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.
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.
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.
Shares of New York-listed cryptocurrency companies surged on Monday following Donald Trump’s endorsement of bitcoin and his promise of more favourable regulations if elected.
Coinbase shares climbed 3.7%, while Bitfarms, Riot Platforms, and CleanSpark saw gains ranging from 3.4% to 4.5%. Analysts at Bernstein noted that the crypto market is optimistic about a potential Trump victory, especially compared to the current Biden administration’s stricter regulatory stance.
Crypto executives have frequently criticised the Biden administration’s oversight, although SEC Chair Gary Gensler defends it due to bitcoin’s volatility and speculative nature. Despite these regulatory hurdles, cryptocurrency has gained mainstream acceptance, with support from institutional investors and ETFs linked to bitcoin and ether prices.
Why does it matter?
A Trump victory could provide a further boost to the industry. He recently suggested creating a national bitcoin stockpile and expressed interest in mining all remaining bitcoin in the US. Bitcoin rose by up to 2.4%, hitting its highest level since mid-June.
The State of Michigan Retirement System’s recent $6.6 million investment in the ARK 21Shares Bitcoin ETF (ARKB.Z) marks a significant step in the institutional adoption of cryptocurrency assets. Managing approximately $143.9 million in total assets for state employees, Michigan’s decision reflects a growing acceptance of digital assets among institutional investors.
The move aligns with a broader trend of diversification within pension fund portfolios, highlighting a shift towards incorporating digital assets into traditional investment strategies. Similarly, the State of Wisconsin Investment Board recently disclosed significant cryptocurrency holdings, including investments in BlackRock’s iShares Bitcoin Trust and the Grayscale Bitcoin Trust.
The influx of institutional capital into Bitcoin ETFs could help stabilise the often volatile cryptocurrency market. Analysts, including Todd Sohn from Strategas, suggest that institutions’ longer investment horizons can mitigate extreme price fluctuations that Bitcoin has historically experienced. As more institutional investors, including public pension funds, allocate capital to Bitcoin ETFs, the overall market dynamics could evolve, fostering a more stable environment for cryptocurrencies. These investments signify a significant shift towards cryptocurrency among public pension funds, traditionally driven by retail investors.
Additionally, the mayor of Jersey City, New Jersey, has indicated plans to allocate a portion of the city’s pension fund to Bitcoin ETFs. Although specific timelines have yet to be announced, this further underscores the trend of public pension funds considering cryptocurrency as a viable investment option. These actions signal the growing legitimacy and acceptance of cryptocurrencies in mainstream finance. As institutional interest grows, stakeholders will closely monitor these developments, potentially paving the way for increased stability and broader acceptance of cryptocurrencies.
The National Institute of Standards and Technology (NIST) has re-released Dioptra, a tool designed to measure AI model risks, particularly from data poisoning attacks. The modular, open-source web-based tool, originally launched in 2022, aims to help companies and individuals assess and analyse AI risks. It can be used for benchmarking, researching models, and exposing them to simulated threats, offering a common platform for these activities.
NIST has positioned Dioptra to support government agencies and businesses in evaluating AI system performance claims. The tool’s release coincides with new documents from NIST and the AI Safety Institute that outline ways to mitigate AI-related dangers, including the generation of non-consensual pornography. This effort is part of a broader US-UK partnership to advance AI model testing, which was announced at the UK’s AI Safety Summit last year.
The development of Dioptra aligns with President Joe Biden’s executive order on AI, which mandates comprehensive AI system testing and the establishment of safety and security standards. Companies developing AI models, such as Apple, are required to notify the federal government and share safety test results before public deployment.
Despite its capabilities, Dioptra has limitations. It only works with models that can be downloaded and used locally, such as Meta’s expanding Llama family. Models that are accessible only via an API, like OpenAI’s GPT-4, are currently not compatible. Nonetheless, NIST proposes that Dioptra can highlight which types of attacks might degrade an AI system’s performance and quantify their impact.
Bechtle has secured a significant framework agreement with the German government to provide up to 300,000 iPhones and iPads, all equipped with approved Apple security software. The contract, valued at €770 million ($835.22 million), will run until the end of 2027, according to an announcement on Thursday.
This deal aligns with Germany’s recent IT security law aimed at restricting untrustworthy suppliers and ensuring robust security measures for government officials. Bechtle’s partnership with Apple underscores the importance of reliable technology and security in government operations.
The agreement comes some time after Apple’s legal challenges in Germany, including an injunction from a German court over a patent case back in 2018. Despite these hurdles, the collaboration with Bechtle demonstrates Apple’s continued commitment to providing secure and trusted devices for essential functions within the public sector.
The negotiations at WTO will continue pending endorsement by several countries, including the United States.
The current text of the Agreement underscores the critical role of global electronic commerce in fostering inclusive trade and development, highlighting the WTO’s essential function in promoting open, transparent, and non-discriminatory regulatory environments.
The Agreement on Electronic Commerce promises substantial benefits for consumers and businesses engaged in digital trade, particularly micro, small, and medium-sized enterprises (MSMEs).
A key aspect of the agreement is its support for developing and least-developed country members, addressing their specific needs through implementation periods, technical assistance, and capacity-building support.
Recognising the evolving nature of digital technology, the statement acknowledges that certain issues remain unaddressed and will be considered in future negotiations.
The co-convenors encouraged all WTO members to support and join the initiative, committing to sustained engagement and outreach to expand participation and ensure shared benefits in the global digital economy.
