Tag: Tech

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S&P 500 touches new record high!

Stocks rose on Wednesday 22nd January 2024 with the S&P 500 reaching a new all-time high, as technology shares including Nvidia and Oracle surged on optimism surrounding artificial intelligence and President Donald Trump’s new term in office.

The S&P 500 advanced after hitting an intraday record of 6,100.81, exceeding the last milestone touched in December 2024 before pulling back. The index closed at 6,086.37, slightly below its all-time closing high.

S&P 500 one-month chart as of Wednesday 22nd January 2024

S&P 500 one-month chart as of Wednesday 22nd January 2024

The S&P’s move to an all-time high comes as investors witnessed a December 2024 pullback. Despite the index ending last year with a 23% gain, the S&P 500 shed 2.5% in December 2024, as traders fretted that the Federal Reserve wouldn’t be able to cut rates as much as anticipated.

That lacklustre performance bled into the first few trading sessions of 2025, but some data indicating modest easing on the inflation front and good earnings results have helped the market recover.

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Trump announces massive U.S. AI investment backed by Oracle, OpenAI and Softbank

U.S. AI investment

President Donald Trump announced a joint venture with OpenAI, Oracle and Softbank to invest billions of dollars in artificial intelligence infrastructure in the U.S.

The project, dubbed Stargate, was unveiled at the White House by Trump, Softbank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle co-founder Larry Ellison.

The executives committed to invest an initial $100 billion and up to $500 billion over the next four years in the project, which will be set up as a separate company.

Softbank’s Son had reportedly already promised a four-year, $100-billion investment when he recently visited then-President-elect Trump at his Mar-a-Lago resort.

And this new AI investment is over and above the investments from the likes of Microsoft, Google, Apple, Anthropic and many others already in progress.

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The UK is planning to build a homegrown artificial intelligence rival to OpenAI

UK AI

In a bold move to establish as a global leader in artificial intelligence, the United Kingdom is undertaking an ambitious initiative to develop a homegrown competitor to OpenAI.

This initiative is part of a broader strategy to enhance the nation’s computing infrastructure and foster innovation in AI technology.

Prime Minister Keir Starmer’s administration has committed to increasing the UK’s ‘sovereign’ computing capacity by twentyfold by 2030. This significant investment aims to support the development of powerful AI models that rely on high-performance computing equipment.

The government plans to expand data centre capacity across the country, providing the necessary infrastructure for AI developers to train and run their systems effectively.

AI Opportunities Action Plan

Central to this initiative is the AI Opportunities Action Plan, spearheaded by tech investor Matt Clifford. The plan outlines a comprehensive approach to harnessing the potential of AI, including the establishment of AI growth zones where planning permission rules will be relaxed to facilitate the creation of new data centers.

These zones are expected to become hubs of innovation, attracting both domestic and international talent to the UK.

The government is also set to launch the AI Research Resource, an initiative aimed at bolstering the UK’s computing infrastructure. This resource will provide access to high-performance computing facilities, enabling researchers and developers to work on cutting-edge AI projects.

Additionally, the establishment of a National Data Library will connect public institutions, such as universities, to enhance the country’s ability to create sovereign AI models.

Funding challenge

One of the key challenges facing the UK in its bid to rival OpenAI is funding. While the government has pledged substantial investments, many entrepreneurs and venture capitalists in the country have highlighted the difficulties in raising the kind of capital available to AI startups in the U.S. To address this, the government has secured commitments from leading tech firms, which have pledged £14 billion towards various AI projects.

This includes significant investments in data centers and the creation of thousands of AI-related jobs across the country.

UK AI sovereignty

The UK’s focus on AI sovereignty is driven by the belief that technologies critical to economic growth and national security should be developed within the country. This approach aims to reduce reliance on foreign tech giants and ensure that AI advancements align with national interests and ethical standards.

The government is also exploring the role of renewable and low-carbon energy sources, such as nuclear, to power the data centers that will support AI development.

Despite the ambitious plans, the UK faces several hurdles in its quest to become a global AI leader. The country’s risk-averse investment culture and the competitive landscape of AI development pose significant challenges.

However, the government’s proactive approach and the support of industry leaders provide a strong foundation for success.

Initiative and challenge

The UK’s initiative to build a homegrown rival to OpenAI represents a significant step towards establishing itself as a global leader in artificial intelligence.

By investing in computing infrastructure, fostering innovation, and securing industry support, the UK aims to create a thriving AI ecosystem that can compete on the world stage. While challenges remain, the commitment to AI sovereignty and the strategic vision outlined in the AI Opportunities Action Plan offer a promising path forward for the nation’s AI ambitions.

Sold – the UK needs to protect its future and not sell the silver… again

Over the years, the UK has seen several of its tech companies sold off to foreign investors.

