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Tech titans announce AI-driven PC revolution at Computex 2024

This week, key players in the chip industry, including Nvidia, Intel, AMD, Qualcomm, and Arm, gathered in Taiwan for the annual Computex conference, announcing an ‘AI PC revolution.’ They showcased AI-enabled personal computers with specialised chips for running AI applications directly on the device, promising a significant leap in user interaction with PCs.

Intel CEO Pat Gelsinger called this the most exciting development in 25 years since the arrival of WiFi, while Qualcomm’s Cristiano Amon likened it to the industry being reborn. Microsoft has driven this push by introducing AI PCs equipped with its Copilot assistant and choosing Qualcomm as its initial AI chip supplier. Despite this, Intel and AMD are also gearing up to launch their AI processors soon.

Why does it matter?

The conference was strategically timed to precede Apple’s annual Worldwide Developers Conference, hinting at the competitive landscape in AI advancements. As the PC market shows signs of recovery, analysts predict a rise in AI PC adoption, potentially transforming how PCs are used. However, there needs to be more skepticism about whether consumer demand will justify the higher costs associated with these advanced devices, as the Financial Times reports.

Rwanda to adopt digital currency by 2026

Rwanda aims to develop its own national Central Bank Digital Currency (CBDC) within the next two years. According to the National Bank of Rwanda (BNR), that initiative will offer Rwandans a secure, cost-free, and convenient alternative to physical cash. The CBDC is anticipated to boost financial inclusion, enabling more unbanked individuals to engage in the formal economy. Soraya Hakuziyaremye, Deputy Governor of Rwanda’s Central Bank, disclosed the 2026 target during an interview. She emphasised the importance of Rwanda’s CBDC, noting similar developments in other countries in the continent, including Nigeria, Ghana, and South Africa, which are either piloting or have already launched their own CBDCs.

Hakuziyaremye also noted that, considering Rwanda’s aspirations for ICT development and a cashless economy, it was essential to evaluate the potential benefits of following other countries’ examples, especially that the country’s major trading partners are testing or adopting the technology. In November 2023, National Bank of Rwanda Governor John Rwangombwa announced during the presentation of the central bank’s annual report for the fiscal year 2022/2023 to a joint parliamentary session that the CBDC was in development. In May 2024, the Deputy Governor, working alongside the Ministry of Finance, ICT, and Innovation, formed a task force for a feasibility study on CBDC in Rwanda in order to explore the technological requirements, regulatory frameworks, and potential risks.

The Deputy Governor mentioned that the authority published a research paper and held a public consultation process to address various concerns and ensure the CBDC benefits the population, including data privacy, system resilience, and the potential destabilization of the financial system. After the public consultation process ends in the next four weeks, Rwanda will begin a proof of concept to test the technology, design, and speed on a small scale. Additionally, a six-month international test will be conducted to evaluate the technology for cross-border payments. Following these tests, selected individuals and companies will participate in testing the digital currency. While considering various CBDC design options, Rwanda prefers a retail CBDC distributed through banks and an offline-accessible CBDC, which would be particularly useful in areas without internet access or smartphones, or during power outages.

Why does it matter?

The introduction of a CBDC in Rwanda holds significant importance for:

Economic Growth and Stability, as it contributes to a more stable and resilient economy by improving the efficiency of monetary policy implementation. That can lead to better control of inflation and economic stability.
Financial Inclusion in a country where a significant portion of the population remains unbanked or underbanked. A digital currency can provide easier access to financial services especially to individuals in remote and underserved areas.
Cost Efficiency by the reduction of the costs associated with producing and managing physical cash (savings on printing, transportation, and storage)
Enhanced Security and Transparency due to its higher level of security compared to physical cash, reducing the risk of counterfeiting and fraud. The use of blockchain or similar technologies can ensure greater transparency and traceability of transactions, vital for combating money laundering and other illicit activities.
Technological Advancement through financial technology that can attract investment, stimulate innovation, and create new job opportunities in the tech sector.

Binance faces £10 billion lawsuit in London over delisting of Bitcoin Satoshi Vision

Crypto exchange Binance has requested the dismissal of most of a £10 billion ($12.8 billion) lawsuit in London, alleging collusion with other exchanges to delist the Bitcoin Satoshi Vision (BSV) cryptocurrency. The lawsuit, brought to the Competition Appeal Tribunal (CAT) on behalf of over 200,000 BSV owners, claims that exchanges, including Kraken, engaged in anti-competitive behaviour to delist BSV in 2019, causing its value to plummet and hindering its potential to become a ‘top tier’ cryptocurrency.

BSV Claims’ lawyers argue that the delisting prevented BSV from gaining prominence and have valued this aspect of the claim at up to £9 billion. Despite not opposing the case’s certification under the UK’s collective proceedings regime, Binance’s lawyer, Brian Kennelly, argued that those who retained BSV made a voluntary decision and could have reinvested in other cryptocurrencies.

