Musk's $25 Bn Terafab Project To Make AI Chips For xAI, SpaceX & Tesla; Snowflake Cuts Jobs

Kind: captions Language: en getting you the latest now from the world of tech in our new offering, the AI pel. Rashna is here with more on this. Rashna, >> well the AI story is now shifting from models to control and control of chips, infrastructure and how work itself gets done. And that's exactly what Nvidia had acknowledged last week at GTC, the full stack, and now it's Musk. Elon Musk's Terrafab plan captures that shift. a fully integrated chip facility spanning design to fabrication aimed at solving supply constraints but at up to $25 billion with no manufacturing track record and outside Tesla's current capex the risks are as large as the ambition the bigger picture here is that vertically integration uh is what Musk thinks it will be the future of the AI ecosystem we'll have to see how that pans out but at the same time the US is tightening control on the very chips today the indictment of three executives of Super Micro in a $2.5 billion scheme to smuggle Nvidia AI servers into China. This was using rrooting and fake audits. But the message here is very clear from the policy makers. Licensed access may be allowed, but any attempt to bypass export controls will be treated as a serious federal crime. Then on the infrastructure side, OpenAI is now scaling back and it is moving away from owning data centers under Stargate and now is leaning on partners instead. Now this we've seen over the last few weeks that O at OpenAI the discussion is about focusing and centering themselves amid the uh rising competition and now this has come into their data center plans as IPO is the central most uh aim for the company depending on the future expansion as well. But talking of the companies, inside the companies, the shift is already quite visible. Snowflake has cut roles in documentation and go to market teams. This is while doubling down on AI hiring. Just last week, they announced a partnership with Open AI. And at the same time, they're cutting down jobs. So, this is a clear indication of where the industry is heading when it comes to talent. And at the top, Mark Zuckerberg is now building an AI agent to assist with his own role as the chief executive officer. This again indicates that decision making itself is being compressed using AI with implications for organizational layers below. So we'll have to see how it affects talent if not job cuts. There's definitely some few layers that are getting uh removed at the top. But add geopolitics to all of this as Tim Cook is now in China trying to balance Apple's growth against rising regulatory pressure in the country and US alignment. So all of this together we're talking about full stack AI talent uh getting rearranged and rrooting and then there is geopolitics to this mix. Rashna, thank you for summarizing that for