  1. ARM Holdings: Perhaps the most famous example, ARM Holdings, a leading semiconductor and software design company, was acquired by Japan’s SoftBank Group in 2016 for £24.3 billion. ARM’s technology is used in the majority of smartphones worldwide.
  2. DeepMind: In 2014, Google acquired DeepMind, a UK-based AI company known for its advancements in machine learning and neural networks, for around £400 million. DeepMind has since become a key part of Google’s AI research efforts.
  3. Imagination Technologies: This British GPU and AI processing company was sold to Canyon Bridge Capital Partners, a private equity fund backed by Chinese state-owned China Reform Fund Management, in 2017 for £550 million. Recently, Imagination Technologies has been put up for sale again.
  4. Autonomy Corporation: Acquired by Hewlett-Packard (HP) in 2011 for $11.7 billion. The deal later became controversial due to allegations of financial mismanagement
  5. Powa Technologies: This mobile payments company faced financial difficulties and was sold off in parts after going into administration in 2016. PowaTag was sold to a consortium led by businessman Ben White, while Powa Web was sold in a management buyout backed by Greenlight Digital.

One to keep

Raspberry Pi Holdings plc, the parent company behind the iconic Raspberry Pi computer series, is a British technology business focused on designing and manufacturing single-board computers and modules. The company was founded by Eben Upton and is headquartered in Cambridge, England1.

As of the latest information, the largest shareholder of Raspberry Pi Holdings is the Raspberry Pi Foundation, which holds around 49% of the company. Other notable shareholders include Arm Holdings plc, Lansdowne Partners (UK) LLP, and the Raspberry Pi Employee Benefit Trust. The company went public on the London Stock Exchange in June 2024.

Raspberry Pi Holdings continues to innovate and expand its product offerings, maintaining its mission to make computing accessible and affordable for everyone.

These sales reflect the global interest in UK tech companies and the challenges they face in securing domestic investment to remain independent. The UK’s tech sector continues to be a hotbed of innovation, attracting significant attention from international investors.

The UK needs to nurture and keep its upcoming new tech discoveries, AI or otherwise – to protect the future of Britain.

We have the knowhow – we just need to keep it!

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U.S. introduces more restrictions on AI chip sales across the world

U.S. AI tech

In a significant move to maintain its technological edge and ‘national security’, the United States has announced new restrictions on the sale of advanced AI chips to most countries around the world

This decision, unveiled in the final days of President Joe Biden’s administration, aims to limit the global distribution of AI technology while ensuring that America’s closest allies continue to have access to these critical resources.

Regulation

The new regulations will cap the number of AI chips that can be exported to most countries, while allowing unlimited access to U.S. AI technology for America’s closest allies, including Japan, UK, South Korea, and the Netherlands.

This approach is designed to prevent adversaries like China, Russia, Iran, and North Korea from acquiring advanced computing power that could enhance their military capabilities.

Commerce Secretary Gina Raimondo emphasised the importance of maintaining U.S. leadership in AI development and chip design. ‘The U.S. leads AI now – both AI development and AI chip design, and it’s critical that we keep it that way,’ she reportedly said.

The regulations are part of a broader effort to close loopholes and add new guardrails to control the flow of AI chips and the global development of AI.

AI rules

The new rules will place limits on the export of advanced graphics processing units (GPUs), which are essential for powering data centers needed to train AI models. Companies like Nvidia and Advanced Micro Devices, which produce these chips, will be significantly impacted by the new regulations.

Major cloud service providers, such as Microsoft, Google, and Amazon, will be able to seek global authorisations to build data centres, exempting their projects from the country quotas on AI chips.

The Biden administration’s decision has faced criticism from industry leaders. Nvidia, a leading producer of AI chips, called the new rules “sweeping overreach” and argued that the restrictions would clamp down on technology already available in mainstream gaming PCs and consumer hardware.

Oracle, a major data center provider, expressed concerns that the rules would hand over a significant portion of the global AI and GPU market to Chinese competitors.

Despite the opposition, the U.S. government remains steadfast in its commitment to protecting national security and maintaining its technological dominance. The new regulations are set to take effect in 120 days, giving the incoming administration of President-elect Donald Trump time to weigh in on the implementation and enforcement of the rules.

Restrictions

The U.S. restrictions on AI chip sales represent a strategic effort to safeguard ‘national security’ and maintain leadership in AI technology.

While the new regulations have sparked controversy and criticism from industry leaders, the government’s focus on controlling the global distribution of AI chips underscores the importance of technological sovereignty in an increasingly competitive world

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UK wants to control its own AI direction – suggesting a divergence from the EU and U.S.

UK tech

The UK is charting its own course when it comes to regulating artificial intelligence, signaling a potential divergence from the approaches taken by the United States and the European Union. This move is part of a broader strategy to establish the UK as a global leader in AI technology.

UK AI framework

Britain’s minister for AI and digital government, Feryal Clark, emphasised the importance of the UK developing its own regulatory framework for AI.

She highlighted the government’s strong relationships with AI companies like OpenAI and Google DeepMind, which have voluntarily opened their models for safety testing. Prime Minister Keir Starmer echoed these sentiments, stating that the UK now has the freedom to regulate AI in a way that best suits its national interests following Brexit.

