🤑Nvidia’s Huge US Investment Plan

Today we will discuss:

• Sponsored: Innovating with AI—Helping AI enthusiasts become high-earning consultants with the tools, strategies, and clients to succeed 

• Nvidia’s $500B supply chain shift—The chip giant is moving production closer to home

• Don’t miss this week’s Workflow Wednesday—AI strategy unlocked with Claude 3, Google Gemini, and SEOwind;now available at only $20/month! 

• OpenAI’s o1-pro gamble—A pricier AI with mixed early reviews

• In other AI news today—xAI launches an image generation API, Meta AI rolls out in Europe, ChatGPT faces a GDPR privacy complaint over hallucinations, and SoftBank acquires semiconductor designer Ampere in a $6.5B all-cash deal

• Saved the best for last—10 must-try AI tools

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Nvidia bets big on US manufacturing, shifting supply chain from Asia

Key Points 

• Nvidia plans to spend $500 billion on electronics, with a large portion manufactured in the US over four years.

• The company is shifting production from Asia, responding to Trump’s potential tariffs and geopolitical risks in Taiwan.

🚀News - Nvidia plans to spend hundreds of billions of dollars on chips and other electronics manufactured in the US over the next four years, CEO Jensen Huang revealed. The move comes as the semiconductor giant shifts its supply chain away from Asia in response to potential tariff threats from Donald Trump. 

Huang stated that the company expects to procure around $500 billion worth of electronics, with "several hundred billion" of that being manufactured in the US.

🥸Why this matters - Huang confirmed that Nvidia can now manufacture its latest AI systems in the US, thanks to partners like Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn. This marks a significant shift for the industry, as US tech giants, including Apple, have long depended on overseas production.

For years, companies like Nvidia have relied on Taiwan for advanced chip production, but that’s becoming increasingly risky. China’s stance on Taiwan, earthquake threats, and potential US tariffs on Taiwanese chips have all raised concerns. “The most important thing is to be prepared,” Huang said, adding that while any disruption would be difficult, Nvidia now has a more diversified supply chain to keep things moving.

📉The bigger trend at play - Nvidia’s shift aligns with broader industry changes. TSMC recently announced a $100 billion investment in Arizona chip facilities, adding to the $65 billion already committed under the Biden administration. Huang called this a huge step forward for supply chain resilience, allowing Nvidia to build some of its most powerful AI chips closer to home.

Read the full story here. 

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OpenAI rolls out o1-pro with high hopes and an even higher price

Key Points 

• OpenAI’s o1-Pro promises better reasoning but costs ten times more than its standard version, making affordability a concern.

• While OpenAI claims improvements, early users found o1-Pro struggling with simple puzzles and optical illusion jokes.

• OpenAI’s internal benchmarks show only slight gains in coding and math, though o1-Pro delivers more reliable answers.

👨‍💻News - OpenAI has rolled out o1-pro, an upgraded version of its o1 “reasoning” AI model, available through its developer API. The company claims that o1-pro uses more computing power than its predecessor, delivering “consistently better responses.” However, access is limited to developers who have spent at least $5 on OpenAI’s API services, and it comes with a hefty price tag.

🕵️‍♂️What's the most important point here? o1-pro doesn’t come cheap. OpenAI is charging $150 per million tokens (~750,000 words) for input and $600 per million tokens for output. That’s double the price of GPT-4.5 for input and ten times the cost of standard o1. OpenAI is betting that improved performance will make up for the cost, but it’s a steep ask.

🧐Early impressions - o1-pro has been available to ChatGPT Pro subscribers since December, and so far, reactions have been mixed. Users found it struggled with Sudoku puzzles and even simple optical illusion jokes. OpenAI’s internal benchmarks from late last year showed it performed only slightly better than the standard o1 on coding and math tasks, though it did deliver more reliable answers.

With such a high price and only modest improvements, the big question is whether developers will find o1-pro worth the investment.

Read the full story here.