Welcome to Tech Access, your go-to newsletter for professionals & students. Whether you're in the world of Finance, Technology, Engineering or any other field, our summaries are your key to staying ahead in the fast-paced world of tech.

TODAY’S TOP PICKS FOR YOU

1. OpenAI seeks hefty $86Bn valuation 

2. Microsoft vision on AI

3. Nvidia and Foxconn are collaborating to build “AI factories”

4. AI funding soars to $17.9Bn

INSIGHTS

OpenAI seeks hefty $86Bn valuation 

• OpenAI, the entity behind ChatGPT, is negotiating a sale of shares at a hefty $86 billion valuation.

• This new valuation, up from $30 billion earlier this year, showcases a significant leap, attributed partly to the success of ChatGPT.

• The negotiation is still in progress with potential investors, and the final terms, including allocations, are yet to be decided.

• Microsoft-backed OpenAI was previously eyeing a valuation close to $90 billion.

Why it matters: The soaring valuation of OpenAI underscores the escalating prominence and financial heft of AI firms, mirroring a broader trend in the tech industry. Amidst a flurry of investments in AI, OpenAI's valuation serves as a testament to the burgeoning financial and strategic importance of artificial intelligence in reshaping the digital landscape.

Microsoft vision on AI

• CEO Satya Nadella champions AI as the next big leap in computing, vital for Microsoft's evolution.

• This AI focus aims to revive Microsoft’s innovation spark, especially around natural language interfaces.

• Teaming up with OpenAI positions Microsoft strongly in the AI race, enriching its AI offerings.

• While optimistic, there's a hint of caution towards overestimating AI capabilities, urging a balanced approach to investments in AI.

Why it matters: Microsoft's assertive AI strategy underlines a broader industry trend of harnessing AI to drive future innovations. The partnership with OpenAI exemplifies how strategic alliances can propel companies forward in the competitive AI domain. Moreover, the cautious optimism shared reflects the industry's awareness of the potential pitfalls and the importance of balanced investments in evolving AI technologies.

Nvidia and Foxconn are collaborating to build “AI factories”

• Nvidia and Foxconn are setting up "AI factories" for diverse applications like autonomous vehicles, robotics, and large language models training.

• This move comes as the US restricts exports of advanced chips to China, affecting Nvidia's specially designed chips, A800 and H800, for the Chinese market.

• Highlighted at Foxconn's annual tech showcase, this venture leverages Foxconn's manufacturing capability for a global scale deployment of AI factories.

• With Nvidia's valuation crossing $1 trillion, and Foxconn's aim to transition into a platform solution company, this collaboration marks a strategic pivot towards AI-centric solutions

Why it matters: The alliance between Nvidia and Foxconn in establishing AI factories underscores a strategic response to global market dynamics, especially amidst geopolitical tensions affecting chip exports. It highlights the growing trend of leveraging AI to create versatile tech solutions, reflecting a broader industry move towards AI-driven innovation amidst challenging global trade scenarios.

AI funding soars to $17.9Bn

• AI startups in Silicon Valley see a funding surge, hitting $17.9 billion in Q3, outshining other tech sectors due to the appeal of generative AI technology.

• Unlike the 31% drop in overall startup deals, AI funding rose by 27% globally in Q3, making AI a bright spot in the venture capital world during tough economic times.

• The rise in AI is compared to the early internet days, with user-friendly programs like OpenAI’s ChatGPT making AI more accessible and attractive to investors.

• While other tech sectors face funding challenges, companies like Kong benefit indirectly from the AI boom, highlighting AI's far-reaching impact in the tech industry.

Why it matters: The rise in AI funding amid a tech downturn highlights investors' growing confidence in AI's potential. This trend, likened to the early days of the internet, points to a broader shift in the tech industry, with AI becoming a central focus. As AI continues to grow, its impact extends beyond pure AI companies, benefiting other tech sectors and reshaping the investment landscape.