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The article discusses the increasing demand for network upgrades to support the growing usage of artificial intelligence (AI) technologies, particularly AI chatbots and agents. Companies like Nvidia, Cisco, and data center providers are eyeing opportunities in network revamps to handle the massive amount of data generated by AI. The costs of upgrading networks for AI can be high due to the need for specialized equipment, such as AI-ready switches and GPUs. While some businesses are already investing in AI-specific networking, others are still in the experimental phase, relying on cloud providers like Microsoft and Amazon for AI capabilities. [Extracted from the article]

The article discusses how the incoming Trump administration may impact enterprise technology, particularly in areas such as tariffs, AI regulation, and mergers and acquisitions. Business technology leaders are preparing for potential changes in hardware costs and AI deployments under the new administration. While some are concerned about the impact of tariffs on technology budgets, others believe that companies can adapt to changing circumstances. The removal of the Biden administration's executive order on AI may lead to a more relaxed approach to AI regulation, potentially spurring innovation but also raising ethical concerns around AI model safety and bias. [Extracted from the article]

Nvidia CEO Jensen Huang emphasized the importance of companies embracing artificial intelligence (AI) to prepare for a "new industrial revolution" at a Gartner event in Orlando. Huang highlighted how Nvidia is already applying AI to chip design, software development, and supply chain management. He discussed the company's vision of creating an "AI brain" that can transform business processes and customer interactions, ultimately leading to a future where AI agents work alongside human employees in various roles. Huang also emphasized the need for business leaders to learn how to effectively communicate with AI to maximize its potential impact. [Extracted from the article]

OpenAI and Bain & Co. have expanded their partnership to sell AI tools, including ChatGPT, to businesses. The deal involves building industry-specific AI tools for sectors like retail and life sciences. Bain's 13,000 consultants have received licenses for ChatGPT Enterprise, and the companies aim to reach industries that require tailored AI solutions. OpenAI now has one million paying business clients, and its annualized revenue is around $4 billion. [Extracted from the article]

Amazon and Databricks have entered into a five-year deal to utilize Amazon's Trainium AI chips for building AI systems, potentially reducing costs for businesses. This partnership expands on their existing collaboration and aims to make AI faster and more affordable for companies. While Amazon positions itself as a neutral provider of AI technology, other companies like Microsoft and Salesforce are also aggressively pursuing AI investments in the market. [Extracted from the article]

Business technology leaders are shifting their focus from experimenting with artificial intelligence (AI) to investing in proven projects that offer a return on investment. While there was previously discretionary funding available for AI experiments, leaders now recognize the need to make a better business case for scaling these projects. However, many generative AI projects are still stuck in the pilot or testing phase, with accuracy and reliability being major challenges. To overcome these hurdles, businesses need widespread access to corporate data and should consider breaking down AI initiatives into smaller, more manageable chunks. [Extracted from the article]

California's artificial intelligence (AI) safety bill, SB 1047, has raised concerns among corporate technology leaders about its potential downstream impact on their use of AI. The bill requires makers of large AI models to conduct safety tests and ensure a human can shut down the AI if it behaves dangerously. While some technology leaders believe the bill could slow down their use of AI, others see it as a step in the right direction for establishing standards and gaining confidence in AI deployment. The bill's fate is still uncertain, but many CIOs agree that federal AI regulation would be preferable to a patchwork of state-by-state rules. [Extracted from the article]

Data centers are undergoing a transformation in their design, moving away from the traditional boxy and industrial look. This change is driven by the need for more computing power, particularly for artificial intelligence applications, as well as the limited availability of land in urban areas. Data centers are now being built taller, with some reaching up to 12 stories high, and are incorporating more visually appealing features such as green walls and rooftop greenhouses. While international data centers in denser regions have already embraced multistory buildings, the trend is slower to catch on in the United States due to the availability of land. However, there are some tall data centers in cities like New York and Chicago that have been retrofitted into existing buildings. Suburban areas are also seeing the rise of multistory data centers due to land constraints and rising costs. The demand for AI is further pushing the boundaries of data center design, with new considerations for structural capacity and equipment needs. [Extracted from the article]

Oracle has announced a partnership with Amazon's cloud unit, solidifying its strategy of collaborating with former rivals and establishing its own presence in the cloud and artificial intelligence era. Oracle has previously formed partnerships with Microsoft and Google, using its flagship database software to offer customers the option of using its relational databases within these cloud platforms. The partnership with Amazon lowers tensions between the two companies and allows Amazon to offer its customers the ability to run Oracle workloads securely and efficiently. Oracle is also promoting its own cloud platform as a cost-effective alternative and is emphasizing its private cloud offering for businesses and governments with data privacy concerns. Additionally, Oracle has introduced "AI agents" for its business software suite, which can perform tasks without human involvement. By leveraging its databases, Oracle aims to expand its customer base in the cloud and AI markets. [Extracted from the article]

