Nvidia plan to enhance AI induced success

AI GPU

Nvidia have announced a new generation of artificial intelligence chips and software for running AI models. It’s called: The Blackwell B200 GPU

Blackwell B200 GPU

The Blackwell B200 is the successor to Nvidia’s Hopper H100 and H200 GPUs.

It represents a massive generational leap in computational power.

AI Performance: The B200 GPU delivers 4 times the AI training performance and 30 times the inference performance compared to its predecessor.

Transistor Count: It packs an impressive 208 billion transistors, more than doubling the transistor count of the existing H100.

Memory: The B200 features 192GB of HBM3e memory with an impressive bandwidth of 8 TB/s.

Architecture: The Blackwell architecture takes over from H100/H200.

*Dual-Die Configuration: The B200 is not a single GPU in the traditional sense. Instead, it consists of two tightly coupled die, functioning as one unified CUDA GPU. These chips are linked via a 10 TB/s NV-HBI connection to ensure coherent operation.

*Dual-die packaging technology is used to pack two integrated circuit chips in one single package module. It doubles functionality levels.

Process Node: The B200 utilizes TSMC’s 4NP process node, a refined version of the 4N process used by Hopper H100 and Ada Lovelace architecture GPUs.

The Blackwell B200 is designed for data centres and AI workloads but will likely be available to expect consumer in the future, although these may differ significantly from the data centre model.

Grace Blackwell GB200 Superchip:

Nvidia’s GB200 Grace Blackwell Superchip, with two B200 graphics processors and one Arm-based central processor

This superchip pairs the Grace CPU architecture with the updated Blackwell GPU.

It’s another addition to Nvidia’s lineup, combining CPU and GPU power for advanced computing tasks.

Nvidia continues to push the boundaries of accelerated computing, and these new GPUs promise remarkable performance improvements for AI and other workloads.

Onwards and upwards for Nvidia and the advancement of AI.

Apple and Alphabet reportedly in Gemini AI talks

AI mobile phone

Apple playing AI catchup

Apple is reportedly engaged in negotiations to acquire a licence for Google’s Gemini, a generative AI platform, with the intention of integrating it into iPhones. These ongoing discussions may result in Gemini enhancing iPhone software with new features later this year.

The terms, branding, and implementation details have not been finalised. This potential partnership could significantly impact the AI capabilities of future iPhones.

AI will be smarter than entire humanity by 2029 according to Elon Musk

Artificial intelligence

Elon Musk sparked intense debate on the trajectory of artificial intelligence (AI) after he shared a clip from the Joe Rogan Experience podcast via his X account. 

In the video, futurist Raymond Kurzweil explored the future of artificial intelligence (AI), proposing that it might soon outstrip human intellect.

Elon Musk, noted for his candid opinions on AI, echoed Kurzweil’s forecast by stating, ‘AI will likely be more intelligent than any individual human by next year.’ Furthermore, he speculated that by 2029, AI could surpass the combined intelligence of all humanity.

Screen capture of Elon Musk’s post on X

Artificial General Intelligence

Artificial General Intelligence (AGI), capable of outperforming human intelligence, has recently drawn widespread attention from technology leaders worldwide, especially with the advent of sophisticated AI systems such as ChatGPT, Bing AI, and Gemini. Despite its increasing prominence, a unified definition of AGI remains elusive. Typically, AGI is understood to be a phase in AI evolution where the system can undertake any human task, potentially excelling beyond human expertise in certain domains.”

In the realm of technology leadership, a broad range of views exists on the feasibility and consequences of Artificial General Intelligence (AGI). While some leaders speculate about the timeline for AGI’s realization, others doubt its eventual occurrence. Opinions also differ on whether AGI will lead to beneficial progress or present risks to human society. Comprehending the varied stances of tech leaders sheds light on the active debate regarding AGI and its prospective influence on society.

Musk’s choice to disseminate the podcast excerpt has intensified the discourse on AI advancement’s ramifications. His use of his platform to broadcast Kurzweil’s insights has sparked additional discussion and contemplation about artificial intelligence’s revolutionary capabilities.

His tweet has ignited wider conversations concerning the swift advancement of technology and its significant consequences for the future of humanity.

Raymond Kurzweil

Raymond Kurzweil, born 1948, is an American computer scientist, author, inventor, and futurist renowned for his contributions to various fields, including optical character recognition (OCR), text-to-speech synthesis, speech recognition technology, and electronic keyboard instruments.

Through his comprehensive body of work, Kurzweil has researched a variety of subjects including health, artificial intelligence (AI), transhumanism, the technological singularity, and futurism.

