OpenAI introduces ChatGPT Pro for industry use

OpenAI has launched ChatGPT Pro, a premium version of its chatbot priced at $200 per month, designed for engineering and research applications. The new subscription tier joins the company’s existing lineup, including ChatGPT Plus, Team, and Enterprise, signalling OpenAI’s drive to broaden its technology’s industry adoption.

ChatGPT Pro offers users cutting-edge tools like OpenAI’s o1 reasoning model, o1 mini, GPT-4o, and an advanced voice interface. It also includes o1 pro mode, a high-performance feature utilising extra computational power to tackle complex queries, making it especially valuable for technical professionals.

According to OpenAI, o1 pro mode significantly outperforms earlier iterations like o1 and o1-preview on benchmarks for tasks in mathematics, science, and coding. This launch underscores OpenAI’s commitment to delivering sophisticated AI solutions tailored to specialised and demanding fields.

Schneider Electric partners with Nvidia on AI data centre cooling systems

French electrical firm Schneider Electric has teamed up with Nvidia to develop cutting-edge cooling systems for AI-focused data centres. These designs will cater to Nvidia’s powerful AI servers, which feature 72 advanced chips and are set to debut next year.

The energy-intensive servers, consuming up to 132 kilowatts per rack, necessitate liquid cooling technology. Schneider‘s scalable solutions will support various configurations for cloud computing firms and data centre customers, enhancing adaptability and efficiency in AI infrastructure.

Schneider’s push into AI data centres follows a $3 billion deal with Compass Datacenters in 2023, underlining its commitment to innovative technologies. Nvidia‘s switch to liquid cooling has spurred significant developments in data centre construction and upgrades, driving collaboration with industry leaders.

Amazon unveils new AI chips as it challenges Nvidia’s dominance

Amazon Web Services (AWS) has revealed advanced data centre servers powered by its in-house Trainium2 AI chips, marking a significant step in its efforts to rival Nvidia in the AI hardware market. The servers will form the backbone of a vast supercomputer designed to handle complex AI workloads, incorporating hundreds of thousands of Trainium2 chips. AI startup Anthropic will be the first to utilise the new system, highlighting its capabilities for AI research and deployment.

Apple has also confirmed its adoption of Trainium2 chips, underscoring the growing appeal of Amazon’s AI hardware in the competitive tech landscape. AWS CEO Matt Garman added that the Trainium3 chip, the next evolution in the series, will debut in 2024. This aligns with Amazon’s broader strategy to dominate AI technology, offering cutting-edge solutions for both startups and major corporations.

The announcement comes as Amazon intensifies efforts to challenge Nvidia, currently a leader in AI chip manufacturing. AWS‘s growing presence in the sector aims to meet surging demand for AI processing power while providing alternatives to established providers. These advancements not only strengthen Amazon’s position in AI technology but also attract major industry players like Apple, which is leveraging the chips to enhance its data operations.

Open source (still) means innovations

There is no need to explain the importance of the global network innovation we enjoy today. Many lines have been written on the possibilities and the marvels the network delivers daily. After an initial couple of decades of admiration, the same thing happened with many other wonders of the world we witnessed throughout civilization. We took it for granted. We do not discuss its structure, backbone, and the incentive structure behind it. Unless it interferes with our daily life and freedom.

This is true for any network user, being a state actor, cloud computing company, or everyday end user. When we look at the backbone of the internet, almost everything is open source. What does this mean? Basic protocols and ways we connect over the internet are documented and open for everyone to observe, copy, and build upon. They are agreed upon as a set of transparent public instructions that are free of proprietary obligations. 

Industry and innovation 

To distinguish innovation from the industry (which might be important to go forward), we can introduce a simple correlation: The industry is an ecosystem that emerged on the need to make the invention more available. The vision of utility is in the industry, and the value of innovation is proven with every iteration of utility. Following this correlation, we can indeed say that the more transparent innovation, the greater its value (or we tend to give it such a position).

When we look at the internet industry, we observe that companies and strategies that followed openness have benefited massively from the invention. This system of benefits from the open source approach can work in depth for both the invention and the consequential industry. To name a couple of the greatest examples: Alphabet (Google, YouTube, or Maps), Linux (used to run almost the entire internet backbone infrastructure), Android (revolutionising the app market, levelling the entry field, and reducing the digital divide). All of them are open source, built on the open-source innovation of the internet.

 Architecture, Building, Diagram, CAD Diagram

A closer look at resiliency

Let’s look at one example that may illustrate this precisely: bitcoin. It started as an open-source project and is still one of the most maintained public databases on the internet. Bitcoin brings back the idea of private money after 100 years of the nation’s monopoly on money. Although it is pointed out as a danger to the international financial system, there is no possible coordinated action by such entities to take down this system and/or ban it permanently. Why? The simple answer is in the trade-off. 

