With each technological paradigm shift, a new investment framework becomes necessary. This has been evident in transitions from mobile internet to cloud computing, and now to artificial intelligence. The launch of ChatGPT is ushering technology investment into an AI-driven era. Whether you look at the Nasdaq 100 Index or the S&P 500 Index, you will likely find that these indexes’ overall 2023 earnings per share (EPS) growth was predominantly fueled by the “Magnificent 7” companies (Tesla, Amazon, Alphabet, Apple, Nvidia, Meta, and Microsoft), who are prime beneficiaries of AI. These firms’ substantial investments in AI have been pivotal in driving this recent surge.

Despite being the prime beneficiaries currently, these seven companies are hardly representative of the entire AI ecosystem as it stands today. Moreover, as the industry progresses, it will look vastly different than it does today as technology develops and winners and losers are revealed. We believe the AI ecosystem is only in its infancy. Generative AI is only the beginning of this monumental technological revolution.

We believe the industry will progress from its current focus on hardware to a focus on infrastructure and, later on, a focus on the actual applications of the technology, competition between which will be the end game of the ecosystem’s evolution. Finally, the development of artificial general intelligence (AGI), which refers to an AI program that can match or even exceed human capabilities, is the proverbial “Holy Grail” of AI development, but we are currently nowhere near being able to develop such a technology.

AGIX White Paper Contents:

• The long road to AGI
• An AI-native investment paradigm
• AGIX index construction
• AGIX methodology

For AGIX standard performance, top 10 holdings, risks, and other fund information, please click here.