Nvidia May Have Just Solved AI's Biggest Problem

Raw Text

Log In

Help

Join The Motley Fool

Our Services

View Our Services

How to Invest Money

What to Invest In

How to Invest in Stocks

How to Invest in Index Funds

How to Invest in ETFs

How to Invest in Real Estate

Financial Dictionary

Best Stock Brokers

Best Brokers for Beginners

Best IRA Accounts

Best Roth IRA Accounts

Best Options Brokers

Best Crypto Apps

Stock Market 101

Types of Stocks

Stock Market Sectors

Stock Market Indexes

S&P 500

Dow Jones

Nasdaq Composite

View Our Services

Growth Stocks

Value Stocks

Dividend Stocks

Small Cap Stocks

Large Cap Stocks

Blue Chip Stocks

How to Buy Stocks

Consumer Goods

Technology

Energy

Healthcare

Financial

Cryptocurrency

NFTs

Top Stocks to Buy in 2023

Stock Market News

Retirement 101

Why to Start Saving Now

Types of Retirement Accounts

401k Basics

IRA Basics

HSA Basics

How Much Do I Need to Retire?

When To Retire

Factoring in Social Security

What is the Full Retirement Age?

Investing for Retirement

Retirement Strategies

Retiring in 2023

Withdrawal Strategies

Healthcare in Retirement

Taxes in Retirement

Estate Planning

Best Credit Cards

Best Cash Back Cards

Best Balance Transfer Cards

Best Travel Credit Cards

Best 0% Credit Cards

Best Rewards Cards

Best Cards for Bad Credit

Best Savings Accounts

Best Checking Accounts

Best CD Rates

Best Personal Loans

Best Debt Consolidation Loans

Best Mortgage Lenders

Best Mortgage Refi Lenders

Best Lenders for First-time Buyers

Best FHA Mortgage Lenders

Current Mortgage Rates

Credit Cards 101

Bank Accounts 101

Home Loans 101

Pay Off Debt

Increase Your Credit Score

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

About Us

Investing Philosophy

Reviews

The Motley Fool Foundation

Newsroom

Contact Us

Publishing Standards

Podcasts Home

Motley Fool Money

Rule Breaker Investing

Facebook

Twitter

YouTube

Discussion Boards

CAPS - Stock Picking Community

The Ascent

Latest Stock Picks

Our Services

Investing Basics angle-down angle-up Investing 101 How to Invest Money What to Invest In How to Invest in Stocks How to Invest in Index Funds How to Invest in ETFs How to Invest in Real Estate Financial Dictionary Best Accounts Best Stock Brokers Best Brokers for Beginners Best IRA Accounts Best Roth IRA Accounts Best Options Brokers Best Crypto Apps Stock Market Basics Stock Market 101 Types of Stocks Stock Market Sectors Stock Market Indexes S&P 500 Dow Jones Nasdaq Composite Premium Services Stock Advisor Our Flagship Service Return 404% S&P Return 120% Rule Breakers High-growth Stocks Return 214% S&P Return 102% Returns as of 04/25/2023 View Our Services

Stock Market angle-down angle-up Stocks Growth Stocks Value Stocks Dividend Stocks Small Cap Stocks Large Cap Stocks Blue Chip Stocks How to Buy Stocks Industries to Invest In Consumer Goods Technology Energy Healthcare Financial Cryptocurrency NFTs News Top Stocks to Buy in 2023 Stock Market News Premium Services Stock Advisor Our Flagship Service Return 404% S&P Return 120% Rule Breakers High-growth Stocks Return 214% S&P Return 102% Returns as of 04/25/2023 View Our Services

Retirement angle-down angle-up Getting Started Retirement 101 Why to Start Saving Now Types of Retirement Accounts 401k Basics IRA Basics HSA Basics Planning for Retirement How Much Do I Need to Retire? When To Retire Factoring in Social Security What is the Full Retirement Age? Investing for Retirement Retirement Strategies Retired: What Now? Retiring in 2023 Withdrawal Strategies Healthcare in Retirement Taxes in Retirement Estate Planning

