California-based AI startup Enfabrica has raised $115M in a funding round to tackle one of the field’s most pressing challenges, enabling vast networks of AI chips to work seamlessly at scale. The company, founded by former engineers from Broadcom and Alphabet, plans to release its new networking chip early next year. This chip aims to enhance efficiency by addressing bottlenecks in how AI computing chips interact with networks, a problem that slows down data processing and wastes resources.
The startup claims its technology can scale AI networks to connect up to 500,000 chips, significantly surpassing the current limit of around 100,000. This breakthrough could speed up the training of larger AI models, reducing time and costs associated with unreliable or inaccurate outcomes. “The attributes of the network, like bandwidth and resiliency, are critical for scaling AI efficiently,” said Enfabrica CEO Rochan Sankar.
Investors in the funding round included Spark Capital, Maverick Silicon, and corporate backers like Arm Holdings and Samsung Ventures. Nvidia, an industry leader in AI chips, also participated, signaling strong support for Enfabrica’s mission to optimise AI infrastructure.
EU antitrust regulators are expected to announce their decision on Nvidia’s proposed acquisition of Israeli AI startup Run by 20 December. The European Commission has flagged concerns that the $700 million deal, announced in April, could harm competition in the AI and chip sectors. Nvidia must gain regulatory approval before proceeding.
The watchdog will either approve the deal, with or without conditions, or open a four-month investigation if concerns persist. The scrutiny reflects broader fears about ‘killer acquisitions’, where large firms acquire startups to stifle innovation.
Nvidia‘s processors are crucial for AI applications, including tools like ChatGPT, making this acquisition significant for the tech and AI industries. The decision will have implications for competition in rapidly evolving AI markets.
The United States Department of Justice (DOJ) is reportedly pushing for Alphabet’s Google to divest its Chrome browser, escalating efforts to curb the company’s alleged monopolistic practices in digital markets. This follows a prior ruling that Google illegally dominated the search market. The DOJ also plans to address Google’s control over AI and the Android operating system.
Google, which commands two-thirds of the global browser market, denies the claims, arguing that its success stems from user preference and robust competition. It also criticises the DOJ’s proposals as extreme and potentially harmful to consumers. Prosecutors have suggested a range of remedies, including ending exclusive search agreements with companies like Apple or enforcing Chrome’s divestiture if market competition does not improve.
A trial to finalise the remedies is set for April, with a ruling expected by August 2025. Google intends to appeal any decision to divest Chrome, citing the browser’s integral role in its ad revenue and user experience.
Meta has hired Clara Shih, previously Salesforce’s CEO of AI, to lead its newly formed Business AI group. Shih announced her move in a LinkedIn post, stating that her team aims to develop cutting-edge AI tools to help businesses on Meta platforms like Instagram, Facebook, and WhatsApp. The initiative seeks to empower businesses by making AI accessible and effective in driving growth.
The Business AI group will focus on leveraging Meta’s Llama language models to offer solutions for advertising and content creation. While specific tools have not been revealed, AI-generated ad creation is a likely feature. Meta’s strategy hinges on enhancing its platforms with AI tools, boosting ad engagement, and increasing revenue without directly charging for AI products.
Shih’s appointment comes amid intensified competition in enterprise AI. Salesforce, where Shih previously worked, has struggled to fully capitalise on the AI boom. Shih now has an opportunity to steer Meta’s efforts in reshaping how businesses interact with AI, marking a significant shift for the company’s focus on business-oriented innovations.
Silicon Valley firm d-Matrix has launched its first AI chip, designed to enhance AI services like chatbots and video generators. Early samples are being tested by customers, with full-scale shipments expected next year.
The chip focuses on inference tasks, allowing multiple users to interact simultaneously with AI systems, such as generating or modifying videos. d-Matrix’s innovation aims to complement market leaders like Nvidia by specialising in real-time user requests.
Backed by over $160 million in funding, including from Microsoft‘s venture arm, the company has partnered with Super Micro Computer to offer servers equipped with its chips. CEO Sid Sheth highlights strong demand in video applications for multi-user interactions.
Ghana Communication Technology University and Microsoft Skills have partnered to introduce the Microsoft Skills for Jobs Microdegree Programme in Ghana, aimed at enhancing digital skills in high-demand fields such as cybersecurity, AI, and coding. That collaboration, funded by the European Union, will provide training, certification, and job placement opportunities, helping students and professionals gain the essential skills needed in today’s digital economy.
