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OpenAI calls for collaborative action on AI to take on China

Ana Mary Joseph
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OpenAI calls for collaborative action on AI to take on China
  • Proposed “North American Compact for AI” seeks to streamline access to critical resources such as talent, financing, and supply chains.

OpenAI has articulated a compelling vision for the United States and its allies to collaborate on the development of artificial intelligence (AI) infrastructure, aiming to maintain a competitive edge over China.

The proposed “North American Compact for AI” seeks to streamline access to critical resources such as talent, financing, and supply chains, thereby fostering an environment conducive to innovation and growth in AI technologies.

OpenAI’s initiative highlights the urgency of establishing robust infrastructure to support the energy-intensive demands of AI systems. The organisation advocates for the United States to backstop expensive energy projects, including the establishment of “AI Economic Zones” that would expedite permitting processes and reinvigorate nuclear energy initiatives.

By leveraging the expertise of the US Navy in compact reactor technology, OpenAI envisions a sustainable energy framework that can support the burgeoning AI sector.

A unique opportunity

The significance of this proposal extends beyond economic considerations; it embodies a national security imperative. OpenAI emphasises the necessity of developing AI systems that reflect democratic values, thereby countering the influence of authoritarian regimes.

In this context, the establishment of a global network of allies is crucial, as it would enable the sharing of resources and expertise, ultimately leading to a more resilient and ethically aligned AI landscape.

As the United States approaches a transition in administration, the dialogue surrounding AI infrastructure remains paramount. With leaders from both the current and incoming administrations acknowledging the need for enhanced energy capacity and streamlined regulations, there is a unique opportunity for bipartisan cooperation.

OpenAI’s leadership, including CEO Sam Altman, has actively engaged with government officials to advocate for these essential changes.

Natural conversational abilities of AI pose a challenge

Naushad K. Cherrayil
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Natural conversational abilities of AI pose a challenge
  • Researchers explore the potential for training AI on more extensive datasets of spoken language, the hope is to bridge the gap between human and machine interaction.
  • Complexities of human dialogue may pose inherent limitations that AI may never fully overcome, emphasising the unique qualities of human communication that continue to elude artificial systems.
  • Solution may be to train large language models more substantially on transcribed spoken conversations.

In contemporary discourse, the nuances of human conversation reveal a complex interplay of verbal and non-verbal cues that facilitate effective communication.

Researchers at Tufts University have illuminated the inherent shortcomings of artificial intelligence (AI) in mimicking these conversational dynamics, particularly in recognising “transition relevant places” (TRPs).

TRPs are critical junctures in dialogue where one participant may take their turn to speak, and understanding these moments is essential for maintaining a fluid exchange.

Human conversationalists naturally navigate pauses, intonation, and body language to signal when it is appropriate to interject or continue listening. Historically, it was believed that paraverbal cues—such as the rhythm and melody of speech—were paramount in identifying TRPs.

However, JP de Ruiter, professor of psychology and computer science, and his colleagues have demonstrated that the linguistic content itself serves as the most significant indicator of these transitional moments.

This revelation underscores the limitations of AI, which has been primarily trained on written text rather than the more spontaneous and nuanced nature of spoken language.

Conversational timing

The disparity in training datasets is a fundamental barrier to AI’s conversational efficacy. While large language models like ChatGPT excel in processing and generating written content, they lack exposure to the informal, unscripted nature of human dialogue.

Consequently, AI struggles to identify TRPs with the same acuity as humans, leading to potential misinterpretations of conversational timing. Instances of perceived aggressiveness or timidity in AI responses can stem from its inability to grasp the subtleties of human interaction.

Efforts to enhance AI conversational skills through fine-tuning with conversational data have yielded limited success. Researchers caution that a deeper understanding of context is essential for effective turn-taking, which may remain elusive for AI systems.

As highlighted by graduate student Muhammad Umair, the challenge lies not only in the predictive capabilities of AI but also in its understanding of the intricate web of context that underpins human conversation.

Chip industry well-prepared to meet rising AI demand: Qualcomm CEO

Ana Mary Joseph
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Chip industry well-prepared to meet rising AI demand: Qualcomm CEO
  • Consumers are increasingly inclined to upgrade to more advanced devices equipped with AI functionalities.
  • Strategic investments in production capacity and a balanced supply chain position the industry to support the ongoing technological evolution, ensuring that the benefits of AI can be realized without compromising supply stability.

Qualcomm Chief Executive Officer Cristiano Amon has expressed optimism regarding the future of chip supply in light of the burgeoning demand for artificial intelligence (AI) technologies.

Amon’s remarks, delivered at the Web Summit conference in Lisbon, highlight a critical distinction between the current landscape of semiconductor production and the challenges faced during the Covid-19 pandemic.

“During the pandemic, an unprecedented surge in consumer electronics demand, fueled by widespread remote work and home entertainment needs, overwhelmed the existing supply chain.”

Amon noted that while this spike in demand benefitted the semiconductor business, it exposed significant vulnerabilities within the supply chain, leading to shortages that affected various industries. However, he assured stakeholders that extensive investments have since been made to enhance chip production capacity.

