InvestAI etc. - 6/11/2024

AI for investors, explained in simple terms. An open thread updated weekly.

Topics discussed this week:

Vectors databases

Apple’s new AI announcements

AI-themed ETFs, what do they invest in?

Non-tech AI beneficiaries

Vector databases

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SAMI >

Today we want to discuss some AI-themed companies. But before we get to that, I want to ask you about ‘vector databases’, which you mentioned as something that a lot of people are working on in AI. What are vector databases and why are they so important?

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RICHARD >

Yes, vector databases are very important. One of the innovations at the heart of large language models (LLMs) is a quantitative way to track the relatedness of words. When you use a word like “Starbucks” for example, in the context of words or phrases like “profit margins”, “earnings per share” or “CEO”, I can guess that you mean SBUX (the publicly traded stock) and that you are discussing the company’s operations or its stock price. But if instead the surrounding words and phrases are for example “table” or “coffee shop” or “let’s meet at” or “at the corner of abc str…