Unlike the EU, which has introduced comprehensive, pan-European legislation aimed at harmonising

AI rules across the bloc, the UK has so far refrained from enacting formal laws to regulate AI.

Instead, it has deferred to individual regulatory bodies to enforce existing rules on businesses developing and using AI. This approach contrasts with the EU’s risk-based regulation and the U.S.’s patchwork of state and local frameworks.

Labour Party Plan

During the Labour Party’s election campaign, there was a commitment to introducing regulations focusing on ‘frontier’ AI models, such as large language models like OpenAI’s GPT. However, the UK government has yet to confirm the details of proposed AI safety legislation, opting instead to consult with the industry before formalising any rules.

The UK’s AI Opportunities Action Plan, endorsed by tech entrepreneur Matt Clifford, outlines a comprehensive strategy to harness AI for economic growth.

The plan includes recommendations for scaling up AI capabilities, establishing AI growth zones, and creating a National Data Library to support AI research and innovation. The government has committed to implementing these recommendations, aiming to build a robust AI infrastructure and foster a pro-innovation regulatory environment.

Despite the ambitious plans, some industry leaders have expressed concerns about the lack of clear rules. Sachin Dev Duggal, CEO of AI startup Builder.ai, reportedly warned that proceeding without clear regulations could be ‘borderline reckless’.

He reportedly highlighted the need for the UK to leverage its data to build sovereign AI capabilities and create British success stories.

The UK’s decision to ‘do its own thing’ on AI regulation reflects its desire to tailor its approach to national interests and foster innovation.

While this strategy offers flexibility, it also presents challenges in terms of providing clear guidance and ensuring regulatory certainty for businesses. As the UK continues to develop its AI regulatory framework, it will be crucial to balance innovation with safety and public trust

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Elon Musk wants to make Tesla a $25 trillion company by 2040

Autonomous vehicle

Elon Musk’s Vision for Tesla’s Trillion Dollar Future

Elon Musk, the visionary CEO of Tesla, has consistently set ambitious goals for the company. Among his most audacious claims is that Tesla could potentially become a multi trillion-dollar company and even reach a valuation of $25 trillion, largely driven by the deployment of robotaxis.

Robotaxi vision

Tesla’s robotaxi concept is centred around autonomous vehicles that can operate as self-driving taxis. These vehicles are equipped with Tesla’s Full Self-Driving (FSD) technology, which Musk believes will revolutionize transportation. By transforming Tesla cars into autonomous ride-sharing vehicles, the company could generate significant revenue without increasing the number of cars sold.

Projections

Musk’s financial projections are based on the immense potential of the robotaxi market

  1. Revenue Generation: Each Tesla vehicle could earn substantial income as a robotaxi. If Tesla owners opt into the robotaxi network, Tesla could take a share of the revenue generated from these rides.
  2. Cost Efficiency: Autonomous driving reduces the need for human drivers, leading to lower operational costs. This efficiency could make robotaxis more affordable for users and highly profitable for Tesla.
  3. Reduced pollution: will help meet green energy goals.
  4. Market Penetration: As autonomous technology matures, the adoption of robotaxis could grow rapidly, capturing a significant share of the global transportation market.

Market potential

The global ride-hailing market is already valued at hundreds of billions of dollars, and with the introduction of autonomous vehicles, this market is expected to expand further. Tesla’s early entry and continuous advancements in FSD technology position it to be a dominant player in this space.

Challenges

While the potential is enormous, there are several challenges and scepticism surrounding Musk’s projections

  1. Regulatory Hurdles: Autonomous vehicles must navigate a complex regulatory landscape. Approval processes and safety standards vary by region, which could delay widespread adoption.
  2. Technical Milestones: Achieving full autonomy is a significant technical challenge. Tesla’s FSD technology is still in development, and perfecting it for widespread use requires overcoming numerous technical obstacles.
  3. Market Competition: Tesla is not the only player in the autonomous vehicle market. Competitors like Waymo, Cruise, and traditional automakers are also investing heavily in autonomous technology.

Conclusion

Elon Musk’s vision of making Tesla a trillion-dollar and eventually a $25 trillion company through robotaxis is both bold and captivating. The success of this vision hinges on the successful deployment and adoption of autonomous driving technology. While there are significant challenges to overcome, Musk’s track record of defying odds and achieving groundbreaking innovations keeps the possibility within the realm of achievable dreams.

The future of transportation, as envisioned by Musk, could fundamentally reshape how we move and how Tesla thrives as a pioneer in autonomous mobility.

Tesla’s future does seem promising with the introduction of Optimus, their humanoid robot, as well as their advancements in solar energy and battery technology.

The future looks very bright for Tesla.

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Apple, Amazon and Intel all post positive results 31st October 2024

Apple

Apple’s fourth-quarter results surpassed Wall Street forecasts for revenue and earnings per share. However, net income declined due to a one-time charge related to a tax settlement in Europe.

iPhone sales and overall sales both rose by 6%.

Apple one year stock chart

Amazon

Amazon’s shares soared in after-hours trading following the announcement of earnings and revenue that exceeded expectations. The firm’s cloud services and advertising divisions demonstrated significant expansion.

