Week 20 of 2024- W202024
Once you eliminate the impossible
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“Once you eliminate the impossible, whatever remains, no matter how improbable, must be the truth.” -Arthur Conan Doyle
AIML
Warren Buffett says one question posed by AI has stumped economists for a century
AI is already changing management — companies must decide how
GPT-4o’s Memory Breakthrough- Needle in a Needlestack
“I lost trust”: Why the OpenAI team in charge of safeguarding humanity imploded
AI and weather forecasting: a deep dive into MLWP technology
Can Machines Time Markets? The Virtue of Complexity in Return Prediction
Polysemanticity and Capacity in Neural Networks
llama3 implemented from scratch
News publishers sound alarm on Google’s new AI-infused search, warn of ‘catastrophic’ impacts
Sparse Llama: 70% Smaller, 3x Faster, Full Accuracy
AI Reading list from Hugging Face co-Founder
Painting
The Great Red Dragon and the Woman Clothed with the Sun (Rev. 12: 1-4), William Blake, ca. 1803–1805. Black ink and watercolor over traces of graphite and incised lines on wove paper, Image: 17 3/16 x 13 11/16 in. (43.7 x 34.8 cm). Brooklyn Museum, Gift of William Augustus White
William Blake’s Demonic Red Dragon
Crypto
MIT students stole $25M in seconds by exploiting ETH blockchain bug, DOJ says
Cyber
British engineering giant Arup revealed as $25 million deepfake scam victim
Your Company's Bossware Could Get You in Legal Trouble
How Did Authorities Identify the Alleged Lockbit Boss?
FCC Fines Major U.S. Wireless Carriers for Selling Customer Location Data
Markets
The Great Flattening (h/t CW)
Tim Cook is running out of ideas
Warren Buffett finally reveals the mysterious company he’s invested billions of dollars in
Why Is Car Insurance So Expensive?
What’s on TV? For Many Americans, It’s Now YouTube
Waymo robotaxis are now making 50,000 paid trips every week
Misc
How Kite Surfing in Remote Colombia Changed a Boy. And a Village.
Computer Scientists Invent an Efficient New Way to Count
NYPD to start using drones as ‘first responders’ on 911 calls
The Design Flaw That Almost Wiped Out an NYC Skyscraper
You could have invented fractional cascading
Will Better Superconductors Transform the World?
Paper
Can AI Replace Stock Analysts? Evidence from Deep Learning Financial Statements
Objective:
Investigate whether AI, specifically neural-network based deep learning models, can outperform human equity research analysts in predicting 12-month-ahead stock prices.
Methodology:
Data: Used a comprehensive dataset of financial statements, stock prices, and interest rates spanning 14 years.
Model: Developed a simple neural network model without pre-specified financial models or pre-defined accounting ratios.
Training: The model was trained using financial statement data and historical stock prices.
Prediction: AI predictions were compared with human analysts' forecasts of 12-month-ahead stock prices.
Findings:
The AI model, running on inexpensive hardware, processed vast amounts of financial data quickly and cost-effectively.
The AI model outperformed human analysts in predicting 12-month-ahead stock prices.
Predictions by AI and analysts were more aligned for firms with higher levels of cash, capital expenditures, and stock price volatility on the day of the forecast.
Conclusions:
AI has the potential to replace human analysts in certain aspects of predicting financial performance.
The AI model's performance suggests that it can handle the repetitive and labor-intensive task of stock price forecasting more efficiently than human analysts.
Human intuition and qualitative analysis still play a crucial role, as AI lacks the critical thinking and nuanced understanding that humans possess.
Books
AI and ML Reading List: My Favorites- added another Raschka book to the list
2 books I’ve read and 7 books I want to read- added Chip Huyen’s new book