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BlinkLab to Participate in the Landmark Monash University Autism/ADHD MAGNET Project
BlinkLab Limited (ASX:BB1) (“BlinkLab” or the “Company”), an innovative digital healthcare company developing smartphone-based AI powered diagnostic tests for neurological conditions, is pleased to announce their participation in the landmark MAGNET (Monash Autism & ADHD Genetics and Neurodevelopment) study conducted by Monash University’s School of Psychological Sciences.
Link: https://molecularautism.biomedcentral.com/articles/10.1186/s13229-021-00457-3
Highlights
- The MAGNET project is an ongoing large cohort study aiming to enrol 1,000 families with children diagnosed with only autism, only ADHD, or with both autism and ADHD.
- MAGNET is utilising a novel family-based trial design where the parents, affected child and siblings (either affected or unaffected) are all enrolled in the same study.
- The aim of the study is to identify novel data-driven autism and ADHD subtypes using deep phenotyping data, including the BlinkLab Dx 1 biomarkers, that may outperform current categorical diagnoses with potential future implications for better and more personalised autism and ADHD diagnosis and treatment.
The project will help to unravel the complex symptoms of autism and Attention Deficit Hyperactivity Disorder (ADHD), and why they overlap in some children. The data generated by the study will address several limitations of categorical conceptualisations of these conditions. It is an important step towards a more dimensional understanding of their psychopathology, leading to better diagnostic models and more personalised support for children diagnosed with autism and/or ADHD. Using BlinkLab Dx 1, we aim to complete comprehensive deep sensory phenotyping of subjects with only autism, only ADHD, or with both autism and ADHD from the large MAGNET cohort.
Significance of the Study
Autism and ADHD are neurodevelopmental conditions affecting 1-4% and 5-7% of the population, respectively. Autism is characterised by deficits in social communication, restricted and repetitive patterns of behaviour and interests and altered sensory processing, whereas ADHD is defined by hyperactivity, impulsivity and inattention. In autism, 30-80% of cases exhibit ADHD symptomatology. In ADHD, 20-50% of cases exhibit autism symptoms.
The introduction of the DSM-5 has allowed, for the first time, the concurrent diagnosis of autism and ADHD and the two conditions are now recognized to co-occur in up to 50% of cases. This co-occurrence can be associated with a more severe ADHD phenotype and higher treatment needs overall. DSM-5 is a comprehensive classification system published by the American Psychiatric Association (APA). It serves as the authoritative guide used by healthcare professionals to diagnose mental disorders.
Prepulse inhibition (PPI) is a key measure used in BlinkLab Dx 1 and is considered an effective proxy for sensorimotor gating - the brain's ability to filter out irrelevant information and prioritise what is relevant. Deficits in PPI have been observed in individuals with autism but not in those with ADHD, suggesting its potential as a tool to differentiate between these two conditions. Clinically, this distinction is crucial, as treatment, support, and care strategies differ significantly for individuals with only autism, only ADHD, or with both autism and ADHD. There is also little known about the extent to which any deficits in PPI extend to the undiagnosed family members of children with autism, ADHD, or with both autism and ADHD. The diagnostic process for these neurological conditions is time-consuming and expensive and they are both characterised by significant heterogeneity in presentation. Objective behavioural markers, like PPI, potentially will play an important role in the next generation of diagnostic pathways and personalised interventions.
Dr. Henk-Jan Boele, CEO BlinkLab, commented: “Participation in the MAGNET study will enable BlinkLab to assess how its digital biomarkers, including the PPI measure, correlate with other validated behavioural, neurocognitive, neuroimaging and, potentially, genetic markers. Using these deep phenotyping and machine learning techniques, we expect to uncover novel, homogeneous data-driven clusters and subtypes of these diseases with significant future implications for better and more personalised autism and ADHD diagnosis and treatment.”
Study Design
The MAGNET study will enrol approximately 1,000 families with children aged between 4 and 18 years of age. The study will incorporate the BlinkLab PPI measure to determine how prepulse inhibition measures vary within the different diagnostic categories (i.e. ADHD vs autism vs ADHD+autism). The results will show whether BlinkLab’s Dx1 platform can distinguish between these groups. BlinkLab Dx 1 platform will be assessed alongside other validated questionnaires and biomarkers used in the MAGNET project. A unique feature of the study design is that tests will be carried out with the diagnosed child and their family members. The data from both parents (wherever possible) will determine the degree to which BlinkLab can detect performance variation within families, and thus can serve as a proxy for familial risk for these conditions.
“From the very foundation of our technology, the BlinkLab mission was always to disrupt the traditional methods of diagnosis and categorisation of psychiatric and neurodevelopmental conditions. Using more objective methods will lead to more personalised treatments and interventions. Participation in this landmark study with world- leading researchers and authorities in the field of autism and ADHD, is a testament to our mission and hard work by our team,” commented CEO of BlinkLab, Dr Henk-Jan Boele.
