The Revolutionary Tech Supercharging Gains In the Age of AI – InvestorPlace
Editors note: The Revolutionary Tech Supercharging Gains In the Age of AI was previously published in November 2023. It has since been updated to include the most relevant information available.
Artificial intelligence (AI) is not just a buzzword it is a reality that will transform every aspect of our daily lives in the coming years. It will revitalize industries from healthcare to education, from entertainment to cybersecurity, and offer new possibilities currently unheard of.
One possibility comes from an area hardly anyone is talking about right now
Quantum computing (QC).
But to understand why its implications are so massive, we have to first understand what makes AI models run. At their core, AI models are like cars. They have an engine the computer on top of which the models are run. And they have fuel the volume of data the model is trained on.
Obviously, the better the engine in a car and the more fuel it has, the better and farther that car will drive.
Its the same with AI.
The better the engine of an AI model (computing power) and the more fuel it has (data), the better that model will perform.
The top-secret tech Im referring to is all about radically upgrading the computing power AI models have.
And Bank of Americas head of global thematic investing Haim Israel has said this technology could create a revolution for humanity bigger than fire, bigger than the wheel.
Thats because this tech will essentially drive everything in the emerging Age of AI.
Ill start by saying that the underlying physics of this breakthrough quantum mechanics is highly complex. It would likely require over 500 pages to fully understand.
But, alas, heres my best job at making a Cliffs Notes version in 500 words instead.
For centuries, scientists have developed, tested, and validated the laws of the physical world, known as classical mechanics. These scientifically explain how and why things work, where they come from, so on and so forth.
But in 1897, J.J. Thomson discovered the electron. And he unveiled a new, subatomic world of super-small things that didnt obey the laws of classical mechanics at all. Instead, they obeyed their own set of rules, which have since become known as quantum mechanics.
The rules of quantum mechanics differ from that of classical mechanics in two very weird, almost-magical ways.
First, in classical mechanics, objects are in one place at one time. You are either at the store or at home, not both.
But in quantum mechanics, subatomic particles can theoretically exist in multiple places at once before theyre observed. A single subatomic particle can exist in point A and point B at the same time until we observe it. And at that point, it only exists at either point A or point B.
So, the true location of a subatomic particle is some combination of all its possible positions.
This is called quantum superposition.
Second, in classical mechanics, objects can only work with things that are also real. You cant use an imaginary friend to help move the couch. You need a real friend instead.
But in quantum mechanics, all of those probabilistic states of subatomic particles are not independent. Theyre entangled. That is, if we know something about the probabilistic positioning of one subatomic particle, then we know something about the probabilistic positioning of another subatomic particle meaning that these already super-complex particles can actually work together to create a super-complex ecosystem.
This is called quantum entanglement.
So in short, subatomic particles can theoretically have multiple probabilistic states at once, and all those probabilistic states can work together again, all at once to accomplish their task.
And that, in a nutshell, is the scientific breakthrough that stumped Einstein back in the early 1900s.
It goes against everything classical mechanics had taught us about the world. It goes against common sense. But its true. Its real. And now, for the first time ever, we are learning how to harness this unique phenomenon to change everything about everything
This is why the U.S. government is pushing forward on developing a National Quantum Internet in southwest Chicago. It understands that this tech could be more revolutionary than the discovery of fire or the invention of the wheel.
I couldnt agree more.
Mark my words. Everything will change over the next few years because of quantum mechanics and some investors will make a lot of money.
The study of quantum theory has led to huge advancements over the past century. Thats especially true over the past decade. Scientists at leading tech companies have started to figure out how to harness the power of quantum mechanics to make a new generation of super quantum computers. And theyre infinitely faster and more powerful than even todays fastest supercomputers.
And in fact, Haim Israel, managing director of research at Bank of America, believes that: By the end of this decade, the amount of calculations that we can make [on a quantum computer] will be more than the atoms in the visible universe.
Again, the physics behind quantum computers is highly complex, but heres my shortened version
Todays computers are built on top of the laws of classical mechanics. That is, they store information on what are called bits, which can store data binarily as either 1 or 0.
But what if you could turn those classical bits into quantum bits qubits to leverage superposition to be both 1 and 0 stores at once?
Further, what if you could leverage entanglement and have all multi-state qubits work together to solve computationally taxing problems?
Theoretically, youd create a machine with so much computational power that it would make todays most advanced supercomputers seem ancient.
Thats exactly whats happening today.
Google has built a quantum computer that is about 158 million times faster than the worlds fastest supercomputer.
Thats not hyperbole. Thats a real number.
Imagine the possibilities if we could broadly create a new set of quantum computers that are 158 million times faster than even todays fastest computers
Imagine what AI could do.
Today, AI is already being used to discover and develop new drugs and automate manual labor tasks like cooking, cleaning, and packaging products. It is already being used to write legal briefs, craft ads, create movie scripts, and more.
And thats with AI built on top of classical computers.
But built upon quantum computers computer that are a 158 million times faster than classical computers AI will be able to do nearly everything.
The economic opportunities at the convergence of AI and QC are truly endless.
Quantum computing is a game-changer thats flying under the radar.
Its not just another breakthrough its the seismic shift weve been waiting for, rivaling the impact of the internet and the discovery of fire itself.
Andwe think the top stocks at the convergence of AI and QC have a realistic opportunity to soar 1,000% over the next few years alone.
Thats why were laser-focused on finding the best stocks the industry has to offer.
Plus, considering the likelihood that early 2024s slump is nearly over, we think some great buying opportunities are fast-approaching, too.
Find out which names weve got on our shopping list.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
P.S. You can stay up to speed with Lukes latest market analysis by reading our Daily Notes! Check out the latest issue on yourInnovation InvestororEarly Stage Investorsubscriber site.
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The Revolutionary Tech Supercharging Gains In the Age of AI - InvestorPlace