The Nigerian Government has announced the development of a locally-made blockchain called ‘Nigerium’, designed to secure national data and enhance cybersecurity. The National Information Technology Development Agency (NITDA) is leading this initiative to address concerns about reliance on foreign blockchain technologies, such as Ethereum, which may not align with Nigeria’s interests.
NITDA Director General Kashifu Abdullahi introduced the ‘Nigerium’ project during a visit from the University of Hertfordshire Law School delegation in Abuja. He highlighted the need for a blockchain under Nigeria’s control to maintain data sovereignty and position the country as a leader in the competitive global tech landscape. The project, proposed by the University of Hertfordshire, aims to create a blockchain tailored to Nigeria’s unique requirements and regulatory framework.
The indigenous blockchain offers several advantages, including enhanced security, data control, and economic growth. By managing its own blockchain, Nigeria can safeguard sensitive information, improve cyber defence capabilities, and promote trusted transactions within its digital economy. The collaboration between the private and public sectors is crucial for the success of ‘Nigerium’, marking a significant step towards technological autonomy.
If successful, ‘Nigerium’ could place Nigeria at the forefront of blockchain technology in Africa, ensuring a secure and prosperous digital future. This initiative represents a strategic move towards maintaining data sovereignty and fostering innovation, positioning Nigeria to better control its technological destiny.
The UAE’s AI, Digital Economy and Remote Work Applications Office, alongside the Mastercard Centre for Advanced AI and Cyber Technology in Dubai and First Abu Dhabi Bank (FAB), have unveiled their inaugural ‘AI Challenge’. Aligned with the UAE Strategy for AI, this initiative aims to invigorate the country’s burgeoning AI sector and cultivate opportunities for AI-focused businesses and talent.
Saqr Binghalib, Executive Director of the AI Office in UAE, emphasised the government’s commitment to fostering partnerships with technology leaders and innovators. This collaboration aims to propel technological advancement, shape the future of AI, and reinforce the UAE’s global leadership in emerging fields.
J.K. Khalil, Division President, East Arabia at Mastercard, highlighted AI’s transformative potential across finance, business operations, and global interactions. The AI Challenge underscores Mastercard’s dedication to leveraging AI for positive impact and supporting the UAE’s vision to pioneer innovation in this domain.
The AI Challenge invites seed and Series A startups to propose innovative AI-driven solutions in areas such as cybersecurity, fintech, and productivity enhancement. Finalists will compete for a US$150,000 cash prize, access to Mastercard’s global resources, and enrolment in its acclaimed Start Path programme, aimed at accelerating startup growth through mentoring and global networking opportunities. Interested participants can register online by 25th August 2024 to participate in this groundbreaking initiative.
Serbia’s Parliament Speaker Ana Brnabic emphasised the significance of the newly unveiled 2024-2030 AI Development Strategy as a pivotal document for the nation. Highlighting its broad impact across sectors such as education, energy, and healthcare, Brnabic underscored AI’s critical role in Serbia’s societal advancement.
Brnabic noted Serbia’s pioneering move in 2019 by adopting its first AI strategy, positioning the country at the forefront of AI development in Southeastern Europe.
She highlighted Serbia’s membership in the Global Partnership for AI, currently chaired by the nation, and announced plans to host a global AI conference in December.
Under the previous strategy, Serbia established the Institute for AI in Novi Sad in 2021 and introduced its first national AI platform. The supercomputer, available free of charge to universities, scientific institutes, and local startups, aims to foster innovation and technological growth in Serbia’s science and technology parks.
The group aims to reduce the barriers to entering the digital economy for low-income populations, particularly in Sub-Saharan Africa and South Asia. The GSMA highlighted that handset affordability is the most significant obstacle preventing people from going online.
In many low and middle-income countries, mobile phones are often the only means of accessing the internet. Currently, 38% of the global population cannot use mobile internet due to high costs and lack of skills. The coalition will work together to improve access to affordable internet-enabled devices, aiming to close the ‘Usage Gap’ that hinders around three billion people from fully participating in the global digital economy.
