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Nvidia CEO Jensen Huang said Wednesday that artificial intelligence is gaining on humans.

Speaking at The New York Times’ annual DealBook summit, Huang said that if artificial general intelligence (AGI) is defined as a computer that can complete tests in a “fairly competitive” way to human intelligence, then “within the next five years, you’re going to see, obviously, AIs that can achieve those tests.”

Nvidia’s business is booming because of the surge in demand for high-powered graphics processing units (GPUs) that are needed to train AI models and run hefty workloads across industries like automotive, architecture, electronics, engineering and scientific research as well as for OpenAI’s ChatGPT.

Revenue in Nvidia’s fiscal third quarter tripled, while net income climbed to $9.24 billion from $680 million a year earlier.

In the interview Wednesday, Huang recalled delivering “the world’s first AI supercomputer” to OpenAI, after Elon Musk, who co-founded the AI project before departing it in 2018, heard Huang speak about the device at a conference.

“Elon saw it, and he goes, ‘I want one of those’ — he told me about OpenAI,” Huang said. “I delivered the world’s first AI supercomputer to OpenAI on that day.”

Regarding the recent chaos surrounding OpenAI, its board structure, and the ousting and subsequent reinstatement of CEO Sam Altman, Huang said he hoped things were calming down.

“I’m happy that they’re settled, and I hope they’re settled — it’s a really great team,” Huang said. “It also brings to mind the importance of corporate governance. Nvidia is here 30 years after our founding, we’ve gone through a lot of adversity. If we didn’t set up our company properly, who knows what would have been.”

Huang predicted that competition in the AI space will lead to the emergence of off-the-shelf AI tools that companies in different industries will tune according to their needs, from chip design and software creation to drug discovery and radiology.

Huang was asked onstage to rank the success of various companies in the AI market.

“I’m not going to rank my friends,” he said. “I’ll admit it, I want to, but I’m not going to do it.”

One reason the tech industry is still years away from AGI, Huang said, is that although machine learning is currently skilled at tasks like recognition and perception, it can’t yet perform multistep reasoning, which is a top priority for companies and researchers.

“Everybody’s working on it,” Huang said.

And the technology is moving forward very quickly.

“There’s no question that the rate of progress is high,” Huang said. “What we realize today is that of course, what we can do today with these models and intelligence are related, but not the same.”

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Nvidia briefly surpasses $2 trillion in market cap during intraday trading

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Nvidia briefly surpasses  trillion in market cap during intraday trading

Nvidia CEO Jensen Huang speaks onstage during The New York Times Dealbook Summit 2023 at Jazz at Lincoln Center in New York City on Nov. 29, 2023.

Slaven Vlasic | Getty Images

Nvidia briefly surpassed $2 trillion in market cap during intraday trading Friday following the company’s rosy earnings report Wednesday — but it was short-lived.

After rising earlier in the day, shares of Nvidia were down about 1% at 11 a.m. ET. Nvidia stock closed up 16% Thursday.

Nvidia posted $22.10 billion in revenue for its fiscal fourth quarter, a 265% increase from a year ago and above the $20.62 billion expected by analysts polled by LSEG, formerly known as Refinitiv. Nvidia reported $12.29 billion in net income during the quarter, up a staggering 769% from $1.41 billion last year.

The company has benefited from the tech sector’s insatiable demand for artificial intelligence capabilities over the past year. Nvidia makes the pricey graphics processors for the servers that power large AI models.

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Nvidia said it expects $24.0 billion in sales in the current quarter, surpassing the $22.17 billion expected by analysts.

“Fundamentally, the conditions are excellent for continued growth,” Nvidia CEO Jensen Huang said during the company’s quarterly call with investors Wednesday.

— CNBC’s Kif Leswing contributed to this report.

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AI can ‘disproportionately’ help defend against cybersecurity threats, Google CEO Sundar Pichai says

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AI can 'disproportionately' help defend against cybersecurity threats, Google CEO Sundar Pichai says

Google CEO Sundar Pichai speaks in conversation with Emily Chang during the APEC CEO Summit at Moscone West on November 16, 2023 in San Francisco, California. The APEC summit is being held in San Francisco and runs through November 17.

Justin Sullivan | Getty Images News | Getty Images

Munich, GERMANY — Rapid developments in artificial intelligence could help strengthen defenses against security threats in cyber space, according to Google CEO Sundar Pichai.

Amid growing concerns about the potentially nefarious uses of AI, Pichai said that the intelligence tools could help governments and companies speed up the detection of — and response to — threats from hostile actors.

“We are right to be worried about the impact on cybersecurity. But AI, I think actually, counterintuitively, strengthens our defense on cybersecurity,” Pichai told delegates at Munich Security Conference at the end of last week.

Cybersecurity attacks have been growing in volume and sophistication as malicious actors increasingly use them as a way to exert power and extort money.

Cyberattacks cost the global economy an estimated $8 trillion in 2023 — a sum that is set to rise to $10.5 trillion by 2025, according to cyber research firm Cybersecurity Ventures.

A January report from Britain’s National Cyber Security Centre — part of GCHQ, the country’s intelligence agency — said that AI would only increase those threats, lowering the barriers to entry for cyber hackers and enabling more malicious cyber activity, including ransomware attacks.

“AI disproportionately helps the people defending because you’re getting a tool which can impact it at scale.

Sundar Pichai

CEO at Google

However, Pichai said that AI was also lowering the time needed for defenders to detect attacks and react against them. He said this would reduce what’s known as a the defenders’ dilemma, