Nvidia CEO Addresses Wall Street’s AI Bubble Concerns During Market Downturn: ‘We Excel at Every Step of AI’

Global stock markets experienced an upward trend following Nvidia’s impressive third-quarter profits, which surpassed Wall Street forecasts, easing concerns that the AI company’s skyrocketing valuations might have reached their limit.

On Wednesday, all attention turned to Nvidia, the frontrunner in the AI industry and the highest valued publicly traded company globally. Analysts and investors were eager for the chip maker’s third-quarter results, hoping they would dispel worries about an impending bubble in the sector.

Nvidia’s founder and CEO, Jensen Huang, addressed these apprehensions right at the start of the earnings call, emphasizing that a significant transformation is underway in AI, and Nvidia stands at the core of this change.

“Many discuss the AI bubble,” Huang noted. “From our viewpoint, the situation looks quite different. To clarify, Nvidia differs from other accelerators. We shine at every phase of AI, from pre-training through to inference.”

The company consistently exceeded Wall Street’s expectations across multiple metrics, indicating that the substantial AI economic boom is not decelerating. Nvidia announced diluted earnings per share of $1.30 on total revenues of $57.01 billion, which topped investor expectations of $1.26 per share on revenues of $54.9 billion. Sales surged by 62% year over year, with data center revenues reaching $51.2 billion—surpassing the anticipated $49 billion. The company also forecasts fourth-quarter sales to be around $65 billion, exceeding analyst expectations of $61 billion.

During a conference call with investors, Huang outlined three pivotal shifts in platforms: the move from general-purpose computing to accelerated computing, the transition toward generative AI, and the development of agential and physical AI, such as robotics and autonomous vehicles.

“When contemplating infrastructure investments, consider three fundamental dynamics,” Huang stated. “Each one adds to the wealth of infrastructure. Nvidia… facilitates all three transitions, and we do so across all types and modalities of AI.”

He further noted that demand for Nvidia’s chips continues to expand.

“AI permeates everywhere and operates on multiple fronts simultaneously.”

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According to Thomas Monteiro, Senior Analyst at Investing.com, “This clarifies many uncertainties surrounding the AI revolution; the essence is clear: The AI revolution is far from nearing its peak. Despite investor concerns that rising capital expenditures may compel firms to decelerate their adoption cycles for AI, Nvidia continues to demonstrate that data center growth is not merely an alternative but an essential requirement for every tech company globally.”

Analysts and experts expressed confidence that Nvidia would exceed Wall Street’s forecasts but were keenly awaiting further insights regarding industry demand for the company’s AI chips.

“There’s no denying Nvidia maintains its position as the dominant player in AI-centric chips,” noted David Meyer, a senior analyst at the investment platform Motley Fool. “We anticipate that revenue, margins, and cash flow will align closely with analysts’ predictions. However, invaluable insights are more likely to stem from management’s commentary on their market outlook, whether concerning the AI sector or new markets they are exploring.”

In November, Nvidia’s shares experienced a 7.9% decline amid significant investors offloading their holdings. Peter Thiel’s hedge fund teal macro divested its entire stake in the chipmaker in the last quarter, with estimates of around $100 million in assets, according to Reuters. SoftBank also offloaded $5.8 billion worth of its shares, heightening concerns regarding an AI bubble.

Following the news, Nvidia’s shares, having recently achieved the milestone of being the world’s first $5 trillion company, increased by over 5% in after-hours trading, with S&P 500 and Nasdaq futures also climbing. Asian markets rose on Thursday as well.

However, Stephen Innes of SPI Asset Management cautioned: “NVIDIA’s latest forecast has thus far alleviated some of the most intense apprehensions regarding an AI bubble looming over global markets… Nevertheless, this situation still leaves markets precariously balanced between exuberance over AI and the sobering reality marked by debt.”

