Happy Thursday, 👋
Inflection points mark significant periods of transformation and are often depicted as the point on a curve where its steepness alters. Recent technological advancements related to data have begun to accelerate and we believe are reaching a key inflection point as artificial intelligence (AI) and large language modules (LLMs) become an integral part of our lives.
The scope of AI is vast, spanning numerous domains from machine learning to robotics. Within this vast realm, LLMs are a distinct subset designed to comprehend and generate human-like text. For instance, ChatGPT, an LLM system, processes vast quantities of textual data and uses this information to respond to queries in a manner similar to natural human language.
Reviewing past inflection points provides a historical perspective on our current situation. The earliest forms of data storage were cave paintings dating back to 40,000 BC. Around 100 BC, data became portable with the advent of paper and ink. By 1440, the Gutenberg printing press allowed for rapid data generation and distribution. Fast forward 500 years, and the internet enabled instant global data sharing. Today, LLMs are leveraging this immense global data to initiate a significant shift in our relationship with data.
Where Now?
The evolution of technology capable of continuous learning from an ever-increasing volume of digital data has the potential to revolutionize substantial parts of our economy. Over the past decade, global data generation and usage have grown at an average annual rate of 25%, with the 2023 estimate reaching a staggering 120 zettabytes (1 zettabyte = 1 trillion gigabytes or 500 billion movies). This exponential growth of online data fuels the continuous training of LLMs.
Disruption or Opportunity?
The continuous growth of online data is foundational for training algorithms to perform more complex tasks. We expect material economic shifts to occur as job profiles change and companies leverage AI and LLMs to improve productivity and offer customized solutions to clients. Leveraging previously siloed data across more industries is also expected to advance scientific research and reduce product development timelines. A few early signs of how these economic shifts are evolving include the following:
🧪 A team at Carnegie Mellon successfully used an AI agent to autonomously design, plan, and execute lab experiments, including initial research, programming laboratory hardware, and real-time procedural modifications. Success of the experiment highlights the potential for accelerating scientific research and providing greater opportunities for researchers with limited budgets.
🧫 Researchers at the University of Michigan developed an AI algorithm capable of conducting up to 10,000 daily bacterial experiments. The new algorithm will greatly expand our understanding of bacteria and open new areas of research into a field where previously only 10% of bacteria has been studied.
🏫 Education is also experiencing a shift as AI is being increasingly used to individualize tutoring and customize learning experiences. Students, regardless of their geographic location or financial status, can now access private AI tutors or receive personalized educational content.
Uncertainty regarding the future of employment is understandable when reading headlines referencing ways AI may disrupt employment across several industries. However, economic inflection points triggering broad economic shifts have historically resulted in positive changes. Over 60% of today’s jobs were created during the past eighty years, during which technology drove nearly all employment growth. A lot of changes may be coming over the next few years but there will also be tremendous opportunities across all sectors of the economy.
Additional Thoughts
We are planning on opening our fund to third party investors in the coming months. It’s an exciting time to consider early-stage venture investments and joining us as we identify companies pushing the boundaries at this new economic inflection point.
If you are interested in an early conversation about our plans, updates as we get closer to launch, or just hearing about the companies we are considering, let us know by clicking here and providing us a bit more details. We look forward to embarking together on our journey through the upcoming technological revolution.
Wishing everyone a great weekend,
-The Caymont Ventures Team.