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Chip challengers try to break Nvidia’s grip on AI market

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Chip challengers try to break Nvidia’s grip on AI market

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Nvidia’s rivals are mobilising in an effort to break the company’s stranglehold on the AI chip market, raising hundreds of millions of dollars and rolling out new products as they look to share the spoils of a boom in artificial intelligence technology.

Cerebras, d-Matrix and Groq are among a group of smaller companies aiming to take a slice of the multibillion-dollar AI chip market from Nvidia, which has so far dominated the first wave of investment with its graphics processing units, or GPUs.

They are riding a wave of expectation that demand for artificial intelligence “inference” — the compute power needed for models such as OpenAI’s ChatGPT and Google’s Gemini to generate responses to queries — will grow exponentially as chatbots and other generative AI applications become more popular.

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Nvidia’s Hopper GPUs, which are well suited to the highly resource-intensive task of training top AI models, have become one of the world’s hottest commodities.

Cerebras, d-Matrix and Groq are focusing instead on cheaper, more specialised chips designed for running AI models.

On Tuesday Cerebras announced its new “Cerebras Inference” platform, based on its CS-3 chip, which is the size of a dinner plate. Cerebras claims its solution is 20 times faster than Nvidia’s current generation of Hopper chips at AI inference, at a fraction of the price. Cerebras cites tests run by benchmarking analysis provider Artificial Analysis.

“The way you beat the 800lb gorilla is by bringing a vastly better product to market,” Cerebras chief executive Andrew Feldman told the Financial Times. “In my experience, better products usually win, and we’ve taken meaningful customers from [Nvidia].”

The CS-3 chip shuns the use of a separate high-bandwidth memory chip, which is used by Nvidia. Instead it offers an alternative architecture with memory built directly into the chip wafer.

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Limitations on memory bandwidth, Feldman said, are a fundamental constraint on the inference speed of an AI chip. The combination of logic and memory into a single large chip delivers results that are “orders of magnitude faster”, he said.

d-Matrix, founded by Sid Sheth in 2019, is also kicking off a new funding round less than a year after it raised $110mn in a series B funding round led by Singapore’s state-owned fund Temasek. The company is aiming to raise $200mn or more later this year or early next, according to Sheth. d-Matrix is early in the fundraising process and said the ultimate figure raised could change.

d-Matrix is planning a full-scale launch of its own chip platform, Corsair, at the end of this year. Sheth said the company was pairing its products with open software such as Triton, which competes with Nvidia’s Cuda, a widely used software platform that offers the tools for developers to build AI applications and optimises the performance of its chips.

Nvidia’s biggest customers are backing the use of open software such as Triton. “App developers don’t like to be held to one particular tool,” Sheth said, and “people are getting wise that Nvidia has a stranglehold with Cuda on the training side”.

Groq, another AI inference competitor led by a former founding member of Google’s tensor processing unit team, raised $640mn this month from investors led by BlackRock Private Equity Partners, at a valuation of $2.8bn.

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One venture capitalist cautioned that despite the hype around the sector, semiconductor start-ups had had a challenging time breaking into the market.

Chipmaker Graphcore was bought by SoftBank last month for just above $600mn, less than the roughly $700mn that the company had raised in venture capital since it was founded in 2016, according to people familiar with the deal.

Groq and Cerebras were also founded in 2016. “There has been a near insatiable desire from public investors to find and back the next Nvidia,” said Peter Hébert, co-founder and managing partner at venture firm Lux Capital. “This isn’t just about chasing the latest trend. The momentum is also benefiting several VC-funded chip start-ups that have been toiling away for nearly a decade.”

Video: AI: a blessing or curse for humanity? | FT Tech

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Top Senate Democrats push Trump-affiliated companies for answers about IRS settlement

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Top Senate Democrats push Trump-affiliated companies for answers about IRS settlement

Top Senate Democrats are pushing for answers on whether a provision in a controversial settlement agreement between President Trump and his own administration applies to companies co-founded by or affiliated with the Trump family.

As part of a deal struck in May by the Justice Department to resolve a lawsuit brought by Mr. Trump, the Internal Revenue Service is permanently barred from pursuing claims against Mr. Trump, his oldest sons Don Jr. and Eric, and the Trump Organization based on prior tax returns.