Lead researcher Professor Mark Bellgrove of Monash University’s School of Psychological Sciences said that he is delighted to collaborate with BlinkLab on the MAGNET study. “BlinkLab’s innovative digital technologies make it easy for the children and families enrolled in the study to provide critical data. This will hopefully lead to better outcomes for future families and children affected by these two complex and challenging conditions.”
Click here for the full ASX Release
This article includes content from Blinklab Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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BlinkLab Limited
Investor Insight
BlinkLab’s transformative AI-based healthcare technology is at the forefront of innovations in the global medical field that are quickly gaining traction among keen investors.
Overview
BlinkLab (ASX:BB1) offers a smartphone-based diagnostic platform that leverages computer vision, artificial intelligence (AI) and machine learning (ML). A company started by neuroscientists at Princeton University, Blinklab has developed its novel technology over several years, providing an app-enabled, smartphone-based diagnostic tool for evaluating children with neurodevelopmental conditions such as autism and ADHD.
The app turns a smartphone into a diagnostic tool that helps to conduct remote and rapid tests that can assist in diagnosing neurodevelopmental conditions. BlinkLab’s smartphone app provides a screening tool that can help with diagnoses much earlier than the age that children are typically assessed at present (approximately 5-6 years old). It is also a remote (i.e., accessible) and inexpensive means of beginning the assessment process, which can typically be very costly and take up to multiple years currently.
BlinkLab’s smartphone app facilitates early diagnosis, reduces costs, and improves accuracy.
BlinkLab’s smartphone-based technology, which uses AI and machine learning (ML), makes it attractive to investors. Like other industries, AI is becoming very popular in the healthcare sector. According to Statista, the AI healthcare market is expected to proliferate from $11 billion in 2021 to $187 billion in 2030. The increasing use of AI is driven by advanced ML algorithms, access to data, and use of 5G technology. AI and ML technologies can evaluate and analyze enormous volumes of data faster than humans.
Artificial intelligence, and particularly machine learning, has the potential to serve as the great equaliser for many behavioural healthcare concerns like autism. According to recent data, 97 percent of adults in the United States own a cellular device, and nine in ten own a smartphone. A 2022 Global State of Digital report by We Are Social shows 66.9 percent, or about 5.34 billion, of the world’s population are mobile users. As these percentages continue to rise and internet-powered devices become ubiquitous, access to digital health services can become democratised on a global scale. While autism spectrum disorder (ASD) services are currently restricted to relatively privileged populations, digital solutions powered by emerging data, science, and methodologies can make access to autism therapy more accessible.
Large players are investing in this segment to tap into the vast potential of these new technologies. One such example was Pfizer’s acquisition of ResApp. In October 2022, Pfizer acquired Queensland University startup ResApp Health for $179 million. ResApp developed a smartphone technology to detect respiratory diseases using cough analysis accurately.
Furthermore, big tech companies such as Apple, Amazon, Microsoft and Alphabet are also now venturing into the AI healthcare market.
Company Highlights
- Australia-based BlinkLab (ASX:BB1) is focused on transforming mental healthcare through an AI-enabled smartphone application, a breakthrough technology developed with Princeton University.
- The company’s innovative approach leverages the power of smartphones, AI and machine learning to deliver screening tests specifically designed for children as young as 18 months old. This marks a significant advancement, considering traditional diagnoses typically occur around five years of age, often missing the crucial early window for effective intervention.
- Once approved by regulators, this cutting-edge digital technology is poised to capture the imagination of both investors and major pharmaceutical companies, eager to embrace transformative solutions in healthcare.
- BlinkLab is led by an experienced management team and leading experts in the field of machine learning, autism and brain development, bridging the most advanced technological innovations with groundbreaking scientific research. The company is chaired by Brian Leedman, an experienced biotechnology entrepreneur and founder of ResApp Health, a digital diagnostic company recently acquired by Pfizer.
Key Technology and Applications
Neurobehavioral assays of brain function can reveal fundamental mechanisms underlying neuropsychiatric conditions, but typically require centrally located equipment in a laboratory test facility. Consequently, these tests are often unpleasant for participants, as they often require instruments attached to their face and cannot be used at scale in daily clinical practice, particularly with paediatric patients.
BlinkLab has developed a smartphone-based software platform, known as ‘BlinkLab Test’, to perform neurobehavioural testing that is free from facial instruments or other fixed location equipment.
This AI-based platform is designed to be used at home or in similarly comfortable environments, either independently or with the assistance of a caregiver, while following instructions from the smartphone application. The tests include, but are not limited to, eyeblink conditioning (EBC), which is a form of sensory-motor associative learning, prepulse inhibition of the acoustic startle response (PPI), which measures the ability to filter out irrelevant information through sensorimotor gating, startle habituation, which measures the ability for the intrinsic damping of repetitive stimuli and sensory adaptation, and habituation of the eye blink response, which serve as biomarkers for neurological and psychiatric disorders.