Amazon one year stock chart

Intel

Intel has reported earnings that surpassed expectations and provided improved guidance. The company is currently undergoing a significant restructuring initiative.

Intel one year stock chart

However, Intel has now lost over half its market value.

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Nasdaq hits new all-time high – Tesla enjoys another great day

Nasdaq index at new high!

The Nasdaq Composite climbed to an all-time high on Friday 25th October 2024, boosted by BIG tech stocks.

The tech-heavy index rose 0.56% to 18,518.61

The tech-heavy Nasdaq Composite index rose 0.56% to 18,518.61

Tech stocks boosted the market ahead of their upcoming earnings. Nvidia added 0.8%, and shares of Meta Platforms, Amazon and Microsoft were also higher.

Some analysts are suggesting it may be time to short Amazon and Apple as they head into earnings season? Let’s see.

Tesla helped boost the Nasdaq as its stock climbed to close at a 13-month high, sustaining its rally post-earnings.

Tesla enjoyed its best market day since 2013, the stock rose more than 3% on Friday 25th October 2024, closing at its highest since September 2023.

Tesla 5-day stock chart as of 25th October 2024

Tesla 5-day stock chart as of 25th October 2024
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Amazon goes nuclear, to invest more than $500 million to develop small modular reactors (SMR)

AWS nuclear power

Amazon Web Services (AWS) has announced the signing of an agreement with Dominion Energy, the utility company of Virginia U.S., to explore the development of a small modular nuclear reactor near Dominion’s existing North Anna nuclear power station.

As Amazon’s cloud computing subsidiary, AWS has an ever-growing demand for clean energy, particularly as it expands into generative AI. This agreement aligns with Amazon’s journey towards net-zero carbon emissions.

Amazon joins other major tech companies like Google and Microsoft in turning to nuclear power to meet the increasing energy needs of data centres.

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Big tech companies are increasingly adopting nuclear power to meet the high energy demands of their AI data centres

Data centre powered by nuclear reactors

Why?

Elevated Energy Needs

AI systems, particularly generative AI, necessitate substantial computational power, leading to significant energy use. Conventional energy sources might not meet these growing demands.

Environmental Commitments

Numerous tech firms have pledged to lower their carbon emissions. Nuclear power, a low-emission energy source, supports these environmental commitments.

Dependability

Nuclear energy offers a consistent and uninterrupted power supply, essential for data centres that operate around the clock.

Technological Advancements

Progress in nuclear technologies, such as small modular reactors (SMRs), has enhanced the feasibility and appeal of nuclear power for extensive use.

For example, Google has entered into an agreement with Kairos Power for electricity from small modular reactors to bolster its AI operations. In a similar vein, Microsoft has collaborated with Constellation to refurbish an inactive reactor at the Three Mile Island nuclear facility.

These collaborations mark a notable transition in the energy strategies of the tech sector, as they pursue dependable, eco-friendly, and robust power solutions to support their AI initiatives.

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Labour tries to attract new business investment to the UK

Union Jack Flag UK

The UK Labour government aimed to attract foreign investment on Monday 14th October by hosting its first International Investment Summit in London

Prime Minister Keir Starmer, Chancellor Rachel Reeves, and Business Minister Jonathan Reynolds headed the one-day event at London’s Guildhall, with an attendance of approximately 200 executives from both the UK and abroad.

Notable attendees were former Google Chairman Eric Schmidt, Goldman Sachs CEO David Solomon, BlackRock CEO Larry Fink, and GSK CEO Emma Walmsley. Poppy Gustafsson, the newly appointed Investment Minister and co-founder of the British cybersecurity company Darktrace, were also present to advocate for the UK as a favourable business environment.

The UK government unveiled a relaxation of regulations and announced investment deals worth billions of pounds in sectors such as artificial intelligence, life sciences, and infrastructure, while Starmer proclaimed it’s ‘a great moment to back Britain.’

‘We will rip out the bureaucracy that blocks investment and we will make sure that every regulator in this country take growth as seriously as this room does,‘ Starmer reportedly told delegates.

UK Prime Minister Keir Starmer on Monday 14th October 2024 vowed to slash regulatory red tape to boost investment in the country.

“We’ve got to look at regulation across the piece, and where it is needlessly holding back investment … mark my words, we will get rid of it,” he reportedly told delegates at the UK’s International Investment Summit.

The government on Sunday 13th October 2024 announced the launch of a new industrial strategy, designed to focus on eight “growth-driving sectors.”

The prime minister reportedly restated that growth was the “No. 1 test of this government,” and reiterated plans for the U.K. to become the fastest-growing G7 economy.“

Starmer also outlined stability, strategy, regulation and improving Britain’s global standing as “four crucial areas” in his pitch for Britain.

“Private sector investment is the way we rebuild our country and pay our way in the world,” Starmer said

In a panel discussion with Starmer, Google’s ex-CEO Eric Schmidt expressed his surprise upon learning that the Labour party had shifted to ‘strongly’ support growth.

