Recently, the Shenzhen Municipal Bureau of Industry and Information Technology officially issued several measures to build Shenzhen into a pioneer city for artificial intelligence, aimed at promoting the application and development of the AI industry. With an annual investment of up to 300 million yuan, the focus is on cutting-edge areas such as the mathematical principles of AI, infrastructure, core algorithms, as well as embodied intelligence, autonomous driving, and AI chips, to carry out fundamental research and tackle technological challenges. Among them, for demonstration application projects with promotional value, the city will provide subsidies of up to 30% based on the actual investment of the project construction entities, with a maximum limit.

In a recent earnings call, Broadcom CEO Hock Tan shared an optimistic outlook for the future AI chip market, predicting that the company’s revenue in this area will see significant growth by 2027. According to him, the serviceable addressable market (SAM) for Broadcom's AI-related products and network services is expected to be between $60 billion and $90 billion. Tan also revealed that Broadcom is currently collaborating with three major hyperscale customers.

Tesla CEO Elon Musk is fully committed to pursuing AI chips to support his new supercomputer, a move that has already pushed Nvidia's production capacity to its limits. According to a report by The Wall Street Journal, a sales executive at Nvidia mentioned in an internal email that Musk's demand for their chips is putting pressure on the company's supply chain. An Nvidia spokesperson stated, 'We are working hard to meet all customer demands and have significantly increased the available supply.' Image source note: Image generated by AI.

Recently, AMD announced it will lay off approximately 1,000 employees, which is about 4% of its global workforce. The layoffs primarily affect sales and marketing positions in the gaming and consumer PC departments, marking the chip giant's full transition towards the artificial intelligence chip sector. In the thriving AI chip market, NVIDIA currently holds a dominant 80% market share. Analysts predict that by 2028, the AI chip market will reach a scale of $500 billion. AMD's resource restructuring aims to capture a larger share in this rapidly growing market.

In a recent Reddit Q&A, OpenAI CEO Sam Altman admitted that insufficient computing power is one of the main reasons the company is unable to frequently launch new products. He stated that the current AI models are becoming increasingly complex, and OpenAI faces many constraints and difficult decisions on how to allocate computing resources to implement numerous excellent ideas. Reports suggest that OpenAI has encountered difficulties in obtaining sufficient computing infrastructure.

OpenAI officially announces its entry into the AI chip sector through collaboration with chip giant Broadcom, planning to develop its first custom AI inference chip. This strategic move not only marks a significant step towards supply chain autonomy for OpenAI but also targets NVIDIA's current dominance in the AI chip market. According to Reuters, OpenAI has assembled a specialized R&D team of about 20 members, including the chief engineer who participated in the development of Google's Tensor processors. The project will be led by Broadcom for chip design and TSMC for manufacturing.

Nvidia has recently engaged in a series of collaborations with local businesses in India to promote its artificial intelligence chips and technologies. The CEO of the American chip design company, Jensen Huang, announced at an AI summit in Mumbai that Nvidia has partnered with one of India's most valuable companies, Reliance Industries, to co-establish the infrastructure for AI applications. Additionally, tech company Tech Mahindra will use Nvidia's chips and software to develop a Hindi AI model called "Indus2.0."

Recently, TSMC announced that it expects a significant profit increase of 40% in its upcoming Q3 earnings report. This surge is primarily attributed to the booming demand for artificial intelligence (AI) chips. As the world's largest contract chip manufacturer, TSMC's clients include renowned companies such as Apple and Nvidia, which are actively advancing AI technology. According to LSEG's smart estimate, analysts predict that TSMC's net profit for the third quarter ending September 30 will reach NT$298.2 billion (approximately US$9.27 billion).

Recently, foreign media reported that ByteDance is accelerating its efforts to self-develop and manufacture AI chips to reduce dependence on expensive chips from NVIDIA. The report claims that ByteDance plans to collaborate with TSMC and expects to mass-produce two self-developed AI chips by 2026, having already reserved the production of hundreds of thousands of chips. More notably, the report pointed out that ByteDance aims for its self-developed chip clusters to achieve four times the computing performance of a single H100 chip at a similar cost. In response, ByteDance quickly addressed this report.

Recently, the foreign media outlet The Information reported that ByteDance is accelerating the development of its own AI chips and plans to collaborate with TSMC, aiming for mass production by 2026. The report also stated that this move by ByteDance is intended to reduce dependence on NVIDIA chips and lower the costs of developing and operating AI models. Source note: The image is generated by AI and provided by the image licensing service Midjourney, according to reports from the Sci-tech Innovation Board Daily regarding today's media coverage of ByteDance's plans to collaborate with TSMC on AI chips.

Recently, AI chip company Groq, based in California, has reached a partnership agreement with Saudi Arabia's oil giant Aramco to establish a large data center in Saudi Arabia. The aim of this data center is to enhance Saudi Arabia's capabilities in the field of artificial intelligence and further promote the diversification of the country's economy. Groq's CEO, Jonathan Ross, stated that the data center is expected to be operational by the end of the year, initially equipped with 19,000 Language Processing Units (LPUs). Image source note: Picture

Recently, at the launch event for the new EX90 electric SUV, Volvo announced its continued collaboration with NVIDIA, stating that future models will be equipped with NVIDIA's chips. The EX90 is Volvo's first software-defined vehicle, featuring the NVIDIA Orin system-on-chip, which boasts computation capabilities exceeding 250 trillion operations per second. This SUV's core computing architecture not only supports deep learning functions but also provides robust support for its AI-driven active safety and driving assistance systems. Furthermore, Volvo plans for future enhancements.

The generative AI market is developing rapidly, with projections estimating it will reach $40 billion by 2024 and soar to $1.5 trillion by 2030, achieving an impressive annual growth rate of 83%. Its applications are vast, spanning text, images, and music. As AI technology shifts towards edge computing, the share of AI-related software and services is expected to significantly increase over the next five years, projected to account for 32% and 55% of the market by 2030, becoming a crucial driver of market expansion.

Nvidia is facing an antitrust investigation by the U.S. Department of Justice, focusing on its dominant market position in the artificial intelligence sector and whether it has taken measures to stifle competition, including penalizing suppliers that do not use its AI chips. This news has led to a significant drop in Nvidia's stock price, resulting in a market value loss of $279 billion. Although the overall trend of stock prices remains an upward trajectory, the AI boom has driven high sales of its expensive chips. Nvidia's recently launched Blackwell series AI chips are facing delayed market release due to design flaws, intensifying competition with rivals.