Luke Lango says he holds in his hands the master plan for Elon Musk’s disruptive new company: “Project Dojo.”
It's the real reason he bought Twitter and there's one stock investment we can make to piggyback off of its inevitable rise.
The Teaser
“Dojo,” literally means “place of the way” in Japanese, but Elon isn't building a martial arts academy. Instead, Dojo is set to capture the lion's share of an industry contributing $15 trillion to the economy by the end of the decade.
Luke Lango proclaims himself to be a venture capitalist and as such, he's tapped into all the latest megatrends, which he writes about at Innovation Investor. We have previously reviewed several of Luke's picks, including his “Area 52” Quantum Microchip Company and “Fourth Divergence” Stocks, among others.
I think I know what industry Luke is referring to…
It’s bringing huge changes to healthcare, finance, criminal justice, human resources, sales, marketing, national security, you name it. It's Artificial Intelligence.
At Tesla’s labs in Palo Alto, California, Elon is building the world’s biggest, most powerful AI with a $1 billion in-house supercomputer called Dojo.
But Dojo isn’t just any supercomputer.
It’s so powerful that, when they turned Dojo on for its initial test run, it blew out one of Silicon Valley’s local electric substations.
Put simply, Dojo is capable of one exaflop of processing power, or one quintillion operations per second. This is 1 million times faster than the regular computers you and I use every day.
But this is only the beginning of the story, as Elon is doing something with Dojo that no one has picked up on.
Data is the Most Valuable Commodity in the World
As one automotive researcher said: “Tesla vehicles collect the most amount of data of any car company in the world.”
That is no accident.
Elon knew very early on that data is the most valuable commodity in the world and the “master key” to his big secret project.
This is the REAL reason he bought Twitter.
To gain access to all of its human interaction data, which is like “jet fuel” to AI.
It's the final piece of the puzzle needed to build the world’s biggest, most powerful AI, which is what xAI is supposed to be.
Dojo will be the powerful “engine room” of xAI, creating an entirely new business: “AI as a service.”
Luke has found a backdoor way to get in on “Project Dojo” (xAI) today and he says this could easily end up being the best single investment of the next decade.
The Pitch
All the info we need can be found in a new research report called The #1 Safest Way to Profit From xAI — Before It Goes Public.
The report is ours with a subscription to Luke's investment research advisory, called Innovation Investor. A one-year subscription costs $49, which seems to be investment newsletter writer's new favorite number and it comes with two other special reports, access to a proprietary model portfolio with 60 active recommendations, and a VC insider playbook on how to profit from the AI megatrend.
It's all backed by a one-year money-back guarantee as well.
The Most Valuable Company in History?
If the investment being pitched is based on another business (it is), we naturally want to make sure that the business is a pretty good one.
So, how valuable can xAI's “AI as a Service” become?
Luke believes once xAI is fully up and running, it will be the world’s most powerful AI platform that every business will want to hook up to.
Basically, it’s going to make ChatGPT look like AOL dial-up.
This is based on the assumption that it will be trained on more data than any other large-language AI model (LLM) in existence. Not a bad assumption considering the troves of data at its disposal between X (Twitter), SpaceX, Starlink, Neuralink, and Tesla alone.
He also compares xAI to another hugely successful business – Amazon Web Services (AWS).
The Biggest Cloud Platform in the World
Seventeen years ago, cloud storage was a huge breakthrough in computing that would change the way we work.
Just like AI is right now.
Starting in 2006, AWS helped businesses manage their technology infrastructure, offering server, storage, database, and application programming.
Today, it is the biggest cloud platform in the world and almost three-quarters of Amazon’s billions in annual profit come from AWS, dwarfing the profits from Amazon's online retail operations.
This is exactly what Elon’s going to do with xAI.
Turn it into the “next generation” AWS, for the AI revolution.
Using Luke's AWS comparison as our model, which currently accounts for 32% of all web hosting. If xAI accounts for just a quarter of that in the new AI economy, its business would be worth $1.5 TRILLION. This would make it one of the most valuable companies in history.
Some very optimistic math, but xAI does objectively have some great potential.
Right now, xAI, like SpaceX and Twitter, is a private company. There’s no direct way to buy into it. So, how do we play this?
Revealing Luke Lango’s “Project Dojo” Stocks
Luke says the easiest and safest way to get in on this story is to buy shares of Tesla Inc. (Nasdaq: TSLA).
He says this is because Tesla is basically the world’s biggest data and software conglomerate, operating under the guise of an electric vehicle company.
It's also because xAI is a Tesla subsidiary right now and there’s no way to know for sure when or even if it will be spun out.
The second pick is where things get interesting.
- Luke says “This is the #1 best way to see an early investment today skyrocket in the months to come.”
- This company is working with Tesla to produce the xAI chips that Elon’s team, including former IBM, Apple, and AMD all-star engineers are designing in-house.
Not much to go on, but I'll take a crack at it and say Luke is talking about STMicroelectronics N.V. (NYSE: STM).
- STM offers a wide range of semiconductor solutions for various applications and it supplies both Tesla and Apple.
- It is the only Tesla chip supplier that is listed on an American exchange, as its other two chip suppliers, Delta Electronics and Taiwan Semiconductor Manufacturing are both Taiwanese stocks.
Luke also teases four other companies in passing, saying they will be “the biggest beneficiaries of xAI's ramp-up.”
He calls these businesses “secret AI companies” because they are not pure-play AI companies, but rather AI leaders in their respective fields, hiding in plain sight.
Unfortunately, nothing more is said about them, so I can't even venture a few poor guesses here.
10x Return from the Most Valuable Company in History?
Before the recent meltdown, ChatGPT parent OpenAI was valued at between $80 to $90 billion.
If it is AOL and xAI is more like Google, then a $1 trillion-plus valuation is well within reach.
At the moment, xAI is nothing more than a private beta chatbot trying to catch up to ChatGPT. But, if Luke is right about Musk's ultimate goal being to turn it into the “ultimate AI platform”, then I can see some huge gains coming over the next decade for Musk and his team, which has equity in the venture.
However, Luke is wrong about one little minor detail…xAI is not a Tesla subsidiary.
Nothing in Tesla's public filings suggests this or even mentions that xAI is currently using its resources to train its large-language model.
That leaves us with STMicroelectronics, which is a nice supplier play, available at a good price of only 10x trailing earnings, with a small, but growing dividend, and a bright future. Although it may not provide the kind of explosive 10x growth being pitched here over the short term.
Quick Recap & Conclusion
- Luke Lango says he has the inside scoop on Elon Musk’s disruptive new AI company: “Project Dojo” and there's one stock investment we can make to piggyback off of its growth.
- “Project Dojo” is just a code name for xAI, which Luke believes is building an “AI as a Service” and could become the most valuable company in history as a result.
- All is revealed inside a new research report called The #1 Safest Way to Profit From xAI — Before It Goes Public.
- The #1 Safest Way to Profit From xAI is revealed as Tesla Inc. (Nasdaq: TSLA), with Elon Musk's chip supplier stock likely being STMicroelectronics N.V. (NYSE: STM), as a secondary play.
- After a bit of sleuth internet detective work, we found out that xAI is not a Tesla subsidiary, and STMicroelectronics, while a nice pick, isn't likely to net 1ox growth over the short term.
Who do you think will ultimately win the AI arms race? Microsoft, Google, Elon Musk, or someone else? Tell us what you think in the comments below.