Nvidia Partners OpenAI, Google, Microsoft; AMD Offers Stake

The artificial intelligence sector continues its rapid expansion, marked by significant partnerships and investments. Nvidia is deepening its ties with OpenAI through a direct purchase agreement, a first for the AI research lab, which plans to deploy Nvidia systems requiring 10 gigawatts of power. This collaboration is in addition to Nvidia's ongoing work with Microsoft and Google. Meanwhile, Nvidia CEO Jensen Huang expressed surprise at AMD's offer of a 10% stake in the company to OpenAI as part of a deal where OpenAI will acquire 6 gigawatts of AMD chips. Huang also noted Nvidia's investment in Elon Musk's xAI, regretting not investing more, and highlighted CoreWeave as a strong investment. In Europe, EU countries are reportedly delaying funding for planned AI training hubs, potentially hindering the bloc's AI development ambitions. On the policy front, Senator Bernie Sanders has proposed a 'robot tax' on large corporations to support workers displaced by AI, estimating that AI could eliminate 100 million U.S. jobs in the next decade. The broader AI boom is fueling substantial profits for leading companies. In the realm of AI applications, Synology's DSM 7.3 update enhances storage with AI features and security, including support for OpenAI-compatible APIs for private AI infrastructure. AI startup Abridge, which uses AI to convert doctor-patient conversations into clinical notes, has leased a large office building in San Francisco, reflecting its growth and the increasing adoption of its technology in healthcare. The risks associated with AI were highlighted when Deloitte agreed to refund the Australian government $440,000 due to errors, including fabricated citations, in an AI-generated report drafted using Azure OpenAI GPT-4o. This incident underscores the need for robust human oversight and AI literacy, even as companies like Deloitte increase AI investments, such as introducing Anthropic's Claude chatbot. To combat AI-driven threats, organizations are urged to implement strong identity management strategies, including preemptive defenses and context-based authentication. In AI development, Varun Jampani, known for his work on Stable Diffusion, has joined Arcade as Chief AI Officer to lead the company's AI strategy for physical product creation.

Key Takeaways

• Nvidia is entering a direct partnership with OpenAI, marking OpenAI's first direct chip purchase from Nvidia, with plans for Nvidia systems requiring 10 gigawatts of power.
• AMD has offered OpenAI a stake of up to 10% and will supply 6 gigawatts of chips, a deal that surprised Nvidia CEO Jensen Huang.
• Nvidia CEO Jensen Huang regrets not investing more in Elon Musk's xAI and views it as a transformative AI firm alongside OpenAI and Anthropic.
• Deloitte will refund the Australian government $440,000 due to errors, including fabricated citations, in an AI-generated report created using Azure OpenAI GPT-4o.
• The incident with Deloitte's AI report highlights the critical need for human oversight and AI literacy, despite ongoing AI investments by firms like Deloitte, which is introducing Anthropic's Claude.
• European Union member states are reportedly delaying funding for the European Commission's plan to establish AI training hubs.
• Senator Bernie Sanders has proposed a 'robot tax' on large corporations to support workers potentially displaced by AI, estimating up to 100 million job losses in the U.S.
• Synology's DSM 7.3 update includes AI features for storage management and security, with future support for OpenAI-compatible APIs for private AI infrastructure.
• AI startup Abridge, which generates clinical notes from doctor-patient conversations, has leased an 80,000-square-foot office building in San Francisco, indicating significant growth.
• Organizations need robust identity management strategies to defend against AI-driven threats, including preemptive defenses and context-based authentication.

Nvidia CEO Jensen Huang details unique OpenAI partnership

Nvidia CEO Jensen Huang discussed his company's new direct partnership with OpenAI in a CNBC interview. This deal marks the first time OpenAI will purchase directly from Nvidia, unlike previous arrangements where cloud providers acted as intermediaries. Nvidia plans to invest up to $100 billion in OpenAI to build AI data center capacity, aiming for OpenAI to deploy Nvidia systems requiring 10 gigawatts of power. This partnership is seen as incremental to Nvidia's existing work with other AI companies like Microsoft and Google.

Huang surprised by AMD's 10% stake offer to OpenAI

Nvidia CEO Jensen Huang expressed surprise at AMD's offer of up to a 10% stake in the company to OpenAI as part of a new partnership. Under the deal, OpenAI will buy 6 gigawatts worth of AMD chips over several years and receive warrants for up to 160 million AMD shares. Huang contrasted this with Nvidia's direct partnership, where OpenAI buys directly from Nvidia. AMD shares rose significantly following the announcement, while Nvidia shares also saw gains.

Nvidia CEO regrets not investing more in Elon Musk's xAI

Nvidia CEO Jensen Huang stated that he regrets not investing more in Elon Musk's AI startup, xAI. Nvidia is already an investor in xAI, and Huang expressed excitement about the company's latest funding round. He views xAI as part of a new generation of transformative AI firms alongside OpenAI and Anthropic. Huang also mentioned Nvidia's investment in AI data center operator CoreWeave, calling it a terrific investment.

