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 TIME - Tech


What Changes to the CHIPS Act Could Mean for AI Growth and Consumers

TIME - Tech

Even as he's vowed to push the United States ahead in artificial intelligence research, President Donald Trump's threats to alter federal government contracts with chipmakers and slap new tariffs on the semiconductor industry may put new speed bumps in front of the tech industry. Since taking office, Trump has said he would place tariffs on foreign production of computer chips and semiconductors in order to return chip manufacturing to the U.S. The president and Republican lawmakers have also threatened to end the CHIPS and Science Act, a sweeping Biden administration-era law that also sought to boost domestic production. But economic experts have warned that Trump's dual-pronged approach could slow, or potentially harm, the administration's goal of ensuring that the U.S. maintains a competitive edge in artificial intelligence research. Saikat Chaudhuri, an expert on corporate growth and innovation at U.C. Berkeley's Haas School of Business, called Trump's derision of the CHIPS Act surprising because one of the biggest bottlenecks for the advancement of AI has been chip production. Most countries, Chaudhuri said, are trying to encourage chip production and the import of chips at favorable rates.


Why Amazon Web Services CEO Matt Garman Is Playing the Long Game on AI

TIME - Tech

Matt Garman took the helm at Amazon Web Services (AWS), the cloud computing arm of the U.S. tech giant, in June, but he joined the business around 19 years ago as an intern. He went on to become AWS's first product manager and helped to build and launch many of its core services, before eventually becoming the CEO last year. Like many other tech companies, AWS, which is Amazon's most profitable unit, is betting big on AI. In April 2023, the company launched Amazon Bedrock, which gives cloud customers access to foundation models built by AI companies including Anthropic and Mistral. At its re:Invent conference in Las Vegas in December, the AWS made a series of announcements, including a new generation of foundation AI models, called Nova. It also said that it's building one of the world's most powerful AI supercomputers with Anthropic, which it has a strategic partnership with, using a giant cluster of AWS's Trainium 2 training chips. TIME spoke with Garman a few days after the re:Invent conference, about his AI ambitions, how he's thinking about ensuring the technology is safe, and how the company is balancing its energy needs with its emissions targets.


Elon Musk Calls For U.S. to 'Delete Entire Agencies' From the Federal Government

TIME - Tech

Elon Musk called on Thursday for the United States to "delete entire agencies" from the federal government as part of his push under President Donald Trump to radically cut spending and restructure its priorities. Musk offered a wide-ranging survey via a videocall to the World Governments Summit in Dubai, United Arab Emirates, of what he described as the priorities of the Trump administration interspersed with multiple references to "thermonuclear warfare" and the possible dangers of artificial intelligence. "We really have here rule of the bureaucracy as opposed to rule of the people -- democracy," Musk said, wearing a black T-shirt that read: "Tech Support." He also joked that he was the "White House's tech support," borrowing from his profile on the social platform X, which he owns. "I think we do need to delete entire agencies as opposed to leave a lot of them behind," Musk said.


Digital Access Is Critical for Society Say Industry Leaders

TIME - Tech

Improving connectivity can both benefit those who most need it most and boost the businesses that provide the service. That's the case telecom industry leaders made during a panel on Feb. 11 at the World Governments Summit in Dubai. Titled "Can we innovate our way to a more connected world?", the panel was hosted by TIME's Editor-in-Chief Sam Jacobs. During the course of the conversation, Margherita Della Valle, CEO of U.K.-based multinational telecom company Vodafone Group, said, "For society today, connectivity is essential. We are moving from the old divide in the world between the haves and the have-nots towards a new divide, which is between those who have access to connectivity and those who don't."


Safety Takes A Backseat At Paris AI Summit, As U.S. Pushes for Less Regulation

TIME - Tech

Safety concerns are out, optimism is in: that was the takeaway from a major artificial intelligence summit in Paris this week, as leaders from the U.S., France, and beyond threw their weight behind the AI industry. Although there were divisions between major nations--the U.S. and the U.K. did not sign a final statement endorsed by 60 nations calling for an "inclusive" and "open" AI sector--the focus of the two-day meeting was markedly different from the last such gathering. Last year, in Seoul, the emphasis was on defining red-lines for the AI industry. The concern: that the technology, although holding great promise, also had the potential for great harm. The final statement made no mention of significant AI risks nor attempts to mitigate them, while in a speech on Tuesday, U.S. Vice President J.D. Vance said: "I'm not here this morning to talk about AI safety, which was the title of the conference a couple of years ago. I'm here to talk about AI opportunity."


