"Hey, what do you think of Tesla (TSLA)?"

6th June 2024

Sam Volkering

Jun 06, 2024

Welcome to AI Collision 💥,

In today’s collision between AI and our world:

Huang’s 80s glam-rock moment
Is Telsa better suited as a robotics company?
Wherever the weiner takes you

If that’s enough to get the sharpies signing, read on…

AI gone wild 🤪

For the keen eye, you might notice that our first segment today is not usually our first segment.

That’s because what I just experienced with AI is so ridiculous that I had to make it the first thing you saw today.

And it has everything to do with the lead image on today’s Substack…

You may have seen (or not) that this week the CEO of Nvidia, Jensen Huang, was at Computex, a very large tech conference held in Taipei.

And let’s be honest here, Huang is a rockstar to the tech world. The leather jacket, the stadium full of devotee engineers at its GTC conference in March, the world hanging off his every word at every earnings call…

He’s quite literally “King of the Nerds”.

FWIW, I identify as a nerd too 😏

Anyway, the series of images getting around social media right now is of Huang at Computex, but not quite as you’d expect.

I think the best thing is to just send you a screenshot from X.com for you to see for yourself.

Yep, that’s Huang (in his customary leather jacket) like an 80s glam rocker signing the chest of a female fan.

The really wild thing about this is that she’s really AI…

Nah, just kidding, she’s real, he’s real and this really did happen.

What’s funny though and related to the image at the top of today’s AI Collision, is that I wanted AI to make an image of this.

So I entered the prompt:

“Create an image of someone with the resemblance of Jensen Huang CEO of Nvidia, except make them look like an 80s glam rock star, who is off stage signing the chest of a female mega fan.”

And the MS-DOS-style image at the top was what ChatGPT spat out at me!

That’s the perfect example of when AI is utter garbage.

Nonetheless of my failed AI image creation, social media is blowing up calling all of this the “top” of the market.

Often in hyped-up bull markets, hindsight tells us there are numerous “top signals” that signify the market is peaking and primed for a massive crash.

The CEO of the biggest technology hardware company signing the chest of a female fan at a technology conference… yeah, I can see how that might be construed as a “top signal”.

Added to the mix is the ongoing market saga between meme-lord “Roaring Kitty”, GameStop and US market regulators.

That’s a long and complex story. Too much for here, and too non-AI-market related (and I gave you enough non-AI stuff on Tuesday).

What I would suggest though is to watch the movie Dumb Money – it’s about the first chapter of this GameStop thing. Aside from being a great movie, it explains it all. And for what’s happening now, just wait for the sequel, I’m sure it will be just as grand!

Anyway, it’s suggested that the GME saga is another “top signal” for the whole market.

Frankly, yes it’s wild that Huang is signing things like the first delivery of Nvidia’s AI superchips to OpenAI and things like the chests of fans.

But a top signal?

No. Not on your life.

If anything it’s an indication that maybe the new tech “King” of the 2020s is Huang. It’s very rockstar of him at the very least.

AI Collision 💥

Supply cannot meet demand.

This is something I’m seeing time and time again in the market right now.

Initially you’d think it’s in relation to semiconductors, more specifically the AI “chips” that Nvidia is busting out into the market.

And yes, it is – more on that in a moment.

But it’s also in relation to the uranium market.

About a month ago I wrote to you about an interview I did with John Ciampaglia, CEO of Sprott Asset Management, back in March 2023.

You can see that all here.

In that I said:

I recently got in touch with John again because I wanted to do another interview with him on the uranium and nuclear markets as well as the copper market.
That’s because Sprott has exchange-traded funds (ETFs) that cover a range of miners in both the uranium and copper markets. So it only made sense that as I’ve been closely covering both of those areas here at AI Collision I get him on a call again to speak about it.
We’re currently arranging the time and date. But that will be here exclusively at AI Collision in the coming weeks so be sure to keep an eye out for that.

Well the good news is that the interview has been done. It is “in the can” so to speak. And I’m expecting that will get out to you probably not next week, but likely the week after.

It’s a must watch because as John expertly outlines, the uranium market is in a long-term bull market, where there is simply no turning back.

Make sure to keep an eye out when that Substack piece hits your inbox!

But back to the other supply cannot keep up with demand that’s rocking the market at the moment… Nvidia’s AI chips.

You see I had someone ask me the other day,

“What do you think of Tesla (TSLA) as a buy?”

Of course, I can’t give personal advice. But I did say,

“Hard to say. You wonder are they better off as just a car company, or better off as cars/AI/robotics company.
As a car company $500bn is stupid.
There are Teslas sitting on docks globally that can't be sold, and in China they’re f*****.
But as an AI and robotics company too, maybe $500bn isn’t so crazy.
You're buying him, not the company really…”

That’s my honest view, it’s hard to say with Tesla. If Elon gets his way (which it seems he will) then there’s a good chance that Tesla, X.com, xAI, SpaceX… ALL OF IT merges and meshes together.

Like Avengers Assemble, but just with Elon’s companies.

The Avengers ensemble with satirical anthropomorphic representations of SpaceX, Tesla, xAI and X.com companies

That’s not a completely “out there” idea by the way. According to a report on CNBC,

… emails written by Nvidia senior staff and widely shared inside the company suggest that Musk presented an exaggerated picture of Tesla’s procurement to shareholders. Correspondence from Nvidia staffers also indicates that Musk diverted a sizable shipment of AI processors that had been reserved for Tesla to his social media company X, formerly known as Twitter.

Ther’s a good chance most of that is actually going into Grok, which is the AI associated with xAI, which is tightly associated with X.com.

What it also suggests is that maybe Tesla isn’t looking so flash as a standalone car company. And that maybe the success of Tesla completely lies with Musk making it into more than a car company – a full-blown hardware companies of cars, autonomous systems, AI and robotics.

Then maybe a $500 billion market cap, as I say, isn’t so wild.

Boomers & Busters 💰

AI and AI-related stocks moving and shaking up the markets this week. (All performance data below over the rolling week).

man in black suit jacket and black pants figurine

Boom 📈

Predictive Oncology (NASDAQ:POAI) up 27%
Nvidia (NASDAQ:NVDA) up 19%
AMD (NASDAQ:AMD) up 5%

Bust 📉

C3.ai (NYSE:AI) down 8%
Datametrex (TSXV:DM) down 25%
Quantgate Systems (OTCPK:QGSI) down 24%

From the hive mind 🧠

I don’t really know what to make of this. The best-looking AI image goes to…? The worldliest miss world that’s not real goes to…? I don’t know. Are we getting dumber because of all this stuff (maybe that’s an idea for next week’s poll)?
Already we’ve got an AI whistleblower. Which is interesting, because I wonder if in the future, there will be an AI whistleblower that’s AI?
Is there no stopping this juggernaut! Now they’re introducing Project G-Assist. Sounds ominous, and kind of cool. I’ll dive into this more and see if there’s something juicer to report next week.

Artificial Polltelligence 🗳️ The Results

Last week we set a poll about just how frequently you use AI (or don’t).

It came off the back of a widespread survey which showed the actual use of generative AI was quite low considering the hype and domination of market news that AI was getting.

Maybe it’s a case that using AI as such is akin to using Google search. By that I mean we all use Google search, but we don’t think about it. We don’t actively say, I’m going to use Google search. You just type what you want in the address bar at the top of your browser and Google does the rest.

And maybe AI becomes that – you just do and in the background it’s all AI. You’re using AI but also not actively thinking about using AI.

Anyway, whatever that shapes up to be, I was curious as to whether you actively use AI or not.

Hence the poll…

And here are the results…