To make the programme more accessible, local banks will offer micro-loans, allowing participants to pay fees in manageable instalments. The initiative is expected to certify 286,000 students globally by 2026, with 60,000 certifications coming from Ghana, creating significant opportunities for local students in the global job market.
Ghana Communication Technology University and Microsoft Skills have also partnered to foster international collaboration through student exchange programs. The partnership will also connect Ghanaian graduates to job opportunities with 32,000 IT companies across Europe, further expanding their career prospects and establishing GCTU as a leader in IT education in Ghana.
OpenAI, in partnership with Common Sense Media, has introduced a free training course aimed at helping teachers understand AI and prompt engineering. The course is designed to equip educators with the skills to use ChatGPT effectively in classrooms, including creating lesson content and streamlining administrative tasks.
The launch comes as OpenAI increases its efforts to promote the positive educational uses of ChatGPT, which became widely popular after its release in November 2022. While the tool’s potential for aiding students has been recognised, its use also sparked concerns about cheating and plagiarism.
Leah Belsky, formerly of Coursera and now leading OpenAI’s education efforts, emphasised the importance of teaching both students and teachers to use AI responsibly. Belsky noted that student adoption of ChatGPT is high, with many parents viewing AI literacy as crucial for future careers. The training is available on Common Sense Media’s website, marking the first of many initiatives in this partnership.
Microsoft has unveiled two innovative data centre infrastructure chips, designed to enhance AI operations and bolster data security. Announced at the Ignite conference, these new additions demonstrate a commitment to developing in-house silicon tailored for advanced computing needs. By producing custom chips, Microsoft joins major players like Amazon and Google in reducing dependency on suppliers such as Intel and Nvidia.
One of the new chips, the Azure Integrated HSM, is engineered to improve security by safeguarding sensitive encryption and security data within dedicated hardware. It will be integrated into all new data centre servers from next year. The second chip, a Data Processing Unit (DPU), consolidates server components for optimised cloud storage performance. Compared to existing hardware, it delivers quadruple the performance while consuming significantly less energy.
Microsoft’s investment in custom chips aligns with its broader strategy to enhance data centre efficiency for AI-driven applications. Rani Borkar, corporate vice president of Azure Hardware Systems, highlighted the importance of streamlining infrastructure to meet the demands of modern AI. The chips aim to process data at unprecedented speeds while maintaining robust security protocols.
Alongside these advancements, Microsoft introduced a new liquid cooling system for data centre servers, designed to support the intensive computing demands of large-scale AI models. The technology promises to reduce component temperatures efficiently, ensuring sustainability while catering to growing AI workloads.
The UK’s Competition and Markets Authority (CMA) has decided against investigating the partnership between Google’s parent company, Alphabet, and AI startup Anthropic. Following a detailed review, the CMA found the agreement did not qualify as a merger under UK competition law.
Concerns over competition prompted the CMA to scrutinise the deal, focusing on whether it gave Alphabet control over Anthropic’s business. The authority concluded that Alphabet’s involvement, including financial support and computing resources, did not result in material influence or loss of independence for Anthropic.
The agreement includes Google providing Anthropic with cloud services, distributing its AI models, and offering convertible debt financing. While the partnership is significant, Anthropic’s UK turnover fell below the £70m threshold required for it to qualify as a merger.
This ruling follows similar CMA decisions involving tech companies and AI startups, including clearing Microsoft’s investment in Mistral and Amazon’s $4bn stake in Anthropic. The watchdog remains vigilant about potential anti-competitive practices in the rapidly growing AI sector.
The European Central Bank (ECB) has raised concerns over a potential bubble in stocks tied to AI, warning that inflated expectations could lead to a sharp market correction. In its latest Financial Stability Review, the ECB highlighted the growing reliance of global markets, particularly in the US, on a small group of tech firms driving the AI boom. This concentration, it cautioned, could trigger widespread instability if these companies fail to meet earnings expectations.
Adding to the risks, the ECB pointed out that investors are accepting low premiums for equities and bonds while many funds are maintaining minimal cash reserves. This leaves markets vulnerable to liquidity shortages, potentially forcing asset sales that could accelerate price declines. Open-ended investment funds, in particular, were flagged for significant liquidity mismatches that could exacerbate any downturn.
The ECB also underscored broader economic challenges, including rising trade fragmentation, a concern amplified by the protectionist policies signaled by US President-elect Donald Trump. Such measures could harm eurozone growth, compounding vulnerabilities as governments like Italy and France face borrowing at much higher interest rates in the coming years. The ECB urged fiscal prudence to manage these pressures effectively.
