Nvidia has introduced Project Digits, a compact AI supercomputer designed for researchers, data scientists, and students. The system, unveiled at CES 2025 in Las Vegas, runs on Nvidia’s powerful Grace Blackwell Superchip and provides up to a petaflop of computing performance. CEO Jensen Huang described it as a “cloud computing platform that sits on your desk” and highlighted its ability to prototype and fine-tune AI models.
A single Project Digits unit can run AI models with up to 200 billion parameters, while two linked devices can handle models with up to 405 billion parameters. The machine is powered by a Blackwell GPU and a 20-core Grace CPU, supported by 128GB of memory and up to 4TB of storage. It can function as a standalone system or connect to a primary Windows or Mac PC, offering flexibility for AI development.
Pricing starts at $3,000, making it an investment primarily for professionals and institutions rather than casual users. Nvidia plans to launch Project Digits in May through select partners. Huang believes the device will bring AI supercomputing capabilities to millions of developers, accelerating advancements in AI.
Meta Platforms has elected three new directors to its board, including Dana White, CEO of Ultimate Fighting Championship (UFC) and a close associate of President-elect Donald Trump. Investor and former Microsoft executive Charlie Songhurst and Exor CEO John Elkann have also joined. Meta CEO Mark Zuckerberg said their expertise would help the company navigate opportunities in artificial intelligence, wearables, and digital connectivity.
White’s appointment strengthens his ties with Zuckerberg, who has become a mixed martial arts enthusiast. The two have shared public exchanges in recent years, with Zuckerberg attending UFC events at White’s invitation. Songhurst has been involved in Meta’s AI advisory group since May, while Elkann holds leadership roles at Ferrari and Stellantis, alongside chairing the Agnelli Foundation.
Zuckerberg has been adjusting Meta’s strategy ahead of a possible second Trump presidency. The company recently promoted Republican policy expert Joel Kaplan and donated $1 million to Trump’s inaugural fund, signalling a shift in its political stance. Meta has also acknowledged past content decisions that were unpopular among conservatives as it prepares for the evolving political landscape.
Israeli cybersecurity companies raised $4 billion in 2024, more than doubling the previous year’s total, according to venture capital firm YL Ventures. The sector, a key driver of Israel’s economy, saw strong investment growth despite geopolitical challenges. Cloud security and AI played a significant role in attracting funding, with early-stage startups securing $400 million across 50 seed rounds.
Investment in later-stage cybersecurity firms also surged, with growth-stage funding rounds raising $2.9 billion—an increase of 300% from 2023. The expansion reflects growing global confidence in Israel’s cybersecurity industry, which is increasingly recognised as a leader in the field. YL Ventures highlighted the role of Israeli military intelligence units in fostering a culture of innovation and entrepreneurship that strengthens the sector.
The ongoing war following Hamas’s October 2023 attack has added pressure on tech founders, many of whom have been called into military service. Industry leaders have had to navigate operational challenges while maintaining business continuity. Looking ahead to 2025, venture capital firms anticipate continued investment growth, particularly in early and mid-stage funding rounds, as cybersecurity remains a global priority.
AI startups have played a key role in reviving United States venture capital funding, with total capital raised in 2024 increasing by nearly 30% year-on-year, according to PitchBook. AI firms secured a record 46.4% of the $209 billion raised, a sharp rise from less than 10% a decade ago. The surge in investment has been driven by growing enthusiasm for AI technology, particularly since OpenAI’s ChatGPT gained widespread attention in late 2022. Major funding rounds, including $6.6 billion for OpenAI and $12 billion for Elon Musk’s xAI, highlight investor confidence in AI’s potential.
Despite the strong investment trends, analysts warn that maintaining such momentum could be challenging, especially for foundation model firms that require significant capital for computing power and expertise. Venture capital funding overall still faces hurdles, with only $76 billion raised in 2024—the lowest in five years. Exit values also remain well below their 2021 peak, although they improved from 2023’s seven-year low. While the IPO market did not recover as quickly as expected, year-end listings like ServiceTitan have provided some renewed optimism.
Hopes for a stronger IPO and M&A market are tied to the incoming administration of President-elect Donald Trump, which is expected to introduce policies favourable to technology and business. Industry experts believe more venture-backed companies could go public in the second half of 2025, helping to sustain the investment rebound. With AI continuing to dominate venture capital funding, the sector’s ability to meet ambitious business milestones will be critical to maintaining investor confidence.
US stock markets climbed to one-week highs on Monday, driven by gains in semiconductor stocks and optimism over AI investments. Reports suggesting that Donald Trump’s incoming administration may adopt a more selective approach to tariffs, rather than broad measures, also helped boost investor confidence. The Dow Jones Industrial Average rose 0.41%, the S&P 500 gained 1.02%, and the Nasdaq Composite surged 1.53%, with automakers and tech stocks leading the rally.
Semiconductor shares saw strong gains after Microsoft announced an $80 billion investment in AI-enabled data centres, while Foxconn posted better-than-expected quarterly revenue. Nvidia climbed 3.5%, AMD gained 2.8%, and Micron Technology surged 9.6%, pushing the Philadelphia Semiconductor Index to a two-month high. Meanwhile, the Russell 2000 index, which tracks small-cap companies, added 0.7% as investors weighed economic data and Federal Reserve policy signals.