According to Amon, the current state of demand and supply in the semiconductor market is “a hundred per cent balanced,” suggesting that the industry has learned from past disruptions.

Moreover, the global response to the semiconductor shortages has been robust, with governments around the world increasing state-backed investments to bolster domestic production capabilities. Notably, Japan’s Prime Minister Shigeru Ishiba recently announced over $65 billion in support for the nation’s semiconductor and AI sectors, aiming to maintain competitiveness against major players such as the United States, the European Union, and China.

The wave of investment underscores the recognition of semiconductors as a foundational industry crucial for technological advancement and economic stability.

Amon’s confidence is further supported by Qualcomm’s optimistic sales forecast, driven by the anticipated growth in demand for AI-enabled smartphones. He emphasised that consumers are increasingly inclined to upgrade to more advanced devices equipped with AI functionalities.

“The trend indicates a sustained interest in innovation and technological enhancement, which is likely to further stimulate the semiconductor market.”

5G Advanced has enormous potential to shape everyday life     

Contributor
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5G Advanced has enormous potential to shape everyday life     
  • Aims to make networks smarter, more efficient and more responsive to real-world needs in ways that could impact everyone.
  • Real-time AI-powered automation automatically monitors and manages the network, responding to demand changes and optimizing performance on the fly.

When 5G first arrived, it was advertised as a revolution in connectivity, promising blazing speeds and instant data access. But for most of us, the experience has been more evolutionary than revolutionary.

At face value, videos load faster, and downloads complete in seconds, but the promised transformative impact has felt out of reach, especially for people who aren’t directly involved in tech or industry. Now, however, we’re on the brink of a more significant upgrade: 5G Advanced.

This new phase has the power to do more than just improve personal device speeds; it aims to make networks smarter, more efficient and more responsive to real-world needs in ways that could impact everyone. In other words we are progressing towards Programmable Networks.

Programmable networks

With 5G Advanced, Ericsson is pushing beyond the basic improvements in speed and capacity to create a network that can handle the complexity of our connected world. We are targeting high-performing programmable networks with new 5G Advanced products.

Our recent advancements are designed to meet the challenges that current 5G networks struggle with, from energy consumption to service reliability and Artificial Intelligence (AI) Automation. While these upgrades might seem technical, their potential to shape everyday life is enormous.

Real-world benefits, like more accessible healthcare, improved public safety, reduced environmental impact and longer-lasting devices, could all become possible.

One of the most noticeable changes 5G Advanced will bring is more reliable network performance, especially during heavy use. Real-time AI-powered automation automatically monitors and manages the network, responding to demand changes and optimising performance on the fly.

This, along with radio access network (RAN) differentiated connectivity, which allows networks to manage multiple services at once while maintaining quality for each will provide much smoother and more reliable connectivity for everyone during busy periods.

Premium network performance

Where a normal 5G network may struggle with a stadium full of people posting and streaming, 5G Advanced is equipped to handle the massive uptick of bandwidth demand without compromise.

That where premium network performance and advanced performance features enable more coverage and capacity in the most traffic-loaded scenarios.

Another groundbreaking benefit of 5G Advanced is outdoor positioning. This allows providers and enterprises to introduce location-based services with or without GPS using 5G standalone architecture, which can fill in the gaps of GPS and provide reliable and accurate location services.

For example, it can support continuing navigation in tunnels, where it would otherwise falter, enabling emergency services to quickly pinpoint people in distress, or allow courier companies to keep track of their packages and streamline logistics. It can make people’s lives not only easier but safer as well.

For sectors whose connectivity is paramount, Ericsson’s mission-critical services technology ensures they can continue to operate during extreme conditions. With 5G Advanced, critical services – such as emergency response systems, defense communications and railway signaling – can remain fully operational in any environment.

Energy efficient

In practical terms, this means first responders will have uninterrupted communication during natural disasters or large-scale events, when demand on infrastructure is high. By supporting these essential services, 5G Advanced makes cities and communities safer and more resilient in times of crisis.

Finally, 5G Advanced products also increases energy efficiency for both the infrastructure and consumer devices by optimising power use across the network while reducing costs and environmental impact, which is a win for everyone. On the consumer side, 5G Advanced requires less power-hungry devices.

With the device battery performance, it allows service providers to enhance the battery performance of any 5G device, including smartphones, wearables and AR/VR glasses with intelligent network features that save battery power.

All together, these seven innovations we have developed highlight the broader purpose of 5G Advanced. This isn’t just a technology upgrade for industries; it’s a leap towards smarter, more resilient programmable networks that can support real-world needs in ways that benefit everyone.

The true success of 5G Advanced won’t be measured by download speeds but by the way it enhances the quality of everyday life, from better public services to a more sustainable environment.

As 5G Advanced rolls out, the conversation around 5G should shift from faster internet to resilient vital infrastructure. At Ericsson, we can lay the foundation for these improvements, but it’s up to industries to build upon it.

  • Rakesh Lakhani is the Head of Networks Solutions at Ericsson Middle East and Africa.