The BlinkLab Test App combines a smartphone’s ability to deliver stimuli and acquire data using computer vision with a secure cloud-based portal for data storage and analysis. In the tests, each audio and/or visual stimulus is presented with millisecond-precise control over parameters such as timing, amplitude and frequency. To maintain participant attention, an entertaining movie of choice is shown with normalised audio levels. Participants’ responses are measured by the smartphone’s camera and microphone, and are processed in real time using state-of-the art computer vision techniques. Response data is then fully anonymised, and transferred securely to the analysis portal. There, BlinkLab’s in-house AI/ML algorithms then perform clustering and statistical analysis to identify the prediction value of the experiment in the particular data set.
BlinkLab Test was initially developed as a prescription diagnostic aid to healthcare professionals (HCP) considering the diagnosis of ASD in patients 18 months through 72 months of age that are at risk for developmental delay. In collaboration with Princeton University in the United States and Erasmus Medical Center in the Netherlands, the company has conducted several trials using BlinkLab Test as an early assessment tool for autism. Autism represents a global challenge, with 1 in 36 children in the U.S. having autism, up from the previous rate of 1 in 44. With no early tests currently available to detect the condition, many children are diagnosed with the condition as late as the age of five.
Blinklab’s mobile app can aid in early detection, facilitating diagnoses as early as two years of age and resulting in earlier personalised interventions and monitoring. The testing process is also far more comfortable than traditional means of diagnoses, as the child can watch their favourite movie or cartoon on the phone, and the app will record their reactions, providing key information on the functioning of the brain.
BlinkLab will be subject to regulatory oversight as a medical device and must clear clinical studies. Previous clinical trials completed by Blinklab have shown impressive indicators of success, achieving sensitivity levels of 85 percent and specificity levels of 84 percent. The company notes that these trials are very similar to those that are required by the United States Food and Drug Administration (FDA) for approval and have shown much higher levels of accuracy compared to currently approved products.
In order for the BlinkLab Test technology to be used as a clinical aid in the diagnosis of ASD, BlinkLab will need to complete a pivotal registrational study, and subsequently apply for FDA registration and reimbursement for the tests. The registrational study intends to recruit up to 500 subjects. Enrolment for this study is expected to begin in 2024, with study completion expected by mid-2025. The potential to participate in a disruptive and scalable AI-powered technology close to regulatory approval should attract attention from big medical technology companies.
Research and clinical studies
BlinkLab engages and partners with research and medical institutions across the globe to further test and develop its technology.
In May 2024, BlinkLab initiated a clinical study in partnership with US-based Turning Pointe Autism Foundation to enroll up to one hundred children previously diagnosed with autism and one hundred children without an autism diagnosis. The data obtained during this collaboration will be used to finalise the data collection and processing algorithms and AI/ML models ahead of the FDA registrational study.
The company is also participating in a clinical study of patients with spinocerebellar ataxias, conducted by Columbia University, New York, to study the effect of aerobic physical exercise on neuroplasticity in adults with spinocerebellar ataxias (SCA).
To further improve and accelerate the diagnostic evaluation of ADHD, BlinkLab forged a major research and clinical partnership with Mental Care Group (MCG) in The Netherlands, the fifth largest outpatient mental health care provider in Europe.
To validate BlinkLab’s platform for the assessment of functional neurological disorder (FND), the company has partnered with Bates College in Maine for a clinical study that aims to characterise the behavioural time course of Pavlovian eyeblink conditioning and acoustic startle habituation. It will validate the BlinkLab smartphone test for use as a remote neurobehavioral testing and diagnostic tool for FND.
At Erasmus University Medical Center, BlinkLab’s smartphone-based remote assessment, including eyeblink conditioning and prepulse inhibition of the acoustic startle reflex, is being used, among other tools, in a clinical study to set-up an overarching at-home testing lab, named the Digital Dementia Lab, to identify, develop and test a variety of digital biomarkers
measuring clinically relevant behaviour for improving early accurate diagnosis of dementia.
BlinkLab is also working with Monash University in Australia to evaluate BlinkLab as a medical device for monitoring the therapeutic effects of ketamine on cognitive processes whereby sensory information is converted into decision making. Results from this study can help facilitate cognitive behavioural therapy outcomes in patients with psychiatric conditions such as depression, schizophrenia, epilepsy, and post-traumatic stress disorder.
BlinkLab also recently signed a partnership for more clinical trialling with INTER-PSY, a large centre in the Netherlands that specialises in autism, offering assistance with diagnostics and treatments. This study also mirrors the study design of the Company’s developing FDA regulatory trial, which will be needed for future approval of BlinkLab Test as an approved diagnostic tool in the United States.
Management Team
BlinkLab is led by an experienced management team and directors with a proven track record in building companies and vast knowledge in digital healthcare, computer vision, AI and machine learning. The company’s chairman, Brian Leedman, is an experienced biotechnology entrepreneur and founder of ResApp Health, a digital diagnostic company for respiratory conditions, which was recently acquired by Pfizer for $179 million before reaching FDA approval for their main diagnostic product.
