ReportWire

Tag: AI infrastructure

  • Google Exec Claims Company Needs to Double Its AI Serving Capacity ‘Every Six Months’: Report

    Tech companies are racing to build out their infrastructure as their increasingly resource-intensive AI products gobble up capacity, clean out chipmakers’ supply, and require more power. Google, once dubbed the “King of the Web,” is one of those companies, and a high-level exec for The Big G is reported to have told staff that the company needs to scale up its serving capabilities exponentially if it wishes to keep up with the demand for its AI services.

    CNBC got its hands on a recent presentation given by Amin Vahdat, VP of Machine Learning, Systems, and Cloud AI at Google. The presentation includes a slide on “AI compute demand” that asserts that Google “must double every 6 months…. the next 1000x in 4-5 years.”

    “The competition in AI infrastructure is the most critical and also the most expensive part of the AI race,” Vahdat reportedly said at the all-hands meeting where the presentation took place. Google’s “job is of course to build this infrastructure, but it’s not to outspend the competition, necessarily,” he added. “We’re going to spend a lot,” he said, in an effort to create AI infrastructure that is “more reliable, more performant and more scalable than what’s available anywhere else.”

    Since CNBC’s story was published, Google has quibbled with the reporting. While CNBC originally quoted Vahdat as saying that the company would need to “double” its compute capacity every six months, a Google spokesperson told Gizmodo that the executive’s words were taken out of context. The spokesperson further explained that Vahdat “was not talking about a capital buildout of anything approaching the magnitude suggested. In reality, he simply noted that demand for AI services means we are being asked to provide significantly more computing capacity, which we are driving through efficiency across hardware, software, and model optimizations, in addition to new investments.” 

    CNBC has since updated its reporting from “compute” to “serving” capacity. Serve capacity would refer to Google’s ability to handle a rising tide of user requests, while compute capacity woud refer to the company’s overall infrastructure dedicated to AI, including what is needed to train new models and other expenditures. When asked for further clarification about the difference between the two, the spokesperson said that the original headline “read as if he was implying that we are doubling the amount of compute we have — either measured by the # of chips we operate or the amount of MW of electricity.” Instead, “the capacity increases Amin described will be reached in a number of ways, including new more capable chips and model efficiency and optimization,” they added.

    Whatever’s happening under the hood, it would appear that Google—like its competitors—needs to scale up its operations to support its nascent AI infrastructure business. Vahdat’s comments come not long after the tech giant reported some chunky profits from its Cloud business, with the company announcing it plans to ramp up spending in the coming year.

    During his presentation, Vahdat also reportedly claimed that Google needs to “be able to deliver 1,000 times more capability, compute, storage networking [than its competitors] for essentially the same cost and increasingly, the same power, the same energy level.” He admitted that it “won’t be easy” but said that “through collaboration and co-design, we’re going to get there.”

    The race to build data centers—or “AI infrastructure” as the tech industry calls it—is getting crazy. Like Google, Microsoft, Amazon, and Meta all claim they are going to ramp up their capital expenditures in an effort to build out the future of computing (cumulatively, Big Tech is expected to spend at least $400 billion in the next twelve months). As these facilities go up, they are causing all sorts of drama in the communities where they reside. Environmental and economic concerns abound. Some communities have begun to protest data center projects—and, in some cases, they’re successfully repelling them. Still, given the sheer amount of money invested in this industry, it will be an ongoing fight for Americans who don’t want the AI colossus in their backyards.

    Lucas Ropek

    Source link

  • LIVE: Trump and Starmer sign tech deal before holding private talks on tariffs and war

