The $1 Billion AI Job

Well, it’s about damn time…

Have you heard the news?

Sam Bankman Chicken-Fried got thrown in the slammer.

That’s after the judge presiding over the case got fed up with SBF’s antics.

Sam allegedly had multiple parole violations while on house arrest at this parents’ multimillion-dollar mansion, including using a VPN to access the internet when he wasn’t supposed to, sending messages to a potential witness using the Signal app, and leaking documents to The New York Times.

According to The Wall Street Journal, he told the witness and former FTX lawyer, “I would really love to reconnect and see if there’s a way to have a constructive relationship, use each other as resources when possible or at least vet things with each other.”

It sounds like witness intimidation.

Needless to say, the judge didn't like that at all.

It’s crazy that for all the glitzy crypto double-speak and supposed technological know-how of these crypto fanboys, he still thought he was above the law.

As with most things in life, three strikes and you’re out.

Now he sits in jail awaiting trial.

But just to comprehend the caliber of person we’re talking about here, Sam’s parents posted his $250 million bond by taking equity out of their home.

So, yeah, they’re loaded and part of the uber-wealthy elite.

Let’s just hope he doesn’t get suicided in jail.

And just as SBF’s crypto empire comes crashing down, another much-lauded industry could do the same — artificial intelligence (AI).

We've written so much about it it's making my fingertips sore.

It reminds me of a theory purported by Burton Malkiel in A Random Walk Down Wall Street.

In it he talks about the "castle in the sky" theory, where many times companies trade based on psychological value, not intrinsic value.

Their value in the market isn’t about anything other than how others perceive it.

It explains why we’ve had so many periods of what Malkiel calls “irrational exuberance,” including the 1600s Dutch tulip mania, the 1929 stock market crash, the dot-com bubble, and the 2008 real estate crisis.

It can also explain the recent crypto craze and even the artificial intelligence bubble.

We know AI is a bubble from the ludicrous jobs cropping up around it.

According to The Wall Street Journal, companies are hiring AI “engineers” at an alarming clip, including a job worth nearly $1 billion. The Journal writes, “A product manager position for a machine-learning platform at Netflix lists a total compensation package of up to $900,000 annually.”

This won't end well…

If this doesn’t scream unsustainable, I don’t know what does.

For all the chartists or market timers out there, it might be hard to accept that history repeats itself even in the stock market.

And for everyone holding out on that golden AI stock that all the analysts say will 10x you’re money, just look back at history.

There will only be a handful of companies that come out on top of the AI race.

Here are the ones that could…

C3.ai (NYSE: AI)

You’ve probably heard a lot about C3.ai in the market news for its ludicrous run-up this year. Year to date, it’s up nearly 200%…

C3.ai creates AI software and applications for various industries, including energy, manufacturing, health care, and financial services. It offers four products, but its most notable is the C3 AI Suite, which combines big data, AI, and cloud computing to help organizations analyze and derive insights from large volumes of data. Think oil and gas pipelines, complex financial accounts, healthcare charts, and government contracts.

By partnering with C3.ai, companies can easily collect, store, process, and analyze data, and then leverage machine learning algorithms and predictive analytics to generate actionable insights, including predictive maintenance, inventory optimization, fraud detection, energy management, and customer engagement. These applications help businesses make data-driven decisions, optimize operations, improve efficiency, and enhance customer experiences.

This company touches nearly every industry, and what I like is that it helps organizations harness the power of AI and big data to solve complex business challenges. It has a rich customer base, including Shell, the U.S. Air Force, and Raytheon.

A company that sells a product or service to other large companies is going to be a winner for years to come.

Let’s move on to another leader in the AI race.

NVIDIA (NASDAQ: NVDA)

Nvidia Corporation is a multinational technology company that primarily focuses on designing and manufacturing graphics processing units (GPUs) for a variety of applications. Founded in 1993, Nvidia has become a leading player in the field of graphics and computational technology.

Its GPUs are used in basically every sector, including gaming, AI, cloud computing, autonomous vehicles, and health care.

Its top five customers are Amazon, Microsoft, Google, Tesla, and IBM.

Sounds like a winner to me, and I currently hold a small amount.

Like C3.ai, it’s also up 200% year to date.