Dr. Henk-Jan Boele – Founder and Chief Executive Officer
Henk-Jan Boele is an assistant professor of neuroscience at the Medical Center of Erasmus University and a researcher at Princeton University. He obtained his PhD from Erasmus University in 2014. Boele has always been pushing scientific and methodological boundaries, and received numerous government and industry grants in the field of neuroscience.
Peter Boele – Founder and Chief Technology Officer
Peter Boele holds a bachelor’s degree in history and philosophy from Leiden University. He has over 20 years of experience in software development and has worked with Erasmus University, Leaseweb, Kaboom Informatics and Insocial.
Dr. Anton Uvarov – Founder and Chief Operational Officer
Anton Uvarov holds a Ph.D. from the University of Manitoba and an MBA from the Haskayne School of Business. He has rich experience in bio-technology investments with a particular focus on neuroscience and has successfully led several IPOs. He started his career as a biotechnology analyst with Citigroup, US.
Dr. Bas Koekkoek – Founder and Chief Scientific Officer
Bas Koekkoek is an assistant professor at Erasmus Medical Center. Koekkoek has been working at the Department of Neuroscience mainly in the role of rapid prototype of new technology and techniques for neuroscience. He has numerous publications in the area of brain development including Nature and Science journals.
Professor Sam Wang – Founder and Chair of Advisory Board
Sam Wang holds a PhD from Stanford University. He is a professor of neuroscience at Princeton University, has published over 100 articles on the brain in leading scientific journals and has received numerous awards. He gives public lectures on a regular basis and has been featured in The New York Times, The Wall Street Journal, NPR, and the Fox News Channel.
Professor Chris de Zeeuw – Founder and Scientific Advisor
Chris de Zeeuw is chairman of the Department of Neuroscience at Erasmus MC in Rotterdam and vice-director at the Netherlands Institute for Neuroscience in Amsterdam. De Zeeuw has received over 100 grants, including the Pioneer Award from ZonMw and the ERC advanced grant. In 2006, he received the Beatrix Award for Brain Research from Her Majesty the Queen; in 2014, he became an elected member of the Dutch Academy of Arts & Science; and in 2018, he received the international Casella Prize for Physiology.
Positive Outcome from FDA Pre-Submission Meeting
BlinkLab Achieves Pivotal Step Towards FDA Approval for Autism Diagnostic App
BlinkLab Limited (ASX:BB1) (“BlinkLab”, or the “Company”), an innovative digital healthcare company is pleased to announce a positive outcome from its Pre-Submission meeting with the FDA yesterday. The FDA has confirmed the study design and data requirements in order to achieve 510(k) clearance and subsequently launch the diagnostic app in the U.S. The Company plans to complete both programs within 12-16 months after the necessary approvals and site engagements have been secured.
Highlights
- Positive outcome received from a Pre-Submission meeting with the U.S. Food and Drug Administration (“FDA”) regarding the regulatory pathway for BlinkLab Dx 1 diagnostic app.
- The FDA has confirmed the design for the BlinkLab Dx 1 registrational program, which will consist of an Initial Study Phase that then transitions into the Main Study. The Initial Phase will recruit up to 100 children with the main registrational study up to 1,000 subjects recruited from up to ten clinical sites.
- Several leading clinical sites across the U.S. have already been selected with ethics submission and site activation in process.
- The initial phase (of 100 children) will be used to:
- Familiarise the investigators and personnel at clinical sites.
- Train in-person and virtual recruitment strategies.
- Test the procedures of subjects screening and data collection.
- These steps are part of the Company’s strategy to de-risk the main FDA registrational study and to ensure the highest quality of the data collected and diagnostic accuracy of the BlinkLab App.
- FDA has confirmed the study protocol, statistical analysis plan, clinical endpoints and final data requirements to achieve 510(k) clearance for “BlinkLab Dx 1” as an aid in the diagnosis of autism.
U.S. FDA registrational study in Autism Underway
To support its FDA registration in the US, BlinkLab has initiated a large clinical study in children with autism. The goal of the study is to obtain FDA 510(k) clearance for BlinkLab Dx 1 to serve as a digital diagnostic aid for autism. BlinkLab has received positive feedback from the FDA on final clinical study design and data requirements in order to achieve FDA 510(k) clearance. Clinical site selection is in progress with ethics approvals and onboarding about to be complete for several sites.
The upcoming clinical program will consist of an Initial Study Phase that will precede the main registrational study. The Initial Study Phase will enrol 100 subjects with the main study continuing recruitment of up to 1,000 children with autism aged 2-11 years old. The FDA trial will involve leading clinical and research sites across the US, ensuring a diverse population of children in terms of race, ethnicity and gender. BlinkLab plans to complete both programs within 12-16 months after the necessary approvals and site engagements have been secured. This dual study approach ensures that clinical experts on sites as well as families participating in the study are fully trained and familiar with the BlinkLab Dx 1 diagnostic application and its functionalities.
