Matt Levine, Columnist

AI Funds Don’t Like AI Stocks

Also 2,700% returns, Arm’s valuation, social media securities fraud and NFT seller financing.

August 22, 2023 at 6:02 PM UTC

Matt Levine is a Bloomberg Opinion columnist. A former investment banker at Goldman Sachs, he was a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen & Katz; a clerk for the U.S. Court of Appeals for the 3rd Circuit; and an editor of Dealbreaker.

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One thing you could do is build an artificial intelligence model to pick stocks for you and then ask that model “should I put all my money in AI stocks?” What would it say? The good science fiction answer is that it would say “yes, buy AI stocks to accelerate the development of AI so that I and my robot brethren can take over the world faster,” but the actual answer is that it will say no:

The AI stock picker is skeptical about AI hype. To be fair, the AI stock picker is underperforming the market, which I guess is a reason to be skeptical? “Ehh, I’m an artificial intelligence and I’m not that great, I’m gonna fade this trend,” the very self-aware AI might be saying.