A New AI Chatbot Is Ushering In Nvidia’s End

by | Nov 8, 2023 | Markets

Elon Musk – the man leading Tesla (TSLA), X (formerly Twitter), SpaceX, The Boring Company, and more – has a new passion: creating AI models. 

Earlier this year, he started xAI, an AI-focused startup aimed at creating uncensored and unfiltered artificial intelligence. And this past weekend, on Saturday Nov. 4, xAI unveiled its first product: an AI chatbot nicknamed Grok. 

Grok is supposed to be the funny, honest, and more-relatable version of ChatGPT. 

There’s a New AI Chatbot in Town

While ChatGPT keeps its answers polished and professional, Grok’s casual responses are more laid back and make you feel like you’re just talking to a friend. 

According to xAI, Grok is modeled on The Hitchhiker’s Guide to the Galaxy and is supposed to have “a bit of wit” and “a rebellious streak.” This AI should answer the “spicy questions” that other chatbots might dodge. 

Check out the example conversation below. 

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This first foray into AI chatbots makes complete sense to us. 

Since ChatGPT’s launch in late 2022, Musk has been critical of its censorship of certain ideas and philosophies. He sees it as being very limited, doctored, and biased, doing more harm than good. 

Grok is Musk’s response to ChatGPT’s shortcomings. 

So, will Grok overtake ChatGPT?

We don’t think so. ChatGPT is still the best AI chatbot in town – and by a long shot. But Grok will cut out a niche for itself with folks looking for funnier answers on life’s more interesting questions. 

They’ll both succeed, side-by-side. 

But here’s the big thing: Their success will likely come at the expense of Nvidia (NVDA). 

The Final Word

In the future, neither ChatGPT nor Grok will use Nvidia’s technology. 

It has been confirmed that both OpenAI – ChatGPT’s creator – and Tesla have built AI models on top of Nvidia GPUs. 

That is, today, both ChatGPT and Grok are powered by Nvidia tech. 

However, it has also been confirmed that both OpenAI and Tesla are shifting away from Nvidia GPUs. Tesla has said it is creating its own AI chips to power its AI supercomputer, Dojo. And just last month, reports said that OpenAI is doing the same thing. 

In short, the firms behind ChatGPT and Grok are both looking to move away from Nvidia tech. 

The implication, of course, is that within five years, the world’s two most popular AI tools won’t be built on Nvidia tech. 

Bad news for Nvidia?

Absolutely. Because it isn’t just OpenAI and Tesla that are shifting away from the chipmaker’s tech. Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Meta (META) are all making their own chips, too. 

The writing is on the wall. Nvidia is done. It’s time for the baton to get passed on to the next AI superstar stock. But who will it be?

Find out its name and ticker symbol right now.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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