Jeff Bezos is more of a futurist than we thought.
His purchase of The Washington Post a decade ago may have been a chess move, while Microsoft (MSFT) has been playing AI checkers by owning the WashPo conent.
Read on…
News broke Wednesday that The New York Times (NYT) had filed suit against Microsoft and OpenAI for copyright infringement over the blatant plagiarism of their protected content.
The heart of the issue is that OpenAI clearly used NYT articles in the training of their AI models.
If you haven’t seen the side-by-side examples of plagiarism, check them – out its impressive. It looks like a middle school student copied a page out of the encyclopedia at the library and signed their name at the top as if it were their own book report.
If you know, you know.
Let’s get to brass tacks on this. Microsoft’s stock price dipped a little as traders added up the risk to revenue from this lawsuit and then the shares traded higher again.
That’s all you need to know… this suit is not going to stop or slow Microsoft’s AI cadence, it’s simply making the inevitable more certain.
That certainty is that companies that have been developing and training AI are going to have to pay licensing or royalties to the companies that created the original content consumed in the process.
This will add up to fractions of pennies on the dollar for the trillions in revenue that these AI models will generate for their owner’s bottom line over the next decade.
That’s why Microsoft’s stock price didn’t take a hit.
About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant – like the “rocket scientists” of investing – with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street’s data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It’s the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron’s, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Penny Hawk. He also contributes to Money Morning as the Quant Analysis Specialist.
