Apple has announced a substantial investment of up to $1.5B in satellite provider Globalstar to expand iPhone communication services, particularly in areas with limited network access. This new agreement follows Apple’s initial partnership with Globalstar in 2022, which enabled emergency messaging capabilities in remote locations. Under the deal, Apple will invest $1.1B in cash, secure a 20% stake in Globalstar for an additional $400M, and gain access to 85% of Globalstar’s network capacity.
Shares of Globalstar surged by over 30% following the news, while Apple’s stock dipped slightly as it forecasts modest revenue growth for the coming quarter. Globalstar indicated that a portion of Apple’s funding will help reduce its debt, further strengthening its infrastructure.
The collaboration between Apple and Globalstar highlights a growing trend of partnerships between tech and satellite companies aiming to provide seamless satellite-based connectivity to underserved regions. The deal is expected to finalise on Tuesday, paving the way for expanded services on future iPhone models.
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.
e& and ZTE have forged a significant strategic collaboration by signing a Memorandum of Understanding (MOU) to foster innovation in the telecommunications sector amid current geopolitical challenges affecting technology adoption. The partnership is centred on developing energy-efficient and sustainable solutions for network infrastructure, addressing the growing global emphasis on environmental responsibility.
Additionally, they will design and develop advanced 5G and 5G-Advanced (5G-A) solutions while exploring innovative use cases for private networks to enhance connectivity and operational efficiency. Through shared insights and knowledge exchange, both organisations will promote leadership and collaborative learning, positioning themselves as responsible leaders in the industry while striving for net-zero emissions and inspiring further innovation.
Why does it matter?
The partnership emphasises the importance of creating opportunities for joint initiatives that enhance capabilities. By fostering a shared learning environment, both organisations can learn from each other’s successes and challenges, allowing for effective navigation of the rapidly evolving telecommunications landscape. Their joint efforts aim to bolster technological development and pave the way for a more connected and sustainable future.
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.
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.
Indonesia has banned sales of Google’s Pixel smartphones due to regulations requiring a minimum of 40% locally manufactured components in devices sold within the country. This decision follows a similar ban on Apple’s iPhone 16 for failing to meet these content standards. According to Febri Hendri Antoni Arief, a spokesperson for Indonesia’s industry ministry, the rules aim to ensure fairness among investors by promoting local sourcing and partnerships.
Google stated that its Pixel phones are not officially distributed in Indonesia, though consumers can still import them independently if they pay applicable taxes. Officials are also considering measures to deactivate unauthorised imports to enforce compliance.
Despite Google and Apple not being leading brands in Indonesia, the market holds significant potential for global tech firms due to its large, tech-savvy population. However, Bhima Yudhistira from the Centre of Economic and Law Studies warned that these restrictions may deter foreign investment, creating what he calls ‘pseudo protectionism’ that could dampen investor sentiment in the region.
Google Cloud has launched its first in-house Arm-based CPU, called the Axion chip, now available to all cloud customers, including streaming services like Spotify and Paramount. Designed with Arm Holdings technology, the Axion chip offers about 60% greater energy efficiency than traditional processors from Intel and AMD, allowing developers to save power for other intensive tasks, such as AI, according to Mark Lohmeyer, Google Cloud‘s vice president of compute and AI infrastructure.
Google joins Amazon, Microsoft, and Ampere Computing in offering Arm-based processors that provide high performance with lower electricity usage. The Axion chip, delivered via a service called an ‘instance,’ represents Google Cloud’s growing focus on energy-efficient computing solutions. Though Google Cloud has used Ampere’s Arm-based chips in the past, it intends to shift more focus to its own Axion chip as the primary option for cloud customers moving forward.
Google Cloud has already been using the Axion chip internally, powering various cloud services for some time. Lohmeyer stated the Axion chip’s enhanced efficiency and integration into Google’s infrastructure mark a significant milestone in Google’s cloud technology portfolio.