Personal Finance angle-down angle-up Credit Cards Best Credit Cards Best Cash Back Cards Best Balance Transfer Cards Best Travel Credit Cards Best 0% Credit Cards Best Rewards Cards Best Cards for Bad Credit Bank & Loans Best Savings Accounts Best Checking Accounts Best CD Rates Best Personal Loans Best Debt Consolidation Loans Homebuying Best Mortgage Lenders Best Mortgage Refi Lenders Best Lenders for First-time Buyers Best FHA Mortgage Lenders Current Mortgage Rates Guides Credit Cards 101 Bank Accounts 101 Home Loans 101 Pay Off Debt Increase Your Credit Score

About Us angle-down angle-up Who Is the Motley Fool? About Us Investing Philosophy Reviews The Motley Fool Foundation Newsroom Contact Us Publishing Standards Fool Podcasts Podcasts Home Motley Fool Money Rule Breaker Investing Social Media Facebook Twitter YouTube Discussion Boards CAPS - Stock Picking Community Other Services The Ascent Our Purpose: To make the world smarter, happier, and richer. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Log In

Help

Join The Motley Fool

Latest Stock Picks

Free Article

Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research

Danny Vena

Key Points

The debut of next-generation chatbots has captured the public's imagination.

The ability of these systems is hampered by bouts with the truth.

Nvidia has developed "guardrails" to keep them on track.

Motley Fool Issues Rare “All In” Buy Alert

NASDAQ: NVDA

Nvidia

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more. Learn More

Chatbots have a credibility problem. Nvidia says it has devised a solution.

After years of advances behind the scenes, 2023 is the year of artificial intelligence (AI) , some are saying -- and with good reason. The launch of ChatGPT late last year took the world by storm, growing to 100 million monthly active users by January, marking the fastest adoption of a consumer app in history.

The excitement soon turned to fervor with word that Microsoft  had invested $13 billion in OpenAI, ChatGPT's creator. This set off a mad dash by other companies with AI expertise to release their own next-generation chatbots .

However, these advances come with some stark limitations. Subsequent testing of ChatGPT and Alphabet 's Google Bard revealed an inherent problem with these systems: They could (at times) provide answers that are "irrelevant, nonsensical, or factually incorrect," according to The New York Times . Called "hallucinations," this critical flaw called into question these seemingly groundbreaking advances.

Nvidia ( NVDA -2.96% ) believes it could have an answer to the problem.

Image source: Getty Images.

The truth of the matter

In a blog post published on Tuesday, Jonathan Cohen -- Nvidia's vice president for applied research -- detailed a solution the company devised to mitigate the issue of chatbots veering off into fantasy or outright lies. He said the company has developed NeMo Guardrails, "newly released open-source software" designed to help chatbots "stay on track."

The software provides developers with a way to integrate rules-based systems that will stop a chatbot from spouting inaccurate information, ensuring their responses are "accurate, appropriate, on topic, and secure," he wrote. In a briefing given to the press late Monday, Cohen said NeMo Guardrails can "detect and mitigate hallucinations."

"You can write a script that says, if someone talks about this topic, no matter what, respond this way," Cohen said. "You don't have to trust that a language model will follow a prompt or follow your instructions. It's actually hard-coded in the execution logic of the guardrail system what will happen."

The issue stems from how these systems are trained. Chatbots are the interface between users and large-language models (LLMs), which have been trained using vast amounts of publicly available data found on the internet. The problem is that not all the scoured data is factually accurate -- and might contain opinions, biases, and unsubstantiated conclusions. As a result, some responses from the chatbots can veer well off the beaten path and can end up being illogical, offensive, or even downright creepy.

If Nvidia's solution proves effective, this could all be a thing of the past.

A vested interest

Nvidia has a vested interest in helping usher in the future. A broader adoption of AI would no doubt be a boon to the company, which provides the semiconductors used to power cloud computing , data centers, as well as those that train and run these complex AI models.

Management estimates that AI enterprise software represents a $150 billion opportunity for Nvidia, while chips and systems could generate another $300 million. In all, Nvidia believes it is chasing a total addressable market (TAM) of roughly $1 trillion, all the more reason the company wants AI to thrive. But the opportunity ahead extends far beyond just Nvidia.

The next phase of AI development

Cathie Wood, CEO of Ark Investment Management, recently published the firm's Big Ideas 2023 report, and the conclusion it reaches is jaw-dropping. If software developers are able to realize just 10% of the value generated by their creations, advances in AI could generate as much as $14 trillion in additional revenue and $90 trillion in enterprise value, according to the report.

While AI could hold the key to the next generation of high-tech advances, broad adoption of the technology will certainly depend on the ability of users to get useful, accurate, and truthful responses from these AI models.

