Embodied AI and investments

I came across a Youtube video that touched on embodied AI. This was at layman’s level and was simply attempting to explain the advantage Tesla AI has over say ChatGPT.

I also recall a video, with Huberman I think, where there was a philosophical discussion about the mind being separate from the brain and the brain being treated separately from the body. The point of contention was that some schools of thought separated the three. The body being the housing that takes care of the brain and the brain being the computer that runs the software of the mind. The counter argument being that the body brain and mind are all one and have to be studied and treated together.

While to some this is just a philosophical debate and means little in the treatment of the emotional disorders. Especially as it pertains to Psychedelic therapy. But, to the AI scientist it is not. AI science is pointing toward true high quality AI being AI that is embodied. Further, the biggest input for embodied AI is video. As a parallel, most of human brain power is devoted to visual input interpretation.

I mention this here because we are investing in AI. Either through picks and shovels, i.e. Nvidia and Super Micro, or SAAS like Datadog, Monday, Cloudfare. However, the latter three are all disembodied AI.

Personally, I am torn, I have good people making good cases to be invested in the old (for this board) SAAS companies. And see good cases here for looking elsewhere.

I am tempted to start winnowing AI companies by embodied vs disembodied AI. In other words companies like Tesla with Full Self Driving which is a full embodied AI, or AXON which while it does not have the feedback loop of a body, does consume a great deal of human video. I currently have a full position of Tesla in my aggressive portfolio. Tesla gives me nervous stomach because do not see that they have a way of monetizing AI that would support its current valuation. The only reason I keep it there is that I cannot find another leader in embodied AI with the data stream that Tesla has.

I am still holding positions in Datadog and Cloudflare as well as Monday even though they can only build disembodied AI, I simply do not have conviction to move anywhere else yet…

I still hold Super Micro despite it having a crazy valuation, and would buy Nvidia if its valuation wasn’t mind blowing. Still even if they were a value, I would have doubts because they must keep selling picks and shovels.



You have other options. You can sell some so you don’t feel so queasy. It is ok to sit in cash while you wait.

Brad Gerstner (Altimiter) was on CNBC today and agreed that Tesla FSD 12 is the most advanced. He says they have so much data that it could be hard for other companies to catch up. The China agreement with Baidu was very important as well. But he did not say you should therefore go buy a ton of it.