Investors are closely watching monetary policy developments, with the Federal Reserve expected to provide further guidance on interest rate cuts later in the week. While Trump’s proposals could support corporate earnings and economic growth, concerns remain over potential inflationary pressures. US markets will be closed on January 9 for a national day of mourning in honour of former President Jimmy Carter.
AI-powered chatbots played a key role in boosting online sales during the 2024 holiday season, with United States e-commerce revenue rising nearly 4% year-on-year to $282 billion, according to Salesforce. Consumers increasingly relied on AI-based customer service tools for purchases and returns, with chatbot usage growing by 42% compared to 2023. Retailers also leveraged targeted promotions, product recommendations, and loyalty programmes to attract bargain hunters.
Despite the sales growth, a sharp increase in product returns emerged as a significant challenge for retailers. The return rate climbed to 28%, up from 20% in the previous year, potentially affecting profit margins. Caila Schwartz, director of Consumer Insights at Salesforce, noted that AI-driven tools would be crucial in 2025 to help retailers reduce losses from returns and retain customers. Mobile shopping remained dominant, with 79% of all orders placed via smartphones, peaking on Christmas Day as last-minute buyers made their final purchases.
Social media platforms such as TikTok Shop and Instagram also played a growing role in holiday sales, driving 14% of traffic to e-commerce sites. AI-driven sales reached $229 billion globally, an increase from $199 billion in 2023. As retailers continue to invest in digital shopping tools, the balance between AI-driven efficiency and managing high return rates will be critical for sustaining profitability in the coming years.
Demis Hassabis, CEO of Google DeepMind, has warned that the rapid progress in AI development may be slowing as companies exhaust the available digital data needed to train large language models. The industry has long relied on feeding vast amounts of online text into AI systems to improve performance, but diminishing returns are now setting in. Some experts, including OpenAI’s Ilya Sutskever, believe the industry has reached “peak data,” meaning future improvements will require entirely new approaches.
Researchers are now exploring alternative methods, such as synthetic data, where AI models generate and learn from their own outputs. While this technique has shown promise in fields like mathematics and programming, it struggles with more complex areas like philosophy and the arts, where defining correctness is difficult. OpenAI has already applied this method in its latest system, OpenAI o1, but challenges remain, particularly in preventing AI from making errors or generating misleading information.
Another possibility to overcome ‘data limitation’ in AI development is to shift focus from quantity to quality of data through better data labelling and contextual enrichment, as done by Diplo’s cognitive proximity approach (see below).
DiploAI approach to data enrichment
Tech leaders remain divided on whether AI advancements will continue at the same pace. Nvidia’s CEO Jensen Huang remains optimistic, citing strong demand for AI chips and ongoing innovation. However, some of the company’s biggest customers are preparing for a possible plateau in AI development. Despite the uncertainty, investment in AI infrastructure remains high, with firms continuing to push the boundaries of what AI can achieve.
OpenAI CEO Sam Altman has revealed that the company is losing money on its $200-per-month ChatGPT Pro plan due to unexpectedly high usage. The plan, introduced last year, provides access to an advanced AI model and fewer restrictions on OpenAI’s tools. Altman admitted that the pricing was not based on a rigorous study but was instead a personal decision.
Despite raising around $20 billion, OpenAI remains unprofitable, with estimated losses of $5 billion last year. The company is considering price increases or usage-based fees to improve financial stability. Altman also acknowledged that OpenAI requires more investment than initially expected.
The company remains optimistic about its future revenue, projecting $11.6 billion in 2025 and aiming for $100 billion by 2029. As OpenAI undergoes corporate restructuring, attracting new investors and refining its pricing strategy will be key to long-term profitability.
Security concerns are mounting as Windows 10 sees a rise in market share while Windows 11 adoption declines. Microsoft will officially end free security updates and support for Windows 10 on 14 October 2025, leaving millions of users vulnerable unless they upgrade or pay for extended security updates.
Experts warn that continuing to use Windows 10 beyond its support period poses risks of cyberattacks, data breaches, and ransomware. Microsoft strongly recommends switching to Windows 11, which is designed to meet modern security demands, or choosing an alternative operating system.
Cybersecurity professionals urge users not to delay, with ESET‘s Thorsten Urbanski stressing the urgency of upgrading before the deadline to avoid a security crisis. The transition period is quickly closing, making early action essential for those relying on Windows 10.
Taiwan’s Foxconn, the world’s leading electronics contract manufacturer, reported record-breaking revenue for the fourth quarter, driven by surging demand for AI servers. With a 15.2% rise in revenue to T$2.13 trillion ($64.72 billion), the company outperformed market expectations, reflecting the robust growth of its cloud and networking products division. Major clients like Nvidia have fueled the boom, while its consumer electronics segment, including iPhones, remained stable year-on-year.
Foxconn’s December revenue alone soared by 42.3% compared to the previous year, reaching T$654.8 billion, marking the second-highest figure for that month in the company’s history. Despite the fourth quarter’s impressive performance, Foxconn acknowledged the seasonal slowdown typical of the first quarter. However, the company projects significant year-on-year growth for early 2025, aligning with average levels from the past five years.
The company, formally known as Hon Hai Precision Industry, has seen its shares skyrocket by 76% in 2024, far outpacing Taiwan’s broader market index. Investors remain optimistic as Foxconn continues to dominate in the AI and electronics sectors, with its entire fourth-quarter earnings set to be unveiled on 14 March.
