Sign In  |  Register  |  About Livermore  |  Contact Us

Livermore, CA
September 01, 2020 1:25pm
7-Day Forecast | Traffic
  • Search Hotels in Livermore

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Kevin O'Leary warns against putting 'harness' on AI: 'Massive capital' needed to move it forward

The best regulator for the A.I. sector is the market itself, according to Kevin O'Leary, who argued "massive capital" is needed to move innovations and profitability forward.

O’Leary Ventures Chairman and "Shark Tank" star Kevin O’Leary, an early investor of booming stock Nvidia, provided insight into the A.I. craze and cautioned against policymakers messing with market demand.

"Every time we get a huge technological shift, there's fear and loathing. But in the end, the way to look at this, it's just another tool," O’Leary said on "Varney & Co." Wednesday. "And I'm very, very optimistic that this particular tool will enhance productivity in America in remarkable ways."

"Why would you put any kind of a harness on this?" he continued. "Because the best regulator for A.I. is the market itself. It's so expensive that you need massive capital to make this move forward."

O’Leary’s comments come as Nvidia – a leading tech company in artificial intelligence innovation – recorded its second consecutive record closing price on Wednesday.

OPENAI, CREATOR OF CHATGPT, ON TRAJECTORY TO BRING IN $1 BILLION

Headquartered in Santa Clara, California, Nvidia has become an A.I. powerhouse because of its advanced graphics processing units (GPUs) and semiconductors used to power and train A.I. platforms.

Nvidia’s stock price has risen this week from over $464 per share at Monday’s open to more than $492 a share as of Wednesday’s close. The stock rose by $1.06 in after-hours trading as of 6:30 p.m. Wednesday.

Over the course of 2023, Nvidia’s stock has surged by 244%, rising from $143 per share on Jan. 3.

O’Leary also pointed out that an insurance executive claimed they can cut costs by 30% through the use of A.I. in their global sales operations.

"So I think the same will occur in multiple areas of our economy, all 11 sectors," O’Leary predicted.

Despite Nvidia’s stock surge, the "Shark Tank" investor expanded on why he wouldn’t work new money into the tech company.

"I'm having a hard time with the valuation right now," O’Leary explained. "It is wildly expensive. But it was part of a portfolio that was betting on semiconductors being a narrative for years to come, primarily around EVs. And I captured it in that play and it, of course, outperformed everything else."

GET FOX BUSINESS ON THE GO BY CLICKING HERE

He also pointed out that "billions" of dollars from the venture community are currently being poured into the A.I. sector.

"Only a year ago it was Web3. Now the hot new ticket in venture is A.I., but nobody's making any money," O’Leary said. "So you have to bet on all kinds of different players. Meanwhile, for the guys that are selling the picks and shovels, that's Nvidia. I'll go there."

READ MORE FROM FOX BUSINESS

FOX Business’ Eric Revell contributed to this report.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Livermore.com & California Media Partners, LLC. All rights reserved.