AGI is here, Nvidia CEO Jensen Huang has declared. Here’s why the market doesn’t care
If AI were really about to unleash the explosive growth its boosters predict, economists say it should show up somewhere surprising: real interest rates.
Nvidia CEO Jensen Huang declared that artificial general intelligence (AGI) has arrived, thanks to OpenAI's latest model, Astra. However, the stock market has reacted differently to this claim. CoreWeave, SoftBank, and Oracle stocks surged following Huang's announcement, while Nvidia's stock actually dropped by 2%. AI critic Gary Marcus questioned Huang's motivation for declaring AGI, given the financial incentive.
AI researchers define AGI as an AI that matches or surpasses the cognitive skills of a well-educated adult, but this definition hasn't been met yet. Although new models like Astra are impressive, they haven't translated into higher demand for compute resources, which would typically boost Nvidia's stock. The real interest rate, which reflects expected discounted future earnings, remains the key indicator for AGI advancements. So far, real interest rates have not significantly increased due to AGI.
Written by urgent.news from Fortune's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