“We do not believe Nvidia’s growth can be sustained in the long run,” asserted Alvin Nguyen, senior analyst at Forrester. “Although the demand for AI is unmatched, we anticipate Nvidia’s stock growth may slow if market corrections occur, balancing supply with demand, innovation progresses at a slower pace, or companies become acclimated to the current rate.”

Source: www.theguardian.com

India’s Identity Card System Sparks Mixed Reactions: ‘Life Infrastructure Will Be Monitored at Every Step’

It’s hard for many in India to envision life before Aadhaar. Digital biometric IDs, which claim to be accessible to all Indians, were rolled out just 15 years ago, yet they have become an integral part of daily life.

An Aadhaar number is now essential for purchasing a home, securing employment, opening a bank account, paying taxes, receiving benefits, buying a vehicle, obtaining a SIM card, booking priority train tickets, and enrolling children. Infants receive their Aadhaar number immediately after birth. Although it is not obligatory, lacking an Aadhaar effectively renders one invisible to the state, according to digital rights advocates.

For Umesh Patel, 47, a textile businessman in Ahmedabad, Aadhaar has been a welcome change. He reminisces about the days of hauling stacks of paperwork to government offices just to verify his identity, often with little success. Now, with a quick glimpse of his Aadhaar, “everything flows smoothly,” he said, viewing it as “a testament to how our nation utilizes technology for its citizens’ benefit.”

“It’s a solid system that has simplified our operations,” Patel asserts. “Moreover, it enhances our country’s security by minimizing the risk of forged documents.”

“Aadhaar has become an integral part of Indian identity.”

The initiative has been deemed so effective that it caught the attention of the UK government, which considered the introduction of mandatory ID cards for its citizens. However, digital rights groups, activists, and humanitarian organizations highlight a less favorable perspective of Aadhaar and its effects on Indian society.

For some of India’s most underprivileged and least educated individuals (those unable to engage with the Aadhaar system due to issues like illiteracy, lack of education, or missing documentation), the system can be exclusionary and punitive, denying essential access to welfare and employment. With increasing moves to link Aadhaar to voting rights and citizenship, concerns arise that it may further disenfranchise and stigmatize the impoverished.

Apal Gupta, founder and director of the Internet Freedom Foundation in Delhi, stated that Aadhaar has become a digital obligation for many people in India, as Aadhaar-based verification is required to access government services, enter public venues, or carry on with their daily activities.

Mr. Gupta asserted that Aadhaar has “metastasized” since its inception, morphing into an extensive bureaucratic network of unique IDs required for business operations. “The essence of your existence is scrutinized at every juncture,” he remarked.

Critics contend that the current draft of India’s data protection and privacy law is inadequate for safeguarding privacy or preventing potential misuse of the invaluable Aadhaar database, which includes biometric data such as photos, facial and iris scans, and fingerprints of over a billion Indians.

Indian media has uncovered multiple instances of Aadhaar data breaches over the years, including a 2018 incident where data pertaining to 1.1 billion individuals was found to be sold online for a mere 500 rupees (£5).

Keir Starmer met Narendra Modi in Mumbai last week. During his visit, Mr. Starmer described the Aadhaar system as a “huge success”. Photo: Stéphane Rousseau/AFP/Getty Images

“According to this yet-to-be-notified law, there is no mechanism to ascertain if a data breach has been documented, and there is a lack of oversight on how Aadhaar data is consolidated with other databases, risking broader public surveillance and tracking,” Mr. Gupta noted. “Transparency is entirely absent.”

Although Aadhaar was initiated before Prime Minister Narendra Modi assumed office in 2014, his governing Bharatiya Janata Party (BJP) has significantly promoted and expanded the digital ID initiative. As India prepares to host the G20 summit in 2023, Prime Minister Modi referenced Aadhaar as one of the flagship achievements of ‘Digital India’, which he describes as an incubator for innovation. He asserts that India has saved over $22 billion by combating corruption in the welfare system.

The government highlights the extensive uptake of Aadhaar as an indicator of its success and inclusivity. As of last month, more than 1.42 billion Aadhaar numbers had been generated, corresponding to roughly the entire population of India, making it the largest digital identity program globally. Before this initiative, over 400 million Indians lacked any official identification and were unable to access banking services.