EU passes world’s first major ‘act’ to regulate AI

The European Union (EU) has made history by approving the world’s first comprehensive regulatory framework for artificial intelligence (AI).

Artificial Intelligence Act

Known as the Artificial Intelligence Act, this groundbreaking legislation is expected to serve as a global signpost for other governments grappling with how to regulate this fast-developing technology.

The AI Act takes a risk-based approach, categorizing AI applications based on their risk levels. It prohibits certain high-risk uses, emphasizes transparency, and aims to keep AI development human centric. This landmark regulation should help set a precedent for responsible AI deployment worldwide.

The regulation is expected to become enforceable in May 2024, after passing final checks and receiving endorsement from the European Council.

World Wide Web turns 35 today 12th March 2024

World Wide Web

The World Wide Web (WWW), the invention attributed to Tim Berners-Lee while working at CERN, was conceived on 12th March 1989. This makes the World Wide Web 35 years old today.

It is important to recognise that the Web and the Internet are two different entities; the Web is a service that functions via the Internet, a worldwide network of interconnected computer networks. Whereas the Internet is the system.

The first successful communication between a Hypertext Transfer Protocol (HTTP) client and server through the Internet took place in mid-November 1989.

The Web has since evolved significantly, with the release of the first web browser and server, and the development of HTML, CSS, and JavaScript, which have shaped the modern digital experience.

First website

The inaugural website was launched at CERN and became accessible on 20th December 1990. Tim Berners-Lee developed this site to disseminate information about the World Wide Web project. In August 1991, it was made available to the public. Today, it is still possible visit this site, offering an intriguing look into the web’s nascent stages.

The internet

The internet, as we know it today, began to evolve in the mid-20th century. This era, known as the Information Age, Digital Age, or Computer Age, is characterised by a transition from traditional industry to an economy driven by information technology. This shift commenced in the 1940s and 1950s. The invention of the transistor in 1947 and the optical amplifier in 1957 were pivotal developments that propelled the advent of the internet.

The term ‘internet’ commonly denotes the worldwide system of interconnected computer networks that utilize the Internet protocol suite (TCP/IP) to connect devices globally. It is an extensive network comprising private, public, academic, business, and government networks of local to global systems.

ARPANET

Since the ARPANET’s inception, which is the internet’s precursor, the internet has been in existence for over 50 years. The ARPANET was conceived in the late 1960s and became operational in 1969. The internet is approximately 55 years old.

Art illustration depicting users on the World Wide Web – 35 years old today, 12th March 2024

The ARPANET, also known as the Advanced Research Projects Agency Network, represented the first wide-area packet-switched network featuring distributed control and was among the earliest to adopt the TCP/IP protocol suite.

These innovations laid the groundwork for what would become the Internet. Initiated by the U.S. Department of Defence’s Advanced Research Projects Agency (ARPA), the primary goal of ARPANET was to connect computers at Pentagon-funded research institutions via telephone lines, facilitating resource sharing and communication across distant computers.

The project commenced in 1966, with the initial computers being connected in 1969. By 1971, the network was operational and underwent rapid expansion. ARPANET was instrumental in introducing several protocols pivotal in today’s Internet communication, including the Network Control Protocol (NCP) and subsequently, TCP/IP.

Following the advent of the wider Internet, which ARPANET played a crucial role in catalyzing, the network was officially decommissioned in 1990.

Happy Birthday WWW and thank you Tim-Burners-Lee (I think)

Let’s see how far artificial intelligence (AI) becomes embedded in the next generation of the World Wide Web and of further internet development. Will the big tech companies of today still be running the AI projects of tomorrow?

Is the Bitcoin ascent unstoppable?

Bitcoin up on ETF growth

Bitcoin has been on a remarkable ascent! It soared past the $72,000 mark on Monday 11th March 2024, setting a new all-time record.

This surge is attributed to a growing demand for new spot exchange-traded funds (ETFs), which have been approved for listing in the U.S. by some of the world’s largest financial firms. 

The market for these ETFs is expected to reach $62 billion in the next two or three years. The cryptocurrency keeps surprising everyone with its value, which has grown to an amazing $1.42 trillion and is still rising… again!

Bitcoin moved off its all-time record shortly after achieving it.

Bitcoin chart 11th March 2024 – see CoinMarketCap

Bitcoin chart 11th March 2024 – see CoinMarketCap

Worry for Apple as iPhone sales in China slide?

Mobile phone

According to recent analysis, Apple’s iPhone sales in China dropped some 24% in the first six weeks of 2024 compared to the same period last year.

Apple faces stiff competition from local rivals in one of its biggest markets.

Meanwhile, Huawei, a Chinese company, saw its sales soar by 64% in its home market during the same period, the analysis demonstrated. But we do not have sales data of other countries for comparison.

