💻 TSMC's Arizona Triumph, 💎 AI's Desktop Dominion, and ⚡ NYSE's 22-Hour Day
Thomas's Innovation Wrap #101
Greetings,
Here’s your weekly wrap of technology, innovation, and finance news.
💻 Chips and Computing
TSMC's Arizona plant is now outperforming its Taiwanese counterparts. Production yields are about 4 percentage points higher, marking a significant milestone in the company’s ability (and willingness) to replicate its domestic success abroad.
Though it's still early days, this success could potentially lessen Taiwan's strategic importance to the US in chip production, subtly influencing US-China relations. TSMC's commitment to its Arizona operations is matched by substantial US government support: $6.6 billion in grants and $5 billion in loans, plus 25% tax credits.
"Our first fab entered engineering wafer production in April with 4-nanometer process technology, and the result is highly satisfactory, with a very good yield," he said at the time. "This is an important operational milestone for TSMC and our customers, demonstrating TSMC's strong manufacturing capability and execution."
NVIDIA continues to expand globally, powering AI infrastructure in India and exploring significant investments in Thailand. In India, the tech giant is supplying tens of thousands of AI chips to power "AI factories", while in Thailand, CEO Jensen Huang is set to announce investment plans during a visit to Bangkok in December.
Intel has reportedly approached Samsung for a "foundry alliance" to challenge TSMC's 62% market share. This collaboration could involve exchanging technologies and jointly developing new ones.
According to recent data released by research institutions, in the second quarter of 2024, TSMC holds approximately 62% of the foundry market share, while Samsung accounts for about 12%. In advanced process technologies such as 3nm and 5nm, TSMC's market share exceeds 90%.
Qualcomm's new Snapdragon 8 Elite performs up to 47% better than other Android flagship chipsets in Geekbench 6 multi-core tests. The chip features enhanced neural processing capabilities for on-device AI applications.
🌞 Energy
Amazon is investing $500 million in X-energy to develop small modular reactors (SMRs). This follows a $650 million deal for nuclear power in Pennsylvania.
"We have strong conviction that nuclear power is the most economical and credible path to scale carbon free energy to meet the next decade's rapid capacity growth," the company's energy strategy team wrote.
The US is also discussing SMR deployment with Southeast Asian nations.
Unlike traditional nuclear reactors, which are enormous facilities that take years to construct, SMRs are much smaller and can be built at factories, delivered by truck or train, then assembled on-site, saving time and money.
Pacific Fusion Corp, a startup developing nuclear fusion-based energy technology, has raised $900 million in its Series A round.
"Fusion could be the ideal power source — emitting no CO2, requiring far less materials and land than other power sources, and offering billions of years of near-free, globally accessible fuel," they wrote.
Other clean energy solutions are progressing alongside nuclear. Morgan Stanley has partnered with Climeworks to remove 40,000 tons of CO2 from the atmosphere, while the US government approved a massive lithium mine in Nevada, set to power 370,000 EVs annually by 2028.
"This is a science-based decision," Laura Daniel-Davis, the Interior Department's acting deputy secretary, told Reuters. "We're trying to send a signal that there's no topic with greater importance than addressing climate change."
The AFR profiled Australian company 5B, which can build solar farms up to 10 times faster than traditional methods. Their innovative "accordion-like" arrays are gaining traction in the mining sector.
"Depending on the job, it's probably closer to 10 times faster," Griffin says of the construction speed.
We've written a lot about the power needs of AI and big tech's newfound interest in nuclear. For a comprehensive overview of the situation, this 25-minute video from Patrick Boyle provides an excellent summary of Big Tech's nuclear ambitions and the broader energy landscape.
💊 Health
The Economist writes that receptor agonists like Ozempic and Wegovy are among the most important drug breakthroughs ever. Beyond diabetes and weight loss, these molecular Swiss Army knives show promise in treating cardiovascular disease, addiction, and more.
As they look for answers, scientists are finding surprising details about the many roles of GLP-1 hormone. These drugs seem to activate basic protective mechanisms in cells, such as reducing inflammation and clearing out junk, thereby keeping organs healthier. They also have powerful effects on the brain, through which they can both further influence the health of the rest of the body, and even affect behaviour.
Novo Nordisk's latest pill, Rybelsus, has even demonstrated a 14% reduction in heart attacks and strokes for diabetic patients.
"Approximately one in three adults with type 2 diabetes also have cardiovascular disease; therefore, it is crucial to have therapies that can address both conditions," said Martin Holst Lange, executive vice president and head of Development at Novo Nordisk.
RNA editing is emerging as a promising treatment for genetic diseases, offering a potentially safer alternative to DNA-based therapies.
"RNA editing is "not a replacement for CRISPR. It's another weapon against disease," says bioengineer Jonathan Gootenberg of Harvard Medical School, whose lab has developed novel approaches for modifying RNA.
In wound care, a new electric skin patch could zap bacteria, potentially reducing reliance on antibiotics.
Antibiotics can prevent and treat these infections, but this has led to antibiotic-resistant strains of S. epidermidis emerging. Looking for another approach, Bozhi Tian at the University of Chicago and his colleagues considered the potential of electrical pulses, which have previously been shown to kill bacteria.
A study on fasting in mice revealed both benefits and risks for gut health. While it can boost intestinal stem cell regeneration, it may also increase the risk of precancerous growths during refeeding.
"Having more stem-cell activity is good for regeneration, but too much of a good thing over time can have less favorable consequences," says Omer Yilmaz, an associate professor of biology and the senior author of the study.
🔬 Biology
Researchers have supercharged DNA data storage, encoding information 350 times faster than previous methods. By mimicking natural methylation processes, the team at Peking University has turned DNA into a high-speed hard drive, potentially ushering in an era of "desktop DNA printers" for long-term data storage.
"A good analogy is using a typewriter, where you have to type each letter, versus printing," says Harris Wang at Columbia University in New York, who wasn't involved with the work.
Researchers at the University of Copenhagen are championing the use of bioacoustics and AI to monitor animal populations. This non-invasive approach could revolutionise biodiversity studies, allowing scientists to eavesdrop on ecosystems without disturbance. The method has already shown promise in identifying 34 out of 39 bird and frog species in dense tropical forests.
"The method makes it possible for us to distinguish animal sounds from one another and detect species in densely forested areas or underwater, where cameras, for example, are often impractical," explains Postdoctoral researcher Jeppe H. Rasmussen from the Department of Biology, one of the researchers behind the article.
🤖 Robotics
Cornell University engineers have created robots powered by mushrooms. Using voltage spikes generated by king oyster mushrooms' mycelial threads when exposed to UV light, they controlled both wheeled and hopping robots. This innovative approach expands the toolbox for biohybrid machines beyond traditional animal tissue.
"We really had no idea where to start," Mishra explains, "because these robots were the first of their kind."
Agility Robotics is nearing a $150 million funding deal, potentially valuing the company at about $1 billion. Agility's robots are already working in warehouses for companies like Amazon and Spanx, making it one of the few humanoid robot firms with machines performing useful tasks for customers.
The cash influx comes as Agility prepares to roll out its fourth generation of robot, which helps businesses stock and manage inventory in warehouses.
This funding is part of a broader surge in robotics investment, with companies like Figure AI and 1X Technologies also securing significant capital.
💎 Artificial Intelligence
Anthropic has introduced a new "Computer Use" feature that allows its AI to interact with and control computers, potentially giving users "superpowers" in terms of productivity and task completion. This development comes alongside the release of Claude 3.5 Sonnet (new), an updated version of their AI model. The ability for AI to directly manipulate computer interfaces marks a significant step towards more autonomous and capable AI assistants.
Claude has the ability to “see” a screen via screenshots, adapt to different tasks and move across workflows and software programs. It can also navigate between multiple screens, apps and tabs, open applications, move cursors, tap buttons and type text.
Microsoft is introducing autonomous AI agents for tasks such as handling client queries and identifying sales leads. The company's Copilot Studio product, launching next month, allows customers to build their own AI agents or use pre-built ones for roles including supply chain management and customer service. Early adopters include McKinsey, Clifford Chance, and Pets at Home.
"Think of agents as the new apps for an AI-powered world. Every organization will have a constellation of agents-ranging from simple prompt-and-response to fully autonomous," Microsoft Chief Marketing Officer Jared Spataro explained.
