AI Investment Structure Highlighted by Fund Manager

Dominic Rizzo, manager of the Global Technology Stock Strategy Fund, discussed the architecture of artificial intelligence in the cover story of Money Monday's 422nd issue, published on October 30, 2023. According to Ming Pao, Rizzo explained that AI architecture is divided into four layers. The lowest layer is the chip ecosystem, which is crucial for any AI investment. The third layer consists of infrastructure and enablers, including companies providing cloud computing services such as Apple, Microsoft, Amazon, and Alphabet. The second layer is the foundational model, which includes companies that develop applications like large language models, such as Microsoft's OpenAI, Meta's LLaMA, Google's PaLM2, and Amazon's Titan. The top layer involves applications like chatbots, including Microsoft's ChatGPT, Google's Bard, and Amazon's CodeWhisperer. Rizzo emphasized that chip stocks are among the strongest sectors in U.S. technology stocks due to their foundational role in AI investments.