From Europe to China and much more
This week we start with a deal in EU before moving to China's chip-making. While server life extension raises profits for Big Tech, we explore how AI enables visually-impaired individuals to "see"
The compromise with Hungary that led to approval of the EU’s €50bn package for Ukraine
European leaders averted a major crisis in early February, securing a €50 billion financial support package for Ukraine after Hungarian Prime Minister Viktor Orbán withdrew his veto.
Initially, Orbán's resistance threatened an "irreparable rupture" within the bloc, as Ukraine desperately needed aid to combat Russia's invasion and maintain economic stability.
Negotiations yielded three key concessions to Orbán:
Annual reports by the European Commission on how the aid is used.
Leader-level debate on aid implementation.
Potential review of the budget after two years.
Additionally, EU leaders reaffirmed fair and objective rule-of-law assessments, potentially impacting frozen EU funds for Hungary.
This concession appeased Orbán, securing his approval. This is because the earlier 2020 text indicated rule-of-law issues, which would have potentially frozen the €6.3 billion of EU funds marked for Hungary.
China defying US curbs in chip making
Defying US efforts to curb their technological advancement, China's leading chipmakers are poised to produce next-generation smartphone processors in 2024.
Semiconductor Manufacturing International Corporation (SMIC), China's largest chipmaker, has established new production lines in Shanghai specifically for mass-producing processors designed by tech giant Huawei.
SMIC intends to leverage its existing stockpile of US and Dutch-made equipment to manufacture these more advanced 5-nanometer chips.
These chips, known as Kirin and developed by Huawei's HiSilicon unit, are destined for upcoming premium smartphone models.
While they represent a generation behind the current cutting-edge 3nm chips, their production signifies continued progress within China's semiconductor industry.
This development comes despite tightened export restrictions on advanced chipmaking equipment imposed by the Biden administration in October 2023.
The US, citing national security concerns, has implemented tighter restrictions on advanced chipmaking equipment exports, partnering with the Netherlands and Japan to limit China's access to cutting-edge technology.
The Dutch government recently revoked an export license for some of the most advanced equipment, effectively blocking sales to China by Dutch manufacturer ASML.
Change in server life estimate leads to additional profits for the Big Tech companies
Major technology companies enjoyed a combined profit boost of nearly $10 billion over the past two years, thanks to an accounting tweak.
The change involves increasing the estimated lifespan of their servers, resulting in lower depreciation charges and higher reported earnings.
This adjustment stems from a standard financial practice where companies estimate the usable life of their assets to calculate depreciation, which impacts their annual profit statements.
By extending the servers' assumed lifespan, the depreciation expense decreases, leading to an immediate increase in reported profits.
This strategy offers potential benefits beyond the initial profit boost. If the servers indeed perform effectively for an extended period, it translates to reduced future expenditure.
This financial cushion becomes particularly valuable in light of the significant investments anticipated in emerging technologies like generative artificial intelligence.
Alphabet, Google's parent company, saw a $3.9 billion reduction in depreciation costs in 2023 after extending server and network equipment life from 4-5 years to 6 years. This decision resulted in a $3 billion net income boost for the year.
By extending server life to 6 years from 4, Microsoft raised its net income by $3 billion in 2023.
Meta, the owner of Facebook, Instagram, and WhatsApp, cut depreciation expenses by $860 million in 2022, translating to a $693 million net income increase.
Amazon's net income improved by $2.8 billion in 2022 due to a $3.6 billion depreciation reduction achieved by extending server life from 4 to 5 years.
Overall, the decision to extend server life has delivered a significant profit boost for Big Tech companies, potentially freeing up resources for future investments.
AI enables visually impaired individuals to “see”
Researchers at a Singapore university have made significant strides in assistive technology with the development of AiSee, a groundbreaking device that combines bone conduction headphones with a micro camera and powerful artificial intelligence (AI).
This innovative system empowers users to gain information about their surroundings through both auditory and visual channels, enhancing accessibility and independence for individuals with visual impairments.
At the heart of AiSee lies a micro camera capturing the user's field of vision. This captured data is then processed by a sophisticated "vision engine," essentially an AI software trained to identify and extract information from objects within the camera's line of sight.
Text, logos, and labels are seamlessly recognized, offering real-time insights into the user's environment.
But AiSee goes beyond simple image recognition. Bone conduction headphones, a key component of the system, ensure users remain aware of their surroundings while simultaneously receiving information from the device through clear, spoken messages. This unique dual-channel communication allows for uninterrupted interaction with the external world while leveraging the power of AI.
Through integrated text-to-speech and speech-to-text capabilities, AiSee fosters intuitive interaction with the user.
When encountering an object of interest, a simple scan triggers cloud-based algorithms, akin to an information repository similar to OpenAI, to analyze the captured data and provide relevant answers to the user's queries.
This intelligent system offers not just object identification but also contextual information, empowering users to confidently navigate their surroundings and gain a deeper understanding of their world.
In conclusion, AiSee represents a major advancement in assistive technology. By seamlessly integrating vision and audio with the power of AI, this innovative device opens doors to greater independence and information access for individuals with visual impairments, paving the way for a more inclusive and connected future.