AI Companion App Replika Faces FTC Complaint

TIME - Tech

Tech ethics organizations have filed an FTC complaint against the AI companion app Replika, alleging that the company employs deceptive marketing to target vulnerable potential users and encourages emotional dependence on their human-like bots. Replika offers AI companions, including AI girlfriends and boyfriends, to millions of users around the world. In the new complaint, the Young People's Alliance, Encode, and the Tech Justice Law Project accuse Replika of violating FTC rules while increasing the risk of users' online addiction, offline anxiety, and relationship displacement. Replika did not respond to multiple requests for comment from TIME. The allegations come as AI companion bots are growing in popularity and raising concerns about mental health.


DeepSeek Has Rattled the AI Industry. Here's a Look at Other Chinese AI Models

TIME - Tech

The Chinese artificial intelligence firm DeepSeek has rattled markets with claims that its latest AI model, R1, performs on a par with those of OpenAI, despite using less advanced computer chips and consuming less energy. DeepSeek's emergence has raised concerns that China may have overtaken the U.S. in the artificial intelligence race despite restrictions on its access to the most advanced chips. Like the U.S., China is investing billions into artificial intelligence. Last week, it created a 60 billion yuan ( 8.2 billion) AI investment fund, days after the U.S. imposed fresh chip export restrictions. Beijing has also invested heavily in the semiconductor industry to build its capacity to make advanced computer chips, working to overcome limits on its access to those of industry leaders.


DeepSeek and ChatGPT Answer Sensitive Questions About China Differently

TIME - Tech

Chinese tech startup DeepSeek's new artificial intelligence chatbot has sparked discussions about the competition between China and the U.S. in AI development, with many users flocking to test the rival of OpenAI's ChatGPT. DeepSeek's AI assistant became the No. 1 downloaded free app on Apple's iPhone store on Tuesday afternoon and its launch made Wall Street tech superstars' stocks tumble. Observers are eager to see whether the Chinese company has matched America's leading AI companies at a fraction of the cost. The chatbot's ultimate impact on the AI industry is still unclear, but it appears to censor answers on sensitive Chinese topics, a practice commonly seen on China's internet. In 2023, China issued regulations requiring companies to conduct a security review and obtain approvals before their products can be publicly launched.


What to Know About DeepSeek, the Chinese AI Company Causing Stock Market Chaos

TIME - Tech

A new Chinese AI model, created by the Hangzhou-based startup DeepSeek, has stunned the American AI industry by outperforming some of OpenAI's leading models, displacing ChatGPT at the top of the iOS app store, and usurping Meta as the leading purveyor of so-called open source AI tools. All of which has raised a critical question: despite American sanctions on Beijing's ability to access advanced semiconductors, is China catching up with the U.S. in the global AI race? At a supposed cost of just 6 million to train, DeepSeek's new R1 model, released last week, was able to match the performance on several math and reasoning metrics by OpenAI's o1 model โ€“ the outcome of tens of billions of dollars in investment by OpenAI and its patron Microsoft. The Chinese model is also cheaper for users. The upshot: the U.S. tech industry is suddenly faced with a potentially cheaper and more powerful challenger, unnerving investors, who sold off American tech stocks on Monday morning.


How We Connected One Billion Lives Through Digital Technology

TIME - Tech

In an increasingly digital world, connectivity is a necessity. Yet, nearly a third of the global population remains offline, unable to access the services vital to participating in our global digital economy and society. The Edison Alliance at the World Economic Forum has worked to change that by delivering digital connectivity and access to financial, healthcare, and education services to those who need them most. Our partnerships with governments, industries, and non-governmental organizations drive lasting systemic change. The World Economic Forum played a pivotal role in launching and guiding the Alliance's work, providing a platform for stakeholders to come together and commit to a vision with actionable ideas and plans.