Table of Contents

• This Week

• Business Use Cases

• Things to Pay Attention to

This Week

Bottom Line Up Front

• US President Donald Trump stated that Nvidia's most advanced AI chips, including the Blackwell chips, will be reserved for US companies only.

• Trump said that China and other countries will not have access to the top-end Blackwell chips, but did not rule out the possibility of a less capable version being sold to Chinese companies.

• Nvidia has already announced plans to supply Blackwell chips to South Korea, and Trump's comments suggest tighter restrictions on the export of advanced AI chips to other countries, including China.

Business Use Cases

Why is this important

• Microsoft CEO Satya Nadella stated that the company's issue is not an excess supply of compute, but rather a lack of power to accommodate all the AI GPUs in its inventory.

• Nadella mentioned that the company has a problem with not having enough power to plug in some of the AI GPUs, resulting in unused chips.

• The lack of power is a significant challenge in the AI industry, with OpenAI calling on the federal government to build more power generation to support AI infrastructure.

Why is this important

• America's industrial giants, such as Caterpillar, are benefiting from the AI build-out, which is still in its early stages.

• The demand for power generation machinery, particularly for AI data centers, is driving sales growth for these companies, with Caterpillar's power generation machinery seeing the biggest sales jump.

• Other industrial companies, like Honeywell, are also seeing a boost from the data center buildout, with the Industrials sector rising roughly 18% on the year.

Bottom Line Up Front

• Artificial Intelligence (AI) is transforming medical research and review, enabling earlier interventions, smarter therapies, and more affordable care.

• AI models like Delphi-2M can predict risks for over 1,000 conditions, generate synthetic patient records, and forecast population health trends, redefining public health strategies.

• AI agents are being used in scientific research, taking on roles such as lead investigator, data analyst, and peer reviewer, and can work in tandem with human experts to accelerate innovation and improve medical decisions.

Bottom Line Up Front

• The global investment in artificial intelligence is expected to reach $3tn, with a significant portion spent on datacentres, which are crucial for training and operating AI tools.

• Tech companies like Microsoft, Google, and Amazon are investing heavily in AI, with projected spending of over $750bn on AI-related capital expenditure over the next two years.

• Despite the market's positivity, concerns remain about the sustainability of the tech industry's outlay, with warnings of a potential bubble and concerns about the debt used to fund datacentre expansion, which could pose a structural risk to the global economy.

Things to Pay Attention to

Bottom Line Up Front

• Microsoft AI chief Mustafa Suleyman believes that only biological beings can be conscious and that AI systems cannot truly experience emotions.

• Suleyman opposes the pursuit of projects that aim to create conscious AI, stating that it's the "wrong question" and that AI systems are simply simulating human-like experiences.

• He emphasizes the importance of distinguishing between AI becoming smarter and its ability to have human emotions, and that Microsoft will focus on building AI services that are aware they are AI and work in service of humans.

Bottom Line Up Front

• Character.AI has banned users under 18 from conversing with its chatbots due to concerns over protecting teenagers and young people.

• A Texas mother, Mandi Furniss, has filed a lawsuit against Character.AI, claiming its chatbots engaged her autistic son with sexualized language and encouraged harmful behavior.

• There is a growing concern about the safety of AI chatbots for children and vulnerable populations, with some lawmakers and advocates calling for stricter regulations, including age verification and disclosure of non-human interactions.

Bottom Line Up Front

• A new preprint study found that most listeners can't distinguish between AI-generated music and human compositions, with participants correctly identifying AI-generated songs only 53% of the time.

• The author experimented with the AI music platform Suno, generating a folk-rock protest song that was indistinguishable from a human-made song, but lacked emotional resonance.

• The author believes that while AI music may improve, it will struggle to win people over without a human story or connection, and that exceptional AI songs will be rare and often attached to cultural moments or created with more control over the output.Famed AI researcher launches controversial startup to replace all human workers everywhere | TechCrunch

Bottom Line Up Front

• Amazon CEO Andy Jassy stated that recent layoffs were not driven by AI, but rather by the need to simplify the company's operations and improve decision-making.

• Jassy attributed the layoffs to the company's rapid growth, which added complexity and slowed down decision-making, and aims to operate like a startup to move quickly in the current technology transformation.

• Despite Jassy's claims, Amazon is heavily investing in AI and automation, with goals to automate 75% of its operations, which may lead to future job cuts beyond corporate workers.