The premise behind this thread is a place for you to dump Tech news stories you find interesting or discover stories that others have shared.
Rules:
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-Policy Topics are allowed, but if they get to be political they will be removed.
-The posts will be cleaned up periodically to keep the thread short and up with current events. (Rough goal is 2 weeks worth of news)
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All the normal forum rules apply these are just specific ones to this thread.
Nvidia Price Hikes: Nvidia is leveraging its dominant market share to pass rising supply chain costs onto customers, raising accelerator server prices by over 15%.
Inherent GPU Inefficiencies: Due to outdated data-center software infrastructure, AI firms utilize as little as 5% to 15% of Nvidia GPUsâ actual computing capacity.
Shift to Software Efficiency: US tech giants can no longer rely purely on capital to buy more chips; they must pivot from brute financial force to writing smarter, more optimized code.
The Chinese Playbook: Driven by US export bans, Chinese firms like DeepSeek have already mastered hyper-efficient software workarounds, slashing model memory requirements by 96%.
Industry Optimization: Startups like Poolside AI are proving that optimizing data traffic flows allows companies to train high-performing models in weeks at a fraction of typical hardware costs.
Not the worst thing in the world, I reckon. Note: pretty sure you need to live in a particularly poor part of the world to even qualify for a MT account.
Bottom line: AI still canât reliably beat the market, despite growing sophistication.
Key example: The Amplify AI Powered Equity ETF (AIEQ), launched in 2017 and powered by IBM Watson, has actually performed worse relative to the S&P 500 as time has gone on.
Anecdotal data: An unnamed firmâs AI-generated list of top-10 stocks to outperform over three months â six of ten lost money; three-month average was -4% vs. the S&P 500âs +2.7%.
Why itâs not surprising: Everyone is using AI, so the edge cancels out (ânot everyone can be above averageâ). The real advantage would require a model that is significantly better than everyone elseâs and stays that way â unlikely as rivals catch up.
Sharpeâs arithmetic: Active management (including AI-driven) is a negative-sum game after costs. The AI ETFs have an average expense ratio of 0.66% vs. 0.03% for a plain Vanguard total market fund (VTI).
Conclusion: The structural math hasnât changed. AI-powered stock picking isnât likely to outperform consistently over time â same as traditional active management.