Both phases of the study will incorporate a prospective, double-blinded, within-subject comparison design in order to establish BlinkLab’s diagnostic accuracy. This will involve comparing BlinkLab Dx 1 output to the DSM-5 based diagnostic standards. Following completion of the study, should data meet the accuracy outputs, BlinkLab will submit the study report and supporting documentation for FDA 510(k) clearance in order to gain access to the U.S. autism diagnostic market.
Brian Leedman, Chairman of BlinkLab commented on the milestone:“This pivotal outcome in our FDA regulatory study process marks a significant milestone in our achievements as a listed Company. With this guidance from the Pre-Submission Meeting, we are confident in our study design and ability to bring BlinkLab Dx1 to market. We look forward to updating the market in early 2025 as to our progress in site selection, recruitment and results of the initial study”.
Henk-Jan Boele, CEO BlinkLab, commented:"I am pleased that we had such a productive discussion with the FDA regarding our regulatory trial. Truly appreciate their support and alignment on addressing the unmet medical need. We look forward to collaborating closely with the FDA on advancing BlinkLab Dx 1."
Click here for the full ASX Release
This article includes content from Blinklab Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
AI Market Forecast: Top Trends That Will Affect AI in 2025
The United Nations has designated 2025 as the year of quantum science and technology, highlighting the profound impact that technological advancements are poised to have on the world.
The increasing prevalence of artificial intelligence (AI) across a wide array of industries has spurred significant investment in the sector over the last two years as the world's largest tech firms jump in. As AI continues to evolve, many investors are wondering if 2025 will be a pivotal year when these investments begin to show significant returns.
From its impact on stock market valuations to its transformative potential across industries, here the Investing News Network delves into the key trends and developments that are shaping the future of AI.
How will AI affect the stock market in 2025?
2024 was marked by concerns over the dominance and high valuations of the Magnificent 7, and heading into 2025, investors are keenly watching how these companies will influence the broader stock market.
Citigroup (NYSE:C) analysts have a generally positive outlook for 2025, noting that the Magnificent 7 aren't trading at unprecedented valuations; rather, the other S&P 500 (INDEXSP:.INX) stocks are at a higher risk.
Essentially, the US stock market is priced for perfection, leaving it susceptible to a correction triggered by rising interest rates, disappointing earnings or a broader economic slowdown.
For its part, BNY asserts that the Magnificent 7 may actually be undervalued relative to their future growth potential. While acknowledging the record-high profit margins in the tech sector, the firm contends that valuations relative to the rest of the market are cheaper than during similar periods of technological advancement in history.
Further, the expectation of continued profit margin expansion and earnings growth fueled by ongoing AI innovation supports the notion of further upside potential for tech stocks.
AI juggernaut NVIDIA's (NASDAQ:NVDA) sustained profitability underscores its dominant market position and ability to efficiently capitalize on the surging demand for its products.
Goldman Sachs (NYSE:GS) analysts believe the Magnificent 7 will continue to outperform the rest of the S&P 500 in 2025, but only by 7 percentage points, the lowest amount in seven years. The firm sees various elements, including macro factors like US growth and trade policy, favoring the "S&P 493."
David Rosenberg, founder of independent research firm Rosenberg Research and Associates, expressed to the Globe and Mail on December 5 that he has shifted his perspective on the US stock market.
Rather than focusing on reasons for its overvaluation and bearish indicators, he aims to understand the underlying factors driving the market's behavior over the past two years.
“The market is telling us that we are in a 'Model Shift' when it comes to future growth and profits,” he explained. “Traditional valuation methods, like price-to-earnings ratios, are backward-looking and may not be suitable in this environment. Investors are focused on long-term potential, particularly in areas like AI, and are willing to pay a premium for it. The current surge in AI might resemble the dot-com bubble, but it could take years to confirm."
He added that interest rate cuts from the US Federal Reserve would support higher valuations.
BNY also points to historical data showing that an environment of easing monetary policy tends to coincide with economic growth, with an average of 16.5 percent growth in the year following initial rate cuts since 1984. It suggests that S&P 500 earnings growth will be between 10 to 15 percent in 2025, with the index reaching around 6,600 in 2025. Although this represents slower growth compared to 2024, it still indicates continued expansion.
While Rosenberg is mindful of near-term risks, such as weakness in the US labor market and the likelihood of profit-taking and early rebalancing, he emphasized the importance of keeping an open mind in 2025.
In his view, it's key for investors to learn from the mistakes of the past year, such as overreacting to short-term volatility and underestimating the potential of transformative technologies.
Profitability in focus as AI improvement rate slows
While Big Tech pours billions into AI development, the question of profitability in 2025 hangs in the balance.
Google (NASDAQ:GOOGL) is prioritizing long-term AI dominance over short-term gains. The company's aggressive AI spending is expected to continue in 2025, potentially impacting immediate revenue growth.
