If an AI bubble burst is coming, it isn't here yet
The big picture: Nvidia briefly overtook Apple as the world's most valuable company late last month, but this week it solidified that position for the second time in a more definitive way. The GPU maker's meteoric rise and the dethronement of Intel on the Dow Jones index signifies a major shift toward AI in the tech sector. However, uncertainty still surrounds the new technology.
A thirsty potato: According to private records obtained by the Financial Times through freedom of information requests, data center facilities in Virginia have experienced a significant increase in water consumption in recent years. The rise of generative AI could exacerbate this issue, potentially contributing to an environmental disaster in the making.
The big picture: The tech industry is riding a new high amid a frenzy fueled by AI. Big Tech companies have been plowing huge sums to build out the necessary infrastructure to meet what they perceive demand will be for these products in the coming years. One analyst warns however that the industry needs to stop and consider whether the actual revenue generated by AI will be enough to support these investments.
A hot potato: Nvidia's growth in the past few years has been nothing short of spectacular. The GPU manufacturer is selling a massive number of chips for accelerating AI algorithms, but some investors are now concerned about what comes next. And it's a financial bloodbath.
The big picture: Many companies, including those in the tech sector, often use noncompete agreements to prevent employee poaching. However, the US Federal Trade Commission now deems this practice unfair, asserting that companies have alternative methods to safeguard their intellectual property. The commission anticipates that banning nearly all noncompete agreements will enhance working conditions and foster innovation.
The big picture: Starting tomorrow, Nvidia is hosting its GTC developer conference. Once a sideshow for semis, the event has transformed into the center of attention for much of the industry. With Nvidia's rise, many have been asking the extent to which Nvidia's software provides a durable competitive moat for its hardware. As we have been getting a lot of questions about that, we want to lay out our thoughts here.
There's a way out from the intrusive cloud service
In a nutshell: Microsoft has been pushing OneDrive as the standard cloud storage solution for Windows for quite some time, to the point of user annoyance. The company usually tries everything it can to hinder user's choice on how to deal with the service, but things are seemingly starting to change.