Intel Directly Challenge's Nvidia: Gaudi 3

Good Morning and Eid Mubarak, Team!

On April 10th, 1970, Paul McCartney officially announced the breakup of The Beatles. It was a moment that reverberated across the globe, marking the end of an era in music history. Now, shifting gears from the world of melodies to the realm of algorithms and data, let's dive into the latest from the frontier of Artificial Intelligence.

TRACK HIGHLIGHTS
Article Takeaways

• Intel Challenge’s Nvidia
• Google Cloud’s Revolution
• Nothing is Slowing Down Inflation
• Financial Services Embrace Generative AI
• South Korea Invests Billions in AI

MARKET PITSTOP
A Quick Look at the Market

Stock Market: The Dow Jones fell for the 6th time in seven days as investors struggled to regain some positive momentum ahead of the release of key U.S. inflation data.

Crypto: Barry Bannister, chief equity strategist at Stifel, argues that Bitcoin prices may have topped when they traded above $73,000 in mid-March. Bitcoin has since slipped below $70,000.

LAP 1 Featured Story
Intel Unleashes Gaudi 3: Directly Challenging Nvidia

• Intel's CEO said Gaudi 3 chip trains AI models 50% faster than Nvidia's H100, also improving inference speed, directly comparing the two.
• Gaudi 3 features configurations like an eight-chip bundle, enhancing power efficiency and performance.
• Intel aims for market competitiveness with Gaudi 3's introduction, challenging Nvidia's 80% AI chip dominance.
• Partnerships with Dell, HP, and Supermicro for Gaudi 3 systems, availability expected in Q3.

Intel has recently stepped up its game in the artificial intelligence chip market with the introduction of the Gaudi 3 chip, marking a significant leap in performance and efficiency. By promising to train AI models like Meta's Llama and deploy generative AI applications such as OpenAI's Whisper model 50% more quickly than Nvidia's previous generation, Intel is directly challenging Nvidia's stronghold in the AI chip industry. Notably, Gaudi 3 boasts more than double the power efficiency and one-and-a-half times the AI model running speed compared to Nvidia's H100 GPU. This advancement is particularly important as the demand for cost-effective and powerful AI computing grows, with companies seeking alternatives to Nvidia's GPUs, which dominate around 80% of the market.

Intel's strategic move includes offering Gaudi 3 in various configurations, catering to different system requirements and emphasizing its competitive edge with partnerships for system building with industry giants like Dell, HP, and Supermicro. This bold step by Intel not only signifies its commitment to providing leading-edge technology but also reflects the broader industry's shift towards more efficient, flexible, and collaborative AI development ecosystems.

LAP 2
Google's Cloud Revolution: Unveiling Axion

• Google unveils custom Arm-based server chip at Cloud Next, aiming for affordability in cloud computing.
• Competes with Amazon, Microsoft, who lead in cloud infrastructure and have adopted Arm technology.
• Google's cloud segment grows, representing 11% of revenue, with plans to expand Arm-based offerings.

Google has taken a significant step towards making cloud computing more cost-effective by announcing a custom-built Arm-based server chip at its Cloud Next conference. This move places Google in direct competition with cloud giants Amazon and Microsoft, who have already integrated Arm technology into their cloud infrastructure offerings. Despite being a late entrant, Google aims to leverage this technology to cut costs and enhance performance for its users, with the new processors set to roll out in 2024. This strategic shift not only aims to bolster Google's position in the fiercely competitive cloud market, where it currently holds a 7.5% share, but also to diversify its revenue streams beyond advertising, which still accounts for three-quarters of its income.

The introduction of the Axion chip, promising up to 30% better performance compared to the fastest general-purpose Arm-based VMs and 50% over x86 VMs, underscores Google's commitment to innovation and efficiency.

BRAIN TEASER
They fill me up and you empty me, almost every day; if you raise my arm, I work the opposite way. What am I?

WALLSTREET PITSTOP
Inflation Battle: Stagnant Progress Sparks Concerns

• Labor Department report may indicate ongoing inflation challenges, worrying consumers, markets, and policymakers.
• Forecasted 0.3% CPI increase highlights persistent inflation above Fed's 2% target.
• Slow progress in inflation control complicates rate adjustment amid economic uncertainty.

The upcoming Labor Department report is anticipated to reveal stagnant progress in combatting inflation, posing challenges for consumers, market players, and Federal Reserve officials who seek a slowdown in price hikes to consider interest rate cuts. Forecasts predict a 0.3% increase in the consumer price index, with both all-items and core measures expected to rise, remaining significantly above the central bank's 2% target. Despite improvements from previous peaks, inflation reduction remains sluggish, indicating prolonged economic uncertainty.

LAP 3
Navigating Generative AI in Financial Services

• Generative AI presents immense potential in financial services.
• Recent discussions highlighted market interest and transformative use cases, such as a generative AI co-pilot reducing modeling times by 90%.
• Responsible adoption of Generative AI in financial services demands addressing concerns around transparency.

Generative AI is revolutionizing the financial services industry, promising exponential rewards yet accompanied by unique challenges, especially in highly regulated sectors like banking and insurance. Recent discussions at the SAP and SAP Fioneer for Financial Services Forum Americas shed light on the market appetite for generative AI and its potential impact. Despite regulatory hurdles, the market for generative AI in financial services is poised for significant growth, with transformative use cases already emerging, such as a generative AI co-pilot reducing modeling times by 90%. However, responsible adoption requires addressing concerns around transparency, accountability, and data governance to ensure fairness, safety, and ethical use of AI-based systems in the financial ecosystem.

FUN FACT STOP
Did you know that octopuses have three hearts? Two pump blood to the gills, while the third pumps it to the rest of the body.

LAP 4
South Korea's Billion-Dollar Bet into AI and SemiConductors

• President Yoon pledges 9.4 trillion won ($6.94 billion) for AI by 2027, plus 1.4 trillion for AI semiconductors, fortifying South Korea's chip leadership.
• The initiative safeguards South Korea's economy amid fierce global semiconductor competition.
• Yoon targets top-three AI status and a 10% global chip market share by 2030, signaling a new era of Korean semiconductor dominance.

South Korean President Yoon Suk Yeol announced a significant investment of 9.4 trillion won ($6.94 billion) in artificial intelligence by 2027, alongside a 1.4 trillion won fund to support AI semiconductor firms. This move aims to bolster South Korea's position in semiconductor technology amid fierce global competition from countries like the United States, China, and Japan. With semiconductors being a cornerstone of South Korea's export-driven economy, the country aims to expand research and development in AI chips, aiming to become a top-three player in AI technology and secure a significant share of the global semiconductor market by 2030.

FINAL LAP - FINANCE & THE STOCK MARKET
The Boeing Saga Continues and Tesla is Due for a Tune Up

• According to a whistleblower, the Boeing 787 Dreamliner is flawed and the FAA is investigating.

• Private-Equity activity shows some positive signs for an industry that is running against the clock to return cash to investors.

• How an election-packed 2024 is shaping up for world markets.

• Boeing’s quarterly airplane deliveries drop to 83 amid safety crisis.

• Tesla stock has plummeted this year and the company appears desperate for a tune up.

BRAIN TEASER ANSWER

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