Gianfranco's Best of May 2023 Reading List

My favorite articles from May 2023:

AI and Machine Learning:

• Facebook Earnings, Generative AI and Messaging Monetization, Open Source and AI: Meta Platforms, the parent company of Facebook, notes increased user engagement in Q1, largely due to the success of the short-video platform, Reels. With a focus on AI accessibility, Meta is shifting towards open AI ecosystems, like PyTorch.

• Meta Open Sources Another AI Model, Moats and Open Source, Apple and Meta: Meta unveils an open-source AI model named ImageBind that merges diverse data types for generative AI. The article also scrutinizes the possible advantages and challenges of open-source technology.

• First Principles Of Product In The AI Age: This article discusses the disruptive potential of AI and suggests entrepreneurs to think from first principles when integrating AI into their products. It encourages reimagining products with AI capabilities rather than making incremental changes.

• Decentralized Artificial Intelligence: This essay argues for decentralized AGI to prevent power concentration and explores a novel approach - Proof of Gradient - which incentivizes miners and data contributors in a decentralized model.

• How ChatGPT Works Technically [Youtube Video, 8-Minutes]: A concise 8-minute video that offers a technical explanation of how ChatGPT functions.

• Meet Your New Finance Intern: GPT-4: A look at how GPT-4, a new AI tool, can enhance productivity by 50% in the finance sector by automating mundane tasks and potentially altering the required skill sets in the industry.

• Data in the Age of AI: The piece examines the burgeoning business models born out of the data explosion across various industries. It further discusses the emergence of agents to streamline processes and the rising importance of golden data.

• Layers of AI: A primer on the diverse layers of AI, including Supervised Learning, Unsupervised Learning, Semi-supervised Learning, and Reinforcement Learning. It helps the reader understand AI business needs and investment themes.

Business and Investment Strategies:

• The Power Of Defaults: This essay probes into the potency of network effects in business success, comparing atom-based and software-based businesses. It emphasizes the significance of understanding network effects to ensure business success.

• Investing’s Big Blindspot: This piece argues that investment wisdom is more closely related to the ability to apply knowledge from prior cases to new situations rather than sheer intelligence. The success of experts comes from internalizing a wealth of experience, aided by simulations and high-consequence environments.

• Intellectual Humility is a copout ($): The author posits that intellectual humility should not be an endpoint but a means to strive towards truth and the creation of worthy projects.

• 4 reasons why LTV/CAC is not a great metric for early stage startups: This article recommends startups to focus on estimating the payback period for their ads instead of the LTV/CAC ratio to ensure profitability.

• Income Matters No.5 - Troy Asset Management: This piece discusses the implications of inflation and rising interest rates and suggests a long-term investment strategy in high-quality companies with distinctive competitive advantages.

Reading and Information Processing:

• How To Read The Economist: An evaluation of the strengths and weaknesses of The Economist as a resource for understanding economic trends. The author suggests reading it in reverse order for a more insightful experience.

• The Reading Obsession: An examination of Warren Buffett's devotion to reading, paired with his fondness for real-world experiences and network-building. His success story serves as an inspiration for other aspiring leaders.

Society and Policy:

• Could $3,500 ‘Baby Bonds’ Help End Poverty in America?: The piece discusses the potential of "Baby Bonds" - trust accounts for American children to combat generational poverty. It further explores how it could impact wealth inequality and socio-economic mobility in the United States.

Knowledge and Innovation:

• Are Ideas Getting Harder To Find? [Academic Paper, 2020]: This academic paper postulates that the productivity of scientific and technological ideas has been decreasing. It highlights the necessity of ever-increasing research teams to maintain the rate of economic growth.

Work and Professional Relationships:

• We Studied 100 mentor-mentee relationships: Here’s What Works: A study on the dynamics of effective mentor-mentee relationships. The research suggests that productive mentorship hinges on mutual respect, clear communication, and common interests.

Large Language Models (LLMs):

• Our $0.02 on LLMs: The authors share their perspective on large language models, underlining their potential to revolutionize various industries while simultaneously cautioning about the potential misuse and ethical implications.

Please reply to this email if you found it insightful or if you’d like to see short summaries for each of these articles, papers, and links in the future.