August by D’Ornano + Co.: Why GenAI is not Disruption – it’s Discontinuity, the Exit Conundrum and why Europe should embrace open-source AI

This is our monthly newsletter dedicated to Tech x Investments.

Dear readers,

It is a great pleasure to be back to writing after the summer break as we return to work. Labor Day and the second half of the year are just around the corner.

The debate around GenAI is as heated as before the holidays, with much attention on Nvidia – the poster child of GenAI. In trying to assess whether Nvidia will become a $50 trillion valuation and whether its market cap growth is sustainable, many critics argue that GenAI is overhyped.

Though the GenAI era feels epic, it has been less than two years since Open AI released ChatGPT 3.5, the moment that brought this long-gestating technology to public attention. We are still in the early stages of what promises to be a significant financial opportunity for companies and governments embracing it. The US economy alone could gain almost 9% in productivity gains and 6,1% in GDP over the next decade through GenAI per GS senior global economist Joseph Briggs. Beyond economic opportunities, GenAI is also a transformative force …