While Binance declined to comment on the ongoing litigation, Kraken described the lawsuit as ‘baseless.’ The delisting of BSV by Binance, Kraken, and others in 2019 followed claims by Australian computer scientist Craig Wright, who asserted he was the pseudonymous inventor of bitcoin, ‘Satoshi Nakamoto.’ Wright was recently found to have lied and forged documents to support his claim, a ruling he intends to appeal.

Crypto advocacy group surpasses 1 million members in USA

Stand with Crypto, an organisation advocating for cryptocurrency owners, celebrated a milestone as its membership exceeded 1 million. The group aims to wield political influence, urging policymakers to establish favourable regulations for the digital asset industry while avoiding excessive compliance burdens. Brian Armstrong, CEO of Coinbase, a platform facilitating crypto transactions and a co-founder of Stand With Crypto, emphasised the significant voting power within the crypto community, highlighting its potential impact on policy decisions.

The cryptocurrency sector is actively engaging in US elections, investing millions of dollars to support candidates sympathetic to crypto and oppose those advocating for stringent regulations. Coinbase recently pledged $25 million to the pro-crypto political action committee Fairshake, following similar contributions from Ripple and Andreessen Horowitz. Stand with Crypto has focused its efforts on swing states like Georgia and Arizona, where close election margins underscore the potential influence of its members.

Coinbase has actively engaged with White House officials and the Biden administration to address crypto-related concerns. Armstrong stressed the bipartisan nature of crypto issues, emphasising the need for cooperation to enact necessary legislation. Criticising Biden’s veto as a ‘bad political move,’ Armstrong highlighted the broad support for crypto-friendly measures and the significant constituency within the crypto community. While it remains uncertain if crypto issues will sway votes in the upcoming presidential election, Armstrong believes a subset of the growing voter bloc could prioritise digital asset issues at the polls.

Why does it matter?

The surge in Stand with Crypto’s membership was partly catalysed by frustration over President Biden’s veto of a measure to challenge the Securities and Exchange Commission’s stance on crypto assets. Additionally, there’s strong support for a Republican-sponsored bill proposing a new legal framework for digital currencies. Despite bipartisan backing for the bill in the House of Representatives, the White House has expressed opposition, with SEC Chair Gary Gensler cautioning about potential risks.

Salesforce launches first AI centre in London

Salesforce has chosen London for its first AI centre, where experts, developers, and customers will collaborate on innovation and skill development. The US cloud software company, which is hosting its annual London World Tour event, announced last year a $4 billion investment in the UK over five years, focusing on AI innovation.

Zahra Bahrololoumi, CEO of Salesforce UK and Ireland, highlighted customer enthusiasm for AI’s benefits while noting caution about potential risks. She emphasised the importance of trust in AI adoption, citing Salesforce’s Einstein technology’s ‘Trust Layer’ that protects customer data.

Moreover, Salesforce’s dedication to responsible AI goes beyond data security. Bahrololoumi emphasises the company’s commitment to making AI a force for good. Their message to customers and partners is clear as they are deeply committed to collaborating closely to ensure that the transformative technology of AI brings about positive impacts.

Intel CEO announces company ambitions in line with US semiconductor policy

In a recent interview, Intel CEO Pat Gelsinger presented how Intel intends to remain a relevant actor in the Chinese chip market while also scaling up production in the US. This was done at the occasion of the Computex tech conference in Taipei, where Intel released its new Xeon 6 processor, destined for data centres. Its release comes at a time when tech giants are challenging Nvidia’s chip dominance.

Gelsinger aims to build an Intel foundry in the US after the organisation was incentivised to increase facilities in the US with as much as $8.5 billion in grants and $11 billion in loans under the CHIPS and Science Act. In its release, the White House stated this is a step towards ‘protecting national security’ and increasing US share of global chip production to ‘20% […] by the end of the decade’.

“The capital is critical. We said that we have to have economic competitiveness if we build these factories in the US, and that’s what the CHIPS Act has done. It’s created a level playing field if I were building a factory in Asia versus US,” Gelsinger said.

Why does it matter?

At the same time, Gelsinger reiterated the importance of the Chinese market to his company. “China is a big market for Intel today, and one that we’re investing in to be a big market for Intel tomorrow as well,” he said. Intel has been competing to catch up its global market share since 2017, when South Korea’s Samsung overtook it as the largest chipmaker in terms of revenue. Since then, Taiwan Semiconductor Manufacturing Company reportedly overtook Samsung in 2023.

Chinese AI chip firms downgrading designs to secure TSMC production

Chinese AI chip firms, including industry leaders such as MetaX and Enflame, are downgrading their chip designs in order to comply with Taiwan Semiconductor Manufacturing Company’s (TSMC) stringent supply chain security protocols and regulatory requirements. This strategic adjustment comes amidst heightened scrutiny and restrictions imposed by the US on semiconductor exports to Chinese companies, which includes limitations on accessing advanced manufacturing technologies critical for AI chip production.

