JUNEASIA BUSINESS OUTLOOK8AI GENERATED VIDEO CONTENT TO DRIVE DEMAND FOR GPUS, SAYS NVIDIA CEOMICROSOFT & G42 TO EXPAND CLOUD COMPUTING INFRASTRUCTURE EAST AFRICAThe generative artificial intelligence (AI) boom continues to fuel demand for Nvidia's advanced graphics processors, particularly driven by the need for new AI models capable of creating video and engaging in human-like voice interactions. Nvidia CEO Jensen Huang highlighted that the next significant development in AI involves systems that can process 3D video and other complex information, which will require substantial computing power.Nvidia's advanced Grace Hopper chips, such as the H200, have already been utilized in multimodal models like OpenAI's GPT-4, which can conduct realistic voice conversations and interact with text and images. The demand for these chips has been bolstered by Nvidia's customers, including Google DeepMind and Meta Platforms, who are also developing AI platforms for image and video generation.Additionally, the automotive industry's use of AI models for video has emerged as a substantial driver of Nvidia chip demand. Tesla, for instance, has expanded its AI training processor cluster to around 35,000 H100s to support its autonomous driving goals. Nvidia's finance chief, Colette Kress, mentioned that the automotive sector is expected to be the largest enterprise vertical in Nvidia's data center business this year, underscoring the industry's significant role in the company's growth.Overall, the rapid development and deployment of advanced AI models across various sectors, including automotive, content production, and more, are poised to continue driving robust demand for Nvidia's high-performance graphics processors. Microsoft and UAE-based AI firm G42 will invest $1 billion in a data center in Kenya as part of efforts to expand cloud-computing services in East Africa, the companies announced on Wednesday. The data center, which will be built by G42 and its partners, will be powered by geothermal energy and will provide access to Microsoft's Azure through a new cloud region for East Africa.Abu Dhabi-based G42, which recently received a $1.5 billion investment from Microsoft, has begun training an open-source large-language AI model in Swahili and English. The collaboration is part of a broader trend where major tech companies like Amazon, Microsoft, and Alphabet are investing heavily in new data centers globally to meet the rising demand for cloud and generative AI-related services.A letter of intent will be signed on Friday between Microsoft, G42, and Kenya's Ministry of Information, Communications, and the Digital Economy, coinciding with President William Ruto's state visit to the United States. Microsoft stated that the data center is expected to become operational within two years following the signing of definitive agreements. NEWSROOMJUNEASIA BUSINESS OUTLOOK8
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