Roundhill Investments Launches Generative AI & Technology ETF NYSE Arca: CHAT

Generative artificial intelligence Wikipedia

The goal is to increase the diversity of training data and avoid overfitting, which can lead to better performance of machine learning models. Generative AI systems trained on words or word tokens include GPT-3, LaMDA, LLaMA, BLOOM, GPT-4, and others (see List of large language models). They are capable of natural language processing, machine translation, and natural language generation and can be used as foundation models for other tasks.[28] Data sets include BookCorpus, Wikipedia, and others (see List of text corpora). The new ETF seeks to offer investors “exposure to companies at the forefront of artificial intelligence technology, with a focus on generative AI,” according to the company.

  • Roundhill Generative AI & Technology ETF’s stock was trading at $25.91 on January 1st, 2023.
  • Analysts at Goldman Sachs estimate AI overall could drive $7 trillion in economic growth over the next seven years through increased productivity.
  • They are capable of natural language processing, machine translation, and natural language generation and can be used as foundation models for other tasks.[28] Data sets include BookCorpus, Wikipedia, and others (see List of text corpora).
  • If you want to benefit from the AI, you can check our data-driven lists for AI platforms, consultants and companies.
  • The Fund will be concentrated in securities of issuers having their principal business activities in the technology group of industries.
  • Even perfect security systems with thousands of known threat detection rules are not future proof and the adversaries continue to work on new methods of attacks and will inevitably outsmart these security systems.

That’s not what AI only has to offer, but let’s start with the most common examples, then we can move on to the main topic – generative AI. Of course this is not what the original meaning was supposed to be, but we are talking about business reality here, so we simplify and use AI. If you want to benefit from the AI, you can check our data-driven lists for AI platforms, consultants and companies. Read our article on Stability AI to learn more about an ongoing discussion regarding the challenges generative AI faces.

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Semi- supervised learning approach uses manually labeled training data for supervised learning and unlabeled data for unsupervised learning approaches to build models that can make predictions beyond the labeled data by leveraging labeled data. Emerging technology has vast potential that can be used for any application. First, they must recognize how much generative AI knowledge the company has internally. Since these solutions are new, their staff may have little to no expertise.

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As investors seek avenues to capitalize on the growth of generative artificial intelligence, akin to companies like Microsoft, ETF firm Roundhill Investments might present an appealing solution. Roundhill pegs the potential market for generative AI enterprise software at $120 billion. But until now, few options existed for investors wanting exposure to the nascent sector.

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Video Generation can be used in various fields, such as entertainment, sports analysis, and autonomous driving. The models used for speech generation Yakov Livshits can be powered by Transformers. Speech Generation can be used in text-to-speech conversion, virtual assistants, and voice cloning.

This is in contrast to most other AI techniques where the AI model attempts to solve a problem which has a single answer (e.g. a classification or prediction problem). Generative AI systems trained on sets of images with text captions include Imagen, DALL-E, Midjourney, Adobe Firefly, Stable Diffusion and others (see Artificial intelligence art, Generative art, and Synthetic media). They are commonly used for text-to-image generation and neural style transfer.[31] Datasets include LAION-5B and others (See Datasets in computer vision). Generative AI technology represents a quantum leap in not only processing power but also intelligence compared to previous versions of AI. One reason why today’s solutions are gaining so much attention is they work with much larger volumes of information (hundreds of billions of words) and larger data models (hundreds of billions of parameters) than previous AI systems. As a result, they possess impressive and unprecedented power and can perform very sophisticated functions, like passing the law bar exam and advanced sommelier test.

The strategy’s thematic relevance breakdown currently includes a 50% allocation to platforms, 22% to enterprise software, 18% to infrastructure, and 9% to consumer software. Potential constituents are screened for relevance to the growth of generative AI. Roundhill assigns firms with a proprietary ‘Exposure Score’ (from 1 to 100) which is based on a transcript score and sector score. Roundhill’s proprietary research assigns a total addressable market size of approximately $120 billion to enterprise generative AI software. ChatGPT was the fastest application to reach 100 million users and has shown real-world use cases across a range of sectors.

