🎰 The Trillion-Dollar Jackpot

What’s in today’s Business Edge update?

Welcome to today's tech scoops!

Nvidia has just joined the trillion-dollar club with its golden AI investments, making tech history!

In other pulse-raising news, Foxconn's AI server business anticipates a revenue double-down in H2. Microsoft is gearing up for a legal appeal in July against the UK block on Activision Blizzard acquisition. Meanwhile, Intel is preparing to steal the AI spotlight with dedicated processors in its upcoming Meteor Lake chips. Lastly, Apple's App Store seems invincible, bringing in a jaw-dropping $1.1tn in 2022 despite regulatory pressures.

Stay tuned as we dive deeper into these stories!

/K.L

🌐 Big Tech Digest

Concise summaries of the most interesting tech news stories from Big Tech.

[1] Nvidia Strikes Gold with Strategic AI Investments, Valuation Hits $1tn

Nvidia has become the fifth most valuable US company, reaching a $1tn valuation, largely due to its early investments in artificial intelligence. Diversifying from a GPU manufacturer for video games to a dominant force in AI-enabled chips, the company outperformed competitors by focusing on the emerging demand for AI applications.

More:

• Nvidia’s strategic AI focus has positioned it as a major player in the tech world, offering solutions for a variety of AI use cases.

• Nvidia’s chips are integral to numerous AI technologies, including OpenAI’s ChatGPT and Tesla’s automated driving systems.

• Nvidia’s Q2 revenue is predicted to exceed Wall Street expectations by $4bn, reaching $11bn.

• Despite potential competition in the future, Nvidia’s established relationships and trust within various industries secure its strong market position.

_{Tags: #Nvidia, #AI, #Big tech, #Financial report}

Read more about it at —> (read time: 17 minutes)

Insight:

The rise of Nvidia exemplifies the immense potential and impact of strategic investments in emerging technologies like AI. As the tech world shifts toward an AI-centric future, Nvidia’s early bet on AI places it in a powerful position globally. Its ability to outpace competitors such as Intel and AMD in AI chipmaking showcases how anticipating future demand can yield significant benefits. Additionally, it demonstrates the importance of trust and partnerships in the tech industry. As AI continues to infiltrate various sectors, Nvidia’s market position is set to strengthen, further underlining AI's profound impacts on industry dynamics.

[2] Surge in AI Fuels Foxconn's Server Business: Anticipates Doubling Revenue in Second Half

Foxconn, the leading contract electronics manufacturer, projects its AI server business to dramatically expand in the latter half of the year on the back of growing reliance on generative AI systems like ChatGPT. The escalating need for AI server processors has spurred Nvidia to the forefront as the premier semiconductor company. Despite an overall circumspect outlook due to global economic uncertainties, Foxconn reported a bullish forecast for their server business.

More:

• Foxconn forecasts a significant boost in AI server business in H2.

• The increased demand for AI server processors catapulted Nvidia as the top semiconductor firm.

• Foxconn’s Chairman Young Liu credits generative AI systems like ChatGPT for the rising demand for AI servers.

• Foxconn generated $1.1tn from server manufacturing last year, with AI accounting for 20% of the server business.

_{Tags: #Foxconn, #AI, #Nvidia, #ChatGPT, #Semiconductor}

Read more about it at —> (read time: 6 minutes)

Insight:

We believe Foxconn's projection for its AI server business to double in the coming half-year has an industry-wide impact. It underscores the escalating importance of generative AI systems and the resultant swell in AI server demand. Given Foxconn's standing as the leading contract electronics manufacturer, this news underlines the size and growth potential of the AI industry. Tech entrepreneurs, employees, and investors should be attentive to this trend, as it offers opportunities for innovation and investment in the ever-expanding AI server market.

[3] Microsoft to Appeal UK Block on Activision Blizzard Acquisition in July

Microsoft is set to appeal the decision of the UK’s Competition and Market Authority (CMA) to block its acquisition of Activision Blizzard. The hearing is scheduled for late July, following the CMA’s decision in April on the grounds that the acquisition would result in a cloud gaming monopoly.

More:

• The CMA argued that the acquisition could alter the future of the fast-growing cloud gaming market and result in reduced innovation and fewer choices for UK gamers.

• Microsoft contests these findings, arguing that the CMA has overestimated its influence in the cloud market while underestimating the impact of proposed remedial action.

• Microsoft’s acquisition plans have also come under scrutiny from the Federal Trade Commission (FTC) in the United States over anti-trust concerns.

• Despite this, the European Union and the Chinese government have approved the merger with specific conditions.

_{Tags: #Microsoft, #ActivisionBlizzard, #acquisition, #UKCMA, #legalbattle}

Read more about it at —> (read time: 5 minutes)

Insight:

Microsoft’s ongoing legal struggles regarding its proposed acquisition of Activision Blizzard highlight the increasing regulatory scrutiny of tech giants and their business practices. This case underscores the balancing act authorities face between promoting healthy competition and not stifling tech innovation. While Microsoft’s legal appeal is a crucial step in its bid to acquire Activision Blizzard, the broader implications of this case may shape the future regulatory landscape for tech mergers and acquisitions.

