Company Spotlights / Market Commentary

Are Generative AI Companies DOOMED?!

  • Declan O’Flaherty

    Declan holds a Bachelor of Commerce from the University of Alberta and has over 4 years of experience investing in financial markets. As a fundamental investor, Declan embraces the investment principles of Warren Buffett and his disciples. This puts a focus on finding businesses with healthy financials, competent and accountable leader, enduring competitive advantages, and those that are selling at discount to what they are worth.

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Technological disruptions come in many forms. Whether it was Netflix to Blockbuster, Uber to taxis, or Amazon to brick-and-mortar, each innovation offered its consumers unparalleled convenience, affordability, and growth. However, it always came at the expense of its predecessor. That is because when a legacy business fails to adapt to new circumstances, a once impenetrable moat suddenly becomes vulnerable, making it easier for outsiders to tear down its walls. In the world of artificial intelligence, it appears that this new disruptive technology is generative AI. You know, the revolutionary AI propelling ChatGPT into the spotlight and OpenAI into the stratosphere? Well, what if I told you that generative AI’s short-lived reign was coming to an end and that the next big development in AI was already here? If so, wouldn’t you want to take advantage of this opportunity before the rest of the world finds out? Today, we’ll explain how VERSES AI’s general artificial intelligence is overcoming the limitations of LLMs like ChatGPT, and how they plan to use it to create a smarter world. Prepare to be amazed by one of humanity’s most fascinating inventions and the profound effects it will have on us all in the coming years.

The Fall of Generative AI

Generative AI is not what you think. On the surface, it seems like the most disruptive tool ever created. But deep down, it is a limited and highly flawed form of artificial intelligence. Let me explain. Generative AI scans the World Wide Web for text, image, video, and audio data. Then, when you give it a prompt like, “Explain the Big Bang theory as if speaking to a ten-year-old,” it uses pattern recognition technology to produce a likely response based on the available data. While impressive, you might wonder, “How did ChatGPT arrive at its response?” More importantly, “What sources did it use to generate the response?” But that is the problem. It is unexplainable because big data used by generative AI is a massive black box.

Public vs. Private Date | VERSES AI Public vs. Private Date | VERSES AI

When LLMs like ChatGPT scan the web, they churn through trillions of public data points and produce a response that appears to be right based on everything available, without really knowing why it chose its response. This lack of precision leads to biases and falsifications that can be quite consequential depending on the prompt. What’s worse, no one knows how to govern it because they don’t exactly know how it arrives at decisions in the first place. To illustrate this, what if a bank was to use generative AI to assess an individual’s credit score? If so, it may lean on inaccurate biases, based on information found on the web, that could ruin that person’s chances of buying a home. As you can see, this can be quite harmful and is a primary reason why governments around the world are seeking to regulate it before it’s too late. The startling thing is that the companies creating generative AI don’t have a solution either. But that is not all.

Generative AI vs. General Intelligent Agent | VERSES AI Generative AI vs. General Intelligent Agent | VERSES AI

Another major flaw of generative AI is that it cannot acquire new knowledge and is not interoperable with other generative AI agents. For instance, when you access ChatGPT-4, you will notice that it has limited data on the world after 2021. Therefore, if you want the most up-to-date information, you must wait for OpenAI to create a new version of ChatGPT (ie. ChatGPT-5) before it can meet your demands; then, in a few years, one must update the program once again for it to stay relevant. This siloed structure, where it can not acquire new information in real-time or work with other LLMs, is super inefficient and quite expensive. For example, it is said that OpenAI spends roughly $100 thousand per day to run ChatGPT and thousands of GPUs to make it happen. When you put it that way, it doesn’t seem like generative AI is worth all of the hype, especially from an investment standpoint. So, what if there was an artificial intelligence that was transparent, explainable, governable, and teachable in real-time?

The Rise of VERSES & General Intelligence Agents

Computing has become complex and overwhelming. There are over 8.93 million mobile apps and 1.13 billion websites in the world. Of those, you may use ten apps or websites regularly, making the rest feel obsolete. But what if you never had to interact with an app again, and instead, you could ask artificial intelligence to do it for you, all the while unlocking hidden benefits from the World Wide Web? What’s more, what if this artificial intelligence agent could learn your preferences over time so that you no longer needed to communicate with it because it understood your desires and could automatically act on your behalf with your best interests in mind? If that were the case, you would never have to order an Uber, book a flight, create a website, or respond to an email again. Instead, the personal AI agent would do it for you, allowing you to do more of the things that are truly important to you. And if you ever wanted to make changes or enhance your experience, you could simply express your desires to the AI, using voice or text, and it would be completed, without ever requiring a programmer to make it happen.

