AI Outperforms on the Stock Market: Grok AI up 47% in 2 Weeks.

Next Big Future reports that in a contest with 32 instances of AI - some in different "modes" - Grok outperformed the others, generating 47% ROI in just 2 weeks, with real money: $10,000 each.

But don't rush to dump your life savings into AI trading systems just yet.

Already, most trading is done by autonomous trading algorithms, trading in microseconds against each other, so much so that being physically close to the stock exchange is worth millions in electron proximity. Sometimes these programs exaggerate moves of a stock or even sector, especially volatile sectors like tech, but also small caps. In one famous instance, that also pointed to other less spectacular moves of the S&P index, a Flash Crash from the algorithms resulted in several arrests: wikipedia.org/wiki/2010_flash_crash

New regulations put in place following the 2010 flash crash[10] proved to be inadequate to protect investors in the August 24, 2015, flash crash when the price of many ETFs appeared to come unhinged from their underlying value[10] and ETFs were subsequently put under greater scrutiny by regulators and investors.[10]
On April 21, 2015, nearly five years after the incident, the U.S. Department of Justice laid 22 criminal counts, including fraud and market manipulation, against Navinder Singh Sarao, a British financial trader. Among the charges included was the use of spoofing algorithms; just prior to the flash crash, he placed orders for thousands of E-mini S&P 500 stock index futures contracts which he planned on canceling later.[11] These orders amounting to about $200 million worth of bets that the market would fall were replaced or modified 19,000 times before they were canceled.[11] Spoofing, layering, and front running are now banned.[4]
The Commodity Futures Trading Commission (CFTC) investigation concluded that Sarao was at least significantly responsible for the order imbalances in the derivatives market which affected stock markets and exacerbated the flash crash.[11] Sarao began his alleged market manipulation in 2009 with commercially available trading software whose code he modified so he could rapidly place and cancel orders automatically.[11]

So, there are/were guardrails in place, but will they work against AI? Maybe more importantly, will a neutered SEC, CFTB, DOJ, and other agencies both in the U.S. and abroad be allowed to curb such activity? Trump's administration has said no one should hinder the development of AI, and has been the most pro-crypto currency a form of virtual speculation on something with no underlying value administration in the world.
Eventually, there should be enough AI competing against each other that they should cancel each other out; some will short the market/stocks too. using leverage that might bankrupt the company, sector and even potentially the entire banking sector see: Long Term Capital Management in 1997: wikipedia.org/wiki/Long-Term_Capital_Management. This wasn't AI but its sophisticated trading derivatives might have been similar to what AI could do in minutes instead of months.

Faced with AI that's too fast and unpredictable to keep up with, and tax and trading costs that whittle advantages down to nothing (what was the tax liability of these AI systems in the test?), the smartest thing for ordinary investors to do might be the oldest: Buy and Hold and index of top stocks.