This week, some major events occurred in the AI field. Arm forecast beats estimates as AI spurs chip upgrades while Palantir forecasts strong 2024 profit on robust AI demand.
Here is the detailed information you need to know.
Google Rebrands Bard Chatbot as Gemini in Race With OpenAI
Alphabet Inc.’s Google rebranded its chatbot and rolled out a new subscription plan that will give people access to its most powerful artificial intelligence model, placing it squarely in competition with rival OpenAI.
Google’s chatbot, which had been known as Bard and was its answer to OpenAI’s ChatGPT, will now be called Gemini. A version will continue to be available for free, but people willing to pay $19.99 for a monthly subscription will gain access to Google’s most advanced tool in its Gemini family of AI models, the Ultra 1.0. The Ultra model, which becomes available to the broader public on Thursday, performs better with more complex tasks such as coding and logical reasoning, the company said.
Arm Forecast Beats Estimates As AI Spurs Chip Upgrades
Arm Holdings surged more than 62% this week as the British tech company forecast fiscal fourth-quarter sales and adjusted profit above Wall Street expectations as customers aim to design new chips for artificial intelligence work, generating higher royalties.
Arm's forecast ranges for its fourth quarter had midpoints of $875 million for sales and 30 cents per share for adjusted earnings, above estimates of $780.3 million and 21 cents per share, according to LSEG data.
Palantir Forecasts Strong 2024 Profit on Robust AI Demand
Palantir shares surged 43% this week as enterprises are looking to build and deploy their own AI-backed offerings, helping demand for Palantir's products including its Artificial Intelligence Program, which CEO Alex Karp sees as the "future" of the company.
U.S. commercial revenue in the quarter ended Dec. 31 surged 70% to $131 million, compared with a 12% increase a year earlier.
The company said it expects 2024 U.S. commercial revenue above $640 million, projecting growth of at least 40%, compared with a 36% rise in 2023.
Sam Altman Seeks Trillions of Dollars to Reshape Business of Chips and AI
Sam Altman was already trying to lead the development of human-level artificial intelligence. Now he has another great ambition: raising trillions of dollars to reshape the global semiconductor industry.
The OpenAI chief executive officer is in talks with investors including the United Arab Emirates government to raise funds for a wildly ambitious tech initiative that would boost the world's chip-building capacity and expand its ability to power AI, among other things, and cost several trillion dollars, according to people familiar with the matter. The project could require raising as much as $5 trillion to $7 trillion, one of the people said.
ASML Shows Off $380 Million, 165-Ton Machine Behind AI Shift
ASML Holding NV is showing off its latest chipmaking machine, a €350 million ($380 million) piece of equipment that weighs as much as two Airbus A320s.
Media outlets were given a tour on Friday of the system known as High-NA extreme ultraviolet. Intel Corp. has already placed orders for the machine and got the first one shipped to a factory in Oregon in late December. The company plans to start making chips with it in late 2025.
Nvidia, Cisco to Help Companies Build In-House AI Computing
Nvidia Corp. and Cisco Systems Inc. are teaming up to make it easier for corporations to build their own AI computing infrastructure, an attempt to push the technology beyond the big data-center providers.
Under an arrangement announced Tuesday, Cisco will offer Nvidia-based equipment — popular for developing artificial intelligence models — along with its networking gear.
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