Productivity Miracle​

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​ ¹Source: Epoch AI, OpenAI, and Alger. The calculation of AI’s growth rates compares the training computation between Dropout (2012) and GPT-4 (2023), based on PetaFLOPS /day per second. PetaFLOPS is a unit of computing speed, equal to one quadrillion FLOPS (floating operations per second) and serves as a measure of computer performance. Dropout is a regularization technique for reducing overfitting in deep neural networks and was proposed by Hinton et al. in their paper “Dropout: A Simple Way to Prevent Neural Networks from Overfitting” in 2012. Generative Pre-trained Transformer 4 (GPT-4) is an autoregressive language model released in 2023 that uses deep learning to produce human-like text, developed by OpenAI. This calculation should be considered a rough estimate.

The views expressed are the views of Fred Alger Management, LLC (“FAM”) and its affiliates as of November 2024. These views are subject to change at any time and may not represent the views of all portfolio management teams. These views should not be interpreted as a guarantee of the future performance of the markets, any security or any funds managed by FAM. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

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