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US Invests $750M in Chips 🟢

The U.S. government has announced plans to provide up to $750 million in direct funding to Wolfspeed, a North Carolina-based company specializing in silicon carbide semiconductors.

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News roundup

The top stories in AI today.

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The latest features, products & partnerships in AI

MONEY FLOWS

Economics, Wall Street, investing & fundraising

IMPLEMENTATION

Announcements, strategies & tools

HARDWARE

Computers, phones, chips & AI powered devices

What’s happening in AI right now

Betting big on silicon

The semiconductor industry is experiencing seismic shifts as artificial intelligence drives innovation, investment, and talent acquisition. Recent developments highlight the fierce competition among tech hubs, companies, and nations to secure a leading position in the AI-powered future.

Silicon Valley's magnetic pull

Boston-based AI chipmaker Lightmatter's recent relocation to Mountain View, California, underscores Silicon Valley's enduring allure for tech talent and investment. The company, which specializes in photonic computer chips using light for calculations and data transfer, secured a whopping $400 million investment round, valuing it at $4.4 billion. This move highlights the ongoing competition between tech hubs to attract AI talent and companies, with California maintaining its edge over emerging contenders like Boston.

Lightmatter's success story isn't just about location; it's a testament to the growing investor confidence in AI-related technologies. Founded in 2017 by MIT graduates, the company aims to push AI capabilities beyond current limitations, potentially reshaping the landscape of AI hardware development.

Global collaboration and innovation

While individual companies make headlines, industry-wide collaboration is also gaining momentum. Arm's expanding Total Design ecosystem, now boasting over 30 participating companies, is driving innovation in AI computing and infrastructure. This collaborative approach is fostering global partnerships and creating real-world solutions for GenAI computing, potentially setting a new standard for sustainable AI infrastructure development.

The ecosystem's growth demonstrates the industry's recognition that solving complex AI challenges requires diverse expertise and resources. As major frameworks and operating systems increasingly run on Arm architecture, the company's influence in shaping the future of AI data centers grows.

Government investment and geopolitical implications

The U.S. government's recent $750 million investment in Wolfspeed, a North Carolina-based silicon carbide semiconductor company, highlights the strategic importance of domestic chip production. This move aligns with the Biden-Harris administration's goals to strengthen U.S. manufacturing capabilities in critical technologies and maintain technological leadership.

With China emerging as a formidable competitor in the semiconductor industry, such investments carry significant geopolitical weight. The focus on critical technologies like AI, electric vehicles, and clean energy underscores the broader implications of semiconductor innovation beyond just computing power.

Market dynamics and talent crunch

As the semiconductor industry approaches $1 trillion in revenue by 2030, it faces a critical talent shortage. The sector needs to add over 100,000 skilled workers annually to meet demand and keep pace with technological advancements. This shortage could potentially slow progress in AI, 5G, and autonomous vehicles.

The talent crunch is exacerbated by an aging workforce, lack of diversity, and global competition for limited talent. Industry leaders are grappling with how to address these challenges, proposing solutions such as agile workforce planning, upskilling programs, and improved retention strategies.

Looking ahead

The semiconductor industry's evolution, driven by AI innovation, presents both challenges and opportunities. As the sector grapples with talent shortages and geopolitical pressures, it continues to push the boundaries of what's possible in computing. For business leaders, staying informed and agile in this rapidly changing landscape will be key to capitalizing on the transformative potential of AI-powered semiconductors.

We publish daily research, playbooks, and deep industry data breakdowns. Learn More Here

AI events

Best way to get AI literate? Go to some awesome events.

We’re thrilled to share that COAI is partnering with HumanX 2025—the AI conference that’s set to redefine the future of technology. Taking place on March 10-13, 2025 at The Fontainebleau Las Vegas, this forum is where the brightest minds in AI will gather to shape what’s next. And we want you to join us!

Why attend HumanX?
HumanX isn’t just another tech conference. It’s a unique opportunity to:

  • Connect with industry leaders, C-suite executives, policymakers, and innovators from around the globe.

  • Learn from top-tier speakers like Kevin Weil, Clara Shih, and Sridhar Ramaswamy about the latest AI trends and how they’re transforming cross-functional industries.

  • Explore personalized strategies and solutions to drive your business forward with AI.

Whether you’re a startup, an established business, or an AI pro looking to make meaningful connections, HumanX is the place where AI meets opportunity.

Exclusive offer for our community
As a valued member of our community, we’re excited to extend an exclusive offer to attend HumanX 2025. Register now with our code HX25p_coai and save $250 on general admission!

This week on the podcast

Can’t get enough of our newsletter? Check out our podcast Future-Proof.

In this episode, the hosts Anthony Batt and Shane Robinson with guest Joe Veroneau from Conveyor discuss outsmarting paperwork. Conveyor is a company that helps automate security reviews and document sharing between companies. They use AI technology, specifically language models, to automate the process of filling out security questionnaires. This saves customers a significant amount of time and improves the quality of their responses.

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