Hedge funds are increasingly investing in South Korean chipmakers, betting on a surge in demand for high-end memory chips driven by AI advancements and government support. Notable funds, including Britain’s Man Group and Singapore’s FengHe Fund Management, target giants like SK Hynix and Samsung Electronics, which have lagged behind the broader AI sector rally.
FengHe and other investors see SK Hynix as a key player in the AI market, given its significant supply of high-bandwidth memory (HBM) chips to Nvidia. Despite Hynix’s crucial role, its stock trades at a lower multiple than Taiwan’s TSMC, presenting a perceived value opportunity. Additionally, the South Korean government’s 26 trillion won support package for the chip industry and initiatives to enhance shareholder returns add to the appeal of these stocks.
The influx of hedge fund investment has bolstered the stock market in South Korea, with the KOSPI index achieving its best performance in seven months in June. South Korean stocks have attracted the highest inflows among Asian emerging markets this year, with Samsung and Hynix accounting for a significant portion of KOSPI’s market capitalisation. Despite Hynix’s substantial gains, Samsung is expected to catch up in the latter half of the year.
Beyond chipmakers, the AI boom is benefiting other South Korean industries. For instance, HD Hyundai Electric has seen a significant rise in share price, driven by increased power consumption from AI developments. The ongoing US-China technology conflict further ensures demand for South Korean advanced memory chips as Chinese manufacturers struggle under US export restrictions.
South Korean cosmetics giant AmorePacific has seen immense interest in its new AI beauty lab, where robots custom mix face products and advanced technology recommends the most suitable lipstick colours. Customers like Kwon You-jin appreciate the personalised service, which uses AI-generated reports to analyse skin conditions and match products precisely to individual skin tones.
AI technology is becoming increasingly prevalent in the cosmetics industry, with global brands like L’Oréal and Sephora also adopting it to tailor products to customer needs. In 2023, global beauty industry sales, including cosmetics, reached $625.6 billion, showing steady growth since a dip during the COVID-19 pandemic.
AmorePacific employs deep learning and machine learning techniques to recommend the best product choices. The use of AI speeds up product development and reduces human error and variability in consultations. Analysts believe that AI integration will continue accelerating product launches and lowering industry hurdles.
The market for AI in the beauty and cosmetics sector is projected to more than double from $3.27 billion in 2023 to $8.1 billion by 2028. According to Business Research Company, services such as personalised beauty recommendations, skin analysis, diagnostics, and virtual makeup artists are expected to drive this growth.
According to industry estimates, India‘s technology sector will need over 1 million engineers with advanced AI and other tech skills in the next 2-3 years. The demand highlights a considerable skills gap that current education and training systems must address. Sangeeta Gupta of the National Association of Software and Service Companies (NASSCOM) stressed the need for continuous reskilling, as new college graduates can only fill a quarter of these advanced roles.
The sector, employing around 5.4 million people and contributing significantly to India’s GDP, faces a critical challenge in matching workforce skills to job requirements. Major IT firms like Tata Consultancy Services and Larsen and Toubro are already struggling to fill thousands of positions due to this mismatch, which could disadvantage them against global competitors.
Why does this matter?
The issue’s root lies in India’s education system, which needs more practical skill development. NASSCOM predicts the digital talent gap will widen from 25% to 29% by 2028, exacerbating the problem. Prominent economists, including former central bank Governor Raghuram Rajan, warn that poor schooling could hinder the country’s growth prospects, especially with a predominantly young population.
Goldman Sachs has cast doubt on the economic viability of AI investments, despite substantial spending on AI infrastructure. The firm estimates around $1 trillion will be spent on AI-related infrastructure, including data centres, semiconductors, and grid upgrades. However, Goldman Sachs raises a crucial question: what problem will this massive AI investment actually solve?