Google is set to preview AI technology that can take over a web browser to complete complex tasks such as research and shopping. This demonstration, expected as soon as December, showcases another example of AI directly controlling computer interfaces to enhance user capabilities.
Google is set to demonstrate the product as soon as December with the release of its next flagship Gemini large language model, the publication said, citing people with direct knowledge of the effort code-named Project Jarvis.
In the financial sector, Morgan Stanley is expanding AI chatbots in its investment banking and trading division. The firm has introduced AskResearchGPT, an AI assistant based on OpenAI's technology, to help staff access insights from the bank's extensive research reports more efficiently. The tool is particularly useful for salespeople and client-facing staff, reportedly reducing the time to respond to client inquiries by 90%.
"We see it as a game changer from a productivity standpoint, both for our research analysts and our colleagues across institutional securities," Huberty said in an interview. The tool helps staff "access the highest quality, most insightful information as efficiently as possible."
Chipotle, a major US-based Mexican fast-food restaurant chain, has introduced a new AI recruiter aims to reduce hiring time by up to 75%. The virtual recruiter, named Ava Cado, will be available across Chipotle's North American and European locations by the end of the month. It can collect applicant information, answer questions, book meetings, and send offers to candidates selected by human managers.
Canva has unveiled new AI tools including Dream Lab, which allows users to generate images with text prompts in various preset styles. Canva has also seen significant growth, adding 75 million users to reach 200 million total and increasing revenue to $2.5 billion annually.
So AI has been used 10 billion times now on the platform. It's been used very heavily. But what we hadn't catered to until right now is if people just wanted to create an underwater tree house, then you previously would have to go into a presentation before you can create something like that.
Google's NotebookLM has experienced rapid adoption since adding AI-narrated podcasts. The tool, which organises notes and source data into chat responses and annotated documents, saw a nearly 300% increase in traffic after introducing the podcast feature in September. NotebookLM attracted 10.5 million visits in September, with users spending an average of 6.4 minutes per visit.
In the healthcare sector, Novo Nordisk has partnered with Nvidia for AI-driven drug discovery. The collaboration involves using a new Nvidia-powered supercomputer called Gefion, which will be used by researchers from Novo Nordisk and other Danish pharmaceutical companies. The supercomputer, weighing 30 tons and using 65 kilometres of cable, is intended to accelerate AI adoption for drug discovery and improve clinical trial designs.
"Computer-aided drug discovery, I think that's going to revolutionize the industry," Huang said at the event.
OpenAI is planning to release Orion, its next major AI model, by December. The model is seen as a successor to GPT-4 and has been described as potentially more powerful.
Unlike the release of OpenAI's last two models, GPT-4o and o1, Orion won't initially be released widely through ChatGPT. Instead, OpenAI is planning to grant access first to companies it works closely with in order for them to build their own products and features, according to a source familiar with the plan.
Elon Musk's xAI has launched its Grok API, though it is currently in a basic form. The API offers a single model, "grok-beta", priced at $5 per million input tokens or $15 per million output tokens.
Grok has what Musk has described as "a rebellious streak" — a willingness to answer "spicy questions that are rejected by most other AI systems." Told to be vulgar, for example, Grok will happily oblige, spewing profanities and colorful language you won't hear from ChatGPT.
Arm CEO Rene Haas predicts AI will transform the world faster than the internet. Haas stated:
"The difference, I would say, between the internet of 1990 to now and AI to 30 years later is that it's not going to take that long. It's going to happen much, much faster, probably five to 10 years."
The AFR reports that the founder of ASX-listed Mad Paws is now selling DIY AI "girlfriends".
Documents obtained by The Australian Financial Review reveal Candy.AI made $US1.1 million in revenue in the first three months after launching, and had a gross margin of 75 per cent. Its annual recurring revenue surpassed $25 million for the 2024 financial year, according to sources familiar with the company's progress not authorised to speak publicly.
💲 Finance
The New York Stock Exchange has announced plans to extend NYSE Arca trading to 22 hours a day, from 1:30 a.m. to 11:30 p.m. Eastern Time. This move aims to meet growing demand and compete with alternative trading platforms, potentially impacting earnings handling and trading desk hours. (Welcome to the life of a global investor, where a stock exchange is open somewhere 23 hours per day.)