    President Donald Trump on Thursday signed what he called a historic agreement on science and technology with Britain as United Kingdom officials who have gone all out to impress him with royal pageantry during his state visit now try to deliver key trade and business deals that can further their country’s interests.Watch a livestream of a press conference between Trump and Starmer in the video player above.Trump and Prime Minister Keir Starmer held a roundtable with business leaders as they signed the deal. They also had private meetings where the wars in Ukraine and Gaza and tariff rates the U.S. may set on steel imported from Britain were expected to be discussed. A joint news conference was coming up.At the signing ceremony for an agreement meant to promote tech investment in both nations, Starmer referred to the American president as “my friend, our friend” and spoke of “leaders who respect each other and leaders who genuinely like each other.” The event took place at Chequers, a 16th-century manor house northwest of London that serves as a rural retreat for British leaders.The British charm offensive continued after King Charles III and Queen Camilla had feted Trump and first lady Melania Trump at Windsor Castle, on Wednesday. The royals used the first of the Trump’s two-day state visit to offer all the pomp the monarchy can muster: gold-trimmed carriages, scarlet-clad soldiers, artillery salutes, a glittering banquet in a grand ceremonial hall and the biggest military honor guard ever assembled for such a state visit.Trump has seemed grateful for all the attention — so much so that he has largely stuck to script and offered little of his typical off-the-cuff criticism of hosts.Still, he had his moments. Trump joked with his treasury secretary, Scott Bessent, and commerce secretary, Howard Lutnick, as he signed the tech deal, “Should I sign this Howard? Scott? If the deal’s no good I’m blaming you.”After bidding goodbye to the king and queen at Windsor — Trump called the monarch “a great gentleman, and a great king” — the Trumps flew by helicopter some 20 miles (32 kilometers) to Chequers. The Republican president was welcomed by ceremonial honor guard complete with bagpipers — a nod to Trump’s Scottish heritage — and shown items from the archive of wartime leader Winston Churchill, who coined the term “special relationship” for the bond between the allies.It’s a point that Trump’s British hosts have stressed, almost 250 years after that relationship endured a rocky start in 1776.Trump told business leaders at a reception at Chequers that the two countries shared an “unbreakable bond.” Starmer said that relationship “is the very foundation of our security, our freedom and our prosperity.”Trans-Atlantic tech partnershipTo coincide with the visit, Britain said U.S. companies had pledged 150 billion pounds ($204 billion) in investment in the U.K, including 90 billion pounds ($122 billion) from investment firm Blackstone in the next decade. Investment will also flow the other way, including almost $30 billion by pharmaceutical firm GSK in the U.S.At the reception, attended by tech bosses including Nvidia CEO Jensen Huang and U.S. officials such as Lutnick and Secretary of State Marco Rubio, Starmer said it was “the biggest investment package of its kind in British history by a country mile.”U.K. officials say the deal will bring thousands of jobs and billions in investment in artificial intelligence, quantum computing and nuclear energy. It includes a U.K. arm of Stargate, a Trump-backed AI infrastructure project led by OpenAI, and a host of AI data centers around the U.K. American companies are announcing 31 billion pounds ($42 billion) in investment in the U.K.’s AI sector, including $30 billion from Microsoft for protects including Britain’s largest supercomputer.British officials say they have not agreed to scrap a digital services tax or water down internet regulation to get the deal, some details of which have yet to be announced.The British government is learning that when it comes to deals with Trump’s team, the devil is in the details. In May, Starmer and Trump struck a trade agreement that reduced U.S. tariffs on Britain’s key auto and aerospace industries.But talks on slashing duties on steel and aluminum to zero from their current level of 25% have stalled, despite a promise in May that the issue would be settled within weeks.The British Chambers of Commerce said failure to cut the tariffs would be “greeted with dismay” by the British steel industry.Difficult discussions on Ukraine, Middle EastIn the private talks, difficult conversations were expected about Ukraine and the Middle East.The British government has grown increasingly critical of Israel’s conduct of the war in Gaza and the suffering of Palestinian civilians, calling Israel’s latest Gaza City offensive “utterly reckless and appalling.” Starmer has said the U.K. will formally recognize a Palestinian state this month, potentially within days. Trump has threatened to penalize Canada during trade negotiations for making a similar move.Starmer also has played a major part in European efforts to shore up U.S. support for Ukraine. Trump has expressed frustration with Russian President Vladimir Putin but has not made good on threats to impose new sanctions on Russia for shunning peace negotiations. On Tuesday, Trump appeared to put the onus on Ukrainian President Volodymyr Zelenskyy, saying, “He’s going to have to make a deal.”The king gave Trump a gentle nudge in his state banquet speech on the strength of the trans-Atlantic relationship. Charles noted that “as tyranny once again threatens Europe, we and our allies stand together in support of Ukraine, to deter aggression and secure peace.”Potentially awkward Epstein questionsStarmer will be bracing for awkward questions from the media about Jeffrey Epstein. Days before the state visit, Starmer fired Britain’s ambassador to the U.S., Peter Mandelson, over the envoy’s past friendship with the convicted sex offender, who authorities say killed himself in 2019.Fourteen months after winning a landslide election victory, Starmer’s government is struggling to kickstart Britain’s sluggish economy and his Labour Party is lagging in the polls. Starmer wants a successful state visit to balance weeks of bad news.Leslie Vinjamuri, president of the Chicago Council on Global Affairs, said Trump’s trip was likely to be “a difficult visit for the prime minister, much more so than for the U.S. president.”For Trump, “this plays well at home, it plays well abroad. It’s almost entirely to President Trump’s advantage to turn up to Britain and be celebrated by the British establishment,” she said.

    AYLESBURY, England —

    President Donald Trump on Thursday signed what he called a historic agreement on science and technology with Britain as United Kingdom officials who have gone all out to impress him with royal pageantry during his state visit now try to deliver key trade and business deals that can further their country’s interests.

    Watch a livestream of a press conference between Trump and Starmer in the video player above.

    Trump and Prime Minister Keir Starmer held a roundtable with business leaders as they signed the deal. They also had private meetings where the wars in Ukraine and Gaza and tariff rates the U.S. may set on steel imported from Britain were expected to be discussed. A joint news conference was coming up.

    At the signing ceremony for an agreement meant to promote tech investment in both nations, Starmer referred to the American president as “my friend, our friend” and spoke of “leaders who respect each other and leaders who genuinely like each other.” The event took place at Chequers, a 16th-century manor house northwest of London that serves as a rural retreat for British leaders.

