Sixty three (63) years later my hunch is proven to be correct. What follows is the rambling tale of how I figured out how AI works. It won’t help you with your investing but the conclusion might. Skip if you are in a hurry.
I’m not a scientist but a college dropout. The mathematics of physics at MIT was way too complicated for me to follow. When I dropped out my dad got me a job as a programmer at the IBM Service Bureau in Caracas in 1960. That’s another long story but the short of it is that writing computer code was just fun and games for me.
On my very first job I was introduced to the Finance Ministry as the Computer Expert even though I knew exactly nothing about it. Those were the days! I wrote the code but it was too big for the computer, an IBM 650 that ran on 2000 vacuum tubes (triodes) and a magnetic memory drum. I told my boss it didn’t fit and he replied, “It fits!” Back to the drawing board, Back to the boss. “It fits!” two or three times. The difficulty was that the IBM punched cards for this job didn’t have the standard punches but great big square ones with a different coding system…
Standard punches
I could not interpret them except by a very long algorithm that was just too big for the computer (20,000 10 digit decimal words). The problem seemed insoluble until one night when around 4AM I awoke with the perfect solution! I was usually late for work but this day I could not wait for the office to open to see if it worked in reality. It did! “It fit!”
The reason for telling this story is that it got me thinking about how the heck does the brain work. Writing algorithms is the boolean brain’s job which was fast asleep that night. It was the subconscious brain that found the solution. The computer’s instruction set had a Lookup function. I didn’t have to decode the big square holes, all I needed to know was if they were valid. A table lookup does just that. How did the subconscious brain figure that out?
How does the brain recognize a face out of millions in fractions of a second? How does it recognize a voice over a poor quality phone connection? Imagine yourself in the African savannah a few thousand years ago. Your logical algorithmic brain is way too slow to save you from hungry predators. Literally you don’t have time to think. Your other brain has to solve ‘instinctively’ for Fight or Flight? My answer to the question was that the brain is a pattern matching machine. It stores millions of patterns and it can instantly match the present one with one or more in its memory bank (don’t ask me how, beyond my grade level). By patterns I don’t just mean pictures, it can be anything including computer code lookup functions. Anything humans can experience.
My hunch has been vindicated! Tesla’s FSD12 does just that. Initial attempts at Artificial Intelligence (AI) were based on heuristics and were failures. People though that AI was just imposible
heuristics
Computing proceeding to a solution by trial and error or by rules that are only loosely defined.
until they figured out how to mimic the brain’s pattern matching ability using tensor mathematics.
Tesla’s Most Important Weekend Ever 
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The consequences for investing
I have a large position in TSLA which I treat as buy and forget. While I do follow its ups and downs I no longer react to them.
We are in the midst of two giant paradigm shifts, EVs and AI and Tesla is the only company that is the leader in both!
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Tensor mathematics
Denny Schlesinger