The week in AI

Hi, it’s Jesse in New York. Somebody better break out the guacamole, because this week was all about chips.Powerhouse chipmaker Nvidia Corp. [View in browser]( [Bloomberg]( Hi, it’s Jesse in New York. Somebody better break out the guacamole, because this week was all about chips. All that and a bag of chips Powerhouse chipmaker Nvidia Corp. [unveiled]( an updated, faster chip this week aimed at cementing the company’s dominance in artificial intelligence. The Grace Hopper Superchip, named for the trailblazing American computer scientist, will go into production in the second quarter of 2024. President Joe Biden [issued]( an executive order to take effect next year that will limit US investments in China, focused on chips, quantum computing and AI companies. The UK is [considering]( whether to follow suit, citing a need to strike a balance between promoting national security with the economic necessity of trading with China. The constraints are weighing on Chinese efforts to ramp up AI training. Alibaba Group Holding Ltd. Chief Daniel Zhang [said]( the company hasn’t been able to completely fulfill demand for AI training from clients because of global supply constraints. In the face of these tightening export controls, Chinese chipmakers are [speeding up]( investments in mature semiconductor equipment, according to Tokyo Electron Ltd. Taiwan Semiconductor Manufacturing Co., along with other chipmakers, [agreed]( to build an $11 billion plant in Germany. The facility will provide chips for the automotive and industrial sectors and is a first step for TSMC in establishing a major European presence to counter risks from escalating US-China tensions. SoftBank Group Corp.’s chip design business Arm Ltd. [reported]( a loss in the June quarter as revenue declined ahead of its planned initial public offering. Could the AI bubble be [nearing]( its peak? According to Morgan Stanley strategists who point to the more than 200% rally by Nvidia this year, the stock surge would be in its “later innings” based on historical context. Shares of Palantir Technologies Inc., the software maker that has for years sold AI-powered programs to governments, [sank]( the most in eight months after the company issued a sales forecast that disappointed Wall Street. And Upstart Holdings Inc.’s breakneck 445% rally is [losing]( momentum after the AI-influenced lending platform provided a disappointing outlook. Lastly, don’t miss our feature on Stability AI Ltd. After its breakout success with Stable Diffusion, the London-based startup [risks]( ceding its edge in the booming field of generative AI. —[Jesse Levine](mailto:jlevine206@bloomberg.net) One to watch Your next date could be set up by a bot — or it could be with a bot. All thanks to a new generation of [dating apps powered by AI](. More from Bloomberg Get Bloomberg Tech newsletters in your inbox: - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Game On]( for reporting on the video game business - [Power On]( for Apple scoops, consumer tech news and more - [Screentime]( for a front-row seat to the collision of Hollywood and Silicon Valley - [Soundbite]( for reporting on podcasting, the music industry and audio trends - [Hyperdrive]( for expert insight into the future of cars Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Tech Daily newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](