According to Jim Covello, head of global equity research at Goldman Sachs, the current scenario contrasts sharply with past technological transitions. He argues that while the internet revolutionised commerce by offering low-cost solutions, AI today is exceedingly expensive and lacks clear applications capable of justifying its high costs. Covello highlights concerns that investor enthusiasm may wane if substantial AI use-cases fail to materialise within the next 12 to 18 months.
Despite these reservations, Kash Rangan of Goldman Sachs acknowledges that the AI cycle is still in its early stages, primarily focused on building infrastructure rather than discovering groundbreaking applications. He remains optimistic that as the AI ecosystem matures, a transformative ‘killer application’ will eventually emerge.
Looking forward, Goldman Sachs anticipates that the ongoing AI build-out will exert considerable pressure on national grids and electricity consumption. The report forecasts a 2.4% compound annual growth rate in UK electricity demand and projects that data centres will double their electricity consumption by 2030, underscoring the immediate impacts of AI infrastructure development on energy resources.
While AI holds potential for revolutionary advancements, Goldman Sachs suggests that its current trajectory raises fundamental questions about economic feasibility and the pace of transformative breakthroughs needed to justify its substantial investments.
Investments in AI startups soared to $24 billion in the last two months, more than doubling from the previous quarter, as reported by sources familiar with the matter. The surge reflects a growing interest in AI technology, making it the largest investment sector, followed by healthcare and biotech. Overall startup funding increased 16% to $79 billion in the last quarter, driven mainly by AI.
The success of OpenAI’s ChatGPT has sparked a race to integrate the latest AI technology in various fields, including business productivity, healthcare, and manufacturing. However, investors and major tech firms caution that substantial returns from these investments are expected to materialise over the next few years.
Five out of six billion-dollar funding rounds were for AI companies during this period. Notable deals included Elon Musk’s xAI raising $6 billion and AI infrastructure provider CoreWeave securing $1.1 billion. In addition, the automated driving company Wayve and data preparation company Scale AI have attracted substantial investments. Cybersecurity firm Wiz, for example, raised a billion dollars in its latest funding round outside the AI sector.
Why does it matter?
Despite the recent increase, overall startup funding remains lower than in the past three years. Global funding dropped 5% to $147 billion in the year’s first half and remained flat compared to the latter half of 2023. The tight monetary policy in the US has also slowed the revival of initial public offerings (IPOs), a significant source of returns for institutional private market investors who typically invest in startups and sell shares during IPOs.
At the recent World Artificial Intelligence Conference in Shanghai, Chinese GPU developers seized the opportunity to showcase their products in Nvidia’s absence. Prominent companies such as Iluvatar Corex, Moore Threads, Enflame Technology, Sophgo, and Huawei’s Ascend were at the forefront, highlighting their advancements despite significant challenges in manufacturing and software ecosystems.
Enflame Technology emphasised the shift from foreign-dominated computing clusters to a mix of Chinese and foreign GPUs. The company, along with AI solutions firm Infinigence, is promoting compute resources that utilise a variety of chips from both Nvidia and Chinese manufacturers. However, US export restrictions have prevented Nvidia from selling its most advanced chips in China, and several Chinese firms, including Huawei, are struggling with manufacturing hurdles due to being blacklisted by the US.
Huawei’s booth was a major attraction, showcasing its Ascend 910B chips, which train numerous large language models in China. Meanwhile, Enflame presented its Cloudblazer T20 and T21 AI-training chips, benefiting from not being on the US trade blacklist, which allows it access to global foundries like TSMC.
Despite these efforts, Chinese GPUs still need to catch up with their global counterparts regarding performance. Nvidia remains a dominant player, with tailored chips for the Chinese market continuing to be popular. Nvidia is expected to deliver over 1 million H20 GPUs in China this year, generating $12 billion in sales. However, experts highlight that China’s in-house technology still needs to meet its substantial domestic AI demand.