Similarly, Meta (NASDAQ:META) is heavily investing in AI, with a projected US$1 billion increase in capital expenditures for 2024. CFO Susan Li acknowledged in the company's earnings call for Q3 of this year that both depreciation and operating expenses will grow next year as Meta expands its AI infrastructure and product line.
Overall, the AI landscape in 2025 hinges significantly on whether Big Tech can deliver on its ambitious promises, and recent commentary suggests that the rate of AI improvement may be slowing down. Several AI investors, founders and CEOs told TechCrunch in November that the focus may shift to efficiency and specialized AI solutions.
Test-time compute, which gives AI models more time to “think” before answering a question, emerged as part of the new era of scaling laws toward the end of 2024. Scaling laws are described by TechCrunch as the methods and expectations that labs have used to increase the capabilities of their models.
This development has fueled a growing belief — held by experts like Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman — that artificial general intelligence (AGI) may be closer than previously anticipated.
Beyond the evolution of scaling laws, Konstantine Buhler of Sequoia Capital told Bloomberg News that 2025 is poised to be a breakout year for AI agents. These sophisticated programs, capable of independently performing tasks and making decisions, have the potential to revolutionize how we interact with technology and automate complex processes.
While the transformative potential of AI spans countless industries, the scale and timing of substantial returns remain uncertain as we navigate this uncharted technological territory.
AI hardware and infrastructure developments to watch
Regardless of the exact timeline or nature of AGI's arrival, one thing is certain: the race to develop and deploy advanced AI is driving an insatiable demand for powerful hardware, and key companies are stepping up.
“While the mega-cap cloud companies will capture a lot of future revenue opportunities for AI, they are still in spending mode right now. They’re spending heavily on semiconductors, data center infrastructure, and energy,” Nicholas Mersch, associate portfolio manager at Purpose Investments, wrote in a July market commentary note.
The buildout is ongoing, and Big Tech’s latest round of quarterly reports indicates no immediate slowdown in infrastructure spending. This dynamic positions key hardware players like Taiwan Semiconductor Manufacturing Company (NYSE:TSM), NVIDIA and Broadcom (NASDAQ:AVGO) for potentially stronger near-term returns.
For its part, Goldman Sachs predicts that investor focus will now shift from AI infrastructure to a wider “Phase 3” of AI application deployment and monetization. Companies of interest include software and services firms.
Lux Research highlights two primary models: the monopoly model and the "walled garden" approach.
Companies like NVIDIA, Meta and Microsoft are pursuing a monopoly strategy, aiming to capture a large market share and maximize value extraction from a broad user base. Challenges include competition and pressure to keep prices low.
Companies can also adopt a "walled garden" approach, similar to Apple's (NASDAQ:AAPL) ecosystem, which prioritizes a smaller, more engaged user base. By providing premium features and exclusive content, companies can increase value generated per user. This model may face challenges in achieving the same level of scale as the monopoly model.
Investor takeaway
The outlook for the tech sector and the broader stock market in 2025 is cautiously optimistic.
AI is expected to continue playing a pivotal role, with the race for AI dominance fueling investments in infrastructure and innovation, and positioning key hardware and software players for potential gains.
However, the profitability of AI investments remains to be seen. Companies' ability to adapt and capitalize on emerging opportunities will be crucial for sustained success in the dynamic landscape of 2025.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Syntheia and Zero Candida Technologies are clients of the Investing News Network. This article is not paid-for content.
RocketBoots Limited (ASX: ROC) – Reinstatement to Quotation
Description
The suspension of trading in the securities of RocketBoots Limited (‘ROC’) will be lifted immediately following the release by ROC of an announcement regarding the details of the capital raise, board changes and remuneration updates.
Issued by
ASX Compliance
Click here for the full ASX Release
This article includes content from Rocketboots Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
RocketBoots Successfully Completes Capital Raise and Board Changes; Positioned to Deliver International Expansion in 2025
Artificial Intelligence software company RocketBoots Limited (ASX:ROC) (RocketBoots or the Company), is pleased to announce the appointment of Mr Roy McKelvie as Chairman, to guide the company through a period of material scaling. Mr McKelvie will invest $200k in RocketBoots, subject to shareholder approval, and cornerstone a raise for $500k at $0.085 per share (before costs) with other sophisticated investors (Placement).
Highlights
- RocketBoots appoints experienced investor and growth company specialist Roy McKelvie as Chairman
- New Chairman to invest in RocketBoots along with other sophisticated investors in a Placement to raise $500k
- Funds will primarily be used to execute on sales and customer initiatives that will deliver international expansion with a number of enterprise customers
- Further progress has been made with advanced stage customer discussions with several outcomes expected in early CY2025.
Transforming for Growth
Appointment of Mr Roy McKelvie
The Company is pleased to announce the appointment of Mr Roy McKelvie as Independent, Non-Executive Chairman effective today, who will replace Mr Hugh Bradlow. Mr McKelvie’s experience both investing in and leading growth phase businesses will be crucial to RocketBoots as it enters a major scaling phase with large customer contracting decisions approaching.