Schmidt is eager to see the execution of this approach and encouraged the government to increase investment in artificial intelligence to fulfill broader growth objectives.

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Nvidia hits new record high with new $3.4 trillion market cap

AI chips

Nvidia’s shares have reached a record peak as the company continues to benefit from the surging demand for its AI chips

Tech giants such as Microsoft, Meta, Google, and Amazon are acquiring Nvidia’s GPUs in large volumes to create extensive AI computing clusters.

Nvidia, with a market capitalisation of around $3.4 trillion, ranks as the second most valuable publicly traded company in the U.S., trailing behind Apple, which has a market cap of approximately $3.55 trillion.

And to think… just 6 weeks ago Nvidia hit the news with this headline: Nvidia $279 billion market cap wipeout — the biggest in U.S. history for just ONE company.

Oh, the volatility of tech stocks, don’t you just love it?

The company’s stock rose by 2.4% to close at $138.07, exceeding the previous high of $135.58 set on 18th June 2023. The shares have increased by nearly 180% this year and have experienced a more than ninefold increase since early 2023.

Regarded as the leading supplier in the AI revolution, Nvidia has gained significantly from the generative AI surge initiated by OpenAI’s ChatGPT release in November 2022. Nvidia’s GPUs are instrumental in developing and running sophisticated AI models, including those that operate ChatGPT and related platforms.

You can’t go far wrong when big players such as Microsoft, Meta, Google and Amazon are buying your stuff.

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Meta reportedly to use the voice of Dame Judi Dench for its celebrity AI Chatbot

Chatbot with celebrity voices

Meta, the parent company of Instagram, has announced that voices of Dame Judi Dench and John Cena will be available as options for its AI chatbot.

Moreover, users can access information through AI representations of celebrities such as Awkwafina, Keegan-Michael Key, and Kristen Bell. Meta is hopeful that this new endeavour with celebrity chatbots will surpass the success of its previous attempts. In September 2023, Meta introduced AI chatbots featuring the ‘personalities’ of celebrities including Kendall Jenner and Snoop Dogg, but the project was terminated within a year.

At Meta’s annual Connect conference, CEO Mark Zuckerberg announced the new celebrity chatbot project, remarking, ‘Interacting with AI through voice will be more intuitive than through text.‘ The enhanced ChatGPT-style chatbot will also be capable of recognizing objects in images and providing relevant details. Additionally, a novel image editing tool will allow users to alter photos by simply directing the Meta AI with their requests.

Meta has disclosed that its AI now reaches over 400 million people monthly, with 185 million engaging weekly.

Meta one-year chart as of 2nd October 2024

Meta one-year chart as of 2nd October 2024
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What is China’s equivalent to Nvidia?

AI microchips

Chinese firms are reportedly intensifying their efforts to develop a competitive alternative to Nvidia’s AI chips, as part of Beijing’s ongoing initiative to reduce its reliance on U.S. technology.

China faces several challenges that are impeding its technological progress, including U.S. export restrictions that limit domestic semiconductor production. The lack of technical expertise is also reported to be a problem.

Analysts have identified companies including Huawei as the principal competitors to Nvidia in China

China’s counterparts to Nvidia, such as Huawei, Alibaba, and Baidu, are actively developing AI chips to compete in the same market. Huawei’s HiSilicon division is known for its Ascend series of data centre processors.

Huawei’s HiSilicon division is known for its Ascend series of data centre processors, and Alibaba’s T-Head has produced the Hanguang 800 AI inference chip. Other significant players include Biren Technology and Cambricon Technologies.

Alibaba’s T-Head has developed the Hanguang 800 AI inference chip. Other significant players include Biren Technology and Cambricon Technologies.

These Chinese firms are intensifying their efforts to create alternatives to Nvidia’s AI-powering chips. This is a big part of Beijing’s broader initiative to reduce its reliance on U.S. technology.

Nvidia’s surge in growth is attributed to the demand from major cloud computing companies for its server products, which incorporate graphics processing units, or GPUs.

These GPUs are crucial for entities like OpenAI, the creator of ChatGPT, which requires substantial computational power to train extensive AI models on large datasets.

AI models are crucial for chatbots and other AI applications

Since 2022, the U.S. has limited the export of Nvidia’s top-tier chips to China, with further restrictions imposed last year.

The U.S. sanctions and Nvidia’s market dominance pose significant obstacles to China’s ambitions, particularly in the short term, according to analysts. The U.S. has curbed the export of Nvidia’s most sophisticated chips to China since 2022, with increased restrictions implemented last year.

China’s GPU designers rely on external manufacturers for chip production. Traditionally, this role was filled by Taiwan Semiconductor Manufacturing Co. (TSMC). However, due to U.S. restrictions, many Chinese firms are now unable to procure chips from TSMC.

As a result, they have shifted to using SMIC, China’s largest chipmaker, which is technologically several generations behind TSMC. This gap is partly due to Washington’s limitations on SMIC’s access to essential machinery from the Dutch company ASML, necessary for producing the most advanced chips.

