The Biden administration is set to introduce a new rule expanding US powers to block exports of semiconductor manufacturing equipment to Chinese chipmakers. However, essential allies like Japan, the Netherlands, and South Korea will be exempt, minimising the rule’s overall impact. The additional restriction follows previous export controls aimed at hindering China’s advancements in supercomputing and AI for military purposes.
The new rule will extend the Foreign Direct Product rule, preventing several Chinese semiconductor factories from receiving equipment exports from countries such as Israel, Taiwan, Singapore, and Malaysia. The rule, which has previously targeted Huawei, allows the US to block sales of products made with American technology, even if produced abroad. The exemptions highlight a diplomatic effort to maintain international cooperation while enforcing export controls.
Additionally, the US plans to tighten regulations by reducing the threshold of US content in foreign products subject to export controls.
The rule, still in draft form, is expected to be finalised next month.
While ASML and Tokyo Electron shares surged in response to the exemptions, this development underscores the need for a balanced approach to managing export controls while maintaining solid international alliances.
Shengshu AI, a Chinese start-up, has launched its new text-to-video tool, Vidu, for global users. The tool supports both Chinese and English text prompts, making it accessible to a wider audience. Users can generate clips of four or eight seconds through the official website. This development places Shengshu among other firms offering similar services, such as Zhipu AI and Kuaishou Technology.
Vidu, first unveiled in April, can generate a four-second clip in just 30 seconds, making it one of the fastest tools available. The technology is based on Shengshu’s self-developed architecture, U-ViT, which was detailed in a research paper by a team led by Zhu Jun, the company’s chief scientist and a professor at Tsinghua University. Shengshu’s leadership team includes several Tsinghua alumni, highlighting the university’s significant role in China’s AI ambitions.
The tool also features a new character-to-video function, allowing users to animate real or fictional characters using simple text prompts. This capability lays the groundwork for potential commercial applications in the animation and content industries. Zhang Xudong, Shengshu’s product director, envisions future developments where users can animate multiple characters and scenes, integrating AI tools with traditional sectors.
Shengshu has attracted significant investment, securing tens of millions of US dollars from backers like Qiming Venture Partners, Baidu, Alibaba’s Ant Group, and the Beijing AI Industry Investment Fund. This financial support underscores the confidence in Shengshu’s potential to lead in AI video generation, positioning it as a strong competitor to OpenAI’s Sora.
Britain’s antitrust watchdog is examining Google-parent Alphabet’s partnership with AI startup Anthropic to assess its impact on market competition. The scrutiny comes amid growing global concerns about the influence of major tech companies on the AI industry following the AI boom sparked by Microsoft-backed OpenAI’s release of ChatGPT.
Regulators are scrutinising deals between big tech giants and AI startups, including Microsoft’s collaborations with OpenAI, Inflection AI, and Mistral AI, as well as Alphabet’s investments in companies like Anthropic and Cohere. Anthropic’s AI models, developed by former OpenAI executives Dario and Daniela Amodei, compete with OpenAI’s GPT series.
Last week, the UK’s Competition and Markets Authority (CMA) joined forces with US and the EU regulators to ensure fair competition in the AI sector. The CMA is now inviting public comments on the Alphabet-Anthropic partnership until 13 August before deciding whether to initiate a formal investigation. The CMA’s decision will be based on feedback during this initial consultation.
At SIGGRAPH, a major computer graphics conference, Nvidia presented new real-world applications of generative AI. Chief executive officer Jensen Huang highlighted the company’s role in AI development, emphasising their Nvidia Inference Microservices (NIM) platform. Nvidia has always prioritised advanced computing through a software-led approach.
Recent announcements showcased improvements in generative AI and 3D content generation. AI services and models are now available to accelerate humanoid robot development. Researchers can use devices like the Apple Vision Pro to teach robots various tasks. Collaborations with Getty Images and Shutterstock aim to improve the accuracy of AI-generated images matching text prompts.
Engineers now benefit from advancements in industrial design, visualisation, and advertising tools. A demo video displayed lifelike 3D worlds generated from simple text prompts. Coca-Cola and marketing agency WPP are among the early adopters of Nvidia’s generative AI art tools.
The importance of these developments extends beyond product outputs. Nvidia integrates AI into their own processes, aiding software debugging and chip design. The impact on the market has been substantial, contributing significantly to the S&P 500’s market capitalisation gains. The company’s efforts continue to shape the future of AI in various industries.
The Paris Olympics will highlight the use of generative AI for American viewers, while European audiences will experience a more traditional approach. Comcast’s NBCUniversal plans to integrate AI into its US broadcast, including recreating the voice of a legendary sportscaster. Meanwhile, Warner Bros. Discovery’s sports division in Europe considers the technology too immature for roles like sports commentating.
Warner Bros. Discovery, which will stream the Games on its Max and discovery+ platforms across Europe, has tested AI for translating speech but found it lacks the emotion needed for thrilling sports moments. Scott Young, senior vice president at Warner Bros. Discovery Sports Europe, emphasised that AI struggles to capture the genuine excitement of live commentary. The difference in approaches reflects global media companies’ varied stances on AI technology, as France also plans to allow AI-powered surveillance during the Olympics, highlighting its broad application.
