Intel will be laying off thousands of workers in an effort to finance its recovery amidst its plummeting revenues and market share. While the US chipmaker is one of the dominant players in the personal computer market, it still hasn’t caught pace with the growing AI chip demand.
Intel’s CEO, Pat Gelsinger, has initiated huge investments in enhancing manufacturing capabilities and improving the company’s tech capabilities. Traditionally focused on designing and producing its chips, Intel will now strive to enter the foundry business to manufacture chips for other companies as well.
Why does this matter?
Intel’s push for innovation is vital at this juncture, where, despite the recent increase in the importance of semiconductors driven by the AI revolution, Intel’s dominance in the semiconductor industry has waned. With competitors like NVIDIA, TSMC, Qualcomm, and MediaTek emerging as industry frontrunners, Intel’s slashing of cost is a bid to reclaim its industry market position.
A formal complaint has been filed with the Agency for Access to Public Information (AAIP) of Argentina against Meta, the parent company of Facebook, WhatsApp and Instagram. The case is in line with the international context of increasing scrutiny on the data protection practices of large technology companies.
The presentation was made by lawyers specialising in personal data protection, Facundo Malaureille and Daniel Monastersky, directors of the Diploma in Data Governance at the CEMA University. The complaint signals the company’s use of personal data for AI training.
The presentation consists of 22 points and requests that Meta Argentina explain its practices for collecting and using personal data for AI training. The AAIP will evaluate and respond to this presentation as the enforcement authority of the Personal Data Protection Law of Argentina (Law 25,326).
The country’s technological and legal community is closely watching the development of this case, given that the outcome of this complaint could impact innovation in AI and the protection of personal data in Argentina in the coming years.
Microsoft plans to increase its spending on AI infrastructure this fiscal year despite slower growth in its cloud business. This announcement led to a 4% drop in its share price after an initial 7% decline. The tech giant, along with others like Google, is investing heavily in data centres to leverage the AI boom, with Microsoft’s capital spending rising 77.6% to $19 billion in its fiscal fourth quarter, primarily for cloud and AI-related expenses.
Despite these investments, investors were disappointed with the slower growth of Microsoft’s Azure cloud service. The company forecasted a 28% to 29% growth for Azure in the upcoming quarter, slightly below market expectations, which followed a 29% increase in the previous quarter, but it also fell short of estimates, indicating a slowdown from earlier months.
CEO Satya Nadella highlighted that AI services are becoming a significant part of Azure’s revenue growth, with over 60,000 customers using Azure AI, a nearly 60% increase from the previous year. Microsoft has integrated AI across its products, including its search engine Bing and productivity tools like Word, driven by its substantial investment in OpenAI.
Microsoft’s total revenue rose 15% to $64.7 billion in the fourth quarter, exceeding analyst expectations. The company also grew in its personal computing business, benefiting from stabilising PC sales. However, revenue from its Intelligent Cloud unit, which includes Azure, missed analyst estimates, rising 19% to $28.5 billion.
Brazil has announced a 23 billion reais ($4.07 billion) investment plan for AI development. The initiative aims to foster sustainable and socially-oriented technologies within the nation, enhancing its technological autonomy and competitiveness in the global AI market.
The investment plan includes immediate impact initiatives targeting key sectors such as public health, agriculture, environment, business, and education. These initiatives focus on developing AI systems to streamline customer service and operational procedures.
A significant portion of the funds, nearly 14 billion reais, will be allocated to business innovation projects over the next four years. More than 5 billion reais will be invested in AI infrastructure and development, with the remaining resources dedicated to training, public service improvements, and AI regulation support.
President Luiz Inácio Lula da Silva emphasised the importance of Brazil developing its own AI technologies rather than relying on imports. He highlighted the potential of AI to generate income and employment within the country.
OpenAI has begun rolling out an advanced voice mode to a select group of ChatGPT Plus users, according to a post on X by the Microsoft-backed AI startup. Initially slated for a late June release, the launch was delayed to July to ensure the new feature met the company’s standards. This voice mode enables users to engage in real-time conversations with ChatGPT, including the ability to interrupt the AI while it is speaking, enhancing the realism of interactions.
The new audio capabilities address a common challenge for AI assistants, making conversations more fluid and responsive. In preparation for this release, OpenAI has been refining the model’s ability to detect and reject certain types of content while also enhancing the overall user experience and ensuring its infrastructure can support the new feature at scale.
We’re starting to roll out advanced Voice Mode to a small group of ChatGPT Plus users. Advanced Voice Mode offers more natural, real-time conversations, allows you to interrupt anytime, and senses and responds to your emotions. pic.twitter.com/64O94EhhXK
The following development is part of OpenAI’s broader strategy to introduce innovative generative AI products, as the company aims to stay ahead in the competitive AI market. Businesses are rapidly adopting AI technology, and OpenAI’s efforts to improve and expand its offerings are crucial to maintaining its leadership position in this fast-growing field.
Apple Inc has joined US President Joe Biden’s voluntary commitments to govern artificial intelligence, aimed at preventing the misuse of AI technology. The White House announced on Friday that Apple is now part of a group of 15 firms that have committed to ensuring AI’s power is not used for harmful purposes. The original commitments, introduced in July 2023, were initially signed by companies such as Google and Microsoft’s partner OpenAI.
In September, additional firms including Adobe, IBM, and Nvidia also pledged their support. This initiative is part of a broader effort by the Biden administration to promote responsible AI innovation by assembling an AI expert team, urging tech CEOs to adopt measures that prevent AI from being used destructively.
Apple’s participation comes amid its own challenges with AI, as the company recently delayed AI features for iOS and iPadOS. This commitment underscores the importance of a unified approach among major tech companies to address the ethical and safety concerns surrounding AI.
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.
