At TechCrunch Disrupt 2024, data management leaders advised AI-driven businesses to focus on incremental, practical applications rather than expansive, large-scale projects. Chet Kapoor, CEO of DataStax, stressed that AI’s effectiveness relies heavily on having robust, unstructured data at scale, but warned companies against rushing into overly ambitious initiatives. The discussion featured insights from Kapoor, Vanessa Larco of NEA, and Fivetran’s CEO George Fraser, all of whom advocated a targeted approach to data application in generative AI.
Rather than applying AI across all company functions immediately, Larco suggested that firms begin with well-defined objectives. Identifying relevant data is key, she said, and applying it selectively can avoid the pitfalls of costly errors. Companies looking to capitalise on AI should ‘work backwards’, focusing first on the issue to be solved and gathering the specific data required, Larco added.
Fraser underscored the importance of addressing current needs before planning for broader scaling. Many innovation costs, he pointed out, stem from projects that fail rather than those that succeed. His advice: ‘Only solve the problems you have today’.
Kapoor likened today’s generative AI era to the early days of mobile apps, emphasising that most AI projects are currently in exploratory stages. He believes next year will see transformational AI applications begin to shift company trajectories.
Nvidia CEO Jensen Huang has urged South Korea’s SK Hynix to speed up the delivery of its next-generation HBM4 memory chips by six months, according to SK Group Chairman Chey Tae-won. Initially scheduled for the latter half of 2025, the HBM4 chips are in high demand as Nvidia’s GPUs require them for advancing AI technology. Nvidia, which holds a dominant share of the AI chip market, relies on SK Hynix’s high-bandwidth memory to support AI processing.
Facing growing competition from Samsung and Micron, SK Hynix is working to deliver its latest HBM3E chips this year, with plans to release improved 16-layer versions early next year. Samsung has also announced progress on a new supply deal and aims to roll out its HBM4 products by the second half of 2024.
Shares of SK Hynix surged 5.1% on the news, reflecting strong investor confidence in its strategic response to the booming demand for advanced memory technology.
United States energy regulators have rejected an amended plan for an Amazon data centre to be powered directly from Talen Energy’s Susquehanna nuclear plant in Pennsylvania. The Federal Energy Regulatory Commission (FERC) cited potential risks to both consumer costs and grid reliability, concluding that diverting power from the regional grid to Amazon’s facility could raise public energy bills and create supply challenges.
The proposal came as Big Tech companies like Amazon seek rapid ways to meet growing energy demands for data centres, particularly those needed to expand AI technologies. Co-locating data centres with power plants has emerged as an appealing solution, yet FERC Commissioner Mark Christie warned that this arrangement could bring complex repercussions, including significant impacts on reliability and costs.
FERC Chairman Willie Phillips, however, dissented, arguing that blocking the project could hinder US leadership in AI and harm national security. The decision leaves questions about funding and infrastructure upgrades necessary to ensure reliable supply to such high-demand centres.
Disney is establishing a new division, the Office of Technology Enablement, dedicated to advancing the company’s use of AI and mixed reality (XR). Led by Jamie Voris, Disney’s former chief technology officer for its film studio, the unit will oversee projects across Disney’s film, television, and theme park segments to leverage these rapidly evolving technologies. This group will focus on coordinating various initiatives without centralising them, ensuring each project aligns with Disney’s broader technological strategy.
The new office, which will ultimately expand to about 100 employees, comes as Disney looks to tap into cutting-edge AI and augmented reality (AR) applications. Disney Entertainment Co-Chairman Alan Bergman emphasised the importance of exploring AI’s potential while mitigating risks, signaling Disney’s intention to create next-generation experiences for theme parks and home entertainment. Voris’s leadership will be succeeded by Eddie Drake as Disney’s new film studio CTO.
Disney has been actively building expertise in AR and virtual reality (VR) as technology companies like Meta and Apple compete in the emerging AR/VR market. The company also rehired Kyle Laughlin, a specialist in these technologies, as Senior VP of Research and Development for Disney Imagineering, its theme park innovation branch. By assembling a team with expertise in advanced tech, Disney aims to create immersive, engaging experiences for its global audience.
Dubai Chambers and Dubai Multi Commodities Centre (DMCC) have joined forces in a groundbreaking Memorandum of Understanding (MoU) to enhance Dubai’s status as a global hub for digital investments. The strategic collaboration focuses on attracting companies that specialise in AI, cryptocurrencies, and gaming, recognising their importance in shaping the future of the digital economy.
As part of the MoU, DMCC will provide specialised business setup support packages to facilitate the entry of new enterprises and ensure they have the necessary tools to thrive. Companies will also gain access to valuable resources, including participation in DMCC’s knowledge series events and complimentary compliance services and tax clinics.
That partnership aligns with the Dubai Economic Agenda (D33), which seeks to double the size of Dubai’s economy over the next decade and position the emirate among the top three global cities for business and innovation. Dubai Chambers and DMCC are united in their commitment to driving economic growth and innovation within the emirate through their collaboration.
They recognise the importance of creating a favourable business environment to support international companies and investments. By enhancing the growth of the digital economy and fostering a climate of institutional excellence, their efforts aim to provide a robust ecosystem that not only attracts innovative firms but also encourages the development of future-facing sectors.