Yet the reality, particularly in rural and tribal regions, diverges sharply from the image portrayed by the government, as noted by Chakradhar Buddha, a senior researcher at Livetech India, an organization aimed at assisting those marginalized by India’s transition to digitalization.

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“The deprivation of Aadhaar is pervasive among tribal communities, people in mountainous regions, and those in remote areas, and this reality is largely overlooked,” Buddha stated.

“This situation arises partly from a lack of proper documentation or incomplete documentation capture. Moreover, technological advancements create further obstacles that disproportionately affect the most vulnerable populations. Ultimately, this system undermines access to crucial social security and welfare for those most in need.”

Mr. Buddha challenged the government’s assertion that Aadhaar represents an infallible form of identification, recounting numerous instances where incorrect names and details led to significant issues for communities. For instance, in one village, tribal individuals lacked birth certificates and were assigned January 1 as their birthdate, while tribal names are often misspelled on Aadhaar cards due to unfamiliarity among officials.

Highlighting the recent example of millions of impoverished workers being erroneously removed from government support systems after the implementation of Aadhaar certification, Buddha cautioned that using Aadhaar as the universal standard for voting rights could result in “mass purges of the poorest from electoral registers.”

“These individuals have already been stripped of social equality. Now, Aadhaar is being utilized to deny them their right to political equality and universal suffrage,” Buddha stated.

Among those recently at risk of lacking an Aadhaar card was Ahram Sheikh, 34, an uneducated worker, who had important identification documents, including his Aadhaar card, stolen while on a train.

The aftermath was a nightmarish experience. He couldn’t recall his Aadhaar number from a decade earlier, rendering him unable to obtain a replacement card. Without it, he had to discontinue his construction job, losing crucial income for his family, and as a result, his son ultimately dropped out of school.

Months later, after traveling thousands of miles back to his village, Sheikh remained unable to resolve the issue and secure a new card. He now lives in constant fear of being declared an illegal alien without it.

“This Aadhaar system has turned into a nightmare for us. Why can’t the government establish proper institutions?” Sheikh lamented. “Everything in this country works against the poor, and this Aadhaar card is no exception.”

Aakash Hassan contributed reporting

Source: www.theguardian.com

Australia’s Tubal Climate Movement Treaty: A Step Back for Ocean Health

A lifeline has been extended to the residents of Tuvalu, a low-lying Pacific nation grappling with the impacts of rising sea levels. Each year, Australia permits 280 Tuvaluan individuals to reside there. This agreement anticipates a relocation of the entire population within the next few decades.

The Australian Tuvalu Farapili Union, regarded as the world’s first climate migration agreement, also allocates funds for adaptation to aid those who are lagging behind.

Could this serve as a prototype for managing climate migration gracefully before calamities ensue? However, the situation is far from ideal. In order to secure this deal, Tuvalu had to concede to Australia having a voice in future security and defense matters. Few nations may find such terms acceptable.

Moreover, Tuvalu’s population is minuscule. In a country like Australia, which has 28 million residents, accepting around 10,000 climate migrants is relatively insignificant. It’s estimated that between 25 million and 1 billion people could face forced displacement by 2050 due to climate change and other environmental pressures. Where will they go?

Environmental factors could force 1 billion people to move by 2050

Many assert that wealthy nations, historically the largest emitters of carbon dioxide contributing to global warming, have a moral duty to assist those affected by climate change. However, discussions on these matters have yet to translate into the legal recognition or acceptance of forced climate migration. In fact, many high-income nations seem increasingly resistant to various forms of immigration.

There have been some progressions in creating funds for “loss and damage” to aid affected countries dealing with the aftermath of global warming. This could potentially curtail the necessity for future climate migration, yet the promised financial support to date is only a fraction of what is essential.

