Welcome to Nightpixels, a data-driven visual blog about investing, business, and technology.

Nightpixels is published each week by Nightview Capital Research Analyst Cameron Tierney. Follow him here on X.

ChatGPT forced a shift in AI investment to the app layer

Following the release of OpenAI’s ChatGPT to the public in November 2022, generative AI startups have attracted a wave of new funding, as depicted above. Since ChatGPT took the world by storm, VC investments in generative AI companies are totaling over $2B per quarter.


AI model training compute is scaling logarithmically over time

Stanford University published a 500-page AI Index report recently. As one can imagine, lots of research was shared. This chart stood out, depicting how some of the most well-known AI models have required exponentially more computing power (measured here in peta floating operations per second) over time.  Source

Subscription data analytics firm Antenna recently published its State of Subscriptions Q1’24 report. The report called out a growing cohort of U.S. streaming-video subscribers: serial churners. These are defined as customers that have unsubscribed from >3 subscription video services in the past two years. This group grew over 40% YoY in Q1 2024 and now represents almost one in four of all streaming video subscribers. 


Meta releases the world’s most powerful open source LLM to date

In the past week, Meta released its Llama 3 open source AI model. This means any person, organization, or group of people may used the model and manipulate it for there own purposes for free. The graphic above is from Meta’s announcing press release. It showcases results from Meta’s internal human evaluation of Llama 3’s performance vs. other popular AI models, based on a blind evaluation where the team does not have access to the evaluation prompts. Llama 3 is available on all the major public clouds in the U.S.


Generative AI can save days in visual effects production

Last week we published a Twitter thread exploring some applications of generative AI in Hollywood productions. Read it here. One product called Vanity AI by MARZ could save visual effects teams hours, and even days in their creative processes, as shown in the above infographic from the company. Depending on the type of visual effect workflow, deaging workflows can be reduced to minutes instead of days, and cosmetic effects from hours to a minute. This is a profound example of the deflationary effects of generative AI applications. 


Teslas are the cheapest cars to maintain in the U.S.

According to Consumer Reports, Teslas are the cheapest vehicles over a multi-year period to maintain, excluding collision repairs. The lack of oil changes and moving parts in the powertrain contribute to cheap maintenance costs in EVs. At the bottom of the list (not pictured above) were European luxury brands like Land Rover and Porsche.


Netflix added more than double the amount of subs Wall Street expected in Q1

Last week, Netflix reported their first quarter’s financial results. Netflix added almost 10 million new subscribers in the first quarter, double analyst expectations.


**Disclosures:**This information should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the investments or strategies referenced were or will be profitable, or that investment recommendations or decisions we make in the future will be profitable. This article contains links to 3rd party websites and is used for informational purposes only. This does not constitute as an endorsement of any kind. While Nightview uses sources it considers to be reliable, no guarantee is made regarding the accuracy of information or data provided by third-party sources. Nightview Capital Management, LLC (Nightview Capital) is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about Nightview Capital including our investment strategies and objectives can be found in our ADV Part 2, which is available upon request. This has been prepared for information purposes only. This information is confidential and for the use of the intended recipients only. It may not be reproduced, redistributed, or copied in whole or in part for any purpose without the prior written consent of Nightview Capital. The information contained in this article is distributed for informational purposes only and should not be considered investment advice or a recommendation of any particular security, strategy or investment product. Certain economic and market information contained herein has been obtained from published sources prepared by other parties. While such sources are believed to be reliable for the purposes used herein, Nigthview Capital does not assume any responsibility for the accuracy or completeness of such information. Further, no third party has assumed responsibility for independently verifying the information contained herein and accordingly no such persons make any representations with respect to the accuracy, completeness or reasonableness of the information provided herein. Unless otherwise indicated, market analysis and conclusions are based upon opinions or assumptions that Nigthview Capital considers to be reasonable.