Meta Platforms has signed an agreement to purchase the full output of a new solar power plant from French utility giant Engie. The Sypert solar plant, expected to generate 260 megawatts of clean energy, is scheduled to go live in late 2025. This partnership aligns with Meta’s ongoing commitment to meet the energy demands of its expanding data centre operations with sustainable power sources.
The Sypert plant will add to Engie’s growing renewable energy portfolio, which currently includes about 8 gigawatts of solar, wind, and battery storage projects across North America. Earlier this month, Engie also secured a solar power agreement with Google for its largest US solar project, reinforcing the company’s role as a major clean energy supplier for tech firms.
Driven by technologies like AI, the demand for data centre power in the US is predicted to triple by 2030, according to Goldman Sachs. The Biden administration has called on tech companies to invest in green energy to support this growth, and partnerships like Meta and Engie’s reflect this broader push toward a more sustainable digital economy.
Google researchers announced a breakthrough in cybersecurity, revealing they have discovered the first vulnerability using a large language model. This vulnerability, identified as an exploitable memory-safety issue in SQLite—a widely used open-source database engine—marks a significant milestone, as it is believed to be the first public instance of an AI tool uncovering a previously unknown flaw in real-world software.
The vulnerability was reported to SQLite developers in early October, who promptly addressed the issue on the same day it was identified. Notably, the bug was discovered before being included in an official release, ensuring that SQLite users were unaffected. Google emphasised this development as a demonstration of AI’s significant potential for enhancing cybersecurity defences.
The initiative is part of a collaborative project called Big Sleep, which involves Google Project Zero and Google DeepMind, stemming from previous efforts focused on AI-assisted vulnerability research.
Many companies, including Google, typically employ a technique known as ‘fuzzing,’ where software is tested by inputting random or invalid data to uncover vulnerabilities. However, Google noted that fuzzing often needs to improve in identifying hard-to-find bugs. The researchers expressed optimism that AI could help bridge this gap. ‘We see this as a promising avenue to achieve a defensive advantage,’ they stated.
The identified vulnerability was particularly intriguing because it was missed by existing testing frameworks, including OSS-Fuzz and SQLite’s internal systems. One of the key motivations behind the Big Sleep project is the ongoing challenge of vulnerability variants, with more than 40% of zero-day vulnerabilities identified in 2022 being variants of previously reported issues.
The UAE’s energy giant ADNOC is pioneering the use of highly autonomous agentic AI in the energy sector through a partnership with G42, Microsoft, and AIQ, as announced by CEO Sultan Al Jaber at an industry event in Abu Dhabi. This move is part of a broader UAE strategy to reduce reliance on oil, with support from G42, which secured a $1.5 billion investment from Microsoft to fuel the nation’s tech industry diversification.
Agentic AI, viewed as the future of artificial intelligence, allows systems to operate independently and make proactive decisions. According to Jaber, this advanced AI will significantly enhance operations by analysing vast amounts of data, reducing seismic survey times from months to days, and improving production forecasts by up to 90%.
The UAE’s government is investing billions in AI, including regional language-specific chatbots, positioning the Gulf state to remain economically influential as global demand for oil wanes.
Leading tech giants are racing to expand their AI infrastructure, with companies like Microsoft, Meta, and Amazon dedicating billions to meet rising demand. However, the heavy spending on data centres and computing power is sparking concern among investors who are eager for quicker returns. Big Tech’s significant capital investments come with mounting costs, threatening profitability and raising questions about how quickly these ventures will yield results.
Despite exceeding recent earnings forecasts, Big Tech stocks dropped on Thursday, underlining the pressure they face to balance AI expansion with shareholder expectations. Microsoft and Meta reported increased spending in their latest quarters, yet their shares fell, with Microsoft dropping 6% and Meta 4%. Amazon’s shares saw a brief dip before recovering on news of a strong third-quarter performance. Analysts point to a challenging road ahead as these firms juggle AI ambitions with market demands for near-term gains.
The challenges extend to capacity issues, with firms like Microsoft struggling to keep up with demand due to data centre constraints. Meanwhile, Meta forecasts that its AI-related expenses will increase significantly next year, and chip manufacturers like Nvidia and AMD are racing to fulfil orders. This supply bottleneck highlights the complex task of scaling up AI services, adding a layer of unpredictability to Big Tech’s efforts.
Despite short-term risks, companies remain committed to AI. Amazon CEO Andy Jassy described AI as a “once-in-a-lifetime” opportunity, while Meta’s Mark Zuckerberg likened today’s investment climate to the early days of cloud computing. As firms continue to ramp up infrastructure spending, they are counting on long-term returns, hoping to transform initial scepticism into eventual success.
OpenAI has introduced new search functions to its popular ChatGPT, making it a direct competitor with Google, Microsoft’s Bing, and other emerging AI-driven search tools. Instead of launching a separate search engine, OpenAI chose to integrate search capabilities directly into ChatGPT, which will pull information from the web and relevant sources based on user questions.
Initially, ChatGPT’s search feature will be available to Plus and Team users, with plans to expand access to enterprise and educational users, as well as free users, in the coming months. OpenAI’s partnerships with major publishers like Condé Nast, Time, and the Financial Times aim to provide a rich pool of content for ChatGPT’s search.
This launch follows OpenAI’s selective testing of SearchGPT, an AI-based search prototype, earlier in the year. With its recent funding round boosting its valuation to an estimated $157 billion, OpenAI continues to strengthen its standing as a leading private AI company.
