Mad Hedge Technology Letter
May 17, 2024
Fiat Lux
Featured Trade:
(AI MOVES THE NEEDLE)
(TSLA), (AI), ($COMPQ), (SORA)
Mad Hedge Technology Letter
May 17, 2024
Fiat Lux
Featured Trade:
(AI MOVES THE NEEDLE)
(TSLA), (AI), ($COMPQ), (SORA)
Compassion for humanity – that’s all we need – this is the only trait corporate Americans need for bosses like him to employ humans over AI filmmaker Tyler Perry.
That’s all a tall order for corporate tech ($COMPQ) in Silicon Valley which usually prefers not to prioritize compassion for humanity over profits.
That’s bad news for tech workers and we got more confirmation of this trend with Tesla (TSLA) CEO Elon Musk cutting 600 white-collar corporate jobs from the Fremont, California office.
Elon is usually one to be on the forefront of the curve and he isn’t late with the firing means we are just in the first innings of it.
An interview with Tyler Perry led him down the rabbit hole of the future of AI and it wasn’t pretty if you are a W2 worker.
As it relates to implanting AI, the one irrefutable conclusion he could make was that human workers would lose out at the expense of the bosses who would gain.
Over the past four years, Tyler Perry had been planning an $800 million expansion of his studio in Atlanta, which would have added 12 soundstages to the 330-acre property.
Now, however, those ambitions are on hold — thanks to the rapid developments he’s seeing in the realm of artificial intelligence, including OpenAI’s text-to-video model Sora, which debuted on Feb. 15 and stunned observers with its cinematic video outputs.
His productions might not have to travel to locations or build sets with the assistance of technology.
His expansions are currently and indefinitely on hold because of the quick developments of AI.
He might not need to invest in anything at all except some AI additive technology.
Perry said the job losses in his industry could range from writers, actors, sound specialists, builders, designers, architects, and so on.
Human actors are on the chopping block and the only digestible content that will be saved from the bloodbath is live sports which is why premium content like the NFL, soccer World Cup, and Alabama college football fetch astronomical numbers to license these games.
None of that will be replaced by AI, but much of the best of the rest will and the hundreds and thousands of jobs will sink with them.
Perry also described a situation in which he used AI which kept him out of makeup for hours.
In post and on set, he was able to use this AI technology to avoid ever having to sit through hours of aging makeup.
The movie industry won’t need to negotiate with the actor's or writers' unions again, because they are dispensable.
What will happen in tech?
Google and Apple will build products but with much less staff involved.
Compensation expense is about to drop precipitously without warning.
Remember that the dive into AI won’t be a drip, but a waterfall because once one figures out a way to optimize the technology, everyone else follows suit.
The copycats come out of the woodwork and reverse engineering takes hold.
If you thought that Congress is responsible to save the workers then you’ll be waiting for a long time.
Tech executives have been lobbying Washington for a generation, and I believe they will take the side of management.
And in any case, if the government does get involved, they usually make regulations too onerous to hire humans making the situation worse.
What does this mean for tech stocks?
They go higher.
Expenses will take a meaningful dive, dividends and buybacks go up with more cash on hand, and tech stocks comprise an even larger percentage of the overall market.
We have sunny days ahead for the tech sector.
AI WILL HAVE A BIG IMPACT IN THE MOVIE INDUSTRY
Legal Disclaimer
There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.
This site uses cookies. By continuing to browse the site, you are agreeing to our use of cookies.
OKLearn moreWe may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.
Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.
These cookies are strictly necessary to provide you with services available through our website and to use some of its features.
Because these cookies are strictly necessary to deliver the website, refuseing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.
We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.
We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.
These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.
If you do not want that we track your visist to our site you can disable tracking in your browser here:
We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.
Google Webfont Settings:
Google Map Settings:
Vimeo and Youtube video embeds: