Guests Mihul Srivastava, FT's correspondent on the Israel-Hamas conflict, and Tim Bradshaw, global tech correspondent, dive into pressing topics. Srivastava shares insights on the new Israeli law impacting UN aid for Palestinians, emphasizing the humanitarian crisis. Meanwhile, Bradshaw discusses Arm's bold move into the AI sector, detailing its plans to lessen reliance on Nvidia and develop its own chips. The duo also touches on intriguing innovations like using African rats for wildlife conservation.
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Quick takeaways
Alphabet's recent 34% profit increase highlights the growing demand for cloud services linked to generative AI advancements.
ARM's ambition to compete in the AI sector challenges existing partnerships, potentially transforming the landscape of the chip industry.
Deep dives
Google's Surge in Cloud Computing
Google's parent company, Alphabet, reported a substantial 34% increase in profits, largely driven by the rising demand for cloud computing services. This growth is being fueled by the increasing need for data services utilized in training and operating generative AI models. Such demand has had a positive impact on Alphabet's stock, which experienced a notable rise of over 5% in after-hours trading. This trend reflects the deepening integration of artificial intelligence within big tech, indicating a future-centric approach to their business models.
Legislation Impacting UN Aid in Gaza
Recent Israeli legislation has effectively barred the UN Agency for Palestinian Refugees, known as UNRWA, from operating within Israeli territory, significantly impacting the delivery of humanitarian aid to Gaza. The Israeli government alleges that some UNRWA staff were involved in recent violence, alongside a long-standing belief that UNRWA perpetuates the refugee issue by recognizing descendants of original refugees. This legal action not only jeopardizes UNRWA's services but also complicates Israel's obligations under international law to facilitate humanitarian assistance. Critics argue that without UNRWA, no other organization can adequately fill the gap in delivering essential services to displaced populations.
ARM's Aspirations in the AI Sector
ARM, a leading chip designer, is making aggressive strides to expand its business from smartphones into the artificial intelligence domain. With plans driven by SoftBank, ARM aims to create a network of AI data centers, tapping into the burgeoning AI market. Although ARM's designs already support AI functionality in devices, its ambition raises concerns about competition with key partners like NVIDIA, who currently produces powerful chips essential for AI. This balancing act between partnership and competition could reshape the chip industry as companies seek alternatives to NVIDIA's dominance in AI technology.
Alphabet’s profit jumped 34 per cent in the third quarter, and Israel’s parliament approved legislation on Monday that will ban a UN agency for Palestinian refugees from operating within Israeli territory. The US and Taiwan are preparing to negotiate a new tax agreement, and mobile chip designer Arm may try to rival Nvidia.
The FT News Briefing is produced by Niamh Rowe, Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Joseph Salcedo. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.