AMD shares rise on new AI chip
AMD, all-sessions, jumps after launching a new generation MI300 series AI chip. IGTV financial analyst Angeline Ong looks at why this is bad news for NVIDIA. This all comes as the EU edges closer to a landmark AI Act.
(Video summary)
AMD challenges NVIDIA: the battle for AI dominance
Advanced Micro Devices (AMD), a computer chip company, has released a new type of chip that directly competes with NVIDIA, another big player in the computer chip industry. This chip is specifically designed for artificial intelligence (AI) applications.
AMD believes that the market for AI technology in data centers will grow to be worth $45 billion by 2024 and could even reach $400 billion by 2027. This shows that AI is becoming increasingly important and valuable in the tech world.
EU's race to regulate AI
In the European Union (EU), there are ongoing discussions about creating a new law or set of rules specifically for AI. Negotiators have been having lengthy discussions about this, to the point where some sources have joked about food shortages and broken drink machines.
The significance of this EU law is that it could set the standard for other countries looking to create their own regulations for the AI industry, which is expanding rapidly. This is particularly interesting because the US has taken a relatively relaxed approach to regulating AI, and China has only implemented temporary rules for now. The EU lawmakers are trying to get this law finalised before parliamentary elections in June to avoid any delays in the process.
To make this more relatable, think of AMD and NVIDIA as two giants in the computer chip industry, like two top athletes competing against each other. AMD has just introduced a new type of chip that directly challenges NVIDIA's top AI processor. It's like a new and talented player stepping onto the field, ready to prove themselves against the reigning champion.
At the same time, in the EU, there are intense discussions happening about creating a law that specifically regulates AI. It's kind of like a big brainstorming session where lawmakers are trying to figure out the best way to ensure AI is used responsibly and safely. This law could become a blueprint for other countries, like a guidebook that shows them how to handle the rapidly growing AI industry.
The EU lawmakers are in a hurry to finish this guidebook before their upcoming elections, so that regulations don't get delayed. It's like they're trying to submit a project before a deadline to avoid any last-minute hiccups.
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