Rob Arnott is amazed at what AI chatbots can produce. The Research Affiliates founder recently had ChatGPT summarize one of his papers with “brilliant” results.
“If I was asked to write an 800-word synopsis of the paper, I guarantee you I couldn’t have done that well,” he told Business Insider on Tuesday.
But that doesn’t mean Arnott is bullish on the technology as an investing thesis. For the most part, he thinks future upside is already priced into AI stocks, which makes him less than optimistic about forward returns.
Two things in particular make him wary that some of the most prominent AI stocks can live up to the hype. The first is growing competition.
“Nvidia creates the chips that make AI possible. There are other chip makers. Are they going to sit on their hands and let Nvidia keep a 50% profit margin on the most lucrative part of the AI revolution?”…
