The DeepSeek open-source large language model from China has been the hottest topic in the AI industry over the weekend. The model promises a leap in performance over OpenAI and Meta, and can be accelerated by far less complex hardware. The AI enthusiast community has been able to get it to run on much less complex accelerators such as the M4 SoCs of Mac minis, and gaming GPUs. The model could cause companies to reassess their AI strategy completely, perhaps pulling them away from big cloud companies, toward local acceleration on cheaper hardware; and cloud companies themselves would want to reconsider their orders of AI GPUs in the short-to-medium term.

All this puts the supply chain of AI acceleration hardware in a bit of a spot. The NVIDIA stock is down 12 percent in pre-market trading as of this writing. Microsoft and Meta Platforms also faced a cut, shedding over 3% each. Alphabet lost 3% and Apple 1.5%. Microsoft, Meta and Apple are slated to post their quarterly earnings this week. Companies within NVIDIA's supply chain, such as ASML and TSMC, also saw drops, with ASML and ASM International losing 10-14% in European pre-trading.

During Alphabet's Q3 earnings call, CEO Sundar Pichai announced that AI now generates more than a quarter of the company's new code, marking a significant milestone for AI advancement and for the tech giant. This development comes alongside impressive financial results, with the company reporting $88.2 billion in revenue, representing a 15% year-over-year increase. Implementing AI in code generation has raised concerns, though Google maintains rigorous safety protocols. Every AI-generated code segment undergoes thorough review by human (natural intelligence) engineers before deployment, ensuring quality and security standards are met. This hybrid approach helps Google balance productivity with reliability. The tech giant's commitment to AI development extends beyond code generation.

Recent achievements include the revolutionary AI Overviews feature, which has undergone significant optimization. Through optimizing hardware solutions and technical improvements, Google has managed to reduce query costs by over 90% while simultaneously doubling the capacity of their custom Gemini models. Google's AI push has also garnered prestigious recognition, with DeepMind researchers Demis Hassabis and John Jumper receiving the Nobel Prize in Chemistry for their groundbreaking AlphaFold project. Former Google researcher Geoff Hinton also achieved Nobel recognition in Physics. The impact of Google's AI integration is evident across its product ecosystem, with Gemini models now powering seven platforms that each serve over two billion monthly users. Google Maps recently joined this elite group, while the company has expanded its AI capabilities to external developers through partnerships with platforms like GitHub Copilot to help developers write code with AI assistance.

To bring cutting-edge artificial intelligence capabilities to its flagship product, Apple is said to be finalizing a deal with OpenAI to integrate the ChatGPT technology into the upcoming iOS 18 for iPhones. According to Bloomberg, multiple sources report that after months of negotiations, the two tech giants are putting the finishing touches on a partnership that would be an important moment for consumer AI. However, OpenAI may not be Apple's only AI ally. The company has also reportedly been in talks with Google over licensing the Gemini chatbot, though no known agreement has been reached yet. The rare team-up between the fiercely competitive firms underscores the intense focus on AI integration across the industry.

Apple's strategic moves are a clear indication of its recognition of the transformative potential of advanced AI capabilities for the iPhone experience. The integration of OpenAI's language model could empower Siri to understand and respond to complex voice queries with deep contextual awareness. This could revolutionize the way Apple's customers interact with devices, offering hope for a more intuitive and advanced iPhone experience. Potential Gemini integration opens up another realm of possibilities around Google's image and multimodal AI capabilities. Future iPhones may be able to analyze and describe visual scenes, annotate images, generate custom imagery from natural language prompts, and even synthesize audio using AI vocals - all within a conversational interface. As the AI arms race intensifies, Apple wants to position itself at the forefront through these partnerships.

The Federal Trade Commission announced today that it issued orders to five companies requiring them to provide information regarding recent investments and partnerships involving generative AI companies and major cloud service providers. The agency's 6(b) inquiry will scrutinize corporate partnerships and investments with AI providers to build a better internal understanding of these relationships and their impact on the competitive landscape. The compulsory orders were sent to Alphabet, Inc., Amazon.com, Inc., Anthropic PBC, Microsoft Corp., and OpenAI, Inc.

"History shows that new technologies can create new markets and healthy competition. As companies race to develop and monetize AI, we must guard against tactics that foreclose this opportunity, "said FTC Chair Lina M. Khan. "Our study will shed light on whether investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition."

Alphabet Incorporated's Google AI division has today revealed a planned update for its Bard conversational artificial intelligence chatbot. The experimental generative artificial intelligence software application will become capable of assisting people in the writing of computer code - the American multinational technology company hopes that Bard will be of great to help in the area of software development. Paige Bailey, a group product manager at Google Research has introduced the upcoming changes: "Since we launched Bard, our experiment that lets you collaborate with generative AI, coding has been one of the top requests we've received from our users. As a product lead in Google Research - and a passionate engineer who still programs every day - I'm excited that today we're updating Bard to include that capability."

