Infinite 8 Institute, L3C’s Post

#Infinite8Eco #Q3 #GlobalMarketOutlook - “1. The second half of the year, H2, will reflect the outcome of monetary policy, in the form of inflationary pressures or easing. We expect to see continued spending on Data Center Optimization and AI Infrastructure. Microsoft's recent earnings call saw $19B in spending in Q2, with half on Data Centers and the other half on Chips to run the Data Centers. We estimate 500+ new Data Centers breaking ground Quarterly. The focus is moving from chatbots, to Physical AI, primed for humanoid robots, who are already working in factories for up to $65,000 in annual wages. 2. Coming regulatory crackdowns on Cyber-security lapses, will increase the market for Post-quantum cryptography. Regulatory windfalls, such as the U.S. Inflation Reduction Act, as well as the need for energy-savings from power-hungry AI, present unique opportunities for Quantum adoption, and the creation of commercial Quantum Services and Solutions. Nation-states, such as the UK, Singapore, and Australia, for example, have each made commitments and investments heavily into Quantum. There is also a global demand, and large gap, for Quantum talent and expertise. 3. Worldwide, governments are overly focusing on AI, to their detriment. We see governments looking at 10-15 year Feasibility Studies to attract Data Centers, and all of the percieved prestige and opportunity that comes with them. However, they do not understand the technological roadmaps, which show ChatGPT and GenAI, being only one sensory organ of a humanoid robot and other fully automated machines, the true goal and destiny of large enterprise. In conclusion, the coming quarter and remaining year will present many opportunities for those who own data, Data Centers, Chips to process data, and AI to learn from and interpret it. While the AI wave is high, when the sea washes back out, all that will be left is Quantum. Quantum, is what shall truly shock the business world, and unlock the full productivity of the modern worker.” - Ean Mikale, JD 07.31.24

#Infinite8Eco #Q3 #GlobalMarketOutlook - “1. The second half of the year, H2, will reflect the outcome of monetary policy, in the form of inflationary pressures or easing. We expect to see continued spending on Data Center Optimization and AI Infrastructure. Microsoft's recent earnings call saw $19B in spending in Q2, with half on Data Centers and the other half on Chips to run the Data Centers. We estimate 500+ new Data Centers breaking ground Quarterly. The focus is moving from chatbots, to Physical AI, primed for humanoid robots, who are already working in factories for up to $65,000 in annual wages. 2. Coming regulatory crackdowns on Cyber-security lapses, will increase the market for Post-quantum cryptography. Regulatory windfalls, such as the U.S. Inflation Reduction Act, as well as the need for energy-savings from power-hungry AI, present unique opportunities for Quantum adoption, and the creation of commercial Quantum Services and Solutions. Nation-states, such as the UK, Singapore, and Australia, for example, have each made commitments and investments heavily into Quantum. There is also a global demand, and large gap, for Quantum talent and expertise. 3. Worldwide, governments are overly focusing on AI, to their detriment. We see governments looking at 10-15 year Feasibility Studies to attract Data Centers, and all of the percieved prestige and opportunity that comes with them. However, they do not understand the technological roadmaps, which show ChatGPT and GenAI, being only one sensory organ of a humanoid robot and other fully automated machines, the true goal and destiny of large enterprise. In conclusion, the coming quarter and remaining year will present many opportunities for those who own data, Data Centers, Chips to process data, and AI to learn from and interpret it. While the AI wave is high, when the sea washes back out, all that will be left is Quantum. Quantum, is what shall truly shock the business world, and unlock the full productivity of the modern worker.” - Ean Mikale, JD 07.31.24

#Infinite8Eco #Q3 #GlobalMarketOutlook - “1. The second half of the year, H2, will reflect the outcome of monetary policy, in the form of inflationary pressures or easing. We expect to see continued spending on Data Center Optimization and AI Infrastructure. Microsoft's recent earnings call saw $19B in spending in Q2, with half on Data Centers and the other half on Chips to run the Data Centers. We estimate 500+ new Data Centers breaking ground Quarterly. The focus is moving from chatbots, to Physical AI, primed for humanoid robots, who are already working in factories for up to $65,000 in annual wages. 2. Coming regulatory crackdowns on Cyber-security lapses, will increase the market for Post-quantum cryptography. Regulatory windfalls, such as the U.S. Inflation Reduction Act, as well as the need for energy-savings from power-hungry AI, present unique opportunities for Quantum adoption, and the creation of commercial Quantum Services and Solutions. Nation-states, such as the UK, Singapore, and Australia, for example, have each made commitments and investments heavily into Quantum. There is also a global demand, and large gap, for Quantum talent and expertise. 3. Worldwide, governments are overly focusing on AI, to their detriment. We see governments looking at 10-15 year Feasibility Studies to attract Data Centers, and all of the percieved prestige and opportunity that comes with them. However, they do not understand the technological roadmaps, which show ChatGPT and GenAI, being only one sensory organ of a humanoid robot and other fully automated machines, the true goal and destiny of large enterprise. In conclusion, the coming quarter and remaining year will present many opportunities for those who own data, Data Centers, Chips to process data, and AI to learn from and interpret it. While the AI wave is high, when the sea washes back out, all that will be left is Quantum. Quantum, is what shall truly shock the business world, and unlock the full productivity of the modern worker.” - Ean Mikale, JD 07.31.24