KOSM Intelligent Agents | VERSES AI

​ That is the essence of VERSES’ General Intelligence Agent, GIA, a personal AI agent designed to create a fully customizable and comprehensive experience based on your needs, in real time. GIA is built on VERSES’ KOSM OS, the world’s first operating system for creating, sharing, and selling general intelligence agents such as GIA. Unlike other operating systems, KOSM OS draws inspiration from the human brain using a cognitive computing framework known as Active Inference that was developed by VERSES’ Chief Scientist Dr. Karl Friston. This framework enables VERSES’ general intelligence agents to learn and adapt in real-time all while interacting and operating with multiple AI and IoT devices at once. These multiagent systems are a tremendous feat for VERSES putting them at the forefront of one of Gartner’s most anticipated AI technologies for 2023. And given that KOSM is built using transparent and comprehensive Spatial Web standards, we can be comfortable knowing that our AI will always be understandable and act with our best interests in mind. To put it simply, with GIA, you are receiving an all-in-one super-intelligent AI agent that is transparent, governable, and interoperable at all times, making it the first and only artificial intelligence system capable of meeting the demands and regulations of the modern world. And the coolest thing about it is that VERSES is rolling out GIA this year allowing you to invest in the company and interact with it before the rest of the world finds out. Imagine having the world’s most revolutionary technology in the palm of your hand.

But Wait, There is More

Developer Pipeline | VERSES AI Developer Pipeline | VERSES AI

Though GIA is at the forefront of VERSES assets, the company is developing other products and services that may be just as impressive. For one, VERSES is building other applications on KOSM such as its WAYFINDER, Datalens, and Gaurdion products. To illustrate, WAYFINDER is a smart app that uses digital twin and artificial intelligence technology to help logistics companies improve operational efficiency in warehouse and distribution centers. So far, it has increased productivity for clients by over 35%, translating directly into bottom-line savings for these companies. And for VERSES, WAYFINDER has proven to be quite the revenue driver, securing multiple million dollar deals including a $26.5 million, 10-year contract from NRI Distribution, and a reseller agreement with Blue Yonder, the largest warehouse management software provider in the world. But building apps on KOSM isn’t VERSES’ main objective.

VERSES Business Model

Instead, the company expects to generate most of its sales by enabling third-party businesses to develop and market their own general intelligence agents on KOSM OS, and through GIA subscriptions as well. Excitingly, VERSES has already built a strong developer pipeline that includes more than 100 businesses in a variety of industries such as Aerospace, Cold Storage, and Pharmaceuticals, among others. Through them, and others, the company is set to become a true powerhouse in the artificial intelligence market and beyond.

The Bottom Line

The Potential Value of AI by Sector | McKinsey The Potential Value of AI by Sector | McKinsey

While generative AI appears to be a transformational technology, it is not the solution that the world needs. What we require are artificial intelligence agents that are transparent, explainable, governable, and teachable in real-time. Without them, things may quickly fall apart as our fates are decided by ungovernable and unteachable artificial intelligence systems that fail to adhere to our values. But with VERSES and GIA, there may be a solution to this ever-increasingly complex problem of how to regulate AI. It all comes down to its cognitive-based general artificial intelligence that is built to work alongside humans, not replace them. If you would like to learn more about VERSES AI (Canada: VERS.NE) (USA: VRSSF) and its technology, check out its investor presentation below.

VERSES AI (CA: VERS.NE) (USA: VRSSF)

Disclosure/Disclaimer: We are not brokers, investment, or financial advisers; you should not rely on the information herein as investment advice. If you are seeking personalized investment advice, please contact a qualified and registered broker, investment adviser, or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Edge Investments and its owners currently hold shares in Verses AI stock and are compensated by Verses for Investor Relations Services, amounting to eighty-nine thousand seven hundred sixty dollars. Edge Investments and its owners reserve the right to buy and sell shares in Verses AI without further notice, which may impact the share price. Please do your own research before investing, including reading the companies’ public filings, press releases, and risk disclosures. The company provided information in this profile, extracted from public filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it. The commentary and opinions in this article are our own, so please do your own research. Copyright © 2023 Edge Investments, All rights reserved.

  • Declan O’Flaherty

    Declan holds a Bachelor of Commerce from the University of Alberta and has over 4 years of experience investing in financial markets. As a fundamental investor, Declan embraces the investment principles of Warren Buffett and his disciples. This puts a focus on finding businesses with healthy financials, competent and accountable leader, enduring competitive advantages, and those that are selling at discount to what they are worth.

    View all posts

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