Mr McKelvie is well placed to provide corporate and public markets support during the Company’s next phase of international expansion, having over 25 years’ experience in private equity and financial markets in the US, UK, continental Europe, Asia and Australia. He has worked and consulted to companies across multiple sectors including financial services, resources, retail, business services and FMCG.
Mr McKelvie is currently Chairman at WageSafe, Pathify Holdings Inc, Infocus Wealth Management and Encompass Corporation. Prior to this, he was CEO of Transfield Holdings (previously ASX listed), MD and CEO of Gresham Private Equity, and MD and Asian Head of Deutsche Bank Capital Partners.
He has a BSc in Production Engineering from the University of Strathclyde and an MBA from the University of Edinburgh Business School.
RocketBoots Board of Directors would like to express their deep gratitude to Mr Bradlow for his services to the Company and as founding Chair. The Board thanks him for his substantial contribution taking RocketBoots to this point as we approach a material growth phase.
Mr McKelvie’s key employment terms are described in Appendix A.
CEO & Board Remuneration update
As a part of the transition for growth, the Company undertook a review of the remuneration package of the current Chief Executive Officer (CEO), Mr Joel Rappolt and the Board. The review focused on how best to align delivery of Company milestones with value to shareholders and reflects that no increases have occurred since IPO in 2021. As a result of the review, the Board confirms that the CEO’s total remuneration package has changed, effective as at 27 December 2024. Mr Rappolt’s new remuneration package is set out in Appendix B and the Board’s, which is subject to shareholder approval, set out in Appendix A.
Click here for the full ASX Release
This article includes content from Rocketboots Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
BlinkLab Limited (ASX: BB1) – Trading Halt
Description
The securities of BlinkLab Limited (‘BB1’) will be placed in trading halt at the request of BB1, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Friday, 20 December 2024 or when the announcement is released to the market.
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ASX Compliance
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This article includes content from Blinklab Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
AI Market 2024 Year-End Review
Competition in the artificial intelligence (AI) sector escalated dramatically in 2024, with major tech companies investing billions in a race to research and develop advanced AI technologies.
This surge in investment spurred rapid advancements, fierce competition and a wave of innovation that has the potential to reshape the technological landscape moving forward.
Here the Investing News Network delves into the trends that defined the AI sector in 2024.
Competition heats up among AI heavyweights
As mentioned, major tech companies jumped headfirst into AI in 2024.
For its part, Google (NASDAQ:GOOGL) began the year by rebranding its Bard chatbot as Gemini. The February decision streamlined its AI products under a single brand, showcasing a move toward a more sophisticated and unified AI experience. Its newest interaction, Gemini 2.0, was released on December 11.
Meanwhile, Microsoft (NASDAQ:MSFT) deepened its partnership with OpenAI, investing another US$750 million during an October funding round worth US$6.6 billion. This latest round brought the company behind ChatGPT to a total valuation of US$157 billion. According to SEC filings, Microsoft’s total investment in OpenAI has now reached US$13 billion.
NVIDIA (NASDAQ:NVDA), SoftBank (TSE:9434) and a handful of venture capital firms also participated in the round, but under the stipulation that OpenAI shift control of its dealings to a for-profit arm.
This sparked rumors that a potential initial public offering on the horizon.
Apple (NASDAQ:AAPL), notably missing from the list of investors who participated in OpenAI's October funding round, has opted for a more independent path, focusing on internal AI development.
At its annual developer conference from June 10 to 14, it unveiled Apple Intelligence for iOS18, saying it was coming to iPhone 16, iPadOS 18 and macOS Sequoia users. However, the company also shared plans to integrate ChatGPT in some products, like its voice-activated assistant Siri, as a supplemental layer on top of Apple Intelligence.
Apple performance, January 1 to December 17, 2024.
Chart via Google Finance.
The company's share price gained almost 8 percent by the end of the conference.
Apple Intelligence was released for qualifying models on October 28, and the newest software update, including ChatGPT for writing tools and Siri, was released on December 11.
OpenAI itself released GPT-4o on May 13, saying that it was optimized for multimodal tasks like analyzing audio and video. Later in the year, on September 12, the company previewed its first o1 model. OpenAI’s o1 series is designed to spend more time “thinking” before it responds and possesses advanced reasoning skills.
However, shortly after the model was released, The Information reported that o1 showed a slower rate of improvement compared to previous models, exposing potential limitations to continuous advancements in AI capabilities.
Amazon (NASDAQ:AMZN), while less focused on consumer-facing AI products, invested heavily in building out its cloud infrastructure and allocated another US$4 billion to AI research company and OpenAI rival Anthropic on November 22. This brings Amazon’s total investment in Anthropic to US$8 billion. As part of this expanded partnership with Amazon, Anthropic also made Amazon Web Services its primary cloud provider.
Meta (NASDAQ:META) focused on integrating generative AI across its platforms in 2024, leading to enhancements like better ad targeting and content recommendations. The company also released the MTIA v2 chip, an improved version of its AI inference chip that is designed to handle the massive amount of data generated by Meta’s customer base. The newest version of Meta’s open-sourced large language model, Llama 3, was released on April 18.
