Intel Secures Amazon AI Chip Deal, Rapid Growth of the AI Server Market, United Nations on Governing AI for Humanity- What You Missed in Tech

Welcome to NR Insider, your weekly digest on all things Tech, Hardware, and AI. Follow along to dive into the latest developments and most important topics in the world of technology. From cutting-edge hardware and groundbreaking AI advancements to major industry news, we have gathered all the highlights. As we start Week 39 in Tech, let’s recap some major tech news you may have missed during Week 38.

Intel Secures Amazon AI Chip Deal

Intel has secured a major agreement with Amazon Web Services (AWS) to produce custom AI chips utilizing its advanced 18A process technology, along with a custom Xeon 6 chip, further strengthening their ongoing partnership. The deal comes after Intel received up to $3 billion from the US CHIPS and Science Act to boost domestic chip production. The agreement is considered a critical win for Intel, which has faced challenges from weak earnings and tough competition in the chip market. While the partnership enhances Intel's position in the growing AI chip sector, concerns remain about whether the company can keep up with TSMC's production efficiency and output. On top of that, Intel is undergoing significant restructuring, including plans to reduce its workforce by 15,000 employees and delay some European projects, to prioritize US-based manufacturing—potentially straining its relationships with European partners who are working to establish greater semiconductor autonomy..

The AI Server Market - Estimated To Reach $180B By 2032

The AI server market is rapidly expanding, projected to reach around $183 billion by 2032, with a compound annual growth rate (CAGR) of about 18.5% from 2024. This growth is primarily driven by increasing AI adoption in IT, telecom, healthcare, and manufacturing sectors, where organizations use AI for automation, predictive analytics, and decision-making. Key factors include strong demand for advanced data processing, significant investments in GPUs—which captured 56% of the market in 2023—and ongoing research and development. Trends like AI-as-a-Service allow businesses to access AI solutions without heavy infrastructure costs, while hybrid deployment models combine on-premises and cloud capabilities. Furthermore, there’s a growing emphasis on energy efficiency and enhanced security measures to protect sensitive data. With advancements in 5G technology and the development of hybrid AI models, the industry is set for continued growth, likely surpassing current projections as organizations increasingly rely on AI-driven solutions.

UN Advisory Board's Recommended Measures For Governing AI

On September 19, 2023, a UN advisory body presented seven recommendations to address the governance challenges of artificial intelligence (AI) due to rising concerns about misinformation and copyright violations. With AI's rapid growth, especially since the launch of ChatGPT, the UN stressed the importance of oversight to ensure that the technology benefits everyone rather than just a few tech giants. Key proposals include establishing a panel for unbiased scientific insights, initiating a policy dialogue on governance, and creating an AI standards exchange. The report also suggests launching a global AI fund to foster collaboration and develop a framework for transparency and accountability. Lastly, it calls for a small office to coordinate these efforts to promote responsible AI use and ensure that individuals have a voice in how this powerful technology impacts their lives.

Up Next - Week 39 in Tech

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