The report also said that overall smartphone sales in China shrank by 7% in the same period.

Huawei, which suffered for years from US sanctions, boosted its sales after launching its Mate 60 series of 5G smartphones in August 2023.

Is this a worry for Apple, after all, the iPhone is Apple’s flagship product? Also, Apple recently junked its electric vehicle project and has been left behind in AI. Is the crown ever-so-slightly slipping?

Apple 3 month share price with 50 day moving average

Apple 3 month share price with 50 day moving average

Humanoid robot startup Figure AI valued at $2.6 billion

Humanoid robot

Figure AI is a robotics company that aims to create the first commercially viable humanoid robot. The plan is for the robot to perform various tasks in different industries.

Brett Adcock, a former software engineer and entrepreneur, founded the company in 2023. He envisioned a way to enhance the quality of life by integrating artificial intelligence (AI) and humanoid engineering.

Figure AI, a startup that has created a humanoid robot for commercial use, has secured $675 million in funding. Some of the investors include Jeff Bezos, Nvidia, Microsoft and OpenAI.

The company plans to use the funds to speed up the development of its general-purpose robot, named Figure 01. This robot resembles and behaves like a human.

Figure AI was founded in 2022 and has been working on creating a versatile robot that can perform multiple tasks.

Flagship product

Figure AI’s flagship product is a human-like robot called Figure 01. This robot can mimic human appearance and motion. It uses sophisticated AI techniques to acquire new skills, adjust to changing situations, and communicate with its surroundings.

Figure 01 can perform tasks that require dexterity, mobility, and intelligence, such as manufacturing, logistics, warehousing, and retail. The humanoid robot is designed to work safely and efficiently alongside humans, complementing their skills and capabilities.

Figure 01

Investment

Some of the world’s leading technology companies, such as Microsoft, OpenAI, Nvidia, and Amazon, have invested in Figure AI.

The company also collaborates with BMW, a major global automaker, to use Figure 01 in its production facilities. Figure AI aims to transform the automotive industry by introducing more flexibility, productivity, and innovation to the manufacturing process.

Vision

The vision is for the company to build a future where humans and humanoids can coexist and cooperate to accomplish more than ever before.

Figure AI is to create humanoids that can help humans address the urgent challenges of the 21st century. These tasks will likely include climate change, population growth and social inequality. The company’s goal is to develop a versatile humanoid that can be marketed and accessible for everyone.

Bitcoin passes $69000 then pulls back

Bitcoin

The relentless volatile march of Bitcoin continues… again!

Bitcoin jumped gain, edging ever closer to its all-time high after the rally took a breather over the weekend. Last week, Bitcoin surged $10,000 in the space of a couple of days.

It looks very much like the ETFs are kicking in during normal weekly trading moving Bitcoin other than just at weekends. The market also has an eye on the halving event due in April.

Bitcoin 7 day chart showing it above $69000 on 5th March 2024 – CoinMarketCap

Bitcoin 7 day chart showing it above $69000 on 5th March 2024 – from CoinMarketCap.

A brief explanation of Bitcoin halving

Bitcoin

Bitcoin halving is an event that occurs approximately every four years, when the reward for mining Bitcoin transactions is reduced by 50%. This means that the number of new Bitcoins created and entering circulation is also cut in half. 

Bitcoin mining

Bitcoin mining is the process of using computers to validate transactions and add them to the blockchain, a distributed ledger that records all Bitcoin activity. Miners compete to solve complex mathematical problems and the first one to find a valid solution gets the block reward, which is currently 6.25 Bitcoins per block. 

Bitcoin halving

The Bitcoin halving is coded into the Bitcoin protocol by its perceived creator, Satoshi Nakamoto, as a way to control the total supply of Bitcoin and make it scarcer and more valuable.

There can only be 21 million Bitcoins in existence, and the halving ensures that the last Bitcoin will be mined around the year 2140. 

The Bitcoin halving has implications for the Bitcoin network and the price of Bitcoin. On one hand, the halving reduces the inflation rate of Bitcoin and increases its scarcity, which could lead to higher demand and upward pressure on the price.

A brief explanation of Bitcoin halving

On the other hand, the halving also reduces the profitability of mining and could cause some miners to exit the network, which could affect the security and stability of the network. 

Important

The Bitcoin halving is an important event for the Bitcoin community and the cryptocurrency industry, as it reflects the unique and innovative nature of Bitcoin as a digital and decentralized form of money.

Is AI driving a market bubble or is there so much more yet to come?

Tech bubble

As tech giant Nvidia soars on hype around artificial intelligence (AI), and as global stock indexes claim record highs, debate has grown about whether the stock market has entered a ‘bubble.’

