Week 43, 2024

Overview

1. Tech giants turn to SMR.
2. ASML earnings shock triggers concerns.
3. TSMC and Nvidia's 30-year alliance shows cracks.
4. Microsoft and OpenAI's partnership shows growing tension.
5. Intel and AMD join forces as ARM gains ground.
6. DeepMind takes product focus.
7. Amazon to livestream upcoming US election.
8. Netflix hits record high on strong subscriber growth.
9. OSI challenges Meta's use of 'open source' term.
10. Mira Murati prepares new AI startup.

Highlights

1
Tech giants turn to Small Modular Reactors (SMR) for AI power

A promising power source for data centers

• They offer improved safety and more than double the lifespan.
• Their small footprint allows quick installation in urban areas.

All three major cloud providers are adopting SMR

• Google signed its first SMR power purchase agreement.
• Amazon closed three new SMR contracts.
• Microsoft made a deal last month to restart a decommissioned nuclear plant.
• OpenAI invested in Oklo, an SMR development company.

2
ASML earnings shock triggers semiconductor sector concerns

ASML reports severe drop in Q3 equipment orders

• Orders fall below half of market expectations.
• Decline caused by China export restrictions.
• Further hit by foundry companies delaying investments.
• Companies reducing dependence on EUV lithography equipment.

Revives "semiconductor winter" concerns

• ASML lowers revenue forecast for next year.
• Company stock plunges 16% in single day.
• Related semiconductor stocks see temporary decline.

3
TSMC and Nvidia's 30-year alliance shows cracks

TSMC and Nvidia clash over Blackwell chip defects

• Nvidia blames TSMC's backend processing technology.
• TSMC points finger at Nvidia's chip design.

TSMC shows growing assertiveness

• TSMC holds 92% market share in advanced chips.
• Company takes firm stance even with major customers.
• TSMC refuses to build Nvidia-exclusive packaging line.

4
Microsoft and OpenAI's partnership shows growing tension

Microsoft shifts stance toward OpenAI following Altman's brief ouster.

• Company becomes hesitant to provide additional funding and computing power.
• OpenAI expresses frustration over contract requiring exclusive compute purchases from Microsoft.

Microsoft moves to reduce dependence on OpenAI.

• Company effectively acquires rival Inflection AI.
• Places Inflection founder Mustafa Suleyman in charge of AI operations.

OpenAI begins reassessment of Microsoft's equity stake.

• Conversion to for-profit structure necessitates shareholding adjustment.
• Goldman Sachs and Morgan Stanley represent OpenAI in negotiations.

5
Intel and AMD join forces as ARM gains ground

Traditional rivals Intel and AMD form unexpected alliance.

• ARM emerges as common threat beyond smartphone market.
• Apple, Qualcomm, and Nvidia embrace ARM chip designs.
• ARM's power efficiency challenges x86 dominance.

Rival chipmakers form x86 architecture advisory group.

• Industry giants join alliance to protect x86 ecosystem.
• Broadcom, Dell, Google, Meta, Microsoft back initiative.

Pat Gelsinger, Intel CEO

Some have said, 'Well, is the x86 done?' Well, I'll tell you, rumors of my death are severely exaggerated. We are alive and well, and the x86 is thriving.

6
DeepMind takes product focus

DeepMind absorbs Gemini app development team.

• Streamlines structure to accelerate development.
• Reorganization shows shift from research to products.
• Aims for rapid deployment of new models to Gemini.

Develops 'Habermas' AI for conflict mediation.

• New AI mediator outperforms humans in tests.

CEO Demis Hassabis gains expanded influence.

• Some see Hassabis as possible future Google CEO.

7
Amazon becomes first streaming service to broadcast US election.

Special coverage planned for November 5 election night.

• Former NBC anchor Brian Williams to host coverage.
• Stream available free worldwide, no Prime membership required.
• Marks Amazon's major entry into live news broadcasting.

Brian Williams, Host:

"After 41 years in the business, this feels like the next big thing."

8
Netflix hits record high on strong subscriber growth

Adds 5 million new subscribers in Q3.

• Total subscriber base reaches 280 million.
• Ad-supported tier grows 35% year-over-year.
• Quarterly revenue hits $9.8 billion, up 15%.
• Stock reaches all-time high.

Success tied to continued content investment.

• Strategy pays off as rivals cut spending.

Password sharing crackdown proves effective.

• New policy drives subscription growth.

9
OSI challenges Meta's use of 'open source' term

OSI is the nonprofit that created and defined 'open source' concept.

Claims Llama models violate open source definition.

• Meta restricts commercial use of Llama models.
• Training algorithms remain closed source.

Google and Microsoft respect OSI terminology guidelines.

10
Mira Murati prepares new AI startup

Former OpenAI CTO who left last month.

• Latest high-profile departure from OpenAI.
• Reportedly seeking $100 million in funding.
• Former colleague Barrett Zoph may join venture.

Other

AI

• Perplexity AI seeks $500 million at $8 billion valuation.
• NYT demands Perplexity stop using its news content.
• Adobe debuts AI tool for video generation.
• Microsoft reveals self-operating AI agents.
• OpenAI launches Windows app for ChatGPT.
• OpenAI partners with Bain for industry-specific chatbots.
• OpenAI releases Swarm framework for AI coordination.
• Meta draws criticism over fake aurora photos.

Chips

• OpenAI plans massive Texas data center with 50,000 Blackwell chips.
• Nvidia celebrates 25 years since first GeForce GPU launch.
• Qualcomm delays Intel acquisition decision until after US election.
• Intel approaches investors to sell Altera stake.
• TSMC dismisses rumors of Intel factory acquisition.
• TSMC faces US probe over possible Huawei chip supplies.

Robotics

• Tesla reveals Optimus robot serving water and popcorn to counter claims of human manipulation.

Device/Hardware

• Amazon adds color display to Kindle after 17 years.
• iPhone 16 sales surge 20% in China's first three weeks.
• Apple plans new iPad Mini launch after three-year gap.
• Apple targets 2027 for smart glasses launch.
• Vision Pro assists in 20+ surgeries at UC San Diego.
• Apple files patent for VR projector system.
• Apple develops iPhone guest mode with restricted access.

Content/Entertainment

• Microsoft settles lawsuit opposing Activision merger.
• Ubisoft workers strike over three-day office mandate.

Social Media

• Meta fires staff for misusing meal vouchers.
• Bluesky reaches 12 million user milestone.

EV/Autonomous Vehicles

• Tesla registers 'Robobus' and 'Robotaxi' trademarks.
• Tesla Cybercab limited to 2,500 units due to no-wheel regulations.
• Apple secretly developed EV battery with BYD.

Space

• SpaceX hits 100th Falcon 9 launch with 99% success rate.
• SpaceX sues regulators over launch restrictions claiming political retaliation.

Etc

• Musk faces criticism over Trump campaign spending.
• AWS CEO warns staff: Return to office or resign.
• Tim Cook discusses EU fines with Trump.
• Apple's HR chief departs after unusually brief 18-month tenure.