AI: Weekly Summary. RTZ #590

Michael Parekh AI: Reset to Zero

2 weeks ago

4 MIN READ

AI/Tech Predictions for 2025 abound: It’s the time of the year for a plethora of Tech and AI Predictions for 2025. Opinions flowing on everything from ‘things that will change our life’, to ‘top tech/AI tips’, what’s ahead at CES (Consumer Electronics Show) for 2025 (1/7-10/2025). Expect more AI powered PCs and smartphones, just like last year. But more advanced and a lot more of them. From an AI trends perspective, expect more AI Capex, and AI Scaling, with generous helpings of AI Reasoning and Agents. And new this year of course is a new administration and Congress in DC, with a more tech leaning posture, especially when it comes vis a vis China. More here and here.

AI Data Centers drive a physical land rush: The AI data center ramp is driving a literal land grab across the country, both in rural and urban areas. This is in addition to the somewhat overwhelming Power demands for AI data centers nationally and worldwide. Expect these trends to accelerate in 2025, putting more pressure on regulators at the national, state and local levels. All the big tech companies are leaning into these trends, from Microsoft, to Google, Meta, and Elon’s xAI. At the very least, these factors could potentially slow the AI Scaling that the tech companies are counting on to deliver as fast as possible. More here.

AI Data Centers wreak ‘harmonics’ havoc on power grids: AI Power demands for Data centers is resulting in an unexpected consequence, what’s being called the ‘Bad Harmonics problem. Specifically, AI data center build outs ‘may be distorting the normal flow of electricity for millions of Americans’. This trend is being documented across both rural and urban data center builds. Consequences are unanticipated tolls on normal consumer appliances and applications, with accelerated damage to both the equipment and the surrounding grid. And these issues are being seen globally. Solutions are not always clear, and are still being figured out region by region. Regulatory issues at the national, state and local levels also play both positive and negative roles. More here.

Closer look at ASML in the AI chip supply chain: Dutch tech company ASML Holding’s critical role in AI infrastructure, comes even more into focus in 2025. The company’s critical role in EUV (Extreme Ultraviolet lithography) machines, which cost hundreds of millions of dollars and need multiple jumbos to transport, are also becoming a key bargaining chip in the ongoing US/China geopolitical tech/chip curbs and negotiations. And while China is rushing to build its own capabilities here, it’ll likely take more than than they would like. In the meantime, 2025 is going to see accelerated tugs of war around the access to these technologies between US and China. More here.

Microsoft et al leaning into bundling AI into enterprise/consumer products: Microsoft leaning into Copilot bundling across its operating systems and applications product suites. This continues and accelerates a trend by Microsoft, Salesforce and many other tech companies into 2025. Enterprises and consumers are increasingly finding that AI add-ons may at times not be optional features in their monthly subscription programs. In the meantime, customers are still trying to figure out howto use the new AI features, and how much of an impact they make in their workflows. The vendors of course are convinced that the capabilities of these products and services will continue to accelerate to make it more than worthwhile for customers to pay for them as well. Driving some of this is also the heightened competition between OpenAI and Microsoft for enterprise customers. More here.