An AI bubble of boom

We are reminded of the dotcom bubble where investment was rife in anything tech – so, are we now potentially facing a new tech bubble – an AI bubble of boom?

That’s generally seen as a period in which asset prices inflate rapidly, potentially beyond their core value; and risk crashing just as fast.

Other AI stocks are chasing the dream too adding to the hype. However, some are in the slow lane playing catch-up and this may suggest there is much, much more to come.

The likes of AMD, Intel, Amazon, OpenAI, Arm and a myriad of other tech companies big and small have much more AI to bring to the tech table.

Let’s use Nvidia as an example of a potential stock bubble

If we look at the valuation of Nvidia, justifiably it is actually very high, too high even – that’s the first sign of a potential problem, valuation. The second issue is investor positioning – whenever you have a market bubble, investors are very clustered or very concentrated, either in one market or in one sector as a whole.

Nvidia one year chart as of 29th February 2024. Price 791

Nvidia one year chart as of 29th February 2024. Price 791

Sectors

It doesn’t matter which markets you look at – the U.S., Europe or Asia markets – the problem is the same. We now have an historic valuation between the tech sector, the AI sub-sector of the tech sector, and the rest of the market.

Investors are very clustered in this tech sector. However, some leading commentators say of tech that this is not hype – this is real. It most probably is, for now, and with much more to come from the smaller tech and AI companies that have yet to show their true AI value. But all bubbles burst in the end.

Pop!

There is certainly plenty of room for AI to grow – it’s in its infancy – but the question is: ‘how and when will the bubble burst? Because, in my humble opinion, it most certainly will.

We may not see a dramatic market crash like 1999-2000 or 2007/2008, but an investor rotation out of areas of concentration into the broader market will likely happen.

If you look at the bubbles of 1999-2000, and then in 2007/2008, one key characteristic was investor leverage. And we had, whether it was retail investors or institutional investors, a very high level of leverage, and that was either through borrowings or it was through derivatives.

The AI tech boom has legs but there will almost inevitably be a rotation from AI to other sectors – that will then adjust the overvalued AI sector. And it could pullback quite hard.

Be ready!

Water scarcity and its impact on semiconductor production

Water scarcity

Water scarcity is a pressing global issue and has far-reaching consequences across various industries. One sector significantly affected is semiconductor manufacturing.

How does water scarcity pose a threat to the production of essential microchips.

Water in Semiconductor Manufacturing

Ultra-pure water is a critical resource in semiconductor fabrication plants (fabs). It is used for cleaning, cooling, and various processing steps during chip production.

Microchips power our devices—computers, smartphones, sensors, and LEDs—all of which rely on water-intensive manufacturing processes.

Global Water Scarcity

Freshwater availability is unevenly distributed worldwide. While oceans contain 97% of water (mostly saline), accessible freshwater constitutes only a small fraction.

Approximately four billion people experience severe water scarcity for at least one month annually, and half a billion face it year-round.

Taiwan’s Drought and Chip Production

Taiwan, a semiconductor manufacturing hub, faces a severe drought. Over 20% of global microchips are produced there.

Water shortages threaten supply chains, potentially impacting chip production.

Cost and Sustainability

Creating fully self-sufficient local supply chains would cost $1 trillion. Such self-reliance could increase semiconductor costs by up to 65%.

Urgent action is needed to ensure sustainable water management in fabs, as chips control everything from cars to appliances.

In conclusion, water scarcity poses a real danger to semiconductor production. Addressing this challenge requires strategic planning, conservation efforts, and global cooperation.

AI a problem or a solution?

Will the problem of water scarcity exacerbate the uneven distribution of water around the world as the rich have easier access to the precious resource.

Will the explosion of AI tech push the imbalance – water is a basic necessity to maintain human life. Will AI have a hand in controlling the distribution of water – even for its own needs?

Tech companies try to jazz up old products

Wearable tech

See-through screens, phones that wrap around your wrist, expandable displays and smart rings – just some of the products on display at the Mobile World Congress in Barcelona

Samsung ring

Samsung’s Galaxy Ring, its latest wearable, is launching with health-tracking features including heart rate and sleep monitoring.

Samsung ring – latest wearable device. Works in conjunction with smart watch and app

These are all concept tech that gadget makers showed off this week in a bid to stand out from competitors.

At the Mobile World Congress in Barcelona, companies from Lenovo to ZTE showed off displays for their devices.

ZTE 3D display

ZTE showed off a second-generation tablet that displays three-dimensional images. Typically, 3D images have required some sort of glasses to view, as is the case with 3D movies in theatres.

But this screen produces a 3D image without glasses.