Deloitte to refund Australian government over AI report errors

Consulting firm Deloitte will partially refund the Australian government $440,000 after an AI-generated report contained significant errors, including fabricated citations and misattributed quotes. Deloitte used Azure OpenAI GPT-4o for drafting, and while human review refined the content, the errors were not caught. The Australian government reissued a corrected report and plans to include stricter AI usage clauses in future contracts. This incident highlights the risks of AI 'hallucinations' in professional work.

Deloitte's AI mistake shows need for training and oversight

Deloitte's recent AI error in a report for the Australian government, which included fabricated references, highlights the critical need for AI literacy and human oversight. Despite the blunder, which led to a partial refund, Deloitte is increasing its AI investments, including introducing the Anthropic Claude chatbot to its employees. The incident underscores the risks of relying solely on AI without thorough human verification and raises questions about accountability when AI outputs are flawed.

AI boom fuels massive profits for leading companies

Brian White from Monness Crespi Hardt & Co. discussed the significant profits generated by companies driving the artificial intelligence boom. The expert highlighted the financial success stemming from the ongoing AI race. This commentary was featured on the 'Making Money' program.

Synology DSM 7.3 boosts storage with AI and security

Synology has released DiskStation Manager (DSM) 7.3, enhancing storage efficiency, security, and collaboration. The update includes Synology Tiering for automatic data management between storage types and improved security measures with risk indicators like KEV and EPSS. The Office Suite sees upgrades for better team collaboration, and Synology AI Console now supports custom data masking for privacy before sending data to third-party AI providers. Future versions will support OpenAI-compatible APIs for private AI infrastructure.

AI startup Abridge leases large San Francisco office building

AI startup Abridge, which converts doctor-patient conversations into clinical notes, has leased an entire 80,000-square-foot office building in San Francisco. The company, valued at $5.3 billion, aims to use its technology to allow physicians to focus more on patients. Abridge's AI listening technology is currently used by over 150 large U.S. health systems. The company was founded in 2018 and has expanded its operations significantly.

Defend against AI threats with identity management strategy

Organizations must develop robust identity security strategies to defend against evolving AI-driven threats. Key steps include implementing preemptive defenses like IP reputation checks and risk scoring before user authentication. Smarter, context-based authentication methods are crucial to counter increasingly sophisticated AI phishing attacks. Protecting against session hijacking with step-up authentication and managing 'shadow AI' usage by employees are also vital. Treating AI like any other governed identity is essential for security.

EU countries delay funding for AI training hubs

European Union member states are reportedly stalling on funding the European Commission's plan to establish AI training hubs across the EU. Despite the bloc's ambition to boost its AI sector, countries are finding reasons to reject the funding proposal. This resistance is hindering progress on a key initiative aimed at fostering AI development within Europe, indicating a potential gap between strategic goals and financial commitment.

Bernie Sanders proposes 'robot tax' to aid workers impacted by AI

Senator Bernie Sanders has proposed a 'robot tax' on large corporations as a way to address the impact of artificial intelligence on the workforce. A report from Sanders's office projects that AI could eliminate 100 million jobs in the U.S. over the next decade. The revenue from the proposed tax would be used to support workers displaced by AI and automation. Other policy suggestions include universal basic income and increased worker participation in corporate boards.

Varun Jampani joins Arcade as Chief AI Officer

Arcade, an AI platform for creating physical products, has appointed Varun Jampani as its Chief AI Officer. Jampani, co-creator of Stable Diffusion 3.5 and DreamBooth, will lead Arcade's AI strategy to democratize physical product creation. His expertise in generative vision and AI is expected to drive innovation in how users create and interact with physical products. Arcade aims to make AI-powered product creation accessible to everyone.

Sources

• Jensen Huang explains why Nvidia's latest partnership with OpenAI is different
• Nvidia's Huang says he's surprised AMD offered 10% of the company in 'clever' OpenAI deal
• Nvidia CEO Jensen Huang regrets not investing more in Elon Musk’s xAI
• Deloitte's AI Fallout Explained: The $440,000 Report That Backfired
• Deloitte’s AI Error Is a Good Reminder to Prioritize AI Training and Oversight
• Companies pushing the AI boom generate huge profits, expert says
• Synology launches DSM 7.3 with advanced AI & security tools
• Abridge, the AI app for doctors, leases entire building in SF
• Identity and AI Threats: Developing an Access Management Defence-in-Depth Strategy
• EU countries stall on funding AI training hubs
• Bernie Sanders calls for 'robot tax' to protect workers from the impacts of AI
• Arcade Welcomes Varun Jampani as AI Chief to Build the Next Era of AI Creation and Commerce