Yakov Livshits
Founder of the DevEducation project
A prolific businessman and investor, and the founder of several large companies in Israel, the USA and the UAE, Yakov’s corporation comprises over 2,000 employees all over the world. He graduated from the University of Oxford in the UK and Technion in Israel, before moving on to study complex systems science at NECSI in the USA. Yakov has a Masters in Software Development.

roundhill generative ai & technology etf

The results are impressive, much better than from traditional techniques, and textures are sharp and look natural. All of us remember scenes from the movies when someone says “enhance, enhance” and magically zoom shows fragments of the image. Of course it’s science fiction, but with the latest technology we are getting closer to that goal. These are very useful examples, so I’ll call them passive AI – analyzing the existing data and generating output and helping to make decisions or even making them automatically. So Machine Learning (ML) techniques are being used extensively to detect problems for which there’s no formula defined. In this article, we explore what generative AI is, how it works, pros, cons, applications and the steps to take to leverage it to its full potential.

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The launch of the CHAT ETF indicates generative AI is moving from a niche technology into the mainstream. Analysts at Goldman Sachs estimate AI overall could drive $7 trillion in economic growth over the next seven years through increased productivity. Issuers involve certain risks not involved in domestic investments and may experience more rapid and extreme changes in value than investments in securities of U.S. companies. Proponents of the technology argue that while generative AI will replace humans in some jobs, it will actually create new jobs because there will always be a need for a human in the loop (HiTL). Write With Transformer – allows end users to use Hugging Face’s transformer ML models to generate text, answer questions and complete sentences. The most commonly used generative models for text and image creation are called Generative Adversarial Networks (GANs) and Variational Autoencoders (VAEs).

roundhill generative ai & technology etf

Further, the Fund expects to obtain such investment exposure by transacting primarily with a limited number of financial intermediaries conducting business in the same industry or group of related industries. As a result, the Fund is more vulnerable to adverse market, economic, regulatory, political or other developments affecting those industries or groups of related industries than a fund that invests its assets in a more diversified manner. The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles. Please see the summary and full prospectuses for a more complete description of these and other risks of the Fund. Image Generation is a process of using deep learning algorithms such as VAEs, GANs, and more recently Stable Diffusion, to create new images that are visually similar to real-world images. Image Generation can be used for data augmentation to improve the performance of machine learning models, as well as in creating art, generating product images, and more.

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This idea is completely different from the traditional MPEG compression algorithms, as when the face is analysed, only the key points of the face are sent over the wire and then regenerated on the receiving end. We can see right now how ML is used to enhance old images and old movies by upscaling them to 4K and beyond, which generates 60 frames per second instead of 23 or less, and removes noise, adds colors and makes Yakov Livshits it sharp. There are well-known algorithms for trends analysis that the mathematicians have known for tens of years and they are still being used today. With billions of transactions per day, it’s impossible for humans to detect illegal and suspicious activities. Fraud detection has been an automated process for many years already. The predefined algorithms and rules detected millions of illicit transactions.

According to Roundhill, generative AI is beginning to have a significant real-world impact. OpenAI’s ChatGPT has become the fastest application ever to reach 100 million users, and its customers are already integrating its technology for diverse tasks from creative writing to coding software. Speaking to the potential of the AI sector, Hershey advocated for a collective approach through an ETF. Drawing parallels to megatrends like cloud computing, he stated, “There will likely be many winners from the generative AI boom. But when the technology is so nascent, many investors may prefer to bet on the theme overall rather than a single company.” For the rapidly evolving AI sector, Hershey stressed on a discerning investment approach.

Yakov Livshits‘s stock is owned by many different institutional and retail investors. Top institutional shareholders include Flow Traders U.S. LLC (0.84%) and Belvedere Trading LLC (0.00%). Some of the stocks in their portfolio include NVIDIA (NVDA), Microsoft (MSFT), Alphabet (GOOGL), Baidu (BIDU), Adobe (ADBE), Marvell Technology (MRVL), Meta Platforms (META), Super Micro Computer (SMCI), Advanced Micro Devices (AMD) and Salesforce (CRM). Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. This site is protected by reCAPTCHA and the Google
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Companies involved in, or exposed to, artificial intelligence related businesses may have limited product lines, markets, financial resources or personnel. These companies face intense competition and potentially rapid product obsolescence, and many depend significantly on retaining and growing the consumer base of their respective products and services. Video Generation involves deep learning methods such as GANs and Video Diffusion to generate new videos by predicting frames based on previous frames.