No one can deny the impact that AI has had in 2023. What we are all trying to figure out, is the impacts this technology will have as it touches every aspect of our lives. There is just as much hype and misinformation as there is reality. Not all AI companies are thriving, and it depends on what tool or aspect of the market you are focused on. We can look at the hardware side and see Nvidia is the clear winner as it is a chipmaker, infrastructure, play controlling about 80% of the AI chip market. Let’s put some scale to this issue: OpenAI CEO Sam Altman seeks as much as $7 trillion for new AI chip project. Remember there is a chip war going on openly between China and the US, and it was TSMC who was the chipmaker in focus. That is shifting since Nvidia leaped years forward with their AI chips.
Many stories are focused on the what if of Generative AI, but the scope of PaaS, or Platform as a Service is an immediate market to be served, today. With Platform as a Service (PaaS), the service provider offers a more complete set of tools for building applications than Infrastructure as a Service (IaaS) does. This includes not just the basic infrastructure but also operating systems, databases, and other necessary tools to run applications, all available online. Examples of PaaS are AWS Elastic Beanstalk and Google App Engine.
Altman posted on X that OpenAI believes “the world needs more ai infrastructure–fab capacity, energy, datacenters, etc.–than people are currently planning to build.” He added that “building massive-scale AI infrastructure, and a resilient supply chain, is crucial to economic competitiveness” and that OpenAI would try to help.
What is foundational is who is providing the specialized computing power. Mark Zuckerberg said on Thursday that by the end of 2024, the company’s computing infrastructure will include 350,000 H100 graphics cards. Which is a startling investment. That takes care of some of the giants in the industry, but who will service and provide reasonable chip hour leasing rates for tens of thousands of small to medium-sized businesses? That is where Alset Capital Inc. (TSXV:KSUM) (FSE:1R60, WKN:A3ESVQ), steps in. Alset Capital will make high-performance AI computing available to everyone focusing on pre-configured operating systems, development tools, and databases. With its initial AI-hub, Alset’s portfolio company, Cedarcross aims to lease 700,000 hours of computing power to enterprise clients with plans to subsequently leverage its colocation partners’ 40+ data centres across 11 other strategic North American markets.
AI Infrastructure
Alset addresses a crucial challenge by securing access to Nvidia’s high-performance computing power GPUs and driving significant shareholder value through the acquisition and development of AI assets. Alset is the convergence of two entities: Cedarcross International Technologies Inc.(49%) and Vertex AI Ventures Inc. (49% Ownership)
Cedarcross, not only possesses the most sophisticated Nvidia GPU hardware, the NVIDIA H100 HGX’s, but has also negotiated deals with Nvidia hardware suppliers to obtain favourable pricing with expected delivery timelines in 30% of the time of the industry average. These resources are primarily used by companies to train AI workloads, offering them computational strength.
Vertex AI Ventures Inc., which owns 49% of Vertex AI, focused on identifying and acquiring intellectual property (IP) and providing data management services. This includes advanced data engineering, automating processes, keeping data secure, and ensuring different systems work well together. Vertex AI helps businesses fully use their intellectual property and data in the fast-paced business world of today.
A good setup makes it easier for data scientists and developers to use data, run machine learning programs, and control and use the computing power of the hardware effectively and efficiently. AI infrastructure enables both artificial intelligence and machine learning technologies to create and roll out dependable and scalable data solutions. It’s AI infrastructure technology that makes machine learning possible. Key advantages of this segment of the market are that it can grow to meet demand and much of it can operate automatically, potentially resulting in high-margin earning.
Regarding the future impact of AI, Goldman Sachs Research suggests that as businesses and societies start to incorporate tools enhanced by recent developments in natural language processing, Goldman Sachs Research suggests:
“Despite significant uncertainty around the potential for generative AI, its ability to generate content that is indistinguishable from human-created output and to break down communication barriers between humans and machines reflects a major advancement with potentially large macroeconomic effects,”
Goldman Sachs economists Joseph Briggs and Devesh Kodnani write in a report.
The McKinsey Global Institute estimates that among industries globally, generative AI could add the equivalent of $2.6 trillion to $4.4 trillion annually in value across the 63 use cases it analyzed. “The economic potential of generative AI: The next productivity frontier,”
The majors will be fighting for this huge slice of the pie but there is an incredible range of opportunities to serve the small and medium-sized business that wants to create and build into this new AI future. Alset Capital Inc. (TSXV:KSUM)(FSE:1R60, WKN:A3ESVQ), provides an attractive way to participate in the real infrastructure, core computational power and platform that is powering the new industrial revolution of new apps, widgets, programs and applications ourselves and future generations will be using.