Nvidia's Blackwell AI Chip Delay: Impact on Major Cloud Providers

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On August 5, 1930, Neil Armstrong, the first man to walk on the moon, was born. His monumental achievement reminds us of the endless possibilities that innovation and technology can bring. Let's dive into the future of technology and its potential to reshape our world.

TRACK HIGHLIGHTS
Article Takeaways

• Nvidia AI Chip Production Delayed
• Google Hires Character.ai Founders
• U.S. Hiring Drops, Unemployment Rises
• Musicians, Labels Clash with AI
• Meta Hires Celebrities for AI

MARKET PITSTOP
A Quick Look at the Market

Stock Market: Dow closes down 600 points, Nasdaq enters correction after weak jobs report. Read More

Crypto: Bitcoin fell on Sunday, continuing a selloff in the world's largest cryptocurrency. Read More

LAP 1 Featured Story
Nvidia's Blackwell AI Chip Delay: Impact on Major Cloud Providers

• Nvidia's Blackwell B200 chips delayed by three months.
• Design flaw found late in production process.
• Major orders placed by Microsoft, Google, and Meta.

Nvidia has informed Microsoft and other cloud providers that its new "Blackwell" B200 AI chips will be delayed by at least three months due to a design flaw discovered late in the production process. These B200 chips, successors to the highly popular H100 chips, are crucial for the AI cloud infrastructure. Production is now expected to ramp up in the second half of the year, with large shipments delayed until the first quarter of next year. Major tech firms like Microsoft, Google, and Meta have placed significant orders for these chips, which were initially expected to be available from partners in 2024. Read More

LAP 2
Google Hires Character.ai Founders, Raising Antitrust Concerns

• Google hires Character.ai founders and pays for their AI tech.
• Similar deals by Microsoft and Amazon face regulatory scrutiny.
• High costs and competition challenge AI start-up profitability.

Google has hired the co-founders of Character.ai, a prominent AI start-up, raising concerns about competition in the AI industry. Noam Shazeer and Daniel De Freitas, who left Google in 2022 to start Character.ai, are returning along with some employees, and Google will also pay Character to access its AI technology.

This move, similar to recent deals by Microsoft and Amazon, highlights the difficulty of building profitable AI start-ups due to the high costs and competition from tech giants. The structure of these deals has prompted regulatory scrutiny over potential antitrust violations, as big tech companies continue to acquire top AI talent from smaller competitors. Read More

BRAIN TEASER
What has a head and a tail but no body?

WALLSTREET PITSTOP
U.S. Economy Faces Unexpected Setback with Sharp Drop in Hiring

• U.S. hiring falls sharply in July.
• Unemployment rate rises to 4.3%.
• Dow Jones drops 610 points.

In July, the U.S. economy experienced an unexpected setback as hiring fell sharply and the unemployment rate rose for the fourth consecutive month, reaching 4.3%, the highest since October 2021. Employers added only 114,000 jobs, 35% fewer than expected, leading to a significant drop in financial markets, with the Dow Jones Industrial Average falling 610 points. The downturn has raised concerns about a potential recession, although economists caution that traditional indicators may not be as reliable in the post-pandemic economy. Read More

Lap 3
Musicians and Record Labels Battle AI Companies Over Copyright Infringement

• Musicians criticize AI-generated music as theft.
• Record labels sue Udio and Suno for copyright violations.
• AI companies claim fair use in defense.

Country musician Tift Merritt and other artists are voicing concerns over AI-generated music imitating their work, which they view as theft rather than creativity. Merritt's criticism follows lawsuits by major record labels against AI companies Udio and Suno for allegedly using copyrighted material without permission.

The lawsuits underscore the challenges AI technology poses to intellectual property laws, with industry leaders arguing that these practices undermine artists' rights and livelihoods. The AI companies defend their practices as fair use, a legal principle that remains untested in the context of generative AI. Read More

FUN FACT STOP
Google Images was created after Jennifer Lopez wore the green dress at the 2000 Grammys.

LAP 4
Meta Enlists Celebrities for AI Voice Assistants Ahead of Meta Connect

• Meta negotiating with actors for AI voices.
• Voices to feature on Facebook, Instagram, Ray-Ban glasses.
• Temporary contracts may offer millions to actors.

Meta is negotiating with Hollywood actors like Judi Dench, Keegan-Michael Key, and Awkwafina to incorporate their voices into its AI offerings, aiming to showcase these new features at the Meta Connect conference in September. The company plans to integrate these voices into its digital assistant, MetaAI, across platforms such as Facebook, Instagram, and Meta Ray-Ban smart glasses. These temporary contracts may pay actors millions of dollars, allowing them to decide on renewals. Read More

FINAL LAP - FINANCE & THE STOCK MARKET
Dow Plunges 900 Points Amid Global Sell-Off; Berkshire Profits Climb, Amazon and Intel Reports Weigh on Stocks

• Dow drops 900 after weak jobs report as a global sell-off whips back to Wall Street

• Warren Buffett's Berkshire Hathaway Q2 Operating Profit Climbs Over 15%, Cash Hoard Swells To $277B As It Dumps Significant Stake In Apple

• Stocks sink on July jobs report, Amazon and Intel reports: Yahoo Finance

• Ethiopia to save $4.9 bln from debt restructuring, says state finance minister

• Abrdn finance chief Jason Windsor to replace Stephen Bird as CEO, Financial Times reports

BRAIN TEASER ANSWER

A coin.

THE RACE CONCLUDES
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