Howdy team. Phil Rosen here, reporting from Manhattan.
Over the last several months, I've turned to ChatGPT for research, book summaries, and even pasta recipes.
But no amount of homemade penne vodka could have prepared me to believe that the AI tool would catalyze what Wall Street predicts could turn into a $15 trillion market — more on that below.
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1. It was only in March that Bank of America strategists declared that AI was on the brink of its "iPhone moment," and that it was about to change the world forever.
Since then, the tech companies that claim to have some AI focus have had strong outings, OpenAI's ChatGPT continues to attract new users, and an increasing number of commentators have praised the nascent sector's potential.
Take billionaire Paul Tudor Jones, for example. He said Monday that large language models, such as ChatGPT, are going to unlock a new level of productivity for the American economy, given the technology's exceptional adoption rate.
"I do think the introduction of large language models [and] artificial intelligence, is going to create a productivity boom that we've only seen a few times in the last 75 years," Jones said.
History says that boom will drive equities higher, according to Jones, and he thinks it's reasonable to expect a 1.5% increase in productivity each year for the next five years.
In the stretches he's referring to, stocks appreciated 15% on average, and inflation's also declined, something that would be welcome news for the Fed right now.
But Ark Invest chief Cathie Wood, on the other hand, who is also bullish on AI, warned that such a disruptive advancement could supplant existing household tech names, such as Apple.
In a tweet Sunday, Wood pointed out specifically that ChatGPT plugins, which are third-party apps built with the language model, could dislodge Apple's control on its high-margin app store.
The giant's quarterly iPhone sales slowed last quarter, and shareholders may have to brace for another snag.
Apple's "base business is stagnating and its high-margin apps platform could be disintermediated by ChatGPT plugins," Wood said.
Those comments came as the company surpassed the entire market value of the entire Russell 2000 — meaning all 1,917 stocks in the small-cap index combined aren't worth as much as Apple.
Have you tested out ChatGPT? What do you use it for? Tweet me (@philrosenn) or email me (prosen@insider.com) to let me know.
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Curated by Phil Rosen in New York. Feedback or tips? Tweet @philrosenn or email prosen@insider.com.
Edited by Max Adams (@maxradams) in New York and Hallam Bullock (@hallam_bullock) in London.
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