Lenovo see-through screen

China’s Lenovo showed a prototype of a laptop with a see-through display.

The company, which is the world’s largest PC maker, showed how an object can be placed behind the screen and detected by the device’s cameras. Information about the object would be displayed on the screen.

Lenovo’s transparent screen concept
Motorola’s adaptive ‘flexible’ display concept

Google’s woke AI needs fixing!

Chatbot learning

Google’s ‘Woke’ AI Problem needs attention

In recent days, Google’s artificial intelligence (AI) tool, Gemini, has faced intense criticism online. As the tech giant’s answer to the OpenAI/Microsoft chatbot ChatGPT, Gemini can respond to text queries and even generate images based on prompts. However, its journey has been far from smooth.

The AI answer is wrong

The issues began when Gemini’s image generator inaccurately portrayed historical figures. For instance, it depicted the U.S. Founding Fathers with a black man, and German World War II soldiers included both a black man and an Asian woman.

AI answer from Google’s Gemini Chatbot

Google swiftly apologized and paused the tool, acknowledging that it had “missed the mark.”

It gets worse

But the controversy didn’t end there. Gemini’s text responses veered into over-political correctness. When asked whether Elon Musk posting memes was worse than Hitler’s atrocities, it replied that there was “no right or wrong answer.” In another instance, it refused to misgender high-profile trans woman Caitlin Jenner, even if it meant preventing nuclear apocalypse. Elon Musk himself found these responses “extremely alarming.”

Nuance

The root cause lies in the vast amounts of data AI tools are trained on. Publicly available internet data contains biases, leading to embarrassing mistakes. Google attempted to counter this by instructing Gemini not to make assumptions, but it backfired. Human history and culture are nuanced, and machines struggle to grasp these complexities.

Political bias

Google now faces the challenge of striking a balance: addressing bias without becoming absurdly politically correct. As Gemini evolves, finding this equilibrium will be crucial for its survival.

After all, it’s not just about AI, is it? It’s about navigating the delicate intersection of technology, culture, and ethics.

Definition of nuance – I asked ChatGPT for its definition…

Nuance refers to the subtle, intricate, or delicate aspects of something. It encompasses the fine distinctions, shades of meaning, and context-specific interpretations that add depth and complexity to a situation, conversation, or piece of art. In essence, nuance recognizes that not everything can be neatly categorized or expressed in black-and-white terms; rather, it acknowledges the richness and variability of human experiences and ideas. Whether in literature, politics, or everyday interactions, appreciating nuance allows us to navigate the complexities of life with greater understanding and empathy.

Apple reportedly cancels EV project it never admitted doing

EV concept

Apple has reportedly cancelled its plans to build an electric car, bringing an end to a secretive project known as Project Titan

The EV project consumed immense resources over the past 10 years, with executives from the company making an unexpected announcement. The decision to halt the program marks a significant retreat from Apple’s previous strategy.

Apple has never publicly acknowledged the project, which was rumoured to involve some two thousand people.

Key points:

  • Project Titan: Under the codename Project Titan, Apple aimed to develop an electric, semi-autonomous vehicle. The company reportedly spent billions on this initiative, hiring executives from renowned car companies and acquiring autonomous vehicle startups.
  • Setbacks and Delays: The attempts to bring an Apple EV to market faced numerous setbacks, including layoffs, executive departures, and shifting ambitions. 
  • Shift to Generative AI: Many employees who worked on the electric car project will now transition to working on generative artificial intelligence (AI) projects. Apple’s focus will shift toward AI research and development.
  • Tesla Comparison: Initially, Apple reportedly considered developing an entirely self-driving car with no steering wheel. However, the company later decided to focus on a vehicle with some self-driving capabilities, akin to Tesla’s EVs.

Apple now aims to deliver generative AI features to consumers within the year

While the electric car dream may have faded, Apple’s focus on cutting-edge technology continues as it shifts towards AI innovation.

But how much more innovation and profit is there left to squeeze from the iPhone?

Bitcoin climbs to $57000

Bitcoin up

Bitcoin’s price leapt 10% in just two days and on Monday 26th February 2024, surpassed $54,000 for the first time since December 2021

The gains came on the back of MicroStrategy disclosing another large purchase of about 3000 Bitcoins for $155 million.

Analysts see a flow of funds into Bitcoin ETFs and the asset’s upcoming halving event as other bullish factors.

Update

CoinMarketCap data shows Bitcoin hitting $59000 on 28th February 2024

CoinMarketCap data shows Bitcoin hitting $59000 on 28th February 2024

Intuitive luna lander reportedly tipped over, share price falls

Moon

Intuitive Machines initially reported Odysseus was standing upright. But in an update on Friday 23rd February 2024, the company reported they believe the spacecraft caught its landing gear sideways in the moon’s surface while touching down and tipped over.

