Main Topic: The role of artificial intelligence (AI) in the growth of semiconductor companies in 2023, particularly AMD and Intel.
Key Points:
1. AI has boosted the fortunes of semiconductor companies by increasing the demand for chips used in data centers for training AI models and running inferencing applications.
2. The AI chip market is expected to grow at a rapid pace, generating significant revenue for chipmakers.
3. Both AMD and Intel are trying to capitalize on the AI market, but Intel currently has an advantage with its AI-focused chips already being purchased by customers and a more favorable valuation compared to AMD.
### Summary
The UK government plans to spend £100m on computer chips used for artificial intelligence (AI) in order to establish a national resource for AI in Britain. However, industry insiders believe the investment is insufficient compared to other countries' investments.
### Facts
- 📌 The UK government will spend £100m to develop computer chips for AI.
- 📌 The funds will be used to order key components from major chipmakers Nvidia, AMD, and Intel.
- 📌 The government plans to order up to 5,000 graphics processing units (GPUs) from Nvidia.
- 📌 Industry and Whitehall officials fear that the government's investment may be too low to compete globally.
- 📌 The UK accounts for only 0.5% of global semiconductor sales.
- 📌 The US has committed $52bn to the Chips Act, while the EU offers €43bn in subsidies.
- 📌 Delays in progress due to weak investment could leave the UK vulnerable amidst geopolitical tensions over AI chip technology.
- 📌 The UK government aims to establish shared standards for technology through an AI summit in the autumn.
- 📌 UK Research and Innovation (UKRI) is leading the effort to secure orders with major chip manufacturers.
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