The foremost action that any nation should undertake is to limit future warming through emission reductions, but global emissions continue to rise. Regrettably, the Farapili Union symbolizes a decline into the ocean, not a turnaround.

Topic:

  • Climate change/
  • Global warming

Source: www.newscientist.com

Google Unveils “AI Mode” as Next Step in Redefining Search Experience

On Tuesday, Google introduced a new surge of artificial intelligence capabilities, transforming how users access information and expediting a year-long evolution of search engines that has reduced internet traffic to other sites.

At its annual developer conference, Google unveiled a novel “AI Mode” in the US, designed to facilitate conversations with experts who can respond to a wide variety of questions during searches.

This AI mode will be available to all US users just two months after its initial testing in the limited Labs division.

Additionally, Google plans to integrate its latest AI model, Gemini 2.5, into the search algorithms and trial new features such as the ability to automatically purchase concert tickets and sift through live video feeds.


In a bold move, Google announced its re-entrance into the smart glasses sector, introducing a new version powered by Android XR. This announcement comes 13 years after the launch of Google Glass, which was withdrawn due to public privacy concerns.

While the release date and pricing for the Android XR glasses remain undisclosed, Google indicated they are being developed in collaboration with Gentle Monster and Warby Parker. These glasses will compete with offerings from platforms like Facebook’s parent Meta and Ray-Ban.

This expansion builds on a transformation initiated a year prior, introducing an “AI Overview” that is increasingly featuring at the top of the search results page, altering conventional web link rankings.

Google reports that approximately 1.5 billion users are currently engaging with the “AI Overview,” with many now inputting longer, more intricate queries.

“Our progress indicates that we are entering a new stage in the AI platform evolution, where years of research are turning into practical applications for people globally,” stated Google CEO Sundar Pichai during his address to attendees at the amphitheater near the company’s Mountain View, California headquarters.

Although Pichai and other executives suggested the AI overview would drive more searches and clicks to external sites, data from search optimization firm BrightEdge reveals that this has not yet been the case.

BrightEdge’s recent findings indicate that click-through rates from Google search results have dipped nearly 30% over the past year.

The decision to make AI modes widely available after a brief testing period underscores Google’s assurance that the technology won’t routinely disseminate misinformation, thus protecting its reputation amidst escalating competition from AI-enhanced search platforms like ChatGPT.

The swift emergence of AI alternatives is a consistent theme in legal proceedings allowing Google to dismantle parts of its internet dominance after a federal court deemed search engines a monopoly last year.

In testimony during a trial earlier this month, veteran Apple executive Eddy Cue mentioned a decrease in Google searches made via Safari on iPhones.

Google links this decline to the rise of AI, which is prompting necessary adaptations in how search engines function as technology reshapes the competitive landscape.

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Despite its increasing reliance on AI, Google appears to maintain its position as the primary gateway to the Internet, a key reason why its parent company, Alphabet Inc., boasts a market value of $2 trillion.

According to data from oneLittleweb.com, Google attracted 136 billion visits in the year ending in March.

During an interview, an Associated Press reporter inquired whether the implementation of AI modes would strengthen Google, noting the unlikelihood of AI technology causing significant harm to its search engines.


The AI mode acknowledged that its implementation is likely to enhance Google’s influence, especially regarding information accessibility and online engagement, while cautioning web publishers about potential traffic declines from search results.

Upcoming tests in Google’s Labs division aim to introduce new waves of AI technology expected to be rolled out to consumers.

These tests include features that enable AI agents to book tickets and restaurant reservations using Project Mariner Technology, as well as experiments with live video and opt-in features, granting AI access to users’ Gmail and other Google apps for increased understanding of preferences and behaviors. Furthermore, this summer’s test lineup features a “deep search” tool and a new option for creating visual presentations of sports and finance data.

Google will also offer a subscription package called “Ultra,” providing 30 terabytes of storage for $250 a month, representing a significant upgrade from its previous “Top of the Line” offer, now known as “AI Pro,” which costs $20 a month and includes just two terabytes of storage.