Intuitive Machines’ cargo lander, Odysseus, returned its first images from the moon’s surface over the weekend.

Historic achievement

The company’s historic IM-1 mission is now operating on the moon after landing on Thursday 22nd February 2024, becoming the first privately developed spacecraft to soft land on the lunar surface.

Despite resting on its side, Odysseus is still sending back data. Intuitive Machines expects Odysseus to operate until Tuesday morning, when its solar panels will no longer be exposed to the sun.

Intuitive Machines’ stock fell 35% in trading on Monday 26th February 2024 to close down at $6.27 a share.

Artist’s impression of Intuitive Machines luna lander on the moon

Intuitive Machines lands on the moon 22nd February 2024 in historic first for a U.S. company

First U.S. landing on the moon since 1972

A U.S. company has gone to the moon – and creates a little piece of history

Intuitive Machines’ Nova-C cargo lander, named ‘Odysseus’ after the mythological Greek hero, is the first U.S. spacecraft to soft land on the lunar surface since 1972.

Japan, India and China have all had recent successful moon mission ahead of the U.S.

Intuitive Machines is the first company to pull off a moon landing – government agencies have carried out all previously successful missions.

The company’s stock surged in extended trading Thursday, after falling 11% in regular trading.

Lander visual

Hunt for water

The targeted landing site was a cratered terrain next to a 5km-high mountain complex known as Malapert. It’s the southernmost point on the Moon ever visited by a spacecraft.

It’s on the shortlist of locations where Nasa is considering sending astronauts later this decade as part of its Artemis programme.

It is reported that there are some deep craters in this region that never see any sunlight – they’re permanently in shadow – and scientists believe frozen water could be inside them.

Art illustration on Intuitive Machines luna lander

Art illustration on Intuitive Machines luna lander

See other recent moon landings

Google halts Gemini AI image generator after it created inaccurate historical content

Gemini chatbot illustration

Google on Thursday 22nd February 2024 said it is pausing its Gemini artificial intelligence (AI) image generation feature after saying it offers ‘inaccuracies’ in historical pictures

Users had been reporting that the AI tool generated images of historical figures, like the U.S. Founding Fathers as people of colour, calling this inaccurate.

Google posted a statement on Thursday 22nd February 2024, saying that it will pause Gemini’s feature to generate images of people and will re-release an ‘improved’ version soon.

Is Google struggling to keep up with the AI race?

The image generator tool was launched at the start of February 2024 through Gemini, which was orignally called Bard.

It is facing challenges at a time when Google is trying to catch up with Microsoft-backed OpenAI project, Copilot.

S&P 500 hit new all-time high and Nasdaq closing in on record

S&P 500 new high

The S&P 500 surged to a new all-time high on Thursday 22nd February 2024

Microchip maker Nvidia reported much stronger-than-expected quarterly results, lifting tech sector and markets higher.

S&P 500

The S&P 500 gained just over 2% to close at 5087, notching its best day since January 2023. The Nasdaq Composite advanced 2.96% for its best day since February 2023, closing at 16041 and ever closer to its all-time high.

Nasdaq

The tech-heavy index is very close now to its all-time closing high of 16,057.44.

Dow

The Dow Jones Industrial Average surged 456 points to surpass 39000 for the first time ever and close at a new high of 39069.

Other tech names were also higher. Meta and Amazon gained about 3.9% and 3.5%. Microsoft and Netflix each advanced more than 2%.

Nvidia driving tech gains

Shares of Nvidia climbed around 16% to an all-time high after the company said total revenue rose a massive 265% from a year ago.

Nvidia, which has become one of the largest U.S. companies by market capitalization, also forecast another stellar revenue gain for the current quarter.

Nvidia revenue is up 265% latest figures show and stock gains 15%

AI chip

The excitement surrounding artificial intelligence (AI) technology appears to show few signs of abating

The technology company at the heart of the AI chip boom reported its Q4 earnings after the stock market’s close on Wednesday 21st February 2024, beating expectations for both earnings and sales. The company’s total revenue is up 265% from a year ago.

Investors are looking to Nvidia’s latest quarterly earnings report to see whether the company’s meteoric growth can last.

Nvidia one year share price as at 22nd February 2024

Nvidia one year share price as at 22nd February 2024

AI chips

Nvidia makes powerful computer chips that power popular AI tools like OpenAI’s ChatGPT and Microsoft’s Copilot. High demand for those chips has propelled the company into the exclusive trillion-dollar club.

