Deep Learning

Good morning! After the Fed announced a jumbo half-point rate cut [on Wednesday](, the stock market [soared](, with the Nasdaq 100 rising 2.6% and the S&P 500 hitting an all-time high. Today we’re exploring: - It’s (not) in the game: The economics of a modern video game business. - Deep learning: Teens are using AI to do their homework. - Digital citizens: US passport renewals have moved online. Have feedback for us? Just hit reply - we'd love to hear from you! TOGETHER WITH [Sponsor Logo](   Video game giant Electronic Arts (EA) — the company behind household hits like The Sims, Madden, Battlefield, and the FIFA series — held its first analyst [meeting]( in 8 years on Tuesday. Despite unveiling a [number of projects](; a social app, AI initiatives, and a Sims movie to be produced by [Margot Robbie’s company](, the event left analysts underwhelmed. Most disappointing for investors was the lack of financial detail on the company’s bigger goals, like doubling its audience to more than one billion by 2027. EA’s stock has slipped 3% this week, while the rest of the market has powered to record highs. Now the largest pure-play publisher after Microsoft's acquisition of Activision Blizzard, EA continues to ride the success of its classic franchises. "College Football 25" lived up to its hype by shattering sales [records](, while "EA Sports FC" sold 11.3 million copies in its first [week](, proving that its rebrand away from FIFA hasn't killed its appeal. The ongoing prosperity of those cash cow titles is vital, as video game economics have changed dramatically in the last 10-15 years. In the past, success in the gaming industry was straightforward. Make a game, generate buzz about it, and sell as many copies of it as possible. If it went well, you make a sequel and do it all again. But, in 2024, the cost to the consumer rarely stops after they buy the game. EA's true financial engine is its "Live Services" segment — a broad term encompassing sales of extra content, subscriptions, in-game rewards, and other digital goodies. This accounted for 73% of the company’s revenue last year, fueling growth not just for EA but the entire gaming industry, which in the US is ~6X the size of the [box office](. Developing a quality video game is expensive, EA spent an eye-watering $2.4 billion on R&D last year. But no matter how much you spend, the outcome is always unpredictable: many video games flop, and the competition is only getting fiercer — this year’s biggest hit is from a little known [Chinese video-game]( studio. [Read this on the web instead](   Few people make as much of an impact on our lives as a good teacher — today, though, math and science tutors might look a lot like Morgan Freeman, Kim Kardashian, or Donald Trump, thanks to generative AI. We’re seeing a new trend of deepfaked educational content that uses the likenesses of celebrities to help students learn. Take [this video]( from @onlocklearning (570K Instagram followers), where “Eminem” and “Ariana Grande” explain the exponential function, or [this one]( where “Cardi B” and “Jeff Bezos” decipher why (a+b)² = a² + 2ab + b². Deep learning These clips have all the hallmarks of viral TikTok videos (slick editing, music, etc.), but they also appear to be genuinely useful. And, although those videos rely heavily on the AI celebrity gimmick, teenagers are finding other ways to use the burgeoning set of tools and chatbots. Indeed, a [new report]( from Common Sense Media found that, while nearly 75% of teens have now experimented with at least one type of generative AI, the biggest use for it so far was… helping with homework. It’s yet to be seen whether kids getting homework help from chatbots is actually a good thing for their education — but there’s a big difference between getting ChatGPT to write your history essay and enlisting fake [Snoop Dogg]( to help you with calculus. [Read this on the web instead](   [Sponsored by EnergyX]( GM Invested in This Unlisted Lithium Stock For General Motors to successfully meet its EV target by 2035, they’ll need 414,469 tons of lithium per year. That’s why the automaking behemoth led a $50M investment round for [lithium extraction startup EnergyX](. Their patented tech extracts lithium 300% more efficiently than conventional methods — and where modern methods take 12+ months, [EnergyX needs just two days](. Now, EnergyX has acquired 100,000+ acres of lithium-rich Chilean land and a $5M DOE grant toward a recently announced US lithium plant. The energy storage market could reach $546B by 20351 – and it’s powered by lithium. EnergyX’s plan to produce 65,000 tons per year will help them lead the charge. [However, EnergyX is only accepting shareholders until October 3.](2 [Become an EnergyX shareholder until October 3.2]( [Become an EnergyX shareholder until October 3.2](   If you’ve been through the arduous process of renewing your passport, news that the system is shifting from paper-only to digital will likely come as a relief (unless you’ve just done it, in which case… sorry). Secretary of State Antony Blinken released a [statement]( on Wednesday announcing that the online passport system is now fully available to the public. The rollout is part of President Biden’s Executive Order to rebuild trust in government by improving customer experiences. Digital citizens Modernizing passport processing can’t come quickly enough: the current advertised wait period for a new passport is 6-8 weeks for routine service, having only recently returned to normal-ish levels after years of [backlogs](, which saw processing times reach up to 18 weeks in 2021. While wait times are now one-third of what they were at this point last year, the number of requests that the State must process is only increasing, with US passport applications reaching an all-time high of 22 million last year — on top of a record 161 million passports [already in circulation]( in 2023. Still, there are stipulations to renewing online, including already holding a valid passport for 10 years and not having travel plans within 8 weeks. But, less red tape for applicants might see a similar bump occurring this year as in 2007, when tightened [travel restrictions]( led to a surge in requests. [Read this on the web instead](   More Data - Netflix users watched a staggering 94 billion hours of content in the [first half of this year](, with Bridgerton alone pulling in 189 million views. - Scientists have sent 300 corals from South Florida to the Texas Gulf Coast in an effort to restore reefs devastated by [bleaching](. - Drug overdose deaths in the US have declined for the first time in decades — dropping more than 10%, according to provisional [CDC data](. - Nike shares were up 7% in early trading this morning following the news of its [CEO replacement](, as the company continues to grapple with competition from brands like [Hoka and On](. - What the F1? Ahead of this weekend’s Singapore Grand Prix, the motorsport world’s governing body has asked Formula One drivers to [curb their swearing](. A new lease of Li… Lithium demand is expected to grow 20X by 2040. EnergyX extracts lithium 300% more efficiently than current methods, which has earned them $100M in investment from General Motors, POSCO, and other investors. [Become an early EnergyX investor by Oct. 3](.2 Ad   Hi-Viz - Long shots: Explore satellite imagery of the 59,507 outdoor [basketball courts]( scattered across the US. Off the charts: Which major industry currently has an unemployment rate that’s nearly [triple the national average](, after struggling to adjust to the “new normal”? [Answer here.](   Thanks for stopping by! Have some [feedback](mailto:daily@chartr.co?subject=Feedback&body=Hi, I like the newsletters, but I had a thought for you...) or want to [sponsor this newsletter](mailto:advertising@sherwoodmedia.com?subject=I’m interested in advertising with Sherwood Media)?   Not a subscriber? Sign up for free below. [Subscribe](   Advertiser’s disclosures: 1[“Global battery energy storage market could grow to $546B, says analyst,](” Renewable Energy World, 2020. 2 Past performance is no guarantee of future results. Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns. This is a paid advertisement for EnergyX’s Regulation A+ Offering. Please read the [offering circular]( and [related risks]( at [invest.energyx.com]( DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck.   [X]( [Instagram]( [Chartr Logo]( Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... 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