Nvidia's technology could help keep future advances on track.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Danny Vena has positions in Alphabet, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Microsoft, New York Times, and Nvidia. The Motley Fool recommends the following options: short April 2023 $38 calls on New York Times. The Motley Fool has a disclosure policy .

Stocks Mentioned

Nvidia NVDA $262.41 (-2.96%) $-8.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

TSMC Just Fired a Warning Shot for Semiconductor Stocks. Should Nvidia Investors Be Worried?

Do Big Tech's Custom Chips Pose a Threat to Nvidia Shareholders?

Sell in May and Go Away? 1 Stock You'll Want to Buy Hand Over Fist Instead

The Single Biggest Reason Why Nvidia Stock Could Keep Skyrocketing

These 3 Hot Tech Names Could Be Trillion-Dollar Stocks by 2030

404%

Our Most Popular Articles

47% of Warren Buffett's More Than $6.1 Billion in Annual Dividend Income Comes From These 3 Stocks

3 Unstoppable Stocks That Can Safely Turn $325,000 Into $1 Million by 2033

The Fed Says a Recession Is Coming: History Says the Stock Market Will Do This Next

2 Tech Giants Could Make Wednesday a Great Day for the Stock Market

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.

View Premium Services

Making the world smarter, happier, and richer.

Facebook Facebook

Twitter Twitter

Linked In LinkedIn

Pinterest Pinterest

YouTube YouTube

Instagram Instagram

Tiktok TikTok

Market data powered by Xignite .

