Extreme Weather Alert

Nvidia’s AI Weather Wizard

In the rapidly evolving field of weather forecasting, Nvidia's CorrDiff is making significant strides.

This generative AI weather model, part of Nvidia’s Earth-2 platform, enables kilometer-scale forecasts of wind, temperature and precipitation with unprecedented precision.

By employing diffusion modeling — similar to that used in text-to-image generation — CorrDiff sharpens the resolution of coarse weather models from a 25-kilometer scale down to 2 kilometers.

CorrDiff's capabilities extend beyond mere resolution enhancement. It can also predict variables not present in the input data, such as radar reflectivity, which is crucial for determining rain location and intensity.

In fact, the model generates weather patterns at 12 times higher resolution than its training data, derived from the Weather Research and Forecasting model simulations.

One of the most impressive aspects of CorrDiff is its groundbreaking energy-efficiency.

The optimized CorrDiff for U.S. data operates 500 times faster and is 10,000 times more energy-efficient

CorrDiff for U.S. data operates 500 times faster and is 10,000 times more energy-efficient than traditional high-resolution weather prediction using central processing units (CPUs).

This dramatic improvement in efficiency translates to substantial real-world benefits.

For instance, Taiwan’s National Science and Technology Center for Disaster Reduction has deployed CorrDiff, resulting in an estimated gigawatt-hour of energy savings.

This level of efficiency means tasks which previously cost nearly $3 million on CPUs can now be accomplished for about $60,000 using a Nvidia H100 Tensor Core GPU. 

And CorrDiff’s energy-efficiency extends beyond cost savings: It enables more frequent and detailed forecast updates, which is crucial for tracking rapidly evolving weather phenomena.

Imagine what a game changer CorrDiff would have been for the January 2025 Los Angeles wildfires…

• It could have provided high-resolution, localized weather forecasts, predicting wind patterns, temperature and precipitation at a 2-kilometer scale. This precise data could have enabled early detection of wildfire conditions, allowing for more targeted prevention and response efforts.

Overall, CorrDiff’s combination of precision and efficiency positions this AI tool as a key technology in our efforts to understand, predict and mitigate impacts of extreme weather events.

We can anticipate more accurate, timely and potentially lifesaving weather forecasts, underscoring the future of meteorology, powered by artificial intelligence.

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What’s Buried in Fort Knox?

“One topic that is gaining momentum is the interesting move of DOGE auditing the gold at Fort Knox,” says Paradigm’s macro authority Jim Rickards. “In fact, President Trump announced at the recent CPAC conference that he would be going to Kentucky to see if the gold is still there.

“An audit would help restore the confidence of U.S. citizens in government representations,” he continues, “but there is no reason to doubt that the U.S. has exactly the amount of gold that it represents, about 8,133 metric tons.

“What’s more interesting to me could be the revelation of how much U.S. gold is leased. Leasing is a way of giving gold to borrowers in exchange for fees, which injects more gold into the banking system than actually exists in physical form.

“That’s a can of worms that only a few experts understand, and [something] the government has definitely not wanted to acknowledge. DOGE may open the can of worms, so we will keep an eye out for these developments.

“If there are any discrepancies between the reserves in Fort Knox and the figures that have been reported,” Jim adds, “it could send shock waves through global gold markets.

“We’ll monitor this trip if it materializes.”

Speaking of gold, the precious metal is slumping today: down almost 2% to $2,907 per ounce. Silver, likewise, is down about 2.75% to $31.70. Also in the commodities space, crude is down 2.5% to $68.95 for a barrel of WTI.

Stocks aren’t faring much better. The three major U.S. indexes are in the red today, with the tech-laden Nasdaq down 1.70% to 18,950. Meanwhile, the S&P 500 is down almost 1% to 5,925 while the Dow is down 0.15% to 43,395.

• Per the major economic indicator today, consumer confidence dropped sharply in February, according to the Conference Board's Consumer Confidence Index. The index published this morning came in at 98.3, down 7% from January — making it the lowest reading, in fact, since August 2021.

Finally, you guessed it, crypto is getting clobbered. Bitcoin is down a jaw-dropping 7% to $87,600 at the time of writing. Ethereum? Down 8.5% to $2,425.

From Dumpster Fire to Market Darling

“The message is loud and clear: The world’s second-largest economy is a dumpster fire. It’s toxic. It’s off-limits. Do not touch!” outlines Paradigm’s chart hound Greg Guenthner.

“China has played the villain for decades,” he emphasizes. “Of course, some truths lurk under these headlines…

• “Tariffs are real
• Chinese organized crime is laundering dirty drug money
• And the U.S. tech industry and other international businesses are relocating to other emerging markets including Vietnam, Thailand and Mexico,” says Greg. Anywhere but China.

“But diversifying away from China is old news…

“Suddenly, investors are waking up to a China recovery they’ve been conditioned to ignore or even hate. And it comes just as U.S. stocks begin to falter,” Greg notes.

“Savvy investors who weren’t afraid to buy China are already reaping the rewards. Here’s how you can play it…

“Just look at the powerful rallies in some of the strongest Chinese names,” he says, including “the incredible follow-through in Alibaba Group Holdings Ltd. (BABA).