Stopping bitcoin (or any digital information online) is not impossible per se but would require massive resources. This would require full control of all communication channels towards the internet, including banning satellites from orbiting above your geolocation and persistent efforts to ensure no one is breaching the ban. But in 2024, such a ban would create a tear in the fabric of society. Societal consequences would widely overcome the possible benefits.

Instead, as long as it is neutral, bitcoin does not present a threat but rather an opportunity for all. All other competitors built on bitcoin principles are not the same for that particular reason: they are not open source and transparent. No Central Bank Digital Currency (CBDC), privately issued stablecoin, or any of the thousand cryptocurrency impersonators have proven to hold any of the bitcoin’s value. Following the earlier distinction, innovation is open source, but the industry around it is not so much.

Open source is the right way, not the easy one

Does the above mean that when an industry is not based on open source, it cannot make great discoveries and innovate further? No, not at all. Intellectual property is a large part of the portfolio of the biggest tech companies. For example, Apple’s IP revenues culminated in around USD 22.6 billion in research and development expenditures (in 2022) The proprietary industry moves the needle in the economy and creates wealth, while open source creates opportunities. We need both for a healthy future. All of our opportunities may not result in imminent wealth, but rather in inspiration to move forward rather than oppose the change. 

In simple terms, open source empowers the bottom-up approach to building for the future. It helps expand the base of possible contributors, and maybe most importantly, reduces the possibility of ending up in ‘knowledge slavery’. It can create a healthy, neutral, starting point. The one most will perceive as a chance rather than a threat. 

If all of you had one particular innovation in mind while reading all this, you are right!

Artificial intelligence (AI) is a new frontier. AI is actually a bit more than just a technology, it is an agent. Anyhow, it is an invention, so chances are high it will follow the path we described above, enabling an entirely new industry of utility providers.

No need to be afraid

We hear all the (reasonable) concerns about AI development. Uncertainties on whether AI should be developed beyond human reach and concerns regarding AI in executive positions, all are based on fear of systems with no overview.  

In the past, the carriers of the open source (openness and transparency) approach were mostly in academia. Universities and other research institutions contributed the most to the open source approach. It is a bit different in the AI field. For that, companies are leading the way.  

The power to preserve common knowledge is still in the hands of states, and under the set of business and political circumstances, the private sector is also the biggest proponent of the open source approach. With the emergence of large language models and generative AI, the biggest open source initiatives came from Meta (LLaMa) and Alphabet (T5). They align with the incentive to statute open source as a standard for the future. We might be in an equilibrium moment in which both sides agree on the architecture for the future. Nations, international organisations, and the private sector should seize this opportunity. This new race toward more efficient technology of the future should evoke optimism, but there cannot be one without the bottom- up and open source approach to innovation. 

The open source approach is still the way forward for innovation. and can build neutral ground, or at least will not be perceived as a threat.

Read more of our ideas about the way forward in AI governance on the humAInism page

China and Russia push forward in semiconductor equipment development

In recent years, China and Russia have significantly ramped up efforts to advance their semiconductor equipment industries, aiming to secure competitive positions in the global market. While the US, Netherlands, Japan, and South Korea dominate the semiconductor equipment sector, China’s aggressive R&D investments in etching, CVD, PVD, and packaging technologies are helping it make strides in domestic substitution. However, the country still lags in high-end lithography equipment, especially EUV machines.

Despite challenges, China’s semiconductor equipment market is expected to see record-high purchases in 2024, surpassing $40 billion. Experts attribute this growth to localisations, new fabs, and global supply chain concerns. However, demand is expected to stabilise in 2025 once production lines are up and running, although long-term growth remains promising, fueled by applications in 5G, AI, and automotive electronics.

Meanwhile, Russia has accelerated its efforts to develop domestic semiconductor equipment, receiving over $2.5 billion in government funding. With a focus on manufacturing 200mm wafers for chips with nodes from 180nm to 90nm, Russia aims to reduce reliance on imports. The country’s ambitious goal is to replace 70% of imported equipment with domestically produced alternatives by 2030. Despite progress, Russian manufacturers like Angstrem and Mikron are still constrained to mature process nodes, depending on imported lithography systems.

TSMC and Nvidia in talks for Blackwell chip production in Arizona

Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly in discussions with Nvidia to produce its Blackwell AI chips at TSMC’s new facility in Arizona, according to sources familiar with the matter. This move would mark a significant expansion of Nvidia’s chip production outside Taiwan, where the Blackwell series has been manufactured since its unveiling in March. The chips, celebrated for their generative AI and accelerated computing capabilities, are in high demand and boast speeds 30 times faster than previous models for tasks like chatbot responses.

The Arizona facility, set to begin volume production next year, represents a major US investment by TSMC, which is building three plants in Phoenix with substantial US government subsidies. If finalised, Nvidia would join Apple and AMD as plant customers. However, sources indicate that the chips would still need to be sent back to Taiwan for advanced packaging due to the lack of chip-on-wafer-on-substrate (CoWoS) capacity in Arizona. All of TSMC’s CoWoS operations remain centralised in Taiwan.