Huawei is driving the development of more sophisticated chips for its smartphones and AI, which occupies a significant portion of SMIC’s capacity.

Nvidia has achieved success not only through its advanced semiconductors but also via its CUDA software platform. The system enables developers to build applications for Nvidia’s hardware. This has fostered an ecosystem around Nvidia’s designs, which will be challenging for competitors to emulate.

Huawei leading the pack for China

Huawei is at the forefront as a leading force in China for its Ascend series of data centre processors. The current generation, named Ascend 910B, is soon to be succeeded by the Ascend 910C. This new chip may come to rival Nvidia’s H100.

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Robinhood launches crypto transfers in Europe directly through its app

Crypto exchange

The retail investment platform Robinhood has announced the introduction of cryptocurrency transfers in and out of its app for European customers

As part of its international expansion efforts, the company aims to enhance its product offerings in the region.

According to a blog post-dated Tuesday 1st October 2024, Robinhood will enable customers within the European Union to deposit and withdraw over 20 different digital currencies via its platform, including Bitcoin, Ethereum, Solana, and USD Coin.

This development grants Robinhood’s European clientele the option of “self-custody” of assets, allowing them to personally hold their cryptocurrencies in a privately-owned wallet, rather than relying on a third-party service to manage their funds.

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China’s tech stocks rally to 13-month high on new stimulus

Tech stocks up China

Chinese technology stocks, such as the previously underperforming Alibaba, have surged this week, reaching peaks not observed in over a year

The stock surge follows the announcement of stimulus measures by China’s central bank to boost the world’s second-largest economy.

On Thursday 26th September 2024 in the U.S., Alibaba’s shares closed above $100 for the first time since August 2023.

Tencent’s shares ended at their highest point in over two and a half years.

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Big Tech aiming to raise $100 billion for AI data centres

Fund creation for AI

In a substantial effort to strengthen the infrastructure required for artificial intelligence (AI), BlackRock and Microsoft have unveiled a significant fundraising endeavour.

The initiative, dubbed the Global AI Infrastructure Investment Partnership (GAIIP), seeks to secure $30 billion in private equity capital, with the possibility of leveraging up to $100 billion including debt financing.

The main objective of this initiative is to establish new and larger data centers to accommodate the escalating demand for computing power spurred by advancements in AI. These data centres are vital for meeting the growing computational requirements of AI applications, which necessitate substantial processing power and storage capacity. Additionally, the partnership will focus on investing in the energy infrastructure required to operate these data centres in an environmentally sustainable manner.

BlackRock, the global investment management corporation, contributes its vast network of corporate relationships and private equity expertise. Microsoft, a pioneer in technology and AI, offers the necessary technological expertise and industry leadership. Together, their goal is to establish a strong infrastructure that will bolster AI innovation and contribute to economic expansion.

The investment will be primarily directed towards the United States, with a portion also being allocated to partner countries. This strategic emphasis aims to boost American AI competitiveness and encourage worldwide cooperation. The partnership is designed to support an open architecture and a wide-ranging ecosystem, enabling a variety of partners and companies to leverage the infrastructure.

NVIDIA, a leading force in AI technology, will contribute to GAIIP by providing its expertise in AI data centres and manufacturing facilities. This partnership is anticipated to improve AI supply chains and energy procurement, offering advantages to both consumers and the broader industry.

This collaboration marks a substantial move towards establishing the infrastructure of tomorrow and powering it in an eco-friendly manner.

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The AI Race between China and the U.S.

AI development in China and U.S.

Artificial Intelligence (AI) has become a pivotal battleground in the technological race between China and the United States.

“AI is expected to become a crucial component of economic and military power in the near future,” Stanford University’s Artificial Intelligence Index Report 2023 stated.

Both countries are significantly investing in AI research and development, striving to achieve a leading role in this revolutionary sector. This post looks at the major figures in China’s AI scene, their progress, and their comparison with their American counterparts.

China’s AI Landscape

China’s AI aspirations are propelled by a number of significant technology firms, each forging their own AI models and applications.

Baidu: Often referred to as the ‘Google of China,’ Baidu leads in AI development. Its premier AI model, ERNIE (Enhanced Representation through Knowledge Integration), fuels the Ernie Bot, a chatbot aimed to compete with OpenAI’s ChatGPT. Baidu asserts that ERNIE 4.0 matches GPT-4’s capabilities, demonstrating sophisticated understanding and reasoning abilities.

Alibaba: Alibaba’s AI model, Tongyi Qianwen (commonly known as Qwen), is a comprehensive set of foundational models adept at a range of tasks, from generating content to solving mathematical problems. Select versions of Qwen are open-source, enabling developers to utilize and modify them for various uses. Alibaba has announced that Qwen models are in use by over 90,000 enterprise clients.

Tencent: The Hunyuan model from Tencent is a prominent component of China’s AI landscape. Offered through Tencent’s cloud computing division, Hunyuan is tailored to facilitate a broad spectrum of applications, encompassing natural language processing and computer vision.