About The Motley Fool

About Us

Careers

Research

Newsroom

Contact

Advertise

Our Services

Stock Advisor

Rule Breakers

Rule Your Retirement

The Ascent

All Services

Around the Globe

Fool UK

Fool Australia

Fool Canada

Free Tools

CAPS Stock Ratings

Discussion Boards

Calculators

Financial Dictionary

Our Affiliates

Motley Fool Asset Management

Motley Fool Wealth Management

Motley Fool Ventures

Lakehouse Capital

1623 Capital

Terms of Use

Privacy Policy

Disclosure Policy

Accessibility Policy

Copyright, Trademark and Patent Information

Terms and Conditions

Do Not Sell My Personal Information

Single Line Text

Log In. Help. Join The Motley Fool. Our Services. View Our Services. How to Invest Money. What to Invest In. How to Invest in Stocks. How to Invest in Index Funds. How to Invest in ETFs. How to Invest in Real Estate. Financial Dictionary. Best Stock Brokers. Best Brokers for Beginners. Best IRA Accounts. Best Roth IRA Accounts. Best Options Brokers. Best Crypto Apps. Stock Market 101. Types of Stocks. Stock Market Sectors. Stock Market Indexes. S&P 500. Dow Jones. Nasdaq Composite. View Our Services. Growth Stocks. Value Stocks. Dividend Stocks. Small Cap Stocks. Large Cap Stocks. Blue Chip Stocks. How to Buy Stocks. Consumer Goods. Technology. Energy. Healthcare. Financial. Cryptocurrency. NFTs. Top Stocks to Buy in 2023. Stock Market News. Retirement 101. Why to Start Saving Now. Types of Retirement Accounts. 401k Basics. IRA Basics. HSA Basics. How Much Do I Need to Retire? When To Retire. Factoring in Social Security. What is the Full Retirement Age? Investing for Retirement. Retirement Strategies. Retiring in 2023. Withdrawal Strategies. Healthcare in Retirement. Taxes in Retirement. Estate Planning. Best Credit Cards. Best Cash Back Cards. Best Balance Transfer Cards. Best Travel Credit Cards. Best 0% Credit Cards. Best Rewards Cards. Best Cards for Bad Credit. Best Savings Accounts. Best Checking Accounts. Best CD Rates. Best Personal Loans. Best Debt Consolidation Loans. Best Mortgage Lenders. Best Mortgage Refi Lenders. Best Lenders for First-time Buyers. Best FHA Mortgage Lenders. Current Mortgage Rates. Credit Cards 101. Bank Accounts 101. Home Loans 101. Pay Off Debt. Increase Your Credit Score. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. About Us. Investing Philosophy. Reviews. The Motley Fool Foundation. Newsroom. Contact Us. Publishing Standards. Podcasts Home. Motley Fool Money. Rule Breaker Investing. Facebook. Twitter. YouTube. Discussion Boards. CAPS - Stock Picking Community. The Ascent. Latest Stock Picks. Our Services. Investing Basics angle-down angle-up Investing 101 How to Invest Money What to Invest In How to Invest in Stocks How to Invest in Index Funds How to Invest in ETFs How to Invest in Real Estate Financial Dictionary Best Accounts Best Stock Brokers Best Brokers for Beginners Best IRA Accounts Best Roth IRA Accounts Best Options Brokers Best Crypto Apps Stock Market Basics Stock Market 101 Types of Stocks Stock Market Sectors Stock Market Indexes S&P 500 Dow Jones Nasdaq Composite Premium Services Stock Advisor Our Flagship Service Return 404% S&P Return 120% Rule Breakers High-growth Stocks Return 214% S&P Return 102% Returns as of 04/25/2023 View Our Services. Stock Market angle-down angle-up Stocks Growth Stocks Value Stocks Dividend Stocks Small Cap Stocks Large Cap Stocks Blue Chip Stocks How to Buy Stocks Industries to Invest In Consumer Goods Technology Energy Healthcare Financial Cryptocurrency NFTs News Top Stocks to Buy in 2023 Stock Market News Premium Services Stock Advisor Our Flagship Service Return 404% S&P Return 120% Rule Breakers High-growth Stocks Return 214% S&P Return 102% Returns as of 04/25/2023 View Our Services. Retirement angle-down angle-up Getting Started Retirement 101 Why to Start Saving Now Types of Retirement Accounts 401k Basics IRA Basics HSA Basics Planning for Retirement How Much Do I Need to Retire? When To Retire Factoring in Social Security What is the Full Retirement Age? Investing for Retirement Retirement Strategies Retired: What Now? Retiring in 2023 Withdrawal Strategies Healthcare in Retirement Taxes in Retirement Estate Planning. Personal Finance angle-down angle-up Credit Cards Best Credit Cards Best Cash Back Cards Best Balance Transfer Cards Best Travel Credit Cards Best 0% Credit Cards Best Rewards Cards Best Cards for Bad Credit Bank & Loans Best Savings Accounts Best Checking Accounts Best CD Rates Best Personal Loans Best Debt Consolidation Loans Homebuying Best Mortgage Lenders Best Mortgage Refi Lenders Best Lenders for First-time Buyers Best FHA Mortgage Lenders Current Mortgage Rates Guides Credit Cards 101 Bank Accounts 101 Home Loans 101 Pay Off Debt Increase Your Credit Score. About Us angle-down angle-up Who Is the Motley Fool? About Us Investing Philosophy Reviews The Motley Fool Foundation Newsroom Contact Us Publishing Standards Fool Podcasts Podcasts Home Motley Fool Money Rule Breaker Investing Social Media Facebook Twitter YouTube Discussion Boards CAPS - Stock Picking Community Other Services The Ascent Our Purpose: To make the world smarter, happier, and richer. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Log In. Help. Join The Motley Fool. Latest Stock Picks. Free Article. Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research. Danny Vena. Key Points. The debut of next-generation chatbots has captured the public's imagination. The ability of these systems is hampered by bouts with the truth. Nvidia has developed "guardrails" to keep them on track. Motley Fool Issues Rare “All In” Buy Alert. NASDAQ: NVDA. Nvidia. You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more. Learn More. Chatbots have a credibility problem. Nvidia says it has devised a solution. After years of advances behind the scenes, 2023 is the year of artificial intelligence (AI) , some are saying -- and with good reason. The launch of ChatGPT late last year took the world by storm, growing to 100 million monthly active users by January, marking the fastest adoption of a consumer app in history. The excitement soon turned to fervor with word that Microsoft  had invested $13 billion in OpenAI, ChatGPT's creator. This set off a mad dash by other companies with AI expertise to release their own next-generation chatbots . However, these advances come with some stark limitations. Subsequent testing of ChatGPT and Alphabet 's Google Bard revealed an inherent problem with these systems: They could (at times) provide answers that are "irrelevant, nonsensical, or factually incorrect," according to The New York Times . Called "hallucinations," this critical flaw called into question these seemingly groundbreaking advances. Nvidia ( NVDA -2.96% ) believes it could have an answer to the problem. Image source: Getty Images. The truth of the matter. In a blog post published on Tuesday, Jonathan Cohen -- Nvidia's vice president for applied research -- detailed a solution the company devised to mitigate the issue of chatbots veering off into fantasy or outright lies. He said the company has developed NeMo Guardrails, "newly released open-source software" designed to help chatbots "stay on track." The software provides developers with a way to integrate rules-based systems that will stop a chatbot from spouting inaccurate information, ensuring their responses are "accurate, appropriate, on topic, and secure," he wrote. In a briefing given to the press late Monday, Cohen said NeMo Guardrails can "detect and mitigate hallucinations." "You can write a script that says, if someone talks about this topic, no matter what, respond this way," Cohen said. "You don't have to trust that a language model will follow a prompt or follow your instructions. It's actually hard-coded in the execution logic of the guardrail system what will happen." The issue stems from how these systems are trained. Chatbots are the interface between users and large-language models (LLMs), which have been trained using vast amounts of publicly available data found on the internet. The problem is that not all the scoured data is factually accurate -- and might contain opinions, biases, and unsubstantiated conclusions. As a result, some responses from the chatbots can veer well off the beaten path and can end up being illogical, offensive, or even downright creepy. If Nvidia's solution proves effective, this could all be a thing of the past. A vested interest. Nvidia has a vested interest in helping usher in the future. A broader adoption of AI would no doubt be a boon to the company, which provides the semiconductors used to power cloud computing , data centers, as well as those that train and run these complex AI models. Management estimates that AI enterprise software represents a $150 billion opportunity for Nvidia, while chips and systems could generate another $300 million. In all, Nvidia believes it is chasing a total addressable market (TAM) of roughly $1 trillion, all the more reason the company wants AI to thrive. But the opportunity ahead extends far beyond just Nvidia. The next phase of AI development. Cathie Wood, CEO of Ark Investment Management, recently published the firm's Big Ideas 2023 report, and the conclusion it reaches is jaw-dropping. If software developers are able to realize just 10% of the value generated by their creations, advances in AI could generate as much as $14 trillion in additional revenue and $90 trillion in enterprise value, according to the report. While AI could hold the key to the next generation of high-tech advances, broad adoption of the technology will certainly depend on the ability of users to get useful, accurate, and truthful responses from these AI models. Nvidia's technology could help keep future advances on track. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Danny Vena has positions in Alphabet, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Microsoft, New York Times, and Nvidia. The Motley Fool recommends the following options: short April 2023 $38 calls on New York Times. The Motley Fool has a disclosure policy . Stocks Mentioned. Nvidia NVDA $262.41 (-2.96%) $-8.01. *Average returns of all recommendations since inception. Cost basis and return based on previous market day close. Related Articles. TSMC Just Fired a Warning Shot for Semiconductor Stocks. Should Nvidia Investors Be Worried? Do Big Tech's Custom Chips Pose a Threat to Nvidia Shareholders? Sell in May and Go Away? 1 Stock You'll Want to Buy Hand Over Fist Instead. The Single Biggest Reason Why Nvidia Stock Could Keep Skyrocketing. These 3 Hot Tech Names Could Be Trillion-Dollar Stocks by 2030. 404% Our Most Popular Articles. 47% of Warren Buffett's More Than $6.1 Billion in Annual Dividend Income Comes From These 3 Stocks. 3 Unstoppable Stocks That Can Safely Turn $325,000 Into $1 Million by 2033. The Fed Says a Recession Is Coming: History Says the Stock Market Will Do This Next. 2 Tech Giants Could Make Wednesday a Great Day for the Stock Market. Premium Investing Services. Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. View Premium Services. Making the world smarter, happier, and richer. Facebook Facebook. Twitter Twitter. Linked In LinkedIn. Pinterest Pinterest. YouTube YouTube. Instagram Instagram. Tiktok TikTok. Market data powered by Xignite . About The Motley Fool. About Us. Careers. Research. Newsroom. Contact. Advertise. Our Services. Stock Advisor. Rule Breakers. Rule Your Retirement. The Ascent. All Services. Around the Globe. Fool UK. Fool Australia. Fool Canada. Free Tools. CAPS Stock Ratings. Discussion Boards. Calculators. Financial Dictionary. Our Affiliates. Motley Fool Asset Management. Motley Fool Wealth Management. Motley Fool Ventures. Lakehouse Capital. 1623 Capital. Terms of Use. Privacy Policy. Disclosure Policy. Accessibility Policy. Copyright, Trademark and Patent Information. Terms and Conditions. Do Not Sell My Personal Information.