The US has imposed strict export controls to obstruct China’s military advancements in AI and supercomputing. These controls include restrictions on sophisticated processors from companies like Nvidia, as well as on-chip manufacturing equipment crucial for advanced semiconductor production. That move has prevented TSMC and other overseas chip manufacturers using US tools from fulfilling orders for these restricted technologies.

In response to these restrictions, top Chinese AI chip firms MetaX and Enflame have reportedly submitted downgraded chip designs to TSMC in late 2023. MetaX, founded by former Advanced Micro Devices (AMD) executives and backed by state support, had to introduce the C280 chip after its more advanced C500 Graphic Processing Unit (GPU) ran out of stock in China earlier in the year. Enflame, also Shanghai-based and supported by Tencent, faces similar challenges.

Why does it matter?

The decision to downgrade chip designs to meet production demands reflects the delicate balance between technological advancement and supply chain resilience. While simplifying designs may expedite production and mitigate supply risks in the short term, it also raises questions about long-term innovation and competitiveness. The ability to innovate and deliver cutting-edge AI technologies hinges on access to advanced chip manufacturing processes, which are increasingly concentrated among a few global players.

Musk diverts Nvidia chips from Tesla to X Corp amid logistical hurdles

Logistical issues led Elon Musk to redirect numerous Nvidia chips, initially intended for Tesla’s electric vehicles, to X Corp. On Tuesday, Musk explained that Tesla had nowhere to send the Nvidia chips, so they would have just remained in storage.

That’s a response to a CNBC report highlighting a memo from Nvidia stating that 12,000 of its top AI chips, originally meant for Tesla, were sent to X instead. Future shipments intended for X were later reassigned to Tesla.

Musk also announced that the Gigafactory in Texas is nearly complete and will house 50,000 H100 chips. He mentioned that about half of Tesla’s $10 billion AI-related spending this year will be for internal use, including the AI inference computer and Dojo supercomputer. He noted that Nvidia hardware accounts for two-thirds of the cost of building AI training superclusters, and Tesla plans to spend $3-4 billion on Nvidia hardware this year. Tesla is working on its own supercomputer to advance driverless-car technology, aiming to increase the number of active H100s from 35,000 to 85,000 by year-end.

Why does it matter?

The following situation has sparked criticism that Musk’s focus on AI and robotics might detract from Tesla’s core car business. Musk, who currently holds 13% of shares directly and about 21% with options, has requested 25% ownership to increase his influence. In January, he threatened to take his advanced technology ideas elsewhere if he isn’t granted more ownership.

Air Liquide plans $250 million plant to supply gas to chipmaker Micron

Air Liquide has announced plans to invest $250 million in a new plant in Idaho aimed at supplying gases to US semiconductor manufacturer Micron Technology Inc. The plant is scheduled to be operational by the end of 2025.

The facility, strategically located to respond to Micron’s growing production needs, will produce ultra-high purity gases essential for semiconductor fabrication processes. Micron has started this year with the mass production of its high-bandwidth memory (HBM) semiconductors for use in Nvidia’s latest chip for AI.

These gases play a crucial role in ensuring the quality and reliability of semiconductor chips, integral to a wide range of technologies, including smartphones, computers, and automotive electronics. The investment is poised to ‘support the production of leading-edge memory chips, notably to meet the growing demand for computing capacities required by AI’, according to Matthieu Giard, Air Liquide’s CEO for the Americas.

Why does it matter?

The investment by Air Liquide in this new plant is crucial for several reasons. First, it enhances the reliability of the semiconductor supply chain, which has been under strain due to increased global demand and supply chain disruptions. By securing a local and reliable source of critical gases, Micron can better manage production timelines and mitigate risks associated with international logistics. The expansion also aligns with broader industry trends towards enhancing semiconductor manufacturing capabilities. As technology advances, particularly in areas such as AI, 5G networks, and autonomous vehicles, the demand for high-performance semiconductors continues to grow. Air Liquide’s investment ensures that Micron is well-positioned to meet this growing demand and maintain its competitive edge in the market.

Italian regulator fines Meta over user data misuse

Italy’s antitrust regulator AGCM (Autorita’ Garante della Concorrenza e del Mercato) has fined Meta, the owner of Facebook and Instagram, for unfair commercial practices. The authority imposed a fine of €3.5 million on Meta Platforms Ireland Ltd. and parent company Meta Platforms Inc. for two deceptive business practices regarding the creation and management of Facebook and Instagram social network accounts.

Namely, the watchdog stated that Instagram users were not adequately informed about how their personal data was used for commercial purposes and that users of both platforms were not given proper information on contesting account suspensions.

Meta has already addressed these issues, according to the regulator. A Meta spokesperson expressed disagreement with AGCM’s decision and mentioned that the company is considering its options. They also highlighted that since August 2023, Meta has implemented changes for Italian users to increase transparency about data usage for advertising on Instagram.