IBM Just Gave Nvidia Stock Investors Terrible News

There's no question that artificial intelligence (AI) has real use cases and that the latest AI models can do some incredible things. But it's important to remember that the technology has limitations. Ultimately, all an AI model does is predict the next token -- characters of text, pixels in an image, and so forth -- in a stream of tokens. There's no real reasoning or thinking, just a bunch of statistics.Because of these limitations, AI models often get things wrong or create false information. It's not surprising, then, that businesses are struggling to make AI investments work. International Business Machines (NYSE: IBM) recently conducted a survey of 2,000 CEOs around the world, and the main takeaway paints a rough picture for companies like Nvidia (NASDAQ: NVDA) that are all-in on AI.Image source: Getty Images.Continue reading

May 11, 2025 - 11:31
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IBM Just Gave Nvidia Stock Investors Terrible News

There's no question that artificial intelligence (AI) has real use cases and that the latest AI models can do some incredible things. But it's important to remember that the technology has limitations. Ultimately, all an AI model does is predict the next token -- characters of text, pixels in an image, and so forth -- in a stream of tokens. There's no real reasoning or thinking, just a bunch of statistics.

Because of these limitations, AI models often get things wrong or create false information. It's not surprising, then, that businesses are struggling to make AI investments work. International Business Machines (NYSE: IBM) recently conducted a survey of 2,000 CEOs around the world, and the main takeaway paints a rough picture for companies like Nvidia (NASDAQ: NVDA) that are all-in on AI.

Image source: Getty Images.

Continue reading