The technology is developing fast… and will be upon us soon.
Hello, Reader.
Alphabet Inc. (GOOGL) held its I/O developer conference on Tuesday. At the annual event, the company showcased new technology and products, like introducing new smart glasses and a new “AI Mode” in Google Search.
But the conference went beyond sharing updates, highlights, and resources for all things tech.
In fact, a prediction was made…
At the event, Google’s co-founder Sergey Brin and Google DeepMind CEO Demis Hassabis said that they believe artificial general intelligence (AGI) is likely to arrive sometime around 2030.
Now, scientists and other bright minds have put forth a few different timelines as to when they believe AGI will be developed, and become mainstream.
For example…
- Leopold Aschenbrenner, a former mathematician at OpenAI, has said that he already started to feel AGI back in 2023.
- Then in January, OpenAI CEO Sam Altman said that the company already knows “how to build AGI.”
- Elon Musk believes that an AGI breakthrough could surpass human intelligence by the end of this year, and then surpass the intelligence of all humans combined by 2029.
The truth is that we really don’t know when AGI will become a part of our lives. However, the common denominator here is that the technology is developing fast… and will be upon us soon.
Since AGI is a development that I have been keeping a close eye on here at Smart Money – and one I will continue to monitor – I wanted to answer a few of the most-asked question about the technology that I have received.
After all, the best way to be prepared for a change as big as the one that AGI will bring is to be well informed.
Let’s dive in…
What industries will benefit the most from AGI?
AGI is going to impact several industries in ways many folks — including those on Wall Street — have never even considered. They are industries that I also believe everyone should consider investing their capital in right now. I’m talking about data centers, raw materials and metals, energy, software, semiconductor chips, robotics, and healthcare.
In a recent Smart Money, I broke down the three categories of AI investment that are the only ones to buy right now. That’s because they are set to ride the profit waves of AGI.
You can learn even more about these categories in my new, free The Road to AGI: Final Warning broadcast.
How will AGI improve healthcare?
As AI infiltrates the medical field, the U.S. healthcare industry is on track to grow faster than any other sector in the U.S. economy.
Companies are converging with AI to bring about massive amounts of innovation in the healthcare industry. In the biotech sector, for example, AI could revolutionize the economics of drug discovery.
First, it could boost the success rates of new therapies by prequalifying potential drug candidates more expertly than traditional trial-and-error processes could. Second, it could reduce the average expense and timeline of advancing these candidates through clinical trials by shortening the drug-development time frame.
Today, without AI, it can take more than a decade and over $1 billion to bring a new drug to market.
AI could impart a game-changing efficiency to the drug-development process, and thereby shower pharmaceutical companies, in particular, with a pixie dust of enormous prosperity.
Collectively, the pharmaceutical industry seems to be banking on the pixie-dust scenario. For example, all 10 of the top holdings in the iShares Biotechnology ETF (IBB) are actively integrating some facet of AI into their drug-development processes.
Many of the biggest pharmaceutical companies in the world are paying tens of billions of dollars to snap up promising biotech companies. You could call it a biotech gold rush.
I believe that the pharmaceutical industry, in aggregate, will reap handsome rewards from the expansion of AI in healthcare, especially as AGI continues to advance.
Overall, I expect AGI to impart fantastic benefits to the healthcare industry.
Can you further explain “stealth” AGI?
When I say “stealth AI,” I’m usually talking non-tech companies that will adopt and apply AI with the goal of reaping huge gains in efficiency, productivity, and profits.
In many old-school industries, like shipping or travel, new AI- and AGI-enabled processes could boost efficiency and fatten profit margins. I consider industries like these to be future-proof, meaning they’re not going anywhere, despite whatever AI and AGI do. And when you put stealth AI to work inside a future-proof industry, you have the potential for both reliable and outsized gains.
What metals will be used for AGI?
Artificial intelligence has added a powerful tailwind to platinum demand… a tailwind that AGI will kick in to high gear.
At present, electronics and technology end-uses account for a fraction of total platinum demand. However, thanks to AI, the tech sector’s platinum consumption could grow by double digits for several years in a row.
According to research from Metals Focus, a boom in demand for AI applications will create an echo boom in demand for the high-specification semiconductors and sensors that enable AI technologies to operate optimally.
Much of this next-gen hardware contains platinum. As the World Platinum Investment Council explains…
The performance of the myriad miniature transistors and capacitors embedded into an integrated circuit is enhanced by the deposition of thin platinum films onto semiconductor wafers…
These platinum films are created using a technology known as sputtering, where platinum particles are ejected and deposited onto a surface, creating a thin (only a few atomic or molecular layers thick) platinum layer.
AI-driven platinum demand could add an additional kicker to any new bull market that emerges.
The rise of AGI is also boosting demand for copper, because data centers use enormous amounts of copper for power and cooling systems. Even moderately sized data centers can require several thousand tons of the metal.
All this makes copper a very attractive business to be in – for mining companies and investors alike.
Thank you for your great questions, folks!
As AGI develops, the future that lies ahead is not simply a continuation of what has been… it is a complete departure from anything we have ever known. So, I hope you’ve found these answers to your most pressing AGI questions helpful.
Now, many of you have also asked about which specific stocks to invest in ahead of AGI.
I’ve identified several companies that are strategically positioned to capitalize on this coming wave of this current “pre-AGI” market.
You can learn how to access the names of these companies by clicking here.
Regards,
Eric Fry