TSMC’s expansion into the US aligns with Washington’s push to bolster domestic semiconductor manufacturing amid geopolitical concerns over Taiwan. Neither TSMC nor Nvidia has commented on the talks, emphasising the confidentiality of the ongoing discussions.

Meta eyes nuclear energy to power AI and data centres

Meta has announced plans to harness nuclear energy to meet rising power demands and environmental goals. The company is soliciting proposals for up to 4 gigawatts of US nuclear generation capacity, with projects set to commence in the early 2030s. By doing so, it aims to support the energy-intensive requirements of AI and data centre operations.

Nuclear energy, according to Meta, offers a cleaner, more reliable solution for diversifying the energy grid. Power usage by US data centres is projected to triple by 2030, necessitating about 47 gigawatts of new capacity. However, challenges such as regulatory hurdles, uranium supply issues, and community resistance may slow progress.

The tech giant is open to both small modular reactors and traditional large-scale designs. Proposals are being accepted until February 2025, with a focus on developers skilled in community engagement and navigating complex permitting processes. An official statement highlighted nuclear’s capital-intensive nature, which demands a thorough request-for-proposals process.

Interest in nuclear power among tech firms is growing. Earlier agreements by Microsoft and Amazon have set precedents for nuclear-powered data centres. Meta’s latest initiative underscores a broader shift towards innovative energy solutions within the industry.

ASM International says US export controls won’t affect 2025 outlook

Dutch semiconductor equipment maker ASM International (ASMI) said that the new US export controls align with its earlier 2025 revenue outlook. The updated restrictions, which include limits on semiconductor equipment exports to China, are not expected to significantly affect the company’s financial targets. ASM’s larger peer, ASML, has also indicated that the new regulations will not disrupt its financial guidance.

While the export controls include new limits on chip-manufacturing tools and equipment production in countries like Singapore and Malaysia, ASM believes that these changes will have only an indirect impact on its business. The company reaffirmed its 2025 revenue goal of between 3.2 billion and 3.6 billion euros ($3.4 billion to $3.8 billion) and expects a moderate sales decline in China in the first half of 2025, with year-on-year declines in its full-year sales in China.

ASM maintained its fourth-quarter sales guidance for 2024, expecting between 770-810 million euros, with a rise of more than 15% in sales from July to December compared to the first half of the year. Following the announcement, ASM’s shares rose by 1.5%.

Asia Pacific data centres attract global capital

Investors are flocking to data centre operators in the Asia Pacific region, driven by the growing demand for AI services and robust market valuations. Major transactions, like Blackstone’s $15.58 billion acquisition of Australia’s AirTrunk, have set high benchmarks for the sector. Industry experts predict that the region’s data centres will continue to see strong valuations due to their nascent stage and promising growth, despite concerns about insufficient infrastructure in some areas.

Several notable investment opportunities have surfaced, such as the sale of stakes in Indonesian data centre NeutraDC and Telkom’s data centre arm, which could be valued at over $1 billion. These deals reflect a broader trend of investors seeking high-growth opportunities in the region. NeutraDC’s expansion plan, which aims to increase capacity to 500 megawatts by 2030, has made it an attractive target, with valuations potentially exceeding 20 times core earnings.

The Asia Pacific region has become a leader in global data centre mergers and acquisitions, surpassing half of the world’s total transactions this year. This surge is attributed to the booming AI demand, with companies rapidly expanding their data processing capacity. However, some investors warn that the sustainability of these high valuations will depend on overcoming challenges like power shortages and the reliable delivery of new infrastructure projects.

While the long-term outlook for Asia Pacific’s data centre market remains positive, experts predict that growth may slow slightly as new capacity is brought online. Investors will need to navigate execution risks to maintain the sector’s momentum and ensure the continued expansion of data centre infrastructure.

Rebellions and Sapeon Korea merge to strengthen AI position

South Korean AI chipmakers Rebellions and Sapeon Korea have officially merged, forming a new company valued at approximately USD 928 million. The combined entity will continue under the name “Rebellions,” led by CEO Sunghyun Park. The merger aims to enhance the company’s global competitiveness in the fast-growing AI chip market by leveraging expertise across South Korea‘s telecom, government, and semiconductor sectors.

The merger brings together Rebellions, a fabless AI chip startup established in 2020, and Sapeon Korea, an affiliate of SK Telecom, to combine their strengths in AI chiplet technology. This integration is expected to accelerate innovation and improve efficiency, particularly in developing next-generation AI chips like REBEL, designed to meet the increasing demands of AI applications.

Looking ahead, Rebellions plans to expand internationally, with targeted entry into markets such as the United States, Saudi Arabia, and Japan. Strategic partnerships, including collaborations with SK Telecom and SK hynix, will help fuel the company’s global ambitions and support its expansion efforts.