US tech companies (invested in AI) overpromise and underdeliver while European tech companies do as they say. (Refer chart) Since the start of 2023, AI companies have on average underperformed expected earnings growth, Effectively, what companies did (or had to do?) was to guide for massive growth and then manage earnings expectations lower over the next 12 months so they could beat earnings expectations at the actual results day. NVIDIA on the other hand has outperformed beyond what Prof. Ashwath Damodharan published about it an year ago. ( https://lnkd.in/eiVtvcK7) . It will continue to dominate in markets similar to size of GenAI (like GenAI Chips). The shortage of GPUs has turned into a glut, and there is a substantial shortfall in future earnings to return that capex AI stocks used to be the low growth stocks in the US tech space, but since the launch of chatGPT, growth expectations have overtaken the rest of the sector and now these are the stocks with the high growth expectations (src: klement investing) So far, the AI stocks have delivered and managed to grow their earnings faster and faster (and faster than non-AI stocks in the US) but the expectations are way overboard. With market sentiments tied to AI , Klement notes, “US tech dominance is narrowing to fewer and fewer stocks, namely those involved in building generative AI and the infrastructure needed to run it.” Getting overhyped about it vs keeping a balance like European companies in this space would be prudent. But we see that eventually there would be substantial overcapacity in computing build-out like other infrastructure buildouts like railways, digital telecom, power etc. Contrary to these sectors the demand in AI would outrun capacity sooner; compared to the slower growth levels of internet traffic in digital telecom space if you look just between the time period of 2005-2022.

The AI frenzy could fall flat as companies hoard chips without enough data centers to host them Summary: The rapid adoption and development of artificial intelligence (AI) technologies are creating a critical demand for infrastructure that far exceeds current capabilities. As companies rush to embrace AI, the construction of data centers has not kept pace, threatening to stall the momentum of this technological revolution. Key Points: Infrastructure Lag: Despite the significant growth in AI chip sales, led by companies like NVIDIA, there is a substantial lag in the development of the necessary data center infrastructure. This gap poses a risk to sustaining AI advancements. Market Dynamics: The data center market is under strain, with existing facilities quickly being snapped up and new constructions not expected to be operational for three to five years. This situation is creating a bottleneck that could potentially slow down AI progress. Economic Implications: The shortage of data centers is likely to lead to higher costs and market consolidation, which could disadvantage smaller players and stifle innovation. Strategic Decisions: The current scenario presents a crucial decision point for the AI industry: continue the rapid pace of development with potential risks or invest in building robust infrastructure that can sustain long-term growth. Conclusion: The AI industry is at a crossroads, where the excitement over its potential is now running up against the practical limitations of infrastructure availability. Strategic investments in data center construction will be vital to support the continued growth and integration of AI technologies into the global economy. #AIInfrastructure #DataCenters #TechGrowth #SustainableAI #InnovationChallenge

Sovereign AI blocs are emerging as governments worldwide spend billions of dollars subsidizing domestic computing infrastructure and AI models. As the sovereign AI push picks up steam, several factors will determine how it plays out. Explore key takeaways for executives in our recent #tech report. https://bit.ly/3zQKjWW

As AI innovation progresses at pace, Dipti Vachani spoke to CNBC to share why industry leaders are uniting #onArm to increase efficiency. As deployments broaden, Arm's low-power, high-performance computing solutions could save companies up to 15% of data center power. To put that into perspective, that's the equivalent of almost 2 billion ChatGPT queries, or light for 20% of American households. These are huge savings that will have a dramatic impact on enabling technology that truly changes our lives. Watch the full episode in the link below. https://lnkd.in/gX-3g9NQ

Sovereign AI blocs are emerging as governments worldwide spend billions of dollars subsidizing domestic computing infrastructure and AI models. As the sovereign AI push picks up steam, several factors will determine how it plays out. Explore key takeaways for executives in our recent #tech report. https://bit.ly/3N8T81t

A global competition is underway to develop advanced computer chips crucial for the advancement of artificial intelligence (AI) technologies, with potential significant ramifications for global politics and security. Currently, the United States leads in chip design, also known as semiconductors, while a significant portion of manufacturing occurs in Taiwan. The discussion has been sparked by Sam Altman, CEO of OpenAI, the organisation behind ChatGPT, who has proposed a global investment ranging from US$5 trillion to US$7 trillion (AUD$7.5 trillion to AUD$10.5 trillion) to enhance the production of more potent chips tailored for next-generation AI platforms. Altman's proposed investment surpasses the cumulative spending of the chip industry to date. Regardless of the validity of these figures, projections for the AI market as a whole are staggering. GlobalData, a data analytics company, predicts that the market will reach a value of US$909 billion by 2030. Not surprisingly, in recent years, the United States, China, Japan, and various European nations have ramped up their budget allocations and implemented strategies to secure or bolster their positions in the chip industry. China, in particular, is rapidly closing the gap and is heavily subsidising chip production, including next-generation AI chips, with investments totaling hundreds of billions over the coming decade to establish a robust manufacturing supply chain. Visit https://lnkd.in/gYmrJTyi to evolve your medical practice IT in this ever changing tech world.

Sovereign AI blocs are emerging as governments worldwide spend billions of dollars subsidizing domestic computing infrastructure and AI models. As the sovereign AI push picks up steam, several factors will determine how it plays out. Explore key takeaways for executives in our recent #tech report. https://bit.ly/47WXja4