In a one-page document signed by Acting Attorney General Todd Blanche and dated May 19, the Justice Department said the defendants in the president’s lawsuit — the IRS and the Treasury Department — are “FOREVER BARRED and PRECLUDED” from “prosecuting or pursuing, any and all claims” arising from tax returns filed before the settlement took effect. Blanche also wrote that the settlement applies to “parties including trusts, parent, sister, or related companies, affiliates, and subsidiaries.”

Now, Senators Elizabeth Warren of Massachusetts, Senate Minority Leader Chuck Schumer of New York, and Ranking Member of the Senate Finance Committee Ron Wyden of Oregon are pushing 11 businesses and organizations with ties to the Trump family to get answers for the “significant questions” the settlement raises relating to the tax audit provision, and whether the companies are included in the deal.

“Under the guise of a so-called legal settlement, the Trump administration has attempted to decree that the President, his family, and their entire business empire — potentially including entities with even the vaguest ‘affiliation’ to the family — are to face zero consequences if they have committed a range of financial crimes or misdeeds — regardless of the severity of the violation,” the senators wrote in letters transmitted to the companies Monday night. 

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The letters were sent to mining company Kaz Resources, defense firm Powerus, cryptocurrency companies World Liberty Financial and American Bitcoin, robotics startup Foundation Future Industries, investment firm 1789 Capital, private aviation company Tag Air, and prediction markets Polymarket and Kalshi. 

All of the companies either were founded by Mr. Trump and his two adult sons, or list members of the Trump family as advisers, board members, or partial owners. Donald Trump Jr. sits on Polymarket’s advisory board and 1789 Capital, where he’s a partner, has invested in Polymarket. Days before Mr. Trump took office for his second term, Kalshi also announced Trump Jr. would be a strategic adviser.

The Democrats, who are in the minority, lack subpoena power, so Mr. Trump, his children and his companies can’t be forced to answer the questions posed by the senators.

According to recent financial disclosures, the president earned more than a billion dollars from cryptocurrency ventures alone last year, including from his meme coin business and World Liberty Financial, his family’s cryptocurrency firm. 

Separately, the senators also asked the Trump Organization in a separate letter if it believes it has “immunity from all audits, civil penalties or federal prosecution” for any crimes that could have occurred before the settlement.

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Trump Media and Technology Group, which is majority owned by a trust that lists Mr. Trump as the sole beneficiary and operates the Truth Social platform he uses daily, also received a letter from the Democratic senators.

“The public deserves transparency about the scope of this get-out-of-jail free card for Trump-aligned businesses, and about whether you intend to rely on this settlement as a free pass for any possible violations of the law,” the senators continued in their letter, which also seeks any communications that executives at the companies have had with the Justice Department and White House leading up to or after the settlement was signed.

The settlement was announced months after Mr. Trump and two of his sons and the Trump Organization accused the IRS and Treasury Department of unlawfully allowing a government contractor to leak tax returns to media outlets in 2020. 

In a statement, a Justice Department spokesperson said “the IRS routinely provides releases as part of resolving taxpayer reviews and audits. This settlement follows that same standard practice.” 

The spokesperson did not provide specific information about which companies are covered by the audit provision, or whether the Trump Organization and Trump family are the only entities covered by that addendum. 

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The U.S. men’s run at the World Cup ends with a 4-1 Round of 16 loss to Belgium

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The U.S. men’s run at the World Cup ends with a 4-1 Round of 16 loss to Belgium

Charles De Ketelaere #17 of Belgium celebrates after scoring his team’s second goal during the World Cup Round of 16 match against the United States on Monday in Seattle.

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SEATTLE — This time was supposed to be different.

The U.S. men’s national team came into this FIFA World Cup with a lineup full of players with key roles in Europe’s top leagues. They had the name-brand coach — Mauricio Pochettino, of Tottenham, PSG and Chelsea fame. And they had homefield advantage, with every game on U.S. soil for the first time in three decades.

For weeks, the hype seemed like it might be real: The team’s three wins over Paraguay, Australia and Bosnia-Herzegovina were the most ever by a U.S. men’s squad in a World Cup. A new generation of American fans filled stadiums by the tens of thousands and tuned in on TV by the tens of millions.

