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Meta Cuts 5% of Staff: Shifts to AI 🟢

OpenAI Appoints BlackRock Exec, UAE boosts AI funds, Apple vs Nvidia hardware, Mistral’s Codestral Leads

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What’s happening in AI right now

Nations and tech giants race to build computing power

The great computing race

The massive new AI supercomputer, announced in Memphis with over 100,000 liquid-cooled NVIDIA GPUs, is a joint project between Elon Musk's xAI and Supermicro and represents the largest such facility ever built. But behind this technical marvel lies a deeper truth: the race for AI supremacy has become a game of raw computing power, and only a select few can afford to play.

The Biden administration clearly understands these stakes. This week, the President authorized federal lands to be used for private AI data centers while simultaneously tightening controls on AI chip exports. The message is clear - America wants to maintain its technological edge, even if that means ruffling some allied feathers.

Unexpected power moves

Perhaps the most intriguing development comes from the United Arab Emirates, where Sheikh Tahnoun bin Zayed al Nahyan is orchestrating a dramatic shift. With $1.5 trillion in sovereign wealth at his disposal, the Sheikh is aggressively courting U.S. tech partnerships, securing a $1.5 billion investment from Microsoft and planning a massive AI investment fund. This pivot away from Chinese partnerships signals a strategic realignment that could reshape the global AI landscape.

New alliances form

The tech industry isn't sitting idle either. Apple has joined forces with AWS, Google, Meta, and others in the UALink Consortium, a clear challenge to NVIDIA's grip on AI hardware connectivity. This unusual collaboration shows how traditional tech rivalries are being set aside in the face of common challenges.

Meanwhile, the UK has unveiled its own ambitious £14 billion AI strategy, aiming to increase its computing capacity twentyfold by 2030. This bold move suggests Britain sees an opportunity to establish itself as an AI powerhouse in the post-Brexit landscape.

Innovation continues

Amid these power plays, fundamental innovation marches on. Belgian startup Vertical Compute has raised $20.5 million to tackle one of AI's biggest bottlenecks - memory efficiency. Their approach could reduce data movement from centimeters to nanometers, potentially slashing energy costs by 80%.

What's next

The global AI landscape is shifting faster than anyone predicted. Nations are jockeying for position, new power players are emerging, and traditional alliances are being tested. The key question now isn't just who will lead in AI development, but how these new alignments will shape the technology's future.

Will the concentration of computing power in the hands of a few players stifle innovation? Can smaller nations and companies find niches to compete effectively? The answers to these questions will likely determine not just the future of AI, but the balance of global power itself.

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