In the US, NBCUniversal will collaborate with Google and Team USA to enhance the viewing experience with AI, including AI-enhanced Google Map images of Olympic venues and AI-generated personalised daily briefings narrated by an AI recreation of Al Michaels’ voice. The Olympic Broadcasting Services is also using AI to produce quick highlights but remains cautious about deepfake risks. Additionally, extensive cybersecurity measures are being implemented to protect the Games from cyber threats, showcasing the crucial role of AI in ensuring safety and security.
As AI capabilities advance, European sports fans may soon experience similar technology. Warner Bros. Discovery anticipates significant AI integration by the 2028 Los Angeles Olympics. The International Olympic Committee (IOC) is already implementing AI for athlete safety and deploying AI tools to counter cyber threats at the 2024 Olympics, illustrating the growing influence of AI in sports.
The United Arab Emirates recently cancelled meetings between US Congressional staffers and the Emirati AI firm G42 following US lawmakers’ concerns about the potential transfer of US AI technology to China. The intervention was personally handled by the UAE Ambassador to the US, who stopped the meetings involving the House Select Committee on China.
The cancelled meetings suggest diplomatic tension as US lawmakers, particularly those wary of China, examine the implications of the AI technology transfer to the Middle East. The US State Department has not commented, while a G42 spokesperson directed questions to the Emirati government. The UAE embassy’s spokesperson cited a miscommunication around the visit since the embassy officials were only made aware of the staff delegation shortly before it was about to arrive.
The staffers’ visit was intended to discuss the transfer of advanced chips from companies like Nvidia to the UAE and Saudi Arabia and the broader US-China tech competition. Amidst these concerns, the Biden administration has defended the G42-Microsoft deal, noting that it led to G42 cutting ties with China’s Huawei.
The US Commerce Department announced plans to grant Amkor Technology up to $400 million to support the construction of a $2 billion advanced semiconductor packaging facility in Arizona. Once operational, the plant will be the largest of its kind in the US, packaging and testing millions of chips for applications such as autonomous vehicles, 5G/6G, and data centers.
Apple is set to be the first and largest customer, with the chips being produced at a nearby TSMC facility. Advanced packaging is a sophisticated method of integrating multiple chips with various functions into a densely interconnected package. Commerce Secretary Gina Raimondo emphasised that this investment will help meet the growing demand for AI chips.
Raimondo highlighted that the chips Amkor will package are crucial for future technologies that will significantly impact global economic and national security. This move comes amid discussions of aid cuts for US chip manufacturers due to oversubscription of funding requests.
Meta Platforms announced the launch of AI Studio, a tool enabling users to create and design personalised AI chatbots. The new feature allows Instagram creators to develop AI characters to manage direct messages and story replies, enhancing user interaction on the platform. These AI characters can be shared across Meta’s various platforms and are built using Meta’s Llama 3.1 model. This latest version of Meta’s AI model is available in multiple languages and competes with other advanced models like OpenAI’s.
Why does this matter?
Meta’s initiative follows OpenAI’s confidential project, code-named ‘Strawberry,’ aiming to showcase advanced reasoning capabilities. Introducing AI Studio marks Meta’s effort to offer cutting-edge AI tools to its vast user base, leveraging its Llama 3.1 model to provide powerful AI-driven features for content creators and users alike.
According to a recent research paper, Apple has opted to use Google-designed chips instead of Nvidia’s for two crucial components of its AI software infrastructure. This choice is noteworthy as Nvidia is widely regarded as the leading provider of AI processors. The paper detailed that Apple employed Google’s tensor processing units (TPUs) in large clusters, specifically 2,048 TPUv5p chips for AI models on devices like iPhones and 8,192 TPUv4 processors for server models.
The research paper did not mention any use of Nvidia chips, despite Nvidia dominating about 80% of the AI processor market through its graphics processing units (GPUs). Unlike Nvidia, which sells its GPUs directly, Google offers TPUs through its Google Cloud Platform, requiring customers to use Google’s platform for access.
Why does this matter?
Apple has begun introducing parts of its new AI suite, Apple Intelligence, to beta users. This recent publication only disclosed the full extent of Apple’s reliance on Google hardware, despite earlier reports hinting at this partnership.
Apple’s engineers noted the potential for even larger, more sophisticated AI models using Google’s chips. However, Apple’s stock saw a minor decline of 0.1% to $218.24 following the research paper’s release.
Amazon.com is pushing forward with the development of its own AI chips, aiming to reduce its dependence on Nvidia and lower costs for its customers. Engineers in Amazon’s Austin, Texas, chip lab are currently testing a new server design packed with these proprietary AI chips. Rami Sinno, director of engineering for Amazon’s Annapurna Labs, highlighted the increasing demand for more affordable alternatives to Nvidia’s products.
Amazon acquired Annapurna Labs in 2015 and has since focused on creating processors that can handle complex calculations and large data sets more economically. As competitors like Microsoft and Alphabet also develop their own AI processors, Amazon’s initiative is a strategic move to maintain its edge in the AI cloud business, which is the main growth driver for Amazon Web Services (AWS).
Amazon’s new AI tools are also part of its broader strategy to tackle misinformation and enhance service offerings. This development comes as Nvidia adapts to tightening US export controls by creating China-specific AI chips.
