Software using artificial intelligence is evolving to impersonate experts and even fake influencers on social media. AI will replace us.
A report last week said these digital replicas exploit a legal gray area. politiko. Digital authenticity is a huge opportunity, as it is not illegal to train chatbots based on copyrighted material.
Investors should buy the weakness in CloudflareNET Inc. (NET).
Remington Scott had his big idea while making a movie with Will Smith in 2008. Scott was his visual arts director and was responsible for collecting scanned images of Smith from every angle. That 2D data of him was then converted into a 3D computer-generated image of him used in the movie. Scott turned that idea into Hyperreal, a company that helps actors monetize their digital likenesses.
Authenticity is more important than ever, but it’s not just about celebrities being able to sell sodas and fast food without showing up on set. AI is blurring the lines of ownership.
Martin Seligman is an American psychologist. His seminal work in positive psychology was recently replicated by a chatbot created by former graduate student Yukan Zoa. Szohr and his team incorporated all of Seligman’s published works into his state-of-the-art AI software algorithms. A virtual Seligman was born.
Politico points out that the virtual Seligman is part of a growing wave of AI chatbots based on real humans. Meta PlatformsFB (META) is working with celebrities to bring some of these online. Other historical figures who have passed away casually impart wisdom. Imagine discussing Winston Churchill and the events leading up to his famous “We will never surrender” speech.And that financial times Last week, we reported that brands are now paying $1,000 for each AI-generated post from social media influencers.
What’s interesting about all of these AI digital replicas is that they were developed using data scraped from all corners of the internet without attribution or charge. Much of this information is copyrighted, but it’s not clear if there is any way for rights holders to collect licenses, let alone shut down the bots.
This legalized body-snatching is the exact opposite of the vision Scott envisioned 16 years ago when he oversaw the digital scan of Will Smith.
Humans waived their digital rights to their likeness and ideas without any dispute. Certain digital businesses, such as Meta, Alphabet (GOOGL), MicrosoftMSFT (MSFT), and AppleAAPL (AAPL), have built vast platforms based on member authentication. Platforms have become online gatekeepers.
Cloudflare (NET) creates cloud-based software services that enhance the performance, security, and reliability of large-scale digital platforms. The San Francisco-based company was founded in 2009 and grew from $431 million in sales in 2020 to $975 million by the end of 2022.
To get there, management adopted a unique business model. The basis of Cloudflare is so-called serverless computing. Business customers are billed based on usage for backend services, rather than contracted for fixed minimum usage. This structure gives you endless flexibility. It also allows businesses to stand up new capacity without writing and deploying additional code. This is a huge advantage over models that can be very expensive, especially during spikes in activity during a cyber attack.
The benefits of the Cloudflare network are global. Company executives claim that Cloudflare is the most connected network, operating in hundreds of cities around the world. Latency is reduced in all of these locations, making the delivery of digital photos and streaming media much faster. A copy of the cache is stored systematically at the edge of the network.
Cloudflare’s revenue has grown by nearly 50% each year for the past three years, but revenue should decline slightly in 2023.
CEO Matthew Price announced in November that third-quarter sales rose 32% year over year to $335.6 million.
At the stock price of $83.26, Cloudflare stock trades at 154.1 times expected earnings and 23 times sales. Although these metrics are more expensive than traditional metrics, businesses are growing rapidly and managers are in a strong position to help the largest digital platforms establish authentication and network security. These services are important to online users as they begin to worry more about their digital authenticity.
The stock traded at $212. Investors need to continue accumulating stocks on the weak side.
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