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  • Nvidia tops estimates and says sales will jump 170% this quarter, driven by demand for AI chips

Nvidia tops estimates and says sales will jump 170% this quarter, driven by demand for AI chips

Also: South Korea's Naver launches generative AI services


A series of AI news is making waves today, including Nvidia's astonishing sales forecast driven primarily by its AI chips. Meanwhile, the AI industry witnesses international efforts, with South Korea's Naver and Germany focusing on enhancing their presence in the AI arena. On the corporate side, the rapid growth of generative AI brings along a mix of innovation potential and concerns for corporate leaders. Lastly, the latest updates in AI tools and venture capital showcase exciting advancements and funding rounds in the sector.


  • 📈 Nvidia tops estimates and says sales will jump 170% this quarter, driven by demand for AI chips

  • 🇰🇷 South Korea's Naver launches generative AI services

  • 🇩🇪 Germany plans to double AI funding in race with China, U.S.

  • 😐 Feeling anxious about A.I.? You’re in good company

Nvidia exceeded financial expectations in its fiscal second quarter, reporting revenues of $13.51 billion against the expected $11.22 billion, and earnings of $2.70 per share versus the anticipated $2.09. The robust performance was largely attributed to its data center business, which saw a 171% annual increase to $10.32 billion, reflecting the strong demand for its A100 and H100 AI chips vital for AI applications like OpenAI's ChatGPT. Nvidia's shares surged by 6%, and the company anticipates a 170% year-on-year sales growth in the upcoming quarter, forecasting revenues of around $16 billion. CEO Jensen Huang emphasized the ongoing transition of the world's trillion-dollar data centers towards accelerated computing and generative AI. Despite proposed export restrictions on chips by the Biden administration, Nvidia expects no immediate significant financial impact due to the global demand for their products.

South Korean internet behemoth Naver has introduced its generative AI tool, HyperCLOVA X, stepping into the arena dominated by tech giants like OpenAI. This AI suite includes the chatbot application CLOVA X, designed to enhance online services such as web search and shopping, and a generative AI feature named Cue: that integrates with its search engine. The beta services for these tools will be rolled out soon, with support from a new data center opening in November. In partnership with Samsung Electronics, Naver is also innovating chip solutions to bolster its AI technology. Despite lagging behind leaders like Microsoft-backed OpenAI and Google, Naver, along with its Korean counterparts, aims to penetrate niche markets overlooked by major U.S. and Chinese companies.

Germany is set to nearly double its AI research funding to around a billion euros over the next two years in an effort to bridge the skills gap with sector leaders China and the U.S. This move, though substantial, remains comparatively modest against the U.S.'s public AI funding of $3.3 billion in 2022. Germany aims to establish 150 university AI labs, expand data infrastructure, and offer access to extensive public data sets. Despite being overshadowed by the U.S.'s private AI investment, which totaled $47.4 billion in 2022, Germany believes its emphasis on transparent and trustworthy AI, combined with Europe's strong regulatory focus on privacy, can be a distinct competitive edge. The nation has also seen its AI startups double in 2023, yet still ranks ninth globally.

Generative A.I. is causing unease among corporate leaders, stemming from a fear of missing out on innovations and balancing that with the need for safe deployment. Reid Blackman, author of "Ethical Machines" and CEO of Virtue, emphasizes that while risk management isn't new to companies, managing the unique risks of generative A.I. is a fresh challenge. With the launch of generative A.I. models like ChatGPT, Microsoft's Bing, and Google's Bard, a broader range of employees within organizations can access these tools. While this brings the potential for innovation, it also introduces the risk of brand damage if used irresponsibly. Blackman highlights several unique risks to generative A.I., including producing factually incorrect responses, lack of true decision-making, potential manipulation, and shared responsibility in sourcing models. To mitigate these risks, he suggests creating A.I. ethical risk programs, incorporating governance structures, policies, and monitoring with KPIs. Despite the risks, Blackman advises against banning generative A.I., emphasizing the importance of training employees for its safe use.

🛠️ AI tools updates

Researchers are leveraging artificial intelligence to enhance the quality of digital images. Traditionally, enlarging images led to pixelation and distortion due to a lack of sufficient data. AI algorithms, especially generative adversarial networks (GANs), have improved image enhancement, producing visually appealing images. However, GANs often "hallucinate" or fabricate details, leading to a discrepancy between visual quality and accuracy, a phenomenon termed the perception-distortion trade-off by researchers Michaeli and Blau. While some applications prioritize appearance, fields like medicine require utmost accuracy. Some researchers are merging data from multiple images to bypass limitations, while others suggest providing multiple image enhancement interpretations to avoid settling on a potentially inaccurate one. Nevertheless, the quest for the perfect image enhancement remains ongoing, with the need to strike a balance between appearance and accuracy.

💵 Venture Capital updates

Lex, an AI-driven writing tool, has secured $2.75 million in seed funding, led by True Ventures. Originally a spin-off from Every, Lex is designed to assist writers in overcoming writing blocks. CEO Nathan Baschez emphasizes its distinctiveness as a "modern writing platform" that incorporates AI, bridging the historical progression of writing advancements. The platform offers an intuitive interface, formatting options, and markdown-based shortcuts. If a writer faces a pause in their writing, Lex's AI, powered by GPT-3, suggests the next possible lines. Users can also prompt the AI for editing suggestions and headline generation. In the future, the AI will offer sentence rephrasing and summarization features. Addressing privacy concerns, Baschez assures that user content is not used for training, and future changes will maintain transparency. One defining feature of Lex is its digital-native design, free from traditional word processor constraints. Stemming from Baschez's initiative, Lex has rapidly gained interest, with 25,000 users joining within the first day. Despite its growth, the company plans to keep its team lean, focusing on a sustainable financial model. The cost structure is yet to be determined, but Baschez estimates it will be around the $20 range. With a clear market interest and its unique approach, Lex is a promising startup in the AI-writing niche.

Wand.app, a tool designed to amplify and not replace human creativity, has successfully secured $4.2 million in seed funding spearheaded by O’Shaughnessy Ventures. Launched in December 2021 by CEO Grant Davis, Wand offers a unique interface where artists can manually customize and refine their AI-generated creations, bridging the gap between AI and human touch. It integrates visual tools that allow artists to sketch or modify images, which the AI then enhances or suggests improvements upon. With a focus on catering to artists and illustrators, Wand’s platform is primarily aimed at professionals engaged in prototyping, mood-boarding, or world-building. It functions seamlessly on mobile and tablet devices, with desktop support in the pipeline. The newly-acquired funding will be channelled into developing collaborative features and extending its creative toolset. The company is also contemplating ways for artists to monetize their AI-enhanced work, while ensuring ethical use and avoiding misuse.

🫡 Meme of the day

⭐️ Generative AI image of the day