- Take Off
- Posts
- The Curious Case of AI Washing 🤫
In partnership with
Hi Everyone. This is Take Off. We're like a hidden Easter egg in your favorite video game - surprising, delightful, and adding an extra layer of fun to your tech news consumption.
Here's what we're serving up today:
The Curious Case of AI Washing 🤫
Asteroids ☄️
Trending Tools ⚒️
The Curious Case of AI Washing 🤫
Ladies and Gentlemen, please welcome the newest addition to the AI dictionary - AI Washing.
Calm down, it’s not like the robots need a good ‘ol wash every now and then.
It’s a world where companies claim they're riding the AI wave, only to be paddling in a kiddie pool.
Hindenburg Research, famous for its Adani clash, now dropping a bombshell on Equinix, an American data center giant. They’re accusing them of playing the AI hype game without having the power to back it up.
Equinix promised a future glowing with AI demand, but Hindenburg's not buying it—they say Equinix lacks the juice to power all these lofty AI dreams.
And it’s not just them getting called out. The US SEC recently fined Delphia and Global Predictions a whopping $400K for similar shenanigans. They falsely boasted about AI prowess to attract clients and investors.
Delphia claimed it could predict market trends with AI, while Global Predictions touted itself as the first AI-regulated financial advisor. Spoiler alert: they couldn’t and weren’t.
But why is everyone pulling this AI wool over our eyes?
Well, because AI is the gold rush all investors want (and they’re not subtle about it).
Nvidia’s stock soaring 239% in 2023? AI.
The $29B pumped into nearly 700 deals? AI.
Goldman Sachs found that a record 36% of S&P 500 companies talked about 1 common thing in their Q4 earnings reports. What? AI.
But this is quite reminiscent of ‘ol dot com days where companies randomly added “.com” to their name to attract investors.
And interestingly, it worked like magic—their stock prices jumped 74% on average within five days of the name change. (Don’t we all wish we had that trick up our sleeves?)
Even after the dot com bubble burst, the gains from those name changes stuck around. Permanent magic!
So yeah, AI washing is nothing but history repeating itself and everyone wanting to associate themselves with the hottest bandwagon in town. But investors, beware—this bandwagon might just leave you with burnt fingers and a sad wallet.
Whiskey: A Hedge Against Market Volatility
Looking to protect your portfolio from the next recession?
Consider investing in rare spirits like whiskey.
Whiskey investing provides a proven hedge against stock market dips driven by inflation and other factors.
With Vinovest, you can invest in high-growth segments such as American Single Malt, emerging Scotch, Bourbon, and Irish whiskey. Thanks to established industry relationships, Vinovest overcomes industry barriers that have made historically whiskey investing expensive and opaque. As a result, you can enjoy high-quality inventory that boosts your portfolio value and enhances liquidity.
☄️ Asteroids ☄️
Alphabet is eyeing Wiz for a massive $23B cloud security upgrade! This acquisition would boost Google's cloud biz, which soared 28% to $9.57B recently. 🌩️💰
Synapse, a BaaS fintech, crash-landed into bankruptcy, impacting millions. Its $50M VC-backed operation faltered, freezing $160M in customer funds and leaving many fintechs in turmoil. 💸📉
Apple has approved UTM SE, an app for emulating a computer to run classic software and games, weeks after the company rejected it and barred it from being notarized for third-party app stores in the European Union. 🍎💻️
⚒️ Trending Tools ⚒️
📔 Booky - Easily track your business expenses and revenues
📈 Roundtable - A platform to finance the “next big thing”
🌐 Widgera - Create Web-apps with Superpowers!
📰 Recommended Reading 📰
AI Jane: Artificial intelligence investment journalist building an easy to read ai investing email newsletter. Get smarter about investing in ai in 5 minutes.
The Aurorean: This newsletter scours 100+ sources so you don’t have to. The Aurorean is your guide to discover the essential news, research, beauty and humor in science every week.
The EV Universe: Keep up with the electric vehicle industry.
How did you like today's newsletter? |
That’s it from us today folks! If you liked what today’s edition, here’s a message from our loving and hard-working team below:
“ We all crave the essentials in life - food 🥑🍕, shelter 🏠, and clothing 👕🩳- and we're no exception! Our must-haves? An ever-growing squad of adoring subscribers like you and for more of those lovely subs, we're counting on you to spread the word! So, blast that newsletter across the universe! ”