Hello, Reader.
“Less is more” is a great saying when you’re trying to eat healthier. Less junk food can lead to more nutritious eating habits.
Or when you’re trying to declutter. Less household knick-knacks means more space in your home.
But when it comes to artificial intelligence, more is more.
That’s because AI’s unstoppable growth amplifies all sorts of things.
More AI equals more efficiency – whether streamlining work tasks or accelerating drug discovery.
More AI equals more data centers, and thus, more electricity demand.
More AI also equals more billion-dollar tech companies… and, thanks to their high valuations, more billionaires.
Take ex-OpenAI CTO Mira Murati, who started Thinking Machines Lab, a new AI research company, in February of this year. She raised $2 billion by July, giving the company a $12 billion valuation, and reportedly achieved billionaire status.
The 25-year-old founder and CEO of Anysphere, the startup behind the popular AI coding tool Cursor, also likely reached billionaire status after the company reached a valuation of $18 billion to $20 billion from $9.9 billion in just a few weeks this summer.
And Anthropic AI CEO Dario Amodei, along with the company’s six other founders, are now potentially multibillionaires after talks that will raise Anthropic’s valuation to $170 billion – nearly three times what it was in March.
In fact, Bloomberg estimated in March that four of the largest private AI companies created around 15 billionaires with a combined net worth of $38 billion.
And Fortune reported this week that there are now 498 “AI unicorns” – private AI companies worth at least $1 billion – totaling $2.7 trillion.
To put this in perspective, Massachusetts Institute of Technology’s principal researcher Andrew McAfee said: “Going back over 100 years of data, we have never seen wealth created at this size and speed. It’s unprecedented.”
This is a major, revolutionary, and wealthy achievement – and it’s all thanks to AI.
But not everyone is lucky enough to be minted a brand-new billionaire.
As AI continues to accelerate and billionaires keep sprouting up, most of the wealth will flow to the top one percent of investors and companies who leverage technology, while 99% of investors and businesses will get caught off guard and fall behind.
And I want to teach you how to stay ahead of this technology-driven wealth divide, something I call the “Technochasm.”
So, in today’s Smart Money, I’d like to share a warning about the inevitable lows that are coming for those who are unprepared for the growing wealth divide.
Then, I’ll show you how to position yourself to profit as AI continues making not just billionaires, but breakthroughs – especially in world of “Physical AI.”
The High Highs… and Low Lows
Positive advancements in AI are all around us, beyond catapulting CEOs into the billionaire club.
For example, there’s Anima Biotech’s mRNA Lightning.AI platform, a system that images both healthy and diseased cells to train disease-specific AI models. The AI – using neural networks – helps identify dysregulated pathways, then scientists can target those problems with new treatments. Amina now has 20 potential medicines in early development in neuroscience, oncology, and immunology.
AI can also help combat cyber threats. Microsoft Corp. (MSFT) catches an unprecedented amount of threats – 78 trillion signals daily – with the help of its AI-driven assistant, Microsoft Security Copilot.
But there’s a cost to these innovations.
Last month, Microsoft announced it would lay off another 9,000 workers in addition to its 6,000-person cut in May. These job losses include programming staff in San Francisco and Seattle.
Job postings for software engineers across America have sunk below their Covid-era lows, as shown in the graph below.
Other white-collar careers are also slipping away. Accounting… law… even management… have seen declines in job postings. A recent survey of 1,000 U.S. employees by workplace security firm TradeSafe found that 43% of white-collar respondents said they fear that AI or automation could take over their roles.
Those fears are valid.
AI systems are now powerful enough to replace entire job functions, and we’re now at the tipping point where many workers will either adopt AI or be replaced by it.
And it’s only a matter of time before the technology starts moving down-market.
Once machines can drive a truck across the country, what’s stopping them from delivering your mail? Stocking grocery shelves? Repairing roads? Cleaning buildings? Managing inventory?
This isn’t some far-off scenario. It’s already happening.
Aurora Innovation Inc. (AUR), for example, has launched a freight service that completed the first-ever autonomous truck route on public roads without a safety driver.
The Pittsburgh-based firm used a “Verifiable AI” system that allows engineers to verify and explain to regulators and other stakeholders how driving decisions are made. The result was a self-driving truck that completed the 200-mile route on Interstate 45 between Houston and Dallas without a hitch.
Now, while this sounds understandably terrifying – AI literally taking the wheel, not just of these trucks, but of many people’s jobs – this isn’t the time to duck and cover.
Instead, now is the time to get on the right side of the Technocasm as quickly as you can.
Let me show you how…
How to Come Out Unscathed
Over the past three years, we’ve witnessed one of the fastest technological shifts in human history. AI has already reshaped the way we work, create, communicate, and even how we invest.
And right now, AI’s next frontier isn’t happening on your laptop or smartphone screen, or in a chatbot. Like Aurora’s self-driving innovation, it’s happening on city streets, or in Walmart Inc. (WMT) warehouses. And, very soon, on your doorstep.
This breakthrough is called “Physical AI” – when software intelligence meets the physical world. Think robots, the likes of which we’ve been talking about here at Smart Money.
Now, AI can walk, climb stairs, carry boxes… and think.
But for every company that finds a new AI gear – and, therefore, a new wealthy shareholder – there are real people who get left behind.
That’s why InvestorPlace analysts Louis Navellier, Luke Lango, I put together the Day Zero Portfolio. This portfolio holds a carefully selected group of companies that are exposed to the next wave of AI exponential progress, giving those with access targeted exposure as well.
And we also have a free pick to share with you today. It is our No. 1 stock set to potentially profit from the rise of Physical AI.
We believe that Physical AI is AI’s next breakthrough moment. One that will, on one hand, continue the trend of minting new billionaires… and on the other, potentially replace a countless number of jobs.
That’s why it’s so important to land on the right side of the inescapable wealth divide.
Regards,
Eric Fry
Editor, Smart Money
