This Week in AI: TSMC Stops Chip Sales in China, Anthropic and Palantir Partner, Saudi Arabia Bets Big on AI

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TSMC Halts Production of Advanced AI Chips for Chinese Firms Amid U.S. Restrictions

In a move aligning with U.S. efforts to curb China’s artificial intelligence ambitions, Taiwan Semiconductor Manufacturing Company (TSMC) announced that it will stop producing its most advanced AI chips for Chinese customers. According to the Financial Times, TSMC informed Chinese chip design firms that it will no longer manufacture AI chips using the advanced 7-nanometer process or smaller, effective from Monday. If TSMC resumes production of these advanced chips for Chinese firms in the future, it would likely require approval from the U.S. government.

This decision by TSMC comes as part of an effort to enhance internal controls and anticipate updated U.S. export controls under the outgoing Biden administration. The chipmaker expressed its commitment to complying with all applicable rules and regulations, including export controls, in a statement shared with Quartz. Additionally, TSMC is reportedly concerned about potential targeting by the incoming Trump administration, which has accused Taiwan of stealing chip manufacturing from the U.S. The new restrictions are expected to have minimal impact on TSMC’s revenue, as the company focuses on advanced AI chips while continuing its production at other fabrication sites. Meanwhile, TSMC’s production yields at its Phoenix, Arizona site are outperforming comparable sites in Taiwan by about four percentage points, and it has begun manufacturing its first chips for Apple at the Phoenix-based fab.

Saudi Arabia Plans $100 Billion AI Hub to Foster Innovation

Saudi Arabia is reportedly planning an ambitious AI hub worth up to $100 billion, as revealed by Bloomberg citing unnamed sources. The state-backed initiative, dubbed “Project Transcendence,” aims to make significant investments in data centers, AI startups, and other critical AI infrastructure. This massive project includes efforts to recruit top AI talent and encourage tech companies to establish a presence in Saudi Arabia.

Project Transcendence represents Saudi Arabia’s strategic push to position itself as a global leader in artificial intelligence. By investing heavily in AI infrastructure and fostering a supportive ecosystem for innovation, Saudi Arabia aims to drive technological advancements and economic growth, leveraging AI to address complex challenges and enhance various sectors, including healthcare, education, and defense.

Anthropic and Palantir Partner with AWS to Serve U.S. Intelligence and Defense Agencies

In a strategic move this week, AI startup Anthropic and data analytics giant Palantir Technologies announced a partnership with Amazon Web Services (AWS) to provide Anthropic’s Claude AI models to U.S. intelligence and defense agencies. The collaboration will make Claude 3 and 3.5 models accessible via the AWS platform, empowering these agencies to leverage Claude-powered Palantir products for various government operations.

Palantir highlighted that this partnership will enhance the agencies’ capabilities in processing vast amounts of complex data rapidly, elevating data-driven insights, identifying patterns and trends more effectively, streamlining document review and preparation, and aiding U.S. officials in making informed decisions in time-sensitive situations while preserving their decision-making authorities. This partnership underscores the critical role AI plays in national security and defense, enhancing the efficiency and effectiveness of intelligence operations.

Physical Intelligence Secures $400 Million in Funding Round

This week, Physical Intelligence, a promising startup focused on developing foundation models and learning algorithms for robots, announced a substantial $400 million funding round. Valued at $2.4 billion, this round attracted high-profile investors, including OpenAI and Amazon founder Jeff Bezos, as reported by CNBC. Alongside Bezos, Thrive Capital, Sequoia Capital, Khosla Ventures, and Lux Capital also participated in the investment. This marks a significant leap from their March seed round, which raised $70 million and valued the company at $400 million.

Over the past eight months, Physical Intelligence has made remarkable strides with its general-purpose robot foundation model, pi-zero. The startup envisions pi-zero as the first step toward achieving artificial physical intelligence, aiming to enable users to instruct robots to perform any task seamlessly, much like interacting with large language models and chatbot assistants. This breakthrough positions Physical Intelligence at the forefront of robotics and AI integration, promising to revolutionize how humans interact with robotic systems.

Thesys Raises $4 Million Seed Round to Advance Visual Collaboration Tools

AI startup Thesys made headlines this week by announcing a successful $4 million seed round led by Together Fund. Thesys has developed a cutting-edge visual collaboration tool designed to help companies ideate, visualize, and ship user interfaces for AI agents. Co-founder Parikshit Deshmukh emphasized the need for dynamic interfaces that meet the demands of today’s AI capabilities, moving beyond static interfaces to unlock the full potential of AI-driven interactions.

Thesys’s innovative tool aims to streamline the process of creating and managing user interfaces, enabling businesses to adapt and thrive in an era where technology is evolving at an unprecedented pace. By integrating visual collaboration with AI functionalities, Thesys is poised to enhance user experiences and drive efficiency in AI development projects.

We at the AnswerThis team thank you for reading. We will be watching the news carefully and hope to bring more exciting AI news next week!

References

CNBC. (2024, November 4). Physical Intelligence Raises $400 Million in Funding Round.

Financial Times. (2024, November 6). TSMC cutting Chinese tech firms off advanced AI chip.

Bloomberg. (2024, November 6). Saudi’s plan: $100 billion AI powerhouse to rival UAE’s tech hub.

Quartz. (2024, November 7). TSMC cutting Chinese tech firms off advanced AI chip.

Business Wire. (2024, November 7). Anthropic and Palantir partner to bring Claude AI models to AWS for U.S. government intelligence and defense operations.