As of market close on 21st February 2024 the company’s market cap sat at $1.667 trillion, putting it behind Alphabet’s $1.779 trillion market cap. It’s also behind Microsoft and Apple, which hold market caps of $2.988 trillion and $2.819 trillion, respectively.

Nvidia’s stock price has been on an upward trajectory so far this year. Shares have gained by nearly 40% since the beginning of 2024. On top of that, they’ve soared by over 225% in the last 12 months.

Although short-term demand for Nvidia’s AI chips has been strong, major companies such as Microsoft and Meta have indicated interest in buying them from other companies.

If you had invested $1,000 in Nvidia

If you had invested $1,000 in Nvidia five, 10 or 24 years ago, here’s how much your investment would be worth now.

$1,000 in Nvidia five years ago, your investment would have increased by an eye-watering 1,015% and be worth around $17,542 as of 20th February 2024.

If you had invested $1,000 in Nvidia 10 years ago, your investment would have soared by about 22,340% and be worth around $148,226 as of 20th February 2024.

But, if you had invested $1,000 in Nvidia in January 1999, when Nvidia first went public, your investment would have grown by around 277,708% and be worth close to $2,784,065 as of 20th February 2024.

AI has only just started.

Magnificent 7 company profits now exceed almost every country in the world

Magnificent Seven market cap at $15 trillion

The Magnificent Seven, or MAMA ANT, is a term coined by Bank of America to describe the seven most dominant tech companies in the world

The Seven are: Microsoft, Amazon, Meta Platforms, Apple, Nvidia, Tesla, and Alphabet. These companies have not only led the tech sector in terms of innovation, growth, and profitability, but have also become some of the most valuable entities in the world by market capitalization.

Valuation at $15 trillion

Market capitalization, or market cap, is the total value of all the shares of a company that are traded on the stock market. It reflects the market’s perception of the company’s future prospects and earnings potential. 

As of January 2023, the Magnificent Seven had a combined market cap of about $15 trillion, which was more than the gross domestic product (GDP) of almost every country in the world, except for the United States, China and Japan (just).

Magnificent Seven

The Magnificent Seven have achieved such a remarkable feat by leveraging their core competencies in various fields of technology, such as artificial intelligence (AI), cloud computing, social media, e-commerce, gaming, electric vehicles, and online advertising. They have also diversified their revenue streams by acquiring or developing new products and services, such as Activision Blizzard, AWS, Oculus, iPhone, GeForce, SpaceX, and YouTube. They have also benefited from the increased demand for digital solutions amid the Covid-19 pandemic, which accelerated the adoption of online platforms, remote work, and entertainment.

Challenges

However, the Magnificent Seven also face some challenges and risks that could threaten their dominance and valuation. These include increasing competition from other tech companies, especially from China, such as Alibaba, Tencent, Baidu, and Huawei.

They also face regulatory scrutiny and pressure from governments and consumers over issues such as antitrust, privacy, taxation, content moderation, and environmental impact. Furthermore, they may encounter technical difficulties, security breaches, or ethical dilemmas that could damage their reputation and customer trust.

Conclusion

In conclusion, the Magnificent Seven are the most powerful and influential tech companies in the world, and their market cap surpasses that of almost every country in the world.

List of 10 countries by stock market capitalization

List of 10 countries by stock market capitalisation

The meteoric rise in the profits and market capitalisations of the Magnificent 7 U.S. tech giants: Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla – outstrip those of all listed companies in almost every G20 country. Of the non-U.S. G20 countries, only China and Japan (and the latter, only just) have greater profits when their listed companies are combined.

They have achieved this by exploiting their competitive advantages in various domains of technology and expanding their offerings and markets. However, they also need to overcome some challenges and risks that could hamper their growth and value in the future.

A forced size reduction to stop the monopolising of market share could help tame these beasts too and open up fairer competition.

Should we worry?

Basically, yes, we should be concerned about the size and dominance of these companies.

This level of wealth and power concentrated in just a handful of companies has led some analysts to voice concerns over related risks in the U.S. and global stock markets.

Economists and stock market analysts have cautioned that the U.S. stock market is rivalling 2000 and 1929 in terms of being at its most concentrated in history.

The rest is history…

Big tech vows action on ‘fake’ AI in elections

Fake AI news

Most of the world’s largest tech companies, including Microsoft, Amazon and Google have agreed to tackle what they are calling deceptive artificial intelligence (AI) in elections

The tech accord

The twenty companies have signed an accord committing them to fighting voter-deceiving content. They say they will deploy technology to detect and counter the material.

The Tech Accord to Combat Deceptive Use of AI in 2024 Elections was announced at the Munich Security Conference on Friday 16th February 2024.

The issue has come into sharp focus because it is estimated up to four billion people will be voting this year in countries such as the U.S., UK and India.