“BABA is finally breaking out of a multiyear base that has trapped shares since early 2022,” says Greg. “We have to believe this is a massive change in trend happening right now.

“We first mentioned this stock breaking out back on Feb. 11. Since then, the stock has rallied more than 30% — a huge move in only seven trading days.

“This rally might just be getting started,” Greg forecasts. “BABA will be in play for a long time following this base breakout. It should stay on your ‘buy the dips’ shortlist — especially if it retests its breakout zone in the $120 area.

“If you want to get involved in the big China comeback, sitting on your hands and waiting for BABA to consolidate isn’t your only option…

“There are a couple of strong China names that are close to breakout levels, and both of these stocks have the potential to post BABA-esque moves in the weeks and months ahead,” he adds.

1. “Online music company Tencent Music Entertainment Group (TME) continues to build toward the important $14 level,” Greg says. “If TME can break above $14, it has a great chance at extending higher. (Just keep in mind earnings are coming up on March 18)

2. Next, there’s TAL Education Group (TAL), which was hitting fresh six-month highs [early] last week. TAL is now knocking on the door of new 52-week highs. If it can post a close above $15.50, we’re looking at prices not seen since mid-2021. (Even better, earnings aren’t due until April, which should allow plenty of time to clear those breakout levels.)”

Greg’s takeaway: “Tunnel-vision traders who focus solely on U.S. names are getting left behind. Don’t be one of them!

“I don’t care if you’re a short- or long-term trader,” he concludes, “China will be in play for the rest of the year.”

[Help Paradigm’s editors settle a watercooler controversy: Would you consider investing in Chinese stocks despite the prevailing negative sentiment, or do you believe the risks outweigh the potential rewards? We value your feedback!]

XAI: “Rewrites the Playbook”

“Just weeks after Trump dismantled Biden's AI restrictions, Musk's xAI dropped a bombshell: Grok 3, a model that’s rewriting the AI playbook,” writes Paradigm’s science-and-tech investor Ray Blanco.

“While OpenAI was busy rejecting Musk’s $97.4 billion takeover bid last week, xAI was quietly putting the finishing touches on what today is being called the world’s most powerful AI.

“Both Google and OpenAI have been around for years,” Ray notes. “On the other hand, xAI is barely a year old, a baby by comparison. Despite being years younger, xAI’s Grok 3 has leapfrogged both in key benchmarks.

• “Grok 3 was trained on over 100,000 Nvidia H100 chips, and xAI is already installing the next-generation Nvidia B100 chips, which pack four times the punch

• They're expanding their ‘Colossus’ supercomputer cluster in Memphis from 250 megawatts to 1.2 gigawatts. They’re installing generators to make enough power to run a small city, all dedicated to pushing AI forward.

“However, it’s Grok’s new capabilities that have the AI community talking…

“With Grok’s new DeepSearch features, xAI's new AI agent does more than answer questions. It shows its work!” Ray emphasizes.

“One of the missing pieces that enterprises need for serious research and analysis is a reasoning-based approach,” he says.

“Add in the upcoming voice features with natural inflection and tone and you can see why OpenAI’s Sam Altman might be getting nervous.

“Again, the speed at which xAI has taken the crown is breathtaking. Everything at xAI was focused on speed,” says Ray.

Source: MGLW, Harvard Public Health
A map used in a xAI presentation at a July 9 Memphis City Council meeting

“XAI has also cracked the code on building large-scale GPU clusters with shared memory. Elon is proving that AI scaling laws still hold — more compute power really does mean better AI.

“Furthermore, xAI’s planned expansion to 1 million GPUs will give them 40 times the compute power used to train Grok 3.

“The AI race is entering a new, frenzied phase where raw computing power, combined with technical innovation, is creating unprecedented advantages.

“Companies that can harness this scale — whether through partnerships, infrastructure or direct investment — will be the ones to watch,” Ray predicts.

It’s NOT Just a Jeep Thing

Jeep owners are fuming over an unexpected passenger in their vehicles: persistent pop-up ads. These digital hitchhikers are appearing on infotainment screens, pestering drivers to sign up for extended warranties every time they hit the brakes.

The ads, promoting ‘Peace of Mind’ through FlexCare Extended Care Premium Plans, are more stubborn than a Wrangler stuck in mud. Even clicking the 'X' doesn't deter them — they just pop right back up at the next stop.

Stellantis, Jeep’s parent company, claims the ubiquitous ad is just a “temporary software glitch.” And they assure Jeep owners that they’re fixing the bug. But let's be real: How many “glitches” conveniently upsell products?

But this incident might be a foreshadowing of things to come. Ford, for instance, has patented a system that could use a vehicle’s speakers, screen and even GPS to bombard you with personalized ads.

But as cars become more connected, privacy concerns are shifting into high gear. With some automakers already caught selling driver data, it’s clear that our vehicles are becoming rolling data mines.

So next time you're in your car, remember… Big Brother might be riding shotgun.

Until next time, reader, take care!

Best regards,

Emily Clancy
Associate editor, Paradigm Pressroom's 5 Bullets