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ChatGPT’s $8 Trillion Birthday Gift To Big Tech

Nov 29, 2024 - ndtvprofit.com
The article discusses the impact of OpenAI's ChatGPT, which has grown rapidly since its launch two years ago, with about 200 million active users today. It has significantly benefited tech firms, with the six biggest seeing their market capitalizations grow by over $8 trillion since ChatGPT’s launch. However, the article suggests that this technology might not deliver on its promise of broad economic transformation, but instead concentrate more wealth at the top.

The article also highlights the challenges for startups and non-tech firms in capturing the rewards of AI, due to the dominance of large tech companies. It suggests that smaller, specialized AI models could lower the barriers to entry and make the next phase of AI more democratic. However, for now, AI has mostly extended Big Tech’s wealth and influence.

Key takeaways:

  • ChatGPT, an AI technology developed by OpenAI, has grown rapidly since its launch two years ago, with about 200 million active users today and has contributed to an aggregate growth of more than $8 trillion in market capitalizations for the six biggest tech firms.
  • The tech sector has driven a 30% gain in the S&P 500 since January 2022, defying the trend of small- and mid-cap companies outperforming their larger counterparts.
  • While AI technology has the potential to bring broad economic transformation, there are concerns that it might concentrate more wealth at the top, with tech giants and consultancy firms reaping most of the benefits.
  • Despite the dominance of large tech firms, there is optimism that the AI landscape might become more democratic, with a shift towards smaller, specialized AI models that lower the barriers to entry.
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