Technology to mitigate risk

Among the accord’s pledges are commitments to develop technology to mitigate risks related to deceptive election content generated by AI, and to provide transparency to the public about the action firms have taken.

Other steps include sharing best practice with one another and educating the public about how to spot when they might be seeing manipulated content.

Signatories include social media platforms X, Snap, Adobe and Meta, the owner of Facebook, Instagram and WhatsApp.

Proactive

However, the accord has some shortcomings, according to computer scientist Dr Deepak Padmanabhan, from Queen’s University Belfast, who has co-authored a report on elections and AI.

But he reportedly said they needed to take more proactive action instead of waiting for content to be posted before then seeking to take it down.

That could mean that realistic AI content, that may be more harmful, may stay on a platform for longer compared to obvious fakes which are easier to detect and remove, he suggested.

Target

The accord’s signatories say they will target content which deceptively fakes or alters the appearance, voice, or actions of key figures in elections.

It will also seek to deal with audio, images or videos which provide false information to voters about when, where, and how they can vote.

We have a responsibility to help ensure these tools don’t become weaponised in elections, Brad Smith, the president of Microsoft is reported to have said.

These measures, in my opinion, are a sticking plaster and will not stop the spread of dishonest and fake news!

Energy hungry data centre power solution

AI data centre

The use of nuclear reactors for data centres is a controversial and complex topic that has both advantages and disadvantages

Nuclear reactors can provide a reliable, stable, and carbon-free source of electricity for power-hungry data centres, which are essential for the operation of various applications, such as artificial intelligence (AI).

Grid overload

Nuclear reactors can also reduce the dependence on the existing grid, which may be vulnerable to blackouts, fluctuations, or cyberattacks. On the other hand, nuclear reactors require a high initial investment, as well as strict safety and regulatory standards. Nuclear reactors also pose potential risks of radiation, waste disposal, and proliferation. Moreover, nuclear reactors may not be suitable for all locations, as they may face public opposition, environmental concerns, or geopolitical issues.

Small Modular Reactor (SMR)

One of the possible solutions to these challenges is to use small modular reactors (SMRs), which are advanced reactors with about a third of the power generation of a traditional, large nuclear plant. SMRs are designed to be more flexible, scalable, and cost-effective than conventional reactors, as they can be built off-site and transported to the desired location. SMRs can also be integrated with renewable energy sources, such as solar or wind, to create a hybrid system that can balance the power demand and supply.

However, the technology of SMRs is still in its early stages of development and deployment, and there are currently no data centres in the world that use built-in nuclear reactors. Therefore, it remains to be seen whether nuclear reactors will become a common or viable option for future data centres. The decision to use nuclear reactors for data centres should be based on a careful evaluation of the benefits and risks, as well as the alternatives and trade-offs, of each specific case.

It has been calculated that a ‘norma’ data centre (whatever that is), needs 32 megawatts of power flowing into the building. For an AI data centre, it’s closer to 80 megawatts.

AI systems are using all this extra electricity simply because they are doing so much more processing than standard computing. They are chewing through far more data.

As AI continues to develop, so too will the power requirement needed to run these monsters.

Coinbase makes some profit – the first in two years

Crypto platform

Shares of cryptocurrency exchange Coinbase soared 12% Friday 16th February 2024 after the company reported its first profit in two years.

Coinbase, the largest U.S. venue for buying and selling cryptocurrencies, said that net income totalled $273 million in Q4.

This is the first time that the company has reported positive net income since the fourth quarter of 2021.

Net revenue

Coinbase reported its net revenue was $905 million in the Q4 of 2023, up almost 50% from $605 million in the same period of the previous year.

Bitcoin ETFs

Cryptocurrencies saw a huge amount of interest from investors in the fourth quarter of 2023, following news of the U.S. Securities and Exchange Commission approving the first Bitcoin exchange-traded funds (ETFs).

Bitcoin ETFs enable retail investors to access the cryptocurrency as a share that’s traded on a regulated exchange without directly exposing them to the underlying asset.

The news has driven demand for cryptocurrencies due to anticipation that it could drive interest from retail investors.

OpenAI unveils new AI software that lets you create realistic video by typing a descriptive sentence

Video

The new AI tool from OpenAI named Sora, can generate realistic videos from text prompts.

OpenAI has developed a new AI tool named Sora that can generate highly detailed videos of up to 60 seconds from descriptive text prompts.

The tool has raised concerns about its potential misuse, particularly in the creation of deepfakes and disinformation.

On the other hand, it is a remarkable achievement in the current AI arena and created in such a short space of time.

OpenAI has stated that it is working with experts in areas like misinformation, hateful content, and bias, who are testing Sora.