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5 min read

Week 42, 2024

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Overview

  1. Microsoft Unveils Blackwell Server
  2. Nvidia's Blackwell Bonanza
  3. AMD Challenges Nvidia's AI Reign
  4. TSMC's AI-Fueled Profit Surge
  5. Tesla's Robotaxi Reveal Flops
  6. Musk's Trump Gambit
  7. OpenAI's Global Expansion
  8. OpenAI's Long Road to Profitability
  9. Google's AI Scientists Win Nobel
  10. Google Faces Breakup Threat

Highlights

1
Microsoft Unveils Blackwell Server


Azure became the first cloud provider to run Blackwell-based servers.

  • Nvidia sent first Blackwell AI chip supply to Microsoft and OpenAI.

Microsoft showcased custom-built GB200 server.

  • GB200 combines 72 Blackwell GPUs with 36 Grace CPUs.
  • New setup offers up to 30x faster inference for LLM workloads.
  • It looks like this:


OpenAI received DGX B200 engineering sample.

  • New server equipped with 8 Blackwell GPUs.
  • Offers 3x training and 15x inference performance boost over predecessor.

2
Nvidia's Blackwell Bonanza


Nvidia sells out entire year's supply of Blackwell GPUs.

  • Existing customers like Microsoft, Google, Meta, and Amazon secure early orders.
  • New orders will be delivered late October next year.
  • Nvidia's AI processor market share expected to grow further next year.
Morgan Stanley: "We're at the very early stages when we say demand is strong."

3
AMD Challenges Nvidia's AI Reign


AMD launched MI325X as competitor to Nvidia's Blackwell.

  • However, analysts say performance gap is still significant.
  • Targets production early next year using TSMC's 3nm process.
  • AMD also revealed roadmap for next two years' products.
Lisa Su: "Will offer better performance than Nvidia."
Berstein: "Improved, but no match for Blackwell."

4
TSMC's AI-Fueled Profit Surge


TSMC achieves record revenue due to rising AI chip demand.

  • Q3 revenue: $23.6 billion, up 36.5% YoY.
  • Q3 net profit expected to increase by 40%.
  • Detailed earnings report scheduled for 17th.

TSMC flexes pricing power.

  • Lack of strong competitors allows TSMC to maximize profit margins.
  • 2nm chip prices set above $30,000 per wafer, 1.5-2x higher than 3nm.
  • Market cap nearing $1 trillion, currently at $970.5 billion.

5
Tesla's Robotaxi Reveal Flops


Tesla stock plunges 8.8% following disappointing robotaxi announcement.

  • Vague launch timeline and lack of concrete details draw criticism.
  • No information provided on safety data or revenue model.
Elon Musk: "Production maybe in 2026, let's say before 2027."
Bernstein: "Surprisingly lacking in details."


Some 'Cybercab' facts:

  • 2-seater without steering wheel or pedals.
  • Vehicle priced under $30,000.
  • Fare set at one-fifth of city bus rates.
  • Multi-passenger 'Robovan' also revealed.

6
Musk's Trump Gambit


Elon Musk shifts further right, backing Trump's election bid.

  • @America X account seized for campaign use.
  • Legal cash incentives offered to swing state voters.
  • $47 reward for introducing conservative voters.

Tesla faces multiple setbacks amid Musk's political moves.

  • Stock plummets after underwhelming robotaxi reveal.
  • Wall Street mocks "toothless taxi" presentation.
  • Key robotaxi executive departs for Waymo.

7
OpenAI's Global Expansion


OpenAI adds offices in 5 new cities globally.

  • New locations: New York, Seattle, Paris, Brussels, Singapore.
  • New York and Singapore offices to open by year-end.
  • Total of 9 offices across 7 countries, including existing locations.
  • Oliver Jay, ex-Asana and Dropbox, appointed to lead global expansion.

Singapore emphasized as key expansion target.

  • Singapore noted as global AI hub with active Big Tech collaborations.
OpenAI: "Singapore has one of the highest ChatGPT usage rates per capita globally."

8
OpenAI's Long Road to Profitability


OpenAI projected to operate at a loss until 2029.

  • Revenue growing annually, but costs rising significantly.
  • $5 billion loss expected this year alone.
  • Cumulative losses may reach $44 billion by 2028.

New York Times reported planned subscription fee increases.

  • $2 price hike by year-end, aiming for $44 within 5 years.

9
Google's AI Scientists Win Nobel


Geoffrey Hinton won 2024 Nobel Prize in Physics.

  • Former Google VP.
  • Pioneered neural networks enabling modern machine learning breakthroughs

Demis Hassabis and John Jumper shared 2024 Nobel Prize in Chemistry.

  • Hassabis: DeepMind CEO
  • Jumper: DeepMind Senior Research Scientist.
  • Honored for AlphaFold2, predicting structures of 200 million proteins.


Awards come 10 years after Google's DeepMind acquisition.

  • In 2019, Alphabet wrote off $1.49 billion in debt that DeepMind had accumulated over recent years.
  • In 2020, Google stated that "Biological breakthroughs are built on DeepMind's deficit."
  • Despite substantial losses, Google continued to allow high personnel costs to retain top researchers.

Unusual win breaking traditions.

  • Nobel typically focuses on pure sciences over interdisciplinary work.

10
Google Faces Breakup Threat


U.S. DOJ announces consideration of Google breakup.

  • Proposal to divest parts of Google's business submitted to court.
  • Google immediately opposes, calling the move "radical."
  • Specific sanctions to be decided by August next year.

Stock price minimally affected; investors skeptical of feasibility.

  • Reminiscent of failed 2000 Microsoft breakup attempt.
  • Google's appeal could extend final decision for years.
  • Jim Cramer, CNBC: "Government investigation is misguided, futile, and frankly, even un-American"

Other


AI

Chips

Device/Hardware

Content/Entertainment

Commerce

EV/Autonomous Vehicles

Space
  • SpaceX successfully catches returning Starship rocket.

Policy/Regulation

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