[4] Intel Leads Charge for AI Dedicated Processors: Upcoming Meteor Lake Chips to Showcase Vision Processing Units

Intel's imminent Meteor Lake chips are set to include dedicated AI processors - Vision Processing Units (VPUs) - as standard. This new strategy moves AI processing from the CPU and GPU to an exclusive processor. Over 100 applications, including Adobe, Microsoft Teams, Zoom, and Unreal Engine, are predicted to leverage these VPUs, offering increased power efficiency and the capacity to run more complex AI models. The company claims that these effects lead to 10 times the AI computational power at only a fifth of the energy.

More:

• Intel's VPUs were initially introduced in its 13th-gen Raptor Lake processors.

• All upcoming Meteor Lake chips will feature these dedicated AI processors.

• Moving AI processing to VPUs can result in significant power savings and enable the operation of more complex AI models.

• Apps such as the Adobe suite, Microsoft Teams, and Zoom are set to benefit from VPU utilization.

• According to Intel, the VPU can enhance overall performance, freeing up the CPU and GPU for other tasks.

_{Tags: #Intel, #AI, #MeteorLake, #VPU}

Read more about it at —> (read time: 9 minutes)

Insight:

Intel's decision to integrate dedicated AI processors in their upcoming Meteor Lake chips is an industry-wide shift. The rise in the complexity of AI tasks necessitates a specialized processor, bringing in a new wave of efficiency and performance enhancement. This could be the start of a new era in processor design, significantly impacting how software is developed and optimized for such hardware. As such, tech entrepreneurs, workers, and investors should pay close attention to these developments, as they may open avenues for innovative solutions and investment opportunities.

[5] Apple App Store Rakes in $1.1 Trillion in 2022, Undeterred by Regulatory Pressures

Apple reported that its App Store generated $1.1 trillion in developer billings and sales in 2022, 90% of which was commission-free. This revenue includes $910 billion from the sale of physical goods and services, $109 billion from in-app advertising, and $104 billion for digital goods and services. Despite growing concerns about Apple's app marketplace, the company continues to experience significant growth, with earnings for small developers growing by 71% between 2020 and 2022.

More

• The $1.1 trillion is a significant increase from 2019, where the App Store facilitated $519 billion in commerce.

• iOS app developers earned more than $320 billion on the App Store from 2008 to 2022.

• Developer billings and sales growth between 2021 and 2022 was at 29%, up from 27% in the prior two years.

• Small developers’ earnings growth outpaced that of large app developers at 71% between 2020 and 2022.

• U.S. developers' billings and sales have increased by over 80% since 2019, while in Europe that figure was 116%.

_{Tags: #Apple, #Big tech, #App Store}

Read more about it at —> (read time: 8 minutes)

Insight:

This news signifies a company-level impact as Apple thrives amid regulatory scrutiny and complaints over the App Store's business practices. Despite the controversy, the astounding $1.1 trillion in billings and sales underscores Apple's critical role as a tech leader, proving that the App Store is still a lucrative platform for developers. The revenue generated, especially from small developers, indicates that the App Store continues to be a crucial driver of innovation, offering opportunities for both established and emerging tech entrepreneurs. This continued growth underlines Apple's app ecosystem's ongoing vitality and robustness in the face of new regulations and market pressures.

⚡️Startup bites

Brief news summaries from the world of startups that provide quick and easy-to-consume information.

Twitter's current valuation is only a third of Elon Musk's purchase price, says Fidelity, marking down its stake in the social-media giant. (link)

Microsoft is planning to enhance Bing Chat, with a major update slated for June, which includes the extension of its availability to browsers beyond Microsoft Edge. The context window is set to be enlarged, improving content generation. Despite these improvements, questions persist regarding the evolving chatbot ecosystem and potential copyright issues. (link)

Salesforce posted a strong earnings and revenue performance in Q1FY24 and lifted its full-year guidance. However, concerns over higher-than-expected capital costs impacted the stock in extended trading. Despite an 11% increase in quarterly revenue, capital expenditures in the same quarter amounted to $243 million, up about 36%, surpassing analysts' consensus of $205 million. (link)

🔍 Extra

A mix of learning links, software products, deals, and other interesting content.

Q1 2023 Sees Subdued Private Market Fundraising: Venture Capital Hit Hard

Q1 of 2023 marked a low in private market fundraising, with venture capital experiencing one of the sharpest declines, a drop of 38% YoY to $202 billion. Interestingly, secondaries was the only strategy to witness a boost in fundraising, driven by a firm’s mega-fund closures in January. Across the globe, Asian funds witnessed a significant decrease in their share of total private fundraising.

More:

• Fundraising difficulties became more prevalent in the second half of 2022, with Q1 2023 already lagging behind the previous year.

• Funds over $1 billion are growing in number, but this could potentially be a reflection of inflation.

• Emerging managers now account for a smaller share of private capital compared to the period between 2008 and 2021.

_{Tags: #Venture capital, #Private Market, #Fundraising}

Read more about it at —> (read time: 10 minutes)