More Tales From Nvidia: Was the Microsoft Outage an AI Failure? (Issue #279!)

This is interesting re the Microsoft outage, which is massive and unprecedented:

At first I thought it might be an AI hack. But maybe not, maybe it is an AI failure. Ergo the fault of garbage code written by AI. If I remember correctly, Amazon AWS had several outages that were likely caused by poorly written AI code as well. That was not the only incident. I believe there have been several, although nothing even close to this in scale.

At any rate, this seems to be more than coincidence. This outage is so bad, and so prolonged, it is most likely a function of what has changed, which is generative AI writing code, which does not work nearly as well as has been portrayed. Something tells me you will soon be able to add Microsoft ($MSFT) to the list of companies that starts hiring back the people they fired due to AI, and using less AI at the same time. 

Hello Anthropic and Open AI!

Post Script

Side note, this Nvidia ($NVDA) Jensen Huang thing is not primarily about sex, although that was what did him in. He was most likely illegally sending stuff to China in an indirect fashion, and misrepresenting what was going on. The notion that this whole thing is a setup by China is quite misguided. He was the guy that was sending them the parts, when he wasn’t supposed to be doing so. Now China is going to get cut off completely, so this whole thing was most certainly not an operation by China to get him out of there. He was helping those guys out.

It is also amazing how venal people have become. Due to their interest in their stock portfolios, many were willing to look right past this, and offer support to the guy who was likely selling the country out and lying to everyone at the same time, to further his own self interest, whatever that exactly is.  IMHO he is far from a national hero, and if anything, he is the exact opposite and should be a complete and total pariah.

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Posted by Doug Kass

Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality. On TheStreet Pro, Kass provides frequent market commentary and investing ideas for active investors throughout each trading day in Doug’s Daily Diary. He also serves as president of Seabreeze Partners Management Inc. Previously, he served as a senior manager at Omega Advisors, a $6 billion investment partnership. He co-authored a book with Ralph Nader and the Center for the Study of Responsive Law called “Citibank: The Ralph Nader Report” and can be found as a guest host on CNBC's "Squawk Box." A Note from Doug: Current strategies and actionable trade ideas -- all on one dynamic platform built exclusively for active trades. From sudden sell-offs to sudden spikes, TheStreet Pro arms you with crucial analysis -- at a rapid fire, professional pace -- to help you make sound trading decisions -- every day, every hour, and every minute. Join me and my team of professional traders for unique perspectives and breakthrough investment opportunities.

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