WSJ Tech News Briefing
TNB Tech Minute: EU Calls For Building Seven AI Gigafactories
· Summarized
Key takeaways
- Fisher Investments offers a fiduciary, client-first approach without commission-based products, emphasizing aligned interests.
- The EU is actively investing in AI infrastructure, aiming to develop advanced AI models and compete with US and Chinese tech giants.
- IBM's research signifies meaningful progress towards reliable quantum computing, although the technology remains in its early stages.
- Amazon is expected to report strong revenue but continues significant capital spending on AI, raising questions about its cash flow status.
Summary
Fisher Investments: A Different Approach to Wealth Management
The podcast features a discussion about Fisher Investments, emphasizing its distinct approach to wealth management. Unlike other firms, Fisher operates as a fiduciary, prioritizing clients' interests, and does not sell commission-based products or make money from trades. Their fee structure aligns their success with that of their clients, which explains why many clients switch from other managers.
EU's Initiative to Boost Tech Ecosystem with AI Gigafactories
The European Union has announced a major initiative to strengthen its technology sector by initiating a bidding process for seven AI gigafactories. Supported by nearly $11.5 billion, these factories aim to develop and train next-generation AI models, with operational timelines within 18 months of contracts. This effort underscores the EU's goal to catch up with the US and China in AI and tech innovation.
Advancements in Quantum Computing by IBM
IBM has released new research demonstrating the capabilities of quantum computers to outperform traditional systems and produce validated results. Published collaboratively with institutions like the University of Chicago, these findings represent a significant step towards practical and reliable quantum computing. This progress comes amid IBM's efforts to turn quantum tech into a profitable venture, especially after recent financial setbacks.
Market Outlook: Amazon's Earnings and AI Investment Trends
Investors are closely watching Amazon’s upcoming quarterly earnings, with expectations of over $197 billion in revenue and around $200 billion in capital expenditures for 2023. The focus is on whether Amazon will report negative free cash flow for two consecutive quarters, given its increased investment in AI and technology hardware. This reflects broader trends in the tech industry’s focus on AI development.
Sponsors
- Fisher Investments · Fisher investments is clearly different. As a fiduciary, Fisher always does what's best for its clients. They don't sell commission-based investment products or make commissions on trades. Their fees are structured so they do better when clients do better.
Show notes
Plus: IBM says new research shows quantum computers can outperform conventional ones. And investors and analysts are awaiting Amazon’s latest earnings. Danny Lewis hosts.
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