The Bard chatbot was made available, on a trial basis, to users in the USA and UK last month. Google's AI team is reported to be under great pressure to advance the Bard chatbot into a suitably powerful state in order to compete with its closest rival - Microsoft Corporation. The Seattle-based giant has invested heavily into Open AI's industry leading ChatGPT application. Google's latest volley against its rivals shows that Bard's has become very sophisticated - so much so that the app is able to chew through a variety of programming languages. Bailey outlines these features in the company's latest blog: "Starting now, Bard can help with programming and software development tasks, including code generation, debugging and code explanation. We're launching these capabilities in more than 20 programming languages including C++, Go, Java, Javascript, Python and Typescript. And you can easily export Python code to Google Colab - no copy and paste required." Critics of AI-driven large language models have posited that the technology could potentially eliminate humans from the job market - it will be interesting to observe the coder community's reaction to Google marketing of Bard as a helpful tool in software development.

According to Business Insider, Twitter has made a substantial investment into hardware upgrades at its North American datacenter operation. The company has purchased somewhere in the region of 10,000 GPUs - destined for the social media giant's two remaining datacenter locations. Insider sources claim that Elon Musk has committed to a large language model (LLM) project, in an effort to rival OpenAI's ChatGPT system. The GPUs will not provide much computational value in the current/normal day-to-day tasks at Twitter - the source reckons that the extra processing power will be utilized for deep learning purposes.

Twitter has not revealed any concrete plans for its relatively new in-house artificial intelligence project but something was afoot when, earlier this year, Musk recruited several research personnel from Alphabet's DeepMind division. It was theorized that he was incubating a resident AI research lab at the time, following personal criticisms levelled at his former colleagues at OpenAI, ergo their very popular and much adopted chatbot.

Alphabet has announced that its prototype implementation of a laser-based communications system, Project Taara, successfully managed to transmit over 700 Terabytes of data over a 5 km distance. The system successfully transmitted the information across the Congo river in the African continent, connecting the towns of Brazzaville (Republic of Congo) and Kinshasa (Democratic Republic of Congo). The system aims to deliver fiber-optic-level communications speed in locations where infrastructure investment cost for a fiber optics solution is economically unfeasible. In this case, Project Taara delivered the high-speed connection where 250 miles of fiber network cabling would need to be laid out to achieve the same effect. It should also allow for cheaper infrastructure development in well-developed cities.

The project has taken the Free Space Optical Communications technology developed for Project Loon, one of Alphabet's explorations on delivering high-speed internet connections to rural areas whilst using stratospheric helium balloons. Alphabet said that its Project Taara link was operational for 20 days during the test period, where it achieved a signal availability level of 99.9% - meaning that it was practically uninterrupted. The laser system features self-adjustment capabilities that aim to circumvent weather and wildlife elements, which allow the lasers to not only boost the laser strength if required, but also to adjust the output and input laser dishes by up to +/- 5 degrees. The system's current development stage should allows for "a light beam the width of a chopstick accurately enough to hit a 5-centimeter target that's 10 kilometers away."

In a recent report by CNBC, news that Google plans to slash its marketing budget in half for H2 2020 were revealed, this comes as COVID-19 wreaks havoc on the economy and shows that not even Google is immune to the effects. Google is also halting most hiring of full-time and contract employees particularly in Marketing long with reducing employee skills training as part of the company "recalibrating".

This news comes after Alphabet CEO Sundar Pichai announced that Google would be scaling back its investments for the remainder of the year. At the time Sundar only said it would recalibrate "non-business essential marketing" and "significantly slow down" hiring. Action this drastic seemed unlikely at the time, Alphabet shares dropped nearly 2% after hours following the news.

Google co-founders Sergey Brin and Larry Page announced on Tuesday that they relinquished control of Alphabet, Google's parent holding company, to Google CEO Sundar Pichai. The two will remain employees of Alphabet and sit on its board of directors, but will no longer hold the positions of CEO or President. Brin was Alphabet's President, and Page its CEO. Pichai will now be CEO of not just Google, but also Alphabet. This gives him executive control over Alphabet's other subsidiaries, such as CaptalG, Google Fiber, Loon, Waymo, and DeepMind.

"Going forward, Sundar will be the CEO of both Google and Alphabet. He will be the executive responsible and accountable for leading Google, and managing Alphabet's investment in our portfolio of Other Bets. We are deeply committed to Google and Alphabet for the long term, and will remain actively involved as Board members, shareholders and co-founders. In addition, we plan to continue talking with Sundar regularly, especially on topics we're passionate about!," the duo said in their blog post announcing the change. Google reorganized itself as Alphabet in 2015 with Eric Schmidt as executive chairman, making its core business, Google Inc., a subsidiary of a holding company named Alphabet, and its other non-web businesses being spread across as its other subsidiaries. Following Schmidt's 2017 exit, Brin and Page took direct charge.