Huawei: In spite of considerable obstacles stemming from U.S. sanctions, Huawei persists in AI innovation. The firm has created its own AI processors, like the Kunlun series, to diminish dependence on international technology. Huawei’s AI features are incorporated into a diverse array of products, including smartphones and cloud solutions.

Comparison to the U.S.

The U.S. continues to be a dominant force in AI, with leading companies such as OpenAI, Microsoft, Google, Anthropic and Meta spearheading advancements.

Generative AI: U.S. firms have advanced significantly in generative AI, with OpenAI’s GPT-4 and Google’s Gemini at the forefront. These models excel in creating text, images, and videos from user inputs. Although Chinese models like ERNIE and Qwen are strong contenders, the U.S. maintains a slight lead in capabilities and market penetration.

Semiconductor Design: The U.S. leads the semiconductor design industry, vital for AI progress. U.S. companies command an 85% global market share in chip design, crucial for AI model training and system operation. China’s dependence on imported semiconductors is a notable obstacle, but there are ongoing efforts to create homegrown solutions.

Research and Innovation: Both nations boast strong AI research sectors, yet the U.S. edges out slightly in generating state-of-the-art AI products. U.S. tech giants frequently introduce AI breakthroughs to the market, with Chinese firms quickly gaining ground.

Government Support: The Chinese government ardently backs AI advancement, enacting strategies to spur innovation and lessen foreign tech reliance. Such support has spurred China’s AI industry’s rapid expansion, positioning it as a strong rival to the U.S.

Conclusion

The competition in AI development between China and the U.S. is escalating, as both countries achieve significant breakthroughs. Although the U.S. maintains a marginal lead in some respects, China’s swift advancement and state backing indicate that the disparity might keep closing. The quest for AI dominance by these nations is set to influence the worldwide technological and innovative landscape profoundly.

As of September 2024, it is estimated that China’s AI development is approximately nine months behind that of the U.S.

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Nvidia reports 122% revenue growth

Data centre

Nvidia has announced earnings surpassing Wall Street forecasts and has issued guidance for the current quarter that exceeds expectations.

As the artificial intelligence boom continues, Nvidia remains a major beneficiary. Despite a stock price dip, after trading hours, the stock has risen approximately 150% this year. The question remains whether Nvidia can sustain this growth trajectory.

Nvidia said it expects about $32.5 billion in current-quarter revenue, versus $31.7 billion expected by analysts, according to analysis That would be an increase of 80% from a year earlier.

Revenue continues to surge, rising 122% on an annual basis during the quarter, following three straight periods of year-on-year growth in excess of 200%.

Nvidia’s data centre business, which encompasses its AI processors, saw a 154% increase in revenue from the previous year, reaching $26.3 billion and representing 88% of the company’s total sales.

However, not all these sales were from AI chips. Nvidia reported that its networking products contributed $3.7 billion in revenue.

The company primarily serves a select group of cloud service providers and consumer internet firms, including Microsoft, Alphabet, Meta, and Tesla. Nvidia’s chips, notably the H100 and H200, are integral to the majority of generative AI applications, like OpenAI‘s ChatGPT.

Nvidia also announced a $50 billion stock buyback.

Nvidia shares dropped close to 5% in after-hours pre-market trade (29th August 2024).

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Microsoft to release Windows Recall AI search feature for testing as soon as October 2024

AI enabled local device

Microsoft announced on Wednesday 21st August 2024 that it will release the contentious Recall AI search feature for Windows users to test starting in October

Recall captures screenshots of on-screen activity, enabling users to search for previously seen information. Security experts raised immediate concerns about the potential risks of Windows capturing images automatically without user consent. In response, researchers developed open-source software demonstrating how attackers could easily access personal information.

Microsoft addressed these concerns in June 2024, stating that Recall would be disabled by default and promising security improvements for the feature.

While Microsoft has not provided a specific timeline for a wider release, it has introduced a new category of Windows PCs, termed Copilot+ PCs, which meet the system requirements for Recall. These PCs, produced by various manufacturers, are designed to handle AI workloads, and Microsoft has demonstrated Recall operating on these devices.

*Manufacturers are eager to demonstrate that AI models can run on local PCs, offering an alternative to cloud-based servers from companies like OpenAI. Following this trend, Apple has launched MacBooks capable of running AI models, and Microsoft’s latest Surface Pro is also a Copilot+ PC with local AI capabilities.

The timing of Recall’s broader release could be pivotal, as consumer interest in new computers may spike during the holiday season if Microsoft extends Recall to all compatible devices by that time.

*Is this a move away from AI cloud-based operations to some extent? AI tasks can easily be run in the cloud – why do we need an AI enabled device?

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OpenAI cements deal with Vogue owner Condé Nast

Magazine AI data

OpenAI has partnered with the global magazine conglomerate Condé Nast to enable ChatGPT and its search engine, SearchGPT, to showcase content from renowned publications such as Vogue, The New Yorker and GQ.

The agreement represents the most recent in a series of deals made by OpenAI with prominent media companies.

