#ai-chips

#ai-chips

If Musk's recent responses on X are any indication, it would appear that Tesla's AI8 will be used by the CEO's other companies, and its applications would literally extend out of this world. Tesla's AI8 could extend beyond vehicles Musk's update came on the heels of his recent comments, where he revealed that Tesla was not just working on its AI5 and AI6 chips. The company is also designing AI7 and AI8. This comment caught a lot of attention, with some wondering why Tesla feels the need to design an AI8 chip when AI4 seems on track to be a good fit for autonomous driving.

Dow futures are up another 68 points to 47,963 and Nasdaq futures are up 123 points to 26,284. And all could easily push even higher, as markets wait for the Federal Reserve's decision later today. "Markets are assigning a nearly 100% probability that the Federal Open Market Committee will approve a second consecutive quarter percentage point, or 25 basis point, reduction in the federal funds rate. The overnight lending benchmark is currently targeted between 4%-4.25%," says CNBC.

Amazon added 3.8 GW of power in the last 12 months, expects another >1 GW in Q4, and plans to double AWS power capacity again by 2027. Power is becoming the main bottleneck for the industry, but Amazon is aggressively adding and immediately monetizing capacity. Trainium2 is "fully subscribed," already a multibillion-dollar business, and grew 150% q/q. Today it's mostly very large customers (example: Anthropic training Claude on ~500,000 Trainium2 chips, going to ~1 million).

The $1.65 trillion chip giant Broadcom cut staff earlier this week. The cuts on Thursday affected staff largely in sales, as well as customer success, account management, and solutions, according to LinkedIn posts and a person familiar with the matter. It's unclear how many roles were affected. Broadcom has been making rolling cuts at the company, including at software firm VMware, which it acquired in late 2023. VMware's workforce has been slashed by roughly in half, Business Insider reported earlier this year.

Microsoft will slacken its dependence on OpenAI through a new partnership with Anthropic, The Information on Tuesday. The deal will enable Microsoft to embed Anthropic's AI systems into Microsoft 365 (formerly Office) platforms like Excel, PowerPoint, and Word. This marks a turning point for Microsoft, which has otherwise been largely (though not entirely) reliant on OpenAI's technology to power its consumer-facing AI efforts.