Tech

Why the fear of missing out is driving AI investments

Published

1 year ago

March 31, 2024

Ahron Young

Tech behemoths are not only flexing their financial muscles but also exhibiting a palpable fear of missing out as they race to seize stakes in the generative AI landscape.

In a regulatory environment that has dampened traditional acquisition strategies, companies like Amazon, Microsoft, and Alphabet are funneling billions into startups at a dizzying pace.

The latest headline-grabbing move came from Amazon, which announced a staggering $2.75 billion investment in Anthropic, an AI startup specialising in generative models.

This investment marks Amazon’s largest venture deal to date and underscores the escalating fervor in the AI gold rush.

At the heart of this frenzy lies a competitive scramble among tech giants to integrate generative AI into their product ecosystems.

With the market projected to exceed $1 billion in revenue within a decade, companies like Meta, Apple, and Google are sparing no expense to ensure they remain at the vanguard of innovation.

Generative AI deals

In 2023 alone, investors injected a staggering $29.1 billion into nearly 700 generative AI deals, representing a remarkable 260% increase in value from the previous year, according to PitchBook data.

Notably, a substantial portion of these funds emanated from tech titans themselves, highlighting their fervent quest to stay ahead in the AI arms race.

Fred Havemeyer, head of U.S. AI and software research at Macquarie, underscores the role of FOMO in driving these investment decisions. “They definitely don’t want to miss out on being part of the AI ecosystem,” says Havemeyer. “I definitely think that there’s FOMO in this marketplace.”

Specialised chips

Fueling this investment spree is the exorbitant cost of developing and training AI models, a process that demands thousands of specialised chips, predominantly sourced from Nvidia. Meta, for instance, has disclosed pouring billions into Nvidia’s graphics processing units to bolster its proprietary AI model, Llama.

The investment landscape also reveals a symbiotic relationship between tech giants and AI startups. Companies like Nvidia, Microsoft, Google, and Amazon are not only investing financially but also extending infrastructural support, offering cloud credits, and facilitating partnerships to bolster the AI ecosystem.

In the case of Amazon’s alliance with Anthropic, the collaboration extends beyond mere investment. Anthropic will leverage Amazon Web Services for its computing needs and utilise Amazon’s chips, while Amazon gains access to Anthropic’s cutting-edge AI models, which will be distributed to AWS customers.

Tech

Apple shifts iPhone production to India by 2026

Apple plans to shift most iPhone production to India by 2026, reducing tariff risks amid geopolitical tensions.

Published

5 days ago

April 25, 2025

Ahron Young

Apple plans to shift most iPhone production to India by 2026, reducing tariff risks amid geopolitical tensions.

In Short

Apple plans to import most US iPhones from India by 2026 to minimise tariff risks and geopolitical tensions with China, doubling production to over 80 million units.

This shift follows disruptions from Covid and aims to fully source US-bound iPhones from India by next year, leveraging recent tariff exemptions.

Apple Inc. plans to import the majority of iPhones sold in the US from India by 2026 in an effort to reduce tariff risks and geopolitical tensions associated with China.

The company aims to double its annual iPhone production in India to over 80 million units, up from just over 40 million in the fiscal year ending March 2025. Apple sells more than 60 million iPhones annually in the US.

This move highlights Apple’s ongoing shift away from China, which began after Covid lockdowns disrupted production. Tariffs imposed during former President Trump’s administration and rising tensions between the US and China have further driven this strategy.

Supply chain

Earlier reports indicated that Apple intends to source all US-bound iPhones from India by the end of next year. Therefore, the focus on India’s supply chain is expected to increase significantly.

Apple assembled around $22 billion worth of iPhones in India recently, experiencing a nearly 60% production increase year-on-year. Currently, 20% of iPhones are made in India, while China remains the largest production hub.

Most iPhones in India are assembled at Foxconn’s factory, and Tata Group also plays a critical role in manufacturing. Both companies are expanding their operations in southern India.

Additionally, recent tariff exemptions for electronics may benefit Apple significantly, as iPhones made in India currently face no duties for US sales.

Tech

Musk’s bombshell announcement as Tesla profits plunge

Tesla faces 71% net income drop in Q1 2025 amid falling revenue and vehicle deliveries; expert insights in the latest Ticker episode.

Published

7 days ago

April 23, 2025

Ahron Young

Tesla faces 71% net income drop in Q1 2025 amid falling revenue and vehicle deliveries; expert insights in the latest Ticker episode.

Tesla has reported a dramatic 71% decline in net income for the first quarter of 2025, missing Wall Street expectations.

Revenue also fell 9% to $19.3 billion, largely due to slumping automotive sales in major markets like the U.S., China, and Germany.

A 13% drop in vehicle deliveries, tied in part to CEO Elon Musk’s political controversies, has investors worried.

Brad Gastwirth from Unearthing Opportunities joins us to unpack the numbers and what’s next for Tesla.

Tech

Nvidia to build AI supercomputers in the U.S. for first time

Nvidia invests $500 billion in U.S. AI supercomputers, shifting production to Texas to strengthen supply chains and boost domestic growth amid rising tariffs and national tech pressures.

Published

2 weeks ago

April 18, 2025

Veronica Dudo

Nvidia invests $500 billion in U.S. AI supercomputers, shifting production to Texas to strengthen supply chains and boost domestic growth amid rising tariffs and national tech pressures.

Nvidia to build AI supercomputers in the U.S. for the first time — a $500 billion move that could redefine the global tech industry.

With new tariffs on imports from China and Taiwan, the chip giant is shifting production to Texas, partnering with Foxconn and Wistron.

Nvidia says the decision will strengthen its supply chain and boost domestic economic growth.

The announcement comes amid growing pressure to secure national tech infrastructure and reduce reliance on Asia. How will this impact jobs, prices, and America’s AI ambitions?

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