40% of AI data centres will face power shortages by 2027

Ana Mary Joseph
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40% of AI data centres will face power shortages by 2027
  • Projected power requirement for data centres running AI-optimised servers is expected to reach 500 terawatt-hours annually by 2027, a figure that is 2.6 times higher than the levels recorded in 2023.
  • Intersection of AI, GenAI, and energy consumption presents significant challenges that require immediate and strategic attention.
  • As the demand for data centres escalates, it is imperative for organisations to navigate the complexities of power availability, cost management, and sustainability to ensure the continued growth and responsible deployment of AI technologies.

The rapid advancement of artificial intelligence (AI) and generative AI (GenAI) is significantly impacting electricity consumption, particularly within data centres.

According to research firm Gartner, Inc, forecasts indicate a staggering 160 per cent growth in electricity usage by these facilities over the next two years. The surge in power demand raises critical concerns regarding the sustainability of energy resources and the operational viability of AI infrastructure.

Bob Johnson, VP Analyst at Gartner, highlights that the burgeoning need for hyperscale data centres to support GenAI applications is outpacing the capacity of utility providers to expand their services.

By 2027, it is anticipated that 40 per cent of existing AI data centres will face operational constraints due to power availability. Such constraints threaten to disrupt energy supply, potentially leading to shortages that could stifle the growth of new data centres essential for advancing GenAI technologies.

The projected power requirement for data centres running AI-optimised servers is expected to reach 500 terawatt-hours (TWh) annually by 2027, a figure that is 2.6 times higher than the levels recorded in 2023.

Increased electricity prices

The exponential increase is primarily driven by the substantial data demands associated with training large language models (LLMs). However, the infrastructure needed to support this surge in power demand is lagging, as new power generation and transmission capabilities may take years to implement.

Gartner’s analysis suggests that the imminent power shortages will lead to increased electricity prices, which will consequently elevate the operational costs of running LLMs.

Organisations reliant on these technologies must proactively assess the potential impact of power shortages on their products and services.

Johnson advises that significant power consumers should secure long-term contracts with energy producers to ensure reliable access to electricity, independent of broader grid demands.

Moreover, the pursuit of zero-carbon sustainability goals is likely to be compromised as energy suppliers scramble to meet the rising demand. In many cases, this urgency has resulted in the extended operation of fossil fuel plants previously slated for retirement, thereby exacerbating carbon dioxide emissions.

The reliance on renewable energy sources such as wind and solar is insufficient to meet the continuous power demands of data centres, necessitating the use of hydroelectric, fossil fuel, or nuclear power for reliable energy supply.

Alternative power solutions

In light of these challenges, Gartner recommends that organisations reevaluate their sustainability objectives concerning CO2 emissions, considering the evolving requirements of data centres and their energy sources.

The future landscape of AI and GenAI will be shaped not only by technological advancements but also by the critical balance between energy consumption, sustainability, and operational efficiency.

Organisations must adopt innovative approaches that prioritise energy efficiency and explore alternative power solutions, such as improved battery storage technologies or small nuclear reactors, to align their operations with long-term sustainability goals.

India’s IT spending to grow by 11.2% to $160b in 2025

Mohammed Fahad
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India’s IT spending to grow by 11.2% to $160b in 2025
  • Noteworthy trend towards enhanced expenditure on cybersecurity, business intelligence, and data analytics.
  • Software sector will likely witness the most pronounced growth, fueled largely by advancements in application and infrastructure software.
  • India’s information technology landscape is poised for significant growth, with projected IT spending reaching $160 billion in 2025.

The anticipated increase of 11.2 per cent from 2024, as reported by Gartner, Inc., reflects the dynamic shifts occurring within the industry. Central to this transformation is the evolving focus of Chief Information Officers (CIOs), particularly concerning generative artificial intelligence (GenAI) and other emerging technologies.

As highlighted by Naveen Mishra, VP Analyst at Gartner, Indian CIOs are beginning to allocate budgets for GenAI beyond initial proof-of-concept projects. This signals a maturation of the technology, as organisations transition from exploration to implementation.

“Despite an increase in spending on GenAI, it is crucial to note that expectations regarding its capabilities may moderate. This adjustment emphasises a more pragmatic approach to technology integration, ensuring that investments yield tangible benefits.”

In addition to GenAI, he said that there is a noteworthy trend towards enhanced expenditure on cybersecurity, business intelligence, and data analytics.

GenAI capabilities

The projected growth in these areas indicates a heightened awareness among Indian enterprises of the need for robust security measures and data-driven decision-making tools.

The software sector will likely witness the most pronounced growth, fueled largely by advancements in application and infrastructure software. With a projected annual growth rate of 17 per cent in 2025, the software segment reflects increasing investments across various platforms, particularly those enriched with GenAI capabilities.

The anticipated price premium associated with these offerings underscores a market readiness to invest in advanced technology solutions, driven by the promise of improved operational efficiency and enhanced customer engagement.

Moreover, the IT services market in India is expected to experience a healthy growth rate of 11.4 per cent, despite broader global economic challenges.

This resilience will be propelled by service engagements related to cloud solutions, applications, and consulting. The ability of GenAI to provide tailored industry use cases and enhance labour productivity will play a vital role in shaping the future of IT services.

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