The unemployment rate for information-technology (IT) workers in the United States rose to 6% in August, up from 5.6% the previous month. This increase is attributed to the impact of artificial intelligence (AI) on the tech industry. Job reductions in IT are primarily seen in traditional technology roles, while AI and cybersecurity are areas of growth. IT workers with expertise in security, AI, and the cloud are in high demand. However, there is a disconnect between the skills of recently laid-off IT workers and their salary expectations. The pandemic has resulted in fewer job opportunities and slower pay growth in the technology sector. Major tech companies, such as Cisco Systems and Intel, have announced layoffs as part of cost-cutting efforts. Despite the challenges, some tech workers are actively upgrading their skills for AI. The future of tech hiring is expected to focus on high-growth and innovation-focused areas. [Extracted from the article]

Mainframes, the large computers used for heavy-duty data processing, are still being utilized by banks, insurance providers, and airlines, particularly for tasks involving artificial intelligence (AI). These industries require high-speed data processing and real-time analysis, which can only be achieved on the mainframe. IBM is the dominant player in the mainframe market, with over 96% market share. While new mainframe sales are expected to decline, 54% of enterprise leaders plan to increase their usage of existing mainframes. Mainframes have limitations, such as limited computing power and difficulty integrating with new applications, but they are valued for their reliability and protection against cyberattacks. Some businesses prefer managing their own mainframes and servers rather than relying on cloud services. Efforts to replace mainframes have been ongoing, but their eventual fade-out is not expected to happen soon. [Extracted from the article]

Vector databases, a technology that has been around for decades, are now becoming an industry standard for AI businesses. These databases allow businesses to link their private data with large-language models, enabling AI to perform data analysis and other tasks. Pinecone, an early entrant in the vector database AI space, has experienced significant growth and success. However, they are no longer alone in the market, as other startups and existing database vendors have entered the space. The global vector-database market is expected to grow significantly in the coming years. [Extracted from the article]

Oracle is adding artificial intelligence (AI) features to its flagship database software in an effort to boost its cloud-computing platform. The new AI services allow businesses to search their private data using plain English queries, rather than specialized code. Oracle's cloud platform currently has a small market share compared to Amazon and Microsoft, but the company hopes that increased usage of its database software with the new AI services will lead to increased usage of its cloud. Oracle has also been expanding its data center capacity to meet growing demand. [Extracted from the article]

Amazon Web Services (AWS) is introducing custom AI capabilities to its AI app development platform, Bedrock, in an effort to compete with its rivals in the AI space. The move allows businesses to use their own generative AI models within Bedrock, making it easier for developers and data scientists to collaborate. AWS has also released two new AI models, Titan image-generator and Titan text-embeddings V2, to enhance its offerings. While AWS has positioned itself as a neutral provider of AI technology, it faces competition from Microsoft and Google, who also offer AI models from other companies and open-source models. [Extracted from the article]

OpenAI is using its popular chatbot, ChatGPT, to gain entry into businesses and sell its enterprise artificial intelligence services. OpenAI has 600,000 individuals paying for its ChatGPT business products, which include ChatGPT Enterprise for large companies and ChatGPT Team for smaller firms. OpenAI claims that 92% of Fortune 500 companies are using ChatGPT in some form, and 100 million people actively use ChatGPT weekly. However, OpenAI faces competition from well-funded rivals, including Microsoft, its primary backer. OpenAI is aiming to maximize the number of companies using ChatGPT and is working to directly sell its AI technology to businesses. [Extracted from the article]

Some companies are attempting to compete with dominant players like OpenAI by offering their AI models for free. Open-source AI models are appealing to businesses because they allow for the use of large language models without paying or sharing data with vendors like Microsoft. However, there are challenges involved, such as the high costs of training models and the need to license technologies. Open-source AI companies are exploring different strategies, including selling business-grade services and applications on top of their open models. While open-source AI is gaining traction, there are still challenges to overcome, such as the lack of standard definitions and licenses for open-source AI. [Extracted from the article]

The IT job market in the United States is expected to shrink by 20,000 to 30,000 jobs in 2024 due to the increasing automation of tech jobs through artificial intelligence (AI). Job seekers in the tech industry are facing lower salaries and fewer opportunities if they do not possess AI skills. Layoffs in the tech sector have been ongoing, and there is a mismatch between the skills that recently laid-off workers have and the salaries they expect. Jobs in areas like telecommunications and entry-level IT have declined, while roles in cybersecurity, AI, and data science continue to rise. The average total compensation for IT workers is around $100,000, making it a target for cost-cutting. The combination of AI skills shortages and salary expectations will likely result in fewer IT jobs being created in 2024. Jobs that are already being replaced by automation and AI, particularly in entry-level IT services and data-center operations, are not expected to return. Salaries for software developers have declined, and job postings for coding jobs have fallen significantly. Generative AI skills are in high demand and command the highest salaries, with an average salary potential of $174,727. Jobs related to generative AI have grown significantly, and AI job listings overall have increased following the release of ChatGPT. It is believed that the shift towards AI in corporate resources will continue, putting job seekers without AI knowledge at a disadvantage unless they acquire those skills. [Extracted from the article]

