 | Nov 18, 2024 | | | | | | Welcome back! Nvidia customers are worried about snags involving server racks for its Blackwell chips. Elon Musk has sued Microsoft as part of his case against OpenAI. Eighteen Republican states sued the Securities and Exchange Commission over its crackdown on crypto firms.
| | | | Nvidia is grappling with new problems related to its much-anticipated Blackwell graphics processing units for artificial intelligence: How to prevent them from overheating when connected together in the customized server racks it has designed. In recent months, Nvidia has asked its suppliers to change the design of the racks several times as it has tried to overcome the overheating problems, The Information reported Sunday. Word of the repeated design changes has sparked anxiety among customers about a potential delay in when they will be able to use the racks. The challenges highlight the difficulties in Nvidia's quest to meet high customer demand for its AI hardware. What makes the new server racks significant is that they combine 72 of Nvidia's AI chips, an extraordinarily high number. AI developers are hoping that would allow them to train larger AI models much faster. | | | | Elon Musk on Thursday alleged that Microsoft worked with OpenAI and its CEO, Sam Altman, to "loot" OpenAI, which was established as a nonprofit in 2015, by starting a for-profit arm partly owned by Microsoft in 2019. Musk added Microsoft as a co-defendant in his lawsuit against OpenAI and Altman, which alleges they tricked him into investing tens of millions of dollars in OpenAI before the for-profit unit was launched. Musk , Reid Hoffman and other tech luminaries that funded OpenAI as a nonprofit got a chance to invest in the for-profit arm. Musk refused while Hoffman funded the for-profit arm, which is now worth $150 billion. Musk added Hoffman, who is a Microsoft board director and was an OpenAI board member until last year, as a co-defendant in the case. Musk's amended lawsuit says Microsoft played a central role in removing three OpenAI board directors who were part of a four-director group that briefly ousted Altman a year ago. Musk also alleged that Microsoft pressured OpenAI not to release its models as open source software in order to maximize the startup's profits, of which it gets a share. Spokespeople for Microsoft and Hoffman declined to comment. | | | | Eighteen Republican states filed suit Thursday against the Securities and Exchange Commission, including its chair, Gary Gensler, for allegedly taking regulatory authority away from the states through enforcement actions against crypto firms. The suit, filed by attorneys general from Texas, Florida, Kentucky and others, along with the Defi Education Fund, seeks a court order that would prohibit the SEC from bringing future enforcement cases on the basis that companies facilitating certain crypto transactions failed to register under securities law. In the past years, the SEC has imposed a crackdown on crypto firms by claiming that most crypto tokens are securities, and companies that facilitated trading of the tokens violated securities law. In a speech Thursday, Gensler defended the SEC's authority over crypto by saying the agency has focused on the 10,000 or so non-bitcoin digital assets, many of which courts have ruled were offered or sold as securities, which make them fall under the agency's purview. | | | | President-elect Donald Trump's cabinet pick to oversee the country's natural resources and public land could boost data centers for artificial intelligence. North Dakota Gov. Doug Burgum, Trump's nominee for Interior Secretary, has been a booster of large AI data center projects in his state, and his administration is familiar with the power constraints that stand in the way of completing them. In North Dakota, the third largest producer of crude oil in the U.S., two developers have each proposed spending more than $100 billion to build an AI data center, The Information has reported, which would require drilling for more oil in the state to obtain enough energy for the projects. Burgum and his administration have said they welcomed these projects as a way to boost the U.S. energy sector while also ensuring advanced AI isn't developed faster by adversary nations—a view also shared by Trump. As Interior Secretary, Burgum could promote drilling on federal lands, as well as renewable energy projects. | | | | X, the social media platform owned by Elon Musk, sued the state of California over a law that would require social media platforms to remove "materially deceptive content" about elections during the six month period around an election. Musk's lawsuit argues that AB 2655 violates the California constitution, a federal law protecting internet sites, the First Amendment right to free speech and violates the Fourteenth Amendment by being too vague. X has been at the center of debates over political deepfakes during the current election cycle. After owner Elon Musk shared a deepfake video of Vice President Kamala Harris on the app, Calif. Gov. Gavin Newsom posted, "manipulating a voice in an 'ad' like this one should be illegal." Last month, a federal judge blocked a second California law related to election deepfakes on the grounds that it might violate the First Amendment. The plaintiff in that case was the creator of the Harris deepfake that Musk shared on X. | | | Popular articles
By Ann Gehan and Cory Weinberg
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