Source: www.theguardian.com

Prosecutors urged to step up efforts to combat revenge porn and protect victims from abusers depicted in images online

The Crown Prosecutor’s Office is planning to update its guidance on “revenge porn” crimes to ensure that explicit photos of the victim are no longer allowed to be retained.

observer reported last month that the Magistrates’ Court did not order the removal of content related to Image-based abuse cases, and prosecutors did not request such action.

An examination of court records revealed that out of 98 cases, only three resulted in deprivation orders requiring offenders to surrender their devices and delete private photos and videos.

In one case, a man was accused by a magistrate of engaging in “deeply disturbing” behavior to emotionally intimidate the victim. Despite receiving a suspended sentence, no order was issued to have him surrender his device for deletion, leaving the police without the legal authority to do so.

These findings prompted outcry from activists, demanding immediate action and stating that the failure to act left victims “living in fear.” The CPS acknowledged the need for more action to prevent these images from being used to perpetrate further crimes.

The prosecutor’s guidance on communication crimes is currently being revised. The new guidelines, released this week, urge prosecutors to utilize deprivation orders more effectively and consistently.

Prosecutors are advised to consider implementing the order early in their case strategies to strip offenders of their devices promptly and foster a more uniform approach to device confiscation from suspects from the outset.

Campaigners welcomed the change as a positive step forward.

Elena Michael from the campaign group #notyourporn commended the guidance as a helpful step but emphasized the need for further actions to be taken.

She highlighted additional areas for improvement, such as addressing issues related to evidence collection and advocating for a more comprehensive investigation process.

Furthermore, she urged clarity on whether the guidance would extend to hard drives, cloud storage, and physical devices in addition to mobile phones.

Law professor Claire McGlyn praised the updated guidance as a positive development and a step towards progress, emphasizing the importance of addressing image-based sexual abuse cases more effectively.

The Judgment Council, responsible for issuing guidance to judges and magistrates, stated that they are monitoring the government’s new intimate image law proposal and will consider necessary adjustments to guidelines once it is enacted.

Source: www.theguardian.com

Tesla’s Chairman warns that Elon Musk may step down if shareholders reject $56 billion compensation package

The chairman of Tesla has suggested that Elon Musk might leave the company if shareholders do not support his $56 billion (£44 billion) pay package, implying that Musk has other opportunities to explore. Despite the vote next week on the CEO’s compensation deal, Robin Denholm emphasized that the decision is not solely about money, as Musk will still be one of the richest individuals regardless of the outcome.

Denholm mentioned that if the June 13 vote does not go in Musk’s favor, he could potentially depart from Tesla or reduce his presence at the company. In 2018, investors approved a similar compensation plan for Musk, which was later invalidated, prompting the board to seek investors’ approval once more.

Denholm emphasized the importance of Musk’s time and energy, stating that while he has many ideas and potential endeavors, Tesla and its owners should be his primary focus. Concerns have been raised by some investors about Musk’s engagement with Tesla given his involvement in other ventures like SpaceX, xAI, and X.

Denholm clarified that the compensation package includes a provision requiring Musk to hold the Tesla shares he receives for five years before selling any of them. With Musk’s net worth at $203 billion, he is currently ranked as the third wealthiest person globally, according to Bloomberg.

ISS and Glass Lewis have advised shareholders to vote against the proposed pay package, citing excessive payouts. Despite differing opinions among major investors, Denholm stressed the need to uphold the 2018 agreement to ensure Musk’s continued dedication and commitment to Tesla.

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In a bid to streamline operations and facilitate growth, Denholm proposed relocating Tesla’s legal domicile to Texas, highlighting the state’s favorable corporate laws and potential for innovation. She noted that Texas legislators and courts are well-equipped to handle Tesla’s future endeavors effectively.

Analyst Dan Ives believes that while Musk is unlikely to leave Tesla entirely, a rejection of the compensation package could lead to his stepping down as CEO and reducing his involvement with the company over time.

Source: www.theguardian.com