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Major tech companies are significantly increasing their investments in artificial intelligence infrastructure. Meta, for instance, plans to spend up to US$135 billion this year, driving immense demand for advanced chips and servers. This surge in spending is leading to a shortage of high-bandwidth memory (HBM) chips, prompting concerns across the industry. Elon Musk even suggested that Tesla might need to establish its own chip manufacturing facility, a "TeraFab," to secure necessary components.

In a related move, SK Hynix, a leading memory chip producer, is investing $10 billion into a new US-based firm, temporarily named AI Co. This new entity, formed by transforming its Solidigm subsidiary, aims to foster the AI industry, support startups, and strengthen SK Hynix's leadership in HBM technology. The South Korean chipmaker currently holds nearly 60% of the global HBM market, and this investment underscores its commitment to expanding its presence in the American market and differentiating itself from competitors like Samsung and Micron.

Google is also advancing its AI initiatives on multiple fronts. Google Gemini now offers free, full-length practice tests for the highly competitive JEE Main exam to Indian students, partnering with Physics Wallah and Careers360. These tests provide instant feedback, explanations, and personalized study plans. Concurrently, Google DeepMind launched AlphaGenome, a deep learning model designed to decode the human genome. AlphaGenome processes raw DNA to predict 11 different biological activities and can identify disease-causing DNA changes, utilizing a unique hybrid U-Net and Transformer design.

Beyond these developments, AI is seeing broader adoption and innovation. UK police are significantly expanding their use of facial recognition technology from Corsight AI and Digital Barriers, increasing the number of facial recognition vans from 10 to over 50. Airports globally are deploying AI to manage an anticipated 10.2 billion travelers by 2026, improving passenger flow, baggage handling, and security. Meanwhile, China's DeepSeek has demonstrated its ability to develop advanced large-scale AI models, like DeepSeek-R1, even without access to the most cutting-edge chips, showcasing a distinct path for AI innovation.

The long-term economic impact of this AI boom is substantial. Investment firm Alger predicts that US spending on artificial intelligence could reach 5.6% of the country's total economic output by 2030, a scale comparable to World War II-era spending. This massive computational demand is also expected to place significant strain on the US power grid, with electricity needs projected to grow considerably through 2050. The rapid evolution of AI also sparks discussions about future devices, with some tech giants suggesting that advanced AI assistants in smart glasses or AI pendants could eventually replace traditional smartphones.

Key Takeaways

Meta plans to spend up to US$135 billion on AI infrastructure this year, contributing to high demand for chips.
Elon Musk suggested Tesla might build a "TeraFab" chip factory due to chip scarcity.
SK Hynix is investing $10 billion in a new US-based AI firm, AI Co., to boost the AI industry and its HBM technology.
SK Hynix holds nearly 60% of the global market share for high-bandwidth memory (HBM) chips.
Google Gemini now offers free, full-length practice tests for the JEE Main exam in India, in partnership with Physics Wallah and Careers360.
Google DeepMind launched AlphaGenome, a deep learning model that processes raw DNA to predict 11 biological activities and identify disease-causing DNA changes.
UK police are expanding facial recognition technology use, increasing facial recognition vans from 10 to over 50 nationwide.
DeepSeek, a Chinese large-scale AI model, demonstrates China's ability to develop advanced AI without access to cutting-edge chips.
US AI spending is predicted to reach 5.6% of GDP by 2030, comparable to World War II-era investment, straining the power grid.
New AI-powered devices like smart glasses and AI pendants are being explored as potential replacements for smartphones.

Global Tech Giants Boost AI Spending

Major tech companies like Meta, Samsung, and SK Hynix are investing huge amounts in artificial intelligence. Meta plans to spend up to US$135 billion this year, while Samsung and SK Hynix are increasing memory production. This spending drives demand for chips and servers, benefiting hardware suppliers. However, it also causes a shortage of memory chips, especially high-bandwidth memory, affecting other industries. Elon Musk even suggested Tesla might need to build its own chip factory, a "TeraFab," due to chip scarcity.

SK Hynix Invests 10 Billion Dollars in US AI Company

SK Hynix, a major memory chip company, is investing 10 billion dollars into a new US-based firm called AI Company. This new company will promote the AI industry and help AI startups. It will also strengthen SK Hynix's position in memory chip development, especially with its HBM technology. The new firm will be created by changing its California-based Solidigm subsidiary into an AI investment arm. This move also shows SK Hynix's commitment to investing in American businesses.

