Nvidia’s New NeMo Tech Thinks It’s Solved AI Hallucinations
Key takeaways
- Nvidia’s NeMo Guardrails program integrates with ChatGPT, Bing and Bard
- Nvidia stock price jumped 2.5% at the news
- The chip manufacturer is currently well-positioned to benefit from any AI upside
It’s fair to say we have some trust issues when it comes to AI. Despite the wildly successful launch of ChatGPT last year, with Microsoft Bing and Google Bard chatbots arriving soon after, all have suffered one key limitation: hallucinations. They start making stuff up.
But Nvidia thinks it’s solved the problem with its new program, released this week. Let’s get into what Nvidia has delivered and what investors thought of the move.
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What has Nvidia announced?
This week, Nvidia’s launched its new NeMo Guardrails tech, an open-source toolkit designed to stop AI chatbots from answering questions outside their programming. It works with all existing generative language models on the market, like ChatGPT, Bing and Bard, and is designed for large enterprise use.
It could be transformative in building AI trust. But Nvidia says the tech isn’t perfect. It has to work with models that are “sufficiently good at instruction-following” and the company admits it won’t catch everything.
So we may not be saying goodbye to the unhinged Sydney alter-ego Microsoft Bing developed and Google Bard making up answers to questions just yet. But it’s a step in the right direction that could generate more demand from companies and consumers.
What was the market reaction?
Nvidia’s stock jumped 2.5% at the news. The company could be one of the sleeper stocks for the AI revolution. It’s already one of the best-performing tech stocks this year, rising 83% in price — an unexpected position for an otherwise straightforward chip company to be in.
But Nvidia has played the burgeoning AI tech industry well so far, partnering with high-profile players like Adobe for its Firefly generative AI technology and developing its own enterprise AI suite. And most LLM models are running on Nvidia chips.
This new NeMo Guardrails system comes from Nvidia looking to consolidate its position as the go-to AI chip manufacturer, so we’re inclined to think Nvidia investors could be benefiting from the upside throughout the year.
The bottom line
Companies don’t want to risk their reputation on a rogue AI and consumers don’t want to feel like the AI apocalypse is right around the corner, so Nvidia’s guardrails will go a long way in shoring up AI confidence. It’s fair to say the tech will only improve from this point, so it’s another power move from Nvidia.
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