"The NYSE's initiative to extend U.S. equity trading to 22 hours a day, 5 days a week underscores the strength of our U.S. capital markets and growing demand for our listed securities around the world," said Kevin Tyrrell, head of markets at the NYSE.
Waymo, Alphabet's autonomous driving unit, has secured a $5.6 billion Series C funding round, led by Alphabet and top Silicon Valley investors. This cash injection will fuel Waymo's expansion and technology development. The company now averages 100,000 paid weekly trips, a tenfold increase from 2023.
"While AI is only just beginning to capture the public imagination, Waymo has been working to bring its endless possibilities to the world of physical transportation for years," said Silver Lake co-CEO Egon Durban.
Chinese self-driving startup WeRide made its Nasdaq debut, with shares rising 6.7% on day one. The IPO raised $440.5 million, valuing the company at over $4 billion, despite increased scrutiny of Chinese autonomous vehicle technology in the US.
"China's IPO market is perhaps not able to accommodate high-risk, high-return companies outside of a few sectors that have been identified as strategic imperatives," said Drew Bernstein, co-chair of MarcumAsia, an accounting firm providing audit and advisory services to companies throughout Asia.
The US Consumer Financial Protection Bureau has unveiled “open banking” rules to boost competition and consumer control over financial data. These regulations will govern bank-fintech relationships, potentially reshaping the financial services landscape.
"A company that ingests a consumer's data can use the data to provide the product or service the consumer asked for, but not for unrelated purposes the consumer doesn't want," he said in a speech at a financial technology event held by the Federal Reserve Bank of Philadelphia.
🔋 Batteries
CATL, the world's largest EV battery maker, is making waves with its new Freevoy Super Hybrid Battery. Boasting a 400 km all-electric range and ultra-fast 4C charging, it aims to deliver an EV-like experience without the range anxiety.
In the solid-state battery arena, Stellantis is preparing to road test a fleet of EVs using Factorial Energy's cells. This real-world testing is a crucial step towards potentially safer, longer-range EVs, though mass production isn't expected until 2029.
"This is a very critical step for them to test in a real-world condition," Siyu Huang, chief executive officer at Factorial Energy, said.
⚡ Other Snippets
Startups like Air Protein and Solar Foods are creating protein from thin air, using bacteria to convert CO2 into nutritious powders.
"We are liberating food production from the constraints of agriculture," says Juha-Pekka Pitkänen, cofounder and CTO of Solar Foods.
Defence companies are accelerating the development of laser weapons to counter the threat of cheap drones and missiles. Major players like RTX, MBDA, and QinetiQ are investing heavily in this technology, which promises to offer a more cost-effective defence solution. The UK's DragonFire laser, capable of hitting targets with remarkable precision at just £10 per shot, is set to be deployed on Royal Navy ships by 2027, five years ahead of schedule.
"It is ultimately not economically sustainable to shoot down a $100 or $1,000 drone with a $1mn plus interceptor," said James Black, defence researcher at Rand Europe, a non-profit research institute.
Walmart plans to offer 30-minute prescription deliveries alongside groceries, competing with Amazon's pharmacies and retailers like CVS. Walmart Plus members get free delivery, while others pay $9.95 for the speedy service.
Walmart's move comes a couple of weeks after Amazon announced plans to open pharmacies offering same-day delivery options across 20 new U.S. cities in 2025.
Tesla is reportedly testing a robotaxi service in the Bay Area, with plans to launch in California and Texas in 2025.
"All Tesla Cars Being Produced Now Have Full Self-Driving Hardware," and in the following years made it seem that it would only take the flip of a switch to fill the streets with self-driving cars.
Google Research has been working on "a new class of interactive experiences that we call generative infinite games" where game mechanics and graphics are provided by generative AI (see the paper).
We are making a bet that in the future most games will be entirely generated, and that generative game engines allow for things that traditional game engines do not. We know that LLMs exhibit emergent behavior, and we think this translates to games.
Have a great week,
Thomas
About Thomas Rice
Thomas Rice co-founded Minotaur Capital, a technology-driven, AI-led global equities fund, and is based in Sydney, Australia. He can be found on the X at @thomasrice_au.