The dark web is seeing an increase in the use of artificial intelligence (AI) chatbots designed to aid hackers. These chatbots, such as "BadGPT" and "FraudGPT," are being used to enhance phishing emails by creating fake websites, writing malware, and impersonating trusted individuals. Cybersecurity leaders are on high alert for more sophisticated phishing attacks and deepfakes, as demonstrated by a recent incident where an employee handed over $25.5 million to an attacker posing as the company's CFO on an AI-generated deepfake conference call. The use of AI in cybercrime is challenging to detect and prevent, as AI models are freely shared on the open web and lack enterprise guardrails. [Extracted from the article]

Google and Anthropic, two leading makers of generative artificial intelligence (AI) systems, are working to address the limitations of their technologies while still selling them to businesses. These AI systems have been known to produce incorrect statements, and challenges such as improving training efficiency and removing sensitive data from training remain unresolved. Both companies are actively working on solutions, but some enterprises are hesitant to fully trust these AI systems with their corporate data. Google and Anthropic are also addressing the issue of hardware availability and cost for training these models. [Extracted from the article]

Companies are turning to generative AI tools to modernize their information-technology systems, particularly those still reliant on the outdated programming language Cobol. ADP, a payroll-processing company, is exploring the use of generative AI to translate its Cobol code into Java, reducing the need for Cobol specialists. Other companies, such as Wayfair and Databricks, are using generative AI to update old code and reduce technical debt. While generative AI tools can improve productivity and accelerate the modernization process, they also come with risks, such as the potential for poorly-documented or extraneous code. [Extracted from the article]

Google Cloud has eliminated certain data fees, making it the first major cloud provider to do so. The move comes as businesses seek to cut tech costs and regulators increase oversight of cloud competition. While some cost-conscious chief information officers welcome the change, others argue that it does not address larger cloud pricing challenges. The waiver of fees is conditional and does not include the cost of moving data between Google Cloud and other providers. [Extracted from the article]

The article discusses the growing popularity of the RISC-V standard for designing semiconductors, particularly in the context of artificial intelligence (AI) and mobile devices. RISC-V is an open-source chip instruction set that allows for greater customization and lower costs compared to proprietary designs. Tech giants like Google and Qualcomm are investing in RISC-V and using it for their AI computing needs. The article also mentions the potential threat RISC-V poses to market leader Arm, especially if it gains traction in China. However, the development of middleware software and a robust developer ecosystem is necessary for RISC-V to become more mainstream. [Extracted from the article]

Meta Platforms and IBM have launched the AI Alliance, a coalition of over 50 artificial intelligence companies and research institutions. The alliance aims to promote an "open" model of AI, emphasizing open innovation and open science. Members of the alliance include Intel, Oracle, Cornell University, and the National Science Foundation. The alliance seeks to provide alternatives to closed, proprietary AI systems and offer more choice to businesses in the AI market. The alliance will focus on areas such as regulation and safety, and plans to release a benchmarking tool for AI safety and model validation. [Extracted from the article]

Businesses are increasing their cloud spending due to the growth of generative artificial intelligence (AI) services. Cloud infrastructure, which powers AI, software, and applications, is expected to experience the most growth in the cloud market. While AI is driving cloud spending, some chief information officers (CIOs) believe it can also help manage costs and avoid cloud sprawl. However, not all businesses expect to increase their use of cloud while AI is still maturing. Overall, the relationship between AI and the cloud is mutually beneficial, but controlling cloud costs remains a key focus for many businesses. [Extracted from the article]

The increasing energy demands of artificial intelligence (AI) models are driving the search for alternative energy sources to power data centers. The supply of electricity, which currently powers most data centers, is already strained, and AI could consume up to 3.5% of the world's electricity by 2030. Companies like Amazon, Microsoft, and Google are exploring nontraditional energy sources such as wind, solar, geothermal, nuclear, and flared gas to power their data centers. However, critics argue that relying on fossil fuels for energy production harms the environment. Additionally, AI startups require significant amounts of data center power, and the scalability of nuclear-powered data centers is still being tested. [Extracted from the article]

Intuit, the maker of TurboTax software, is hiring content moderators to ensure that its generative AI-based assistant, Intuit Assist, remains within prescribed bounds. The company plans to build a team of eight full-time moderators to review the content generated by the AI system and prevent employees from leaking sensitive data. Intuit's homegrown content moderation system uses a separate large language model to automatically flag objectionable content, and human moderators will review and improve the system's ability to block harmful content. While the goal is for the AI model to do the bulk of the content review, human reviewers are still necessary. Other tech leaders are also exploring the use of human moderation or investing in third-party software for content safety filters. [Extracted from the article]