Rupert Murdoch signs AI deal!

+ AI set to dominate stocks for next decade

Adam B & Matt V
May 24, 2024

PRESENTED BY

Stars don't actually twinkle. The "twinkling" effect is caused by Earth's atmosphere distorting the light from the stars. Sorry to ruin your favourite nursery rhyme.

TODAY:

OpenAI and News Corp. signed a big agreement on content.
AI will be on stock charts for the next 10 years!
Around the web: Tesla's stock rallies big after post-Q1 earnings, relieving investors.
Growth School is offering a free AI course to our readers!

Read time: 5 minutes

AI PARTNERSHIPS

News Corp. and OpenAI strike AI content deal

News Corp., led by the Murdoch family, has officially partnered with OpenAI to include its news content in ChatGPT.

This move follows other media organisations teaming up with the fast-growing AI firm.

Though the financial details remain secret, reports suggest the deal could be worth $250M+ over five years, covering both cash and technology credits.

Content will appear on OpenAI platforms after a delay and will include links to News Corp.’s sites.

The rise of AI chatbots like ChatGPT and Google’s Gemini has caused disruption in the news industry.

These bots, trained on text from the web, including news articles, often without permission, have sparked fears among journalists.

There is concern that readers will prefer AI-generated summaries, rather than pay for their news.

Some outlets, such as the New York Times and Chicago Tribune, have sued OpenAI over this issue, while others like Axel Springer and the Associated Press have secured content deals - showing the uncertainty in how the media giants are approaching AI.

Here are the key takeaways:

News Corp. and OpenAI’s deal could be worth $250M+ over five years.
AI chatbots have caused significant disruption in the news industry.
The partnership aims to set standards for AI and news organisation interactions.

Written by algorithms

News organisations have faced similar technological shifts in the past, like the impact of social media.

Platforms such as Facebook initially boosted readership and revenue but later changes led to significant declines, affecting publishers like BuzzFeed and Vice News (RIP).

The debate is centred on AI’s role in journalism. Many journalists worry that AI could replace them, as companies like OpenAI and Google use their content without direct compensation.

Google has started offering AI answers in search results without similar deals, causing panic and claims of unfairness among content creators.

In response to the News Corp. deal, the union representing Wall Street Journal and Dow Jones workers expressed concern over the lack of finalised policies regarding AI use.

Meanwhile, OpenAI views the agreement as setting a standard for future collaborations between AI companies and news organisations.

Can’t the media companies just make their minds up on AI already?

Deal of the century or a big mistake?

Vote for live results and see results + opinions from yesterday at the bottom of the email.

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On This Day

May 24th 2018 - The General Data Protection Regulation (GDPR) takes effect across the European Union, representing one of the most significant overhauls of data protection regulations globally.

Riddle Me This

Unseen, I roam the modern age,

An enigma wrapped in each data page.

Ghostly presence in the cyber-realm,

Structuring patterns at the cosmic helm.

Facilitating transactions globally linked,

Allowing commerce to remain permanent-inked.

The backbone ObjectModel for websites galore,

My absence halts world economies to the core.

You interact with my kind every single day,

Yet my ubiquity is hidden away.

What pioneering innovation keeps the world in sync?

What is it?

Nifty Numbers

NVIDIA is taking the AI world by storm, boasting an impressive 225.26% year-over-year return and a market cap now over $2 trillion. The demand for their AI chips shows no signs of slowing down.

AI STOCKS

AI will dominate the stock market for the next decade

Artificial intelligence is set to dominate the stock market over the next decade, according to former Cisco CEO John Chambers.

Speaking at the VivaTech conference in Paris, Chambers highlighted how AI will determine winners and losers in the tech sector, predicting AI-related stocks will outperform non-AI stocks by a three-to-one margin.

Chambers noted that consistently investing in AI stocks over the next five to ten years could yield significant returns.

In the first quarter, 38% of U.S. venture capital went into AI stocks, a figure he expects to exceed 50%.

In Europe, 12% of venture capital was directed towards AI in the same period.

Here’s what you should know:

AI stocks are expected to outperform non-AI stocks by three to one.
Significant venture capital is flowing into AI, especially in the U.S.
Early AI adoption will drive company growth and job creation.

Forget day trading, it’s all about AI

AI chipmaker Nvidia has seen its stock increase fivefold since late 2022, driven by rising demand for AI products.

Chambers likened Nvidia’s role in AI to Cisco’s impact on the internet market, suggesting Nvidia's sales will reflect broader trends.

Maurice Lévy, chairman of Publicis, added that AI will transform industries, creating more value-added roles despite some job losses.

Companies that adopt AI early will likely see significant growth and job creation.

The S&P 500 and Nasdaq Composite have reached record highs, with AI credited for significant market movement over the past year.

Chambers believes AI's impact will be three to five times more profound than the internet, affecting all aspects of life.

Nvidia is going to be the new Bitcoin story: “I almost bought Nvidia in 2020 you know”.

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Mindstream Picks

PlayStation is exploring new avenues beyond its paid PS Plus service, but the lack of frequent free download opportunities leaves budget-conscious gamers with limited options.

EU Telecommunications Ministers' meeting sparked concerns among consumer groups and industry leaders about the potential impact of new EU telecom regulations on the open internet and market competition.

The U.S. House approved the Financial Innovation and Technology for the 21st Century Act with a 279-136 vote, marking a major legislative victory for the crypto industry.

The Artemis moon missions are enhancing space weather forecasting and revising flight rules to address radiation risks beyond Earth's magnetic shield.

Don’t Miss - Tesla's stock has dropped about 30% this year but saw a rally after its Q1 earnings report on April 23, despite weaker-than-expected results. Shares surged 12% the day after the report as Elon Musk announced plans for more affordable models and predicted higher vehicle deliveries for 2024, focusing on self-driving and AI. With an upcoming annual meeting on June 13 and ongoing company restructuring, including executive layoffs, the outlook remains uncertain. As of May 22, Tesla shares have recovered significantly, up 26% since the Q1 earnings announcement.