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But in the end, the Americans’ exit was the same as it ever was: Eliminated yet again in the Round of 16 at the hands of a European team — this time, Belgium, by a score of 4-1.

From the moment they stepped onto the Seattle field, the U.S. was outclassed by their opponent, No. 9-ranked Belgium. Countless turnovers and defensive lapses were seized on by the Belgians, who needed only nine minutes to take a 1-0 lead.

Then, once the Americans equalized on a free kick by midfielder Malik Tillman, Belgium scored yet again in barely a minute of play. Belgian forward Charles De Ketelaere scored both his team’s first-half goals.

After halftime, came an embarrassing nail in the coffin that silenced the Seattle sellout crowd for good — a 57th minute roll-in by Hans Vanaken after a slip-up by goalkeeper Matt Freese outside of the penalty area left the goal unguarded. Belgian forward Romelu Lukaku added a stoppage-time goal to seal the final score at 4-1.

Malik Tillman #17 of the United States celebrates scoring his team's only goal during their World Cup match against Belgium. In what was one of the few bright spots of the game, the U.S. pulled even with Belgium at 1-1. The tie lasted less than two minutes before Belgium scored again.

Malik Tillman #17 of the United States celebrates scoring his team’s only goal during their World Cup match against Belgium. In what was one of the few bright spots of the game, the U.S. pulled even with Belgium at 1-1. The tie lasted less than two minutes before Belgium scored again.

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“It stinks,” said U.S. midfielder Tyler Adams. “Tonight was not a good performance overall. It’s not what we look to achieve. There [were] a lot of things that we could have done better.”

The U.S. had entered Monday’s game under a cloud of controversy around their striker Folarin Balogun, who was shown a red card in last week’s Round of 32 match against Bosnia-Herzegovina. An automatic one-game suspension was set to sideline Balogun, the Americans’ leading scorer at the World Cup, for Monday’s game.

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Thunderstorms, heat and wind will hamper efforts to contain Colorado wildfires

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Thunderstorms, heat and wind will hamper efforts to contain Colorado wildfires

The Aspen Acres Fire burns on Friday in Rye, Colo.

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Thunderstorms with high winds on Sunday could hamper efforts to contain a massive wildfire that has scorched parts of southern Colorado.

The Aspen Acres Fire, which is burning south of Colorado Springs across Pueblo and Custer counties, has grown to more than 86,000 acres. It began nearly a week ago and is 13% contained, officials said on Sunday morning.

Authorities have ordered people to evacuate or to prepare to evacuate across counties including Custer, Pueblo, Huerfano and Fremont.

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Scattered showers and thunderstorms could hit south central and southwest Colorado on Sunday, according to the National Weather Service.

Officials and forecasters say the rain could be beneficial for firefighting but are concerned it could lead to road damage in burned areas and cause flash flooding.

“The main threats from storms will be gusty outflow winds up to 50 mph and lightning,” the NWS office in Pueblo said.

Red flag warnings and air quality alerts have also been issued across the state, with the Colorado Department of Public Health and Environment on Sunday warning residents to limit time outdoors because of heavy smoke.

Other wildfires are burning in the state, including the Ferris Fire in southwest Colorado that has grown to more than 42,000 acres and is 7% contained as of Sunday afternoon. The Gold Mountain Fire, which is also in the southwest portion of the state, has grown to more than 25,000 acres and is 0% contained as of Sunday.

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A memorial service was held on Sunday for three firefighters who were killed battling wildfires on the Colorado-Utah border on June 27: Emily Barker, Sydney Watson and Nick Hutcherson.

The firefighters, along with two others, were involved in a “burnover incident,” which happens when firefighters are overtaken and have to shelter as best they can while a fire passes directly over them, according to the Department of Interior. Two firefighters survived and were treated for burns.

Colorado Gov. Jared Polis ordered flags to fly half-staff in honor of the deceased firefighters.

“These three brave heroes ran towards the flames, put themselves in harm’s way, and gave the ultimate sacrifice to protect Coloradans, our communities and our families,” Polis said in a social media post on Sunday.

Another fire across the border in southern Utah, the Babylon Fire, has grown to more than 90,000 acres and is O% contained as of Sunday afternoon. It is expected to be hot and dry through Monday, with very little humidity, officials said, making conditions challenging for containment.

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