Technology Weekly News: Week 3, January 2024

China just recorded its steepest slump in chip import as tech war with the US intensifies

In August, China faced its largest chip production decline since 1997, with a 24.7% YoY drop in imports to 24.7 billion units. The US actively hindering China's semiconductor industry adds to the challenges. Data from January to September shows a nearly 13% YoY contraction in chip imports, contrasting the 23.7% increase in 2021. China, the top chip importer, struggles to catch up with advanced semiconductors due to tightening controls. Chip exports dropped 10% YoY to 209.7 billion units, while their value increased by 7.3%. China's "Made in China 2025" initiative aiming for 75% self-sufficiency by 2030 faces obstacles amid sanctions and suspicions, complicating the path to chip industry independence.

Nvidia and AMD shares hit record highs on AI chip surge

AMD and Nvidia reached new highs on Thursday, with AMD closing at $162.67 (up over 1%) and Nvidia at $571.07 (up nearly 2%). Both companies, posting double-digit gains this year after a stellar 2023, are benefiting from strong investor interest in AI-powered chip makers. Originally designed for gaming, the demand for graphics processors for AI applications, such as OpenAI's GPT, has led to a significant uptick in chip sales.

Nvidia, the leading GPU supplier to AI companies for the past two years, remains a standout stock, while AMD, the second-largest standalone GPU maker, is gaining traction with its new chip competing against Nvidia's H100. Analysts also note AMD's improvement in AI software, narrowing the gap with Nvidia.

Taiwan Semiconductor Manufacturing Company (TSMC), responsible for manufacturing chips for both Nvidia and AMD, reported robust sales, citing high demand for AI chips using advanced manufacturing techniques. TSMC management anticipates that AI chip manufacturing could contribute a "high-teens" percentage of revenue in five years, positively impacting both Nvidia and AMD.

Additionally, Meta CEO Mark Zuckerberg, a major GPU buyer, announced plans to invest billions of dollars in Nvidia and other GPUs this year.

Microsoft launches a Pro plan for Copilot

Microsoft is positioning Copilot, its AI content generation tool, as a potential significant revenue source, with over 40% of Fortune 100 companies participating in its early access program. The company is introducing a consumer-focused paid Copilot Pro plan at $20 per user per month, offering AI features across Microsoft 365 applications. For enterprises, Copilot is now generally available without a 300-user minimum, providing real-time summaries in Teams and enterprise-grade data protection. Microsoft is also rolling out free features, including Copilot GPTs for specific topics and a mobile app for Android and iOS, with language support expansion planned for 2024.

Amazon eyes AI, autonomous vehicles and Asia as $1B industrial innovation fund evolves

Amazon's Industrial Innovation Fund, launched in April 2022 with a $1 billion investment, is shifting focus to expand geographically and explore new areas such as generative AI. The fund, aimed at enhancing Amazon's logistics and supply chain operations, initially invested in robotics and wearable tech startups. It has since accelerated its pace, investing in companies like Veo Robotics, Flymingo, CoreTigo, Rightbot, and Instock. The fund, now led by Franziska Bossart, plans to explore opportunities in Europe and Asia, emphasizing AI, bipedal robots, and technologies improving middle-mile and last-mile delivery, including autonomous vehicles. Bossart sees potential in applying generative AI to enhance robotics and automation, particularly in fusing various elements to make them more capable. The fund's interest in humanoid robots, like Agility Robotics' Digit, aligns with Amazon's automation-centric approach, aiming to improve safety and efficiency in its operations. Bossart also expressed interest in solutions for middle- and last-mile delivery, including small automation tools. Despite its investments, the fund emphasizes experimentation and isn't solely tied to commercialization within Amazon's ecosystem.

Buying frenzy for Solana Mobile’s second phone drives preorders sky-high

Solana Mobile has launched its second web3 phone, "Chapter 2," following the success of its first phone, Saga. Chapter 2, priced at $450, quickly sold out, with over 25,000 preorders within the first 24 hours. Solana Mobile achieved its seven-day sales goal in the first day, surpassing Saga's 12 months of sales. Similar to Saga, Chapter 2 runs on Android, features a built-in crypto wallet, Seed Vault, and a decentralized app store for crypto applications. It aims to create opportunities for crypto app teams to incentivize users, offering a concentrated distribution channel without prohibitive app store fees. Chapter 2 will ship in the first half of 2025.

Spot Technologies, now with $2M, will see AI security tech go into Mexico Walmarts

El Salvador-based AI startup Spot Technologies raised $2 million in funding from investors including Femsa Ventures, Bridge Latam, Daedalus, Kuiper, and Casque. The company, with operations in Chile, is developing cloud technology that transforms cameras in retail and logistics locations into an intelligent system for behavior analysis and security. Spot's flagship product, VisionX, utilizes deep learning and computer vision to analyze consumer and theft behaviors, offering features such as gender and age analysis, people counting, and detection in undesignated areas. With the new funding, Spot plans to invest in the development of VisionX 2.0, including features for detecting minor thefts, thefts in self-checkout areas, violent actions, and shopping pattern analysis. Walmart is among Spot's major customers, having deployed VisionX in 450 stores and distribution centers in Chile. The company is also in discussions with Oxxo, a Mexico-based convenience store chain, for integration across its 21,000 stores in Latin America.

Keep yourself informed and stay ahead in the rapidly evolving world of technology by subscribing to our newsletter. Get the latest updates and breaking news delivered straight to your inbox!