SK Hynix Creates 10 Billion Dollar US AI Investment Arm

SK Hynix, a South Korean chipmaker, plans to invest 10 billion dollars in a new US-based AI company, temporarily named AI Co. This new unit will focus on investing in and working with AI companies to boost next-generation AI memory. It will be formed by changing its Solidigm Inc. subsidiary. SK Hynix aims to stand out from competitors like Samsung and Micron with this move. The company is a top supplier of HBM chips, holding almost 60% of the global market.

Google Gemini Offers Free Practice Tests for Indian Students

Google Gemini now provides free, full-length practice tests for the JEE Main exam. This feature helps Indian students prepare for the highly competitive Joint Entrance Examination. Google partnered with Physics Wallah and Careers360 to create these tests. Students get instant feedback on their answers, including explanations and personalized study plans. This move is part of Google's plan to increase Gemini's use in India, a key market for its AI growth.

Google Gemini Offers Free JEE Main Practice Tests

Google Gemini has launched free, full-length practice tests for the JEE Main exam, a major Indian college entrance test. Google CEO Sundar Pichai, an IIT Kharagpur alumnus, shared his excitement about this new tool. Gemini worked with Physics Wallah and Careers360 to create these tests, which include 75 questions across Physics, Chemistry, and Mathematics. After taking a test, students receive instant feedback, explanations for wrong answers, and a personalized study plan. This follows Gemini's earlier release of SAT practice tests.

Google DeepMind Introduces AlphaGenome for DNA Decoding

Google DeepMind has launched AlphaGenome, a new deep learning model to understand the human genome. Unlike older methods, AlphaGenome processes large sections of raw DNA to predict how cells function. It uses a special hybrid design that combines U-Net and Transformer blocks to see both big patterns and small details in DNA. The model can predict 11 different biological activities at once, helping scientists understand how DNA controls cells. AlphaGenome is also very good at predicting how single DNA changes can cause diseases, making it useful for precision medicine.

UK Police Deploy Facial Recognition Technology

UK Home Secretary Shabana Mahmood announced that British police will greatly increase their use of facial recognition technology. The software comes from Corsight AI, an Israeli firm working with UK company Digital Barriers. This rollout will expand the number of police facial recognition vans from 10 to over 50 nationwide. However, concerns about civil liberties and the technology's accuracy have been raised. Reports suggest Corsight AI's technology has been used in Gaza by the Israeli army, leading to questions about its reliability and ethical implications.

Airports Use AI to Handle More Travelers

Airports worldwide are using artificial intelligence to manage the increasing number of passengers. Global air travel is expected to reach 10.2 billion people in 2026, so airports are investing in AI to improve efficiency. AI helps with many tasks, including managing passenger flow, handling baggage, and improving security. It also allows for faster check-ins, biometric processing for immigration, and personalized services. While AI has grown fast, its use in aviation is still catching up due to older systems and strict safety rules.

DeepSeek Shows China Builds AI Without Advanced Chips

DeepSeek, a Chinese large-scale AI model, has achieved a significant breakthrough in just one year. This success demonstrates how China can develop advanced artificial intelligence even without access to the most cutting-edge chips. The emergence of DeepSeek-R1 in January 2025 highlighted this capability. This development is important as it shows a different path for AI innovation.

Will AI Devices Replace Our Smartphones

Many tech giants believe that new AI-powered devices could eventually replace smartphones. They argue that advanced AI assistants are much smarter than current voice helpers and can automatically handle tasks like making plans or taking notes. This could make traditional apps and typing less necessary. Future devices like smart glasses, ambient computers, and AI pendants might take over the functions of a smartphone. However, for now, the smartphone market dominated by Apple and Google remains strong, with AI alternatives still having a small user base.

US AI Spending May Reach 5.6 Percent of GDP by 2030

Alger, an investment firm, predicts that US spending on artificial intelligence could reach 5.6 percent of the country's total economic output by 2030. This massive investment in AI infrastructure is comparable to the scale of spending during World War II. The huge computing power needed for AI is driving this growth, as even simple AI tasks require much more energy than a regular internet search. This increased demand will also put pressure on the US power grid, with electricity needs expected to grow significantly through 2050.

New Light Neurons Could Power AI Systems Better

Researchers from Hong Kong University of Science and Technology, ETH Zurich, and Universit \