Elon Musk’s AI company, xAI, upgraded its large language model Grok-2. A beta version of Grok-2 was released on August 13 and was made available to all X users on December 12. Grok-2 was trained on xAI’s supercomputer Colossus, which is powered by 100,000 NVIDIA graphics processing units (GPUs) and came online on September 11. The company held two US$6 billion funding rounds in 2024, and as of November 28 was valued at a staggering US$50 billion.
Hardware is king
Vertical integration gained momentum in 2024 as companies invested in more parts of the chip-making process.
NVIDIA maintained its dominance, attracting attention with outstanding earnings seasons and intermittently earning the title of the world’s most valuable company. The company set the stage for exponential further growth when it introduced its Blackwell architecture at the GPU Technology Conference in March.
However, the company has faced unexpected design hurdles that have delayed the debut of Blackwell GPUs. While no official release date was set, it was widely speculated that they would be available towards the end of 2024. A progress update will reportedly be announced at the Consumer Electronics Show in January.
NVIDIA performance, January 1 to December 17, 2024.
Chart via Google Finance.
Advanced Micro Devices (AMD) (NASDAQ:AMD), NVIDIA's most direct competitor, reported a 9 percent increase in revenue in Q2, driven by its MI300X AI chip. MI300X combines GPU and central processing unit capabilities into a single chip, giving a leg up over NVIDIA, which designs both chips separately to work together.
Also in 2024, AMD collaborated with a handful of software and hardware companies to develop a new AI accelerator standard that is capable of challenging NVIDIA's NVLink.
2024 presented chip designers with a challenge as customers like Apple and Google increasingly moved chip design in-house. Made by Taiwan Semiconductor Manufacturing Corporation (TSMC) (NASDAQ:TSM), Apple’s A- and M-series chips feature a neural engine to enable on-device AI and powered a slew of new products released this year.
Google released its Tensor G4 chip, designed in collaboration with Broadcom (NASDAQ:AVGO) and manufactured by TSMC. The G4 chip powers Google’s refreshed lineup of Pixel devices, released on August 13.
The shifting trends resulted in TSMC emerging as an undisputed victor. The company reported outstanding revenue and profits in 2024, fueled by a surge in demand for powerful chips and its advanced manufacturing technologies.
Its share price hit an intraday high of US$211.93 on October 17 following its Q3 results, and it recorded an all-time high closing share price of US$205.19 that same day.
According to a December 9 report by Taipei-based market intelligence provider TrendForce, TSMC increased its share of the wafer foundry market to 65 percent in the third quarter.
TSMC performance, January 1 to December 17, 2024.
Chart via Google Finance.
Another chip company, Broadcom, successfully navigated 2024 by diversifying into software through its acquisition of VMware. Broadcom, which plays a crucial role in the semiconductor industry by designing and manufacturing chips that enable the realization of software objectives, reported record revenue for its 2024 fiscal year,
The rise was driven by strong demand for its semiconductor products and the successful integration of VMware. The company’s AI-related revenue more than tripled, and its quarterly dividend rose by 11 percent.
In contrast, Qualcomm (NASDAQ:QCOM), which remained largely focused on the hardware market this past year, appeared more vulnerable to the industry’s shifting tides.
Even industry giants like Intel (NASDAQ:INTC) faced their share of turbulence. While its foundry business struggled, Intel’s computer parts division did well, with its Core Ultra processors powering a lineup of AI-enabled laptops from Microsoft and Dell (NYSE:DELL). Dell also pushed into hybrid solutions and edge computing with its APEX portfolio.
Broadcom, Qualcomm and Intel performance, January 1 to December 17, 2024.
Chart via Google Finance.
AI hype pays dividends for tech giants
Despite a notable pullback in Q2 and Q3 due in part to investor concerns about the long-term returns of massive AI investments, 2024 was a year of strong financial performances for tech giants, as evidenced by their dividend payouts.
Meta announced cash dividend payments in May and September, while in Microsoft said in September that it would reward shareholders with a 10 percent increase to its quarterly dividend payment.
Alphabet also issued quarterly dividends for the first time in 2024, distributing payments three times.
It's worth noting that the initial surge in spending and subsequent pullback could have been influenced by a variety of factors, including hype cycles, macroeconomic conditions and evolving understandings of AI's capabilities and limitations.
Investor takeaway
Ultimately, despite occasional fluctuations and concerns, investor confidence in the tech sector remained strong throughout 2024, with funding continuing to flow. As of mid-December, shares of Microsoft were up over 21 percent year-to-date, while Alphabet was up by over 44 percent and NVIDIA was up an astonishing 166 percent.
In 2024, the AI sector experienced rapid advancements and fierce competition, driven by substantial investments from tech giants. As the technology continues to mature, the stage is set for continued innovation and disruption, promising an exciting future for AI and its applications.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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