AI and Big Pharma. Did you know that each clinical drug trial costs more than $2 billion? And each trial has a 90% failure rate. However, AI is now helping researchers cut costs by looking at hundreds of options at a time, thus cutting the time and cost needed for each project. Researchers and biotech companies are now using AI to analyze scientific literature and using “computer vision” to diagnose diseases. Full story
The chart from Visual Capitalist shows that Microsoft and Apple have been fighting for 1st place for the last 20 years. It is said that Microsoft will probably take pole position in the near future because of its lead in AI development.
It is crazy that the two most valuable companies in the S&P 500 are worth $3 trillion each. Microsoft and Apple have been battling for the number 1 spot for the last two decades and it seems like AI will be the deciding factor. Microsoft has been betting a lot of chips into AI and analysts are predicting that the Windows maker will have a big lead in the next 5 years.
What do you think? Will Microsoft leave Apple in the dust within the next few years?
Let us know by replying YES or NO to this email.
Thanks for reading, and may your investments thrive. 🙂
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