The material generated by media organizations is coveted by tech companies for training their AI (Artificial Intelligence) models.

Several media companies, such as the New York Times and the Chicago Tribune, have opposed this practice and have pursued legal measures to safeguard their content.

The financial details of the contract between OpenAI and Condé Nast were not revealed.

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Slower and smaller-than-expected rate cuts. A slowing U.S. economy and a potential AI bubble – does this all add up to a coming bear market?

Witches' stocks cauldron

The stock markets mix of toil and trouble is in the cauldron ready for a bear market in 2025, if not before.

Why?

  • Fed to resist reducing rates to the market’s desired 3.50%.
  • Profits unlikely from now on to fulfill expectations, because the U.S. economy is slowing.
  • AI sector is in or close to ‘bubble territory’.
  • Debt.
  • Geopolitical concerns.

These concerns are now all combining, and it will likely add-up to a bear market of around 25% in 2025 (this is my best guess).

Remember – make your own decisions and always, always do your own careful research. Seek professional financial advice if in doubt.

RESEARCH! RESEARCH! RESEARCH!

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U.S. stocks recovery attempt fizzles out

Fizzle

Stocks closed lower on Wednesday 7th August 2024, failing to fully recover from Monday’s sell-off.

The Dow Jones Industrial Average dropped 234 points to 38763.45. The S&P 500 fell to 5199.50, while the Nasdaq Composite closed at 16195.81.

During the day, the Dow had surged around 480 points, the S&P 500 had climbed 1.73%, and the Nasdaq had risen over 2%.

Dow Jones one day chart 7th August 2024

Dow Jones one day chart 7th August 2024

S&P 500 one day chart 7th August 2024

S&P 500 one day chart 7th August 2024

Nasdaq Composite one day chart 7th August 2024

Nasdaq Composite one day chart 7th August 2024

However, a downturn in Nvidia and other major tech stocks, after an initial rise, led to a significant drop in the afternoon. Nvidia retracted by 5.1%, Super Micro Computer plummeted 20.1% following its fiscal Q4 earnings missing analyst predictions, Tesla fell 4.4%, and Meta Platforms decreased by 1%.

Nvidia one day chart 7th August 2024

Nvidia one day chart 7th August 2024

One month chart Super Micro Computer 7th August 2024

One month chart Super Micro Computer 7th August 2024

Nvidia one day chart 7th August 2024

Nvidia one day chart 7th August 2024

The U.S.10-year Treasury yield continued to rise, increasing by about six basis points to 3.95%, returning to its level before the disappointing job figures last Friday, which had sparked concerns of an economic slowdown.

The Volatility Index (CBOE), the so called ‘fear gauge‘ was trading at around 29, having dropped to as low as 22 earlier in the day. This sharp decrease from Monday 5th August 2024 suggests that investor fears are subsiding, however, they remain higher than at the beginning of the month.

The Volatility Index (CBOE) on 7th August 2024

The Volatility Index (CBOE) on 7th August 2024
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Judge ruling says Google’s monopoly of online searches is illegal

Judge

Too much monopolistic power held by too few

A U.S. judge has ruled that Google illegally maintained a monopoly in online searches and related advertising. The lawsuit, brought by the Department of Justice, charged Google with controlling around 90% of the online search market.

It was reportedly noted by the judge that Google’s billions of dollars in investments to become the default search engine on smartphones and browsers could be anticompetitive.

The decision, issued on Monday 5th August 2024, could potentially change how tech giants operate.

It was reported that in his extensive 277-page decision, Judge Mehta remarked, “Google has acted as a monopolist and engaged in anticompetitive practices to maintain its monopoly.”

This represents a significant victory for federal antitrust enforcers who have pursued similar cases against other leading technology companies for illegal monopolistic behaviours.

Companies like Meta Platforms, which operate Facebook and WhatsApp, as well as companies like Amazon and Apple., have also faced lawsuits from federal regulators.

The judgment comes after a 10-week trial where it was argued that Google’s substantial payments to remain the primary search engine have impeded the competition’s ability to challenge effectively.

This is a seismic shift in the way search engines and advertising may operate in the future. Already with the advent of AI, search engines look and feel different.

Recently, OpenAI launched ‘SearchGPT’ – and Microsoft have named it a competitor in the world of search engines.

Times are changing.

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Global stock market rout intensifies as Dow futures dip over 1200 points

Stock rout

U.S. stock futures slumped Monday 5th August 2024 as global markets sell-off centered around potential U.S. recession fears.

About one hour before U.S. stocks open – here’s the situation

Dow Jones Industrial Average futures dropped 1250 points following a 611point loss on Friday 2nd August 2024.

S&P 500 futures are down 4.6% after the benchmark lost 1.8% on Friday 2nd August 2024.

Nasdaq-100 futures lost 6% as big tech stocks take a hit in early trading.

Japan’s Nikkei 225 plunged 12% in its worst day since the 1987 Black Monday crash.

If the Dow Jones decline continues it would be the first 1000 point decline since September 2022.