    The British charm offensive continued after King Charles III and Queen Camilla had feted Trump and first lady Melania Trump at Windsor Castle, on Wednesday. The royals used the first of the Trump’s two-day state visit to offer all the pomp the monarchy can muster: gold-trimmed carriages, scarlet-clad soldiers, artillery salutes, a glittering banquet in a grand ceremonial hall and the biggest military honor guard ever assembled for such a state visit.

    Trump has seemed grateful for all the attention — so much so that he has largely stuck to script and offered little of his typical off-the-cuff criticism of hosts.

    Still, he had his moments. Trump joked with his treasury secretary, Scott Bessent, and commerce secretary, Howard Lutnick, as he signed the tech deal, “Should I sign this Howard? Scott? If the deal’s no good I’m blaming you.”

    After bidding goodbye to the king and queen at Windsor — Trump called the monarch “a great gentleman, and a great king” — the Trumps flew by helicopter some 20 miles (32 kilometers) to Chequers. The Republican president was welcomed by ceremonial honor guard complete with bagpipers — a nod to Trump’s Scottish heritage — and shown items from the archive of wartime leader Winston Churchill, who coined the term “special relationship” for the bond between the allies.

    It’s a point that Trump’s British hosts have stressed, almost 250 years after that relationship endured a rocky start in 1776.

    Trump told business leaders at a reception at Chequers that the two countries shared an “unbreakable bond.” Starmer said that relationship “is the very foundation of our security, our freedom and our prosperity.”

    Trans-Atlantic tech partnership

    To coincide with the visit, Britain said U.S. companies had pledged 150 billion pounds ($204 billion) in investment in the U.K, including 90 billion pounds ($122 billion) from investment firm Blackstone in the next decade. Investment will also flow the other way, including almost $30 billion by pharmaceutical firm GSK in the U.S.

    At the reception, attended by tech bosses including Nvidia CEO Jensen Huang and U.S. officials such as Lutnick and Secretary of State Marco Rubio, Starmer said it was “the biggest investment package of its kind in British history by a country mile.”

    U.K. officials say the deal will bring thousands of jobs and billions in investment in artificial intelligence, quantum computing and nuclear energy. It includes a U.K. arm of Stargate, a Trump-backed AI infrastructure project led by OpenAI, and a host of AI data centers around the U.K. American companies are announcing 31 billion pounds ($42 billion) in investment in the U.K.’s AI sector, including $30 billion from Microsoft for protects including Britain’s largest supercomputer.

    British officials say they have not agreed to scrap a digital services tax or water down internet regulation to get the deal, some details of which have yet to be announced.

    The British government is learning that when it comes to deals with Trump’s team, the devil is in the details. In May, Starmer and Trump struck a trade agreement that reduced U.S. tariffs on Britain’s key auto and aerospace industries.

    But talks on slashing duties on steel and aluminum to zero from their current level of 25% have stalled, despite a promise in May that the issue would be settled within weeks.

    The British Chambers of Commerce said failure to cut the tariffs would be “greeted with dismay” by the British steel industry.

    Difficult discussions on Ukraine, Middle East

    In the private talks, difficult conversations were expected about Ukraine and the Middle East.

    The British government has grown increasingly critical of Israel’s conduct of the war in Gaza and the suffering of Palestinian civilians, calling Israel’s latest Gaza City offensive “utterly reckless and appalling.” Starmer has said the U.K. will formally recognize a Palestinian state this month, potentially within days. Trump has threatened to penalize Canada during trade negotiations for making a similar move.

    Starmer also has played a major part in European efforts to shore up U.S. support for Ukraine. Trump has expressed frustration with Russian President Vladimir Putin but has not made good on threats to impose new sanctions on Russia for shunning peace negotiations. On Tuesday, Trump appeared to put the onus on Ukrainian President Volodymyr Zelenskyy, saying, “He’s going to have to make a deal.”

    The king gave Trump a gentle nudge in his state banquet speech on the strength of the trans-Atlantic relationship. Charles noted that “as tyranny once again threatens Europe, we and our allies stand together in support of Ukraine, to deter aggression and secure peace.”

    Potentially awkward Epstein questions

    Starmer will be bracing for awkward questions from the media about Jeffrey Epstein. Days before the state visit, Starmer fired Britain’s ambassador to the U.S., Peter Mandelson, over the envoy’s past friendship with the convicted sex offender, who authorities say killed himself in 2019.

    Fourteen months after winning a landslide election victory, Starmer’s government is struggling to kickstart Britain’s sluggish economy and his Labour Party is lagging in the polls. Starmer wants a successful state visit to balance weeks of bad news.

    Leslie Vinjamuri, president of the Chicago Council on Global Affairs, said Trump’s trip was likely to be “a difficult visit for the prime minister, much more so than for the U.S. president.”

    For Trump, “this plays well at home, it plays well abroad. It’s almost entirely to President Trump’s advantage to turn up to Britain and be celebrated by the British establishment,” she said.

    Source link