Episode 206: ChatGPT Year 1, Robots Multiplying by Thousands, and Destructive Private Equity

The Killing IT Podcast

Topic 1: Chat GPT 1 year later.

AI Article Summary: Elon Musk creates his own AI company called X.AI, while Satya Nadella of Microsoft invests in OpenAI and accelerates plans to incorporate AI into Microsoft's products. OpenAI releases ChatGPT as a "low key research preview," which becomes a hit. Meta, led by Mark Zuckerberg, faces challenges with its own chatbot and struggles with the decision to go open-source. Microsoft introduces its own chatbot in Bing, surpassing Google's efforts. Geoffrey Hinton, a prominent AI scientist at Google, decides to quit and reflects on the rapid advancements in AI technology.

https://www.nytimes.com/2023/12/05/technology/ai-chatgpt-google-meta.html

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Topic 2: Robots Multiplying by Thousands!

AI Article Summary: Agility Robotics plans to open a factory in Oregon to mass-produce humanoid robots, starting with their bot named Digit. The factory aims to produce 10,000 robots per year and will assist companies like Amazon with tasks such as hauling and lifting. The production of bipedal robots that are nimbler and more versatile than existing industrial counterparts presents engineering challenges, but Agility Robotics aims to make general-purpose humanoids available as soon as possible.

Other competitors in this space include Tesla, Boston Dynamics, Sanctuary AI, Figure, and Apptronik. Amazon has invested in Agility Robotics and is testing Digit in a laboratory. The concern about robots taking jobs from humans has prompted Amazon to partner with MIT to study automation's impact on work. While there is momentum behind humanoid robots, there is still more testing to be done. In a separate article, it is highlighted that America's military needs to embrace artificial intelligence and robotics to maintain its competitive advantage in future wars, but congressional and bureaucratic restraints hinder rapid mobilization and investment in these technologies.

https://www.axios.com/newsletters/axios-whats-next-d504c6f4-c6d1-4979-ae67-72f5bfaff090.html

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Topic 3: Will Private Equity Destroy Our Industry?

Karl speculates that private funding and private equity will be looking for serious payouts starting in 2024. With a 4-6 year window, the clock is ticking. Some companies will have an identity crisis in the years ahead, and that will become visible in 2024.

Higher interest rates will force companies to decide, “Do we want to run this company like an adult, or take our money and leave?” Those who stay will either get loans - at higher rates than we’ve seen in twelve years - or take companies private so they don’t rely on outside financing.

Investors who were promised a straight 40-50% return per year were disappointed in 2023 and that disappointment will grow in 2024. These people care nothing for the businesses they buy or the end clients of those businesses.

Our industry cannot escape the effects of this unknown element of chaos.

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Sponsor Memo: IT Service Provider University

This episode is Sponsored by Dave’s January class at ITSPU.com.

Dave is teaching a brand new class in January: navigating emerging technologies for MSPs. This is a five week class, which will walk through the methodology Dave uses for analyzing technologies and how you can apply that in your business to find trends and be effective in your service provider business. More info at

https://www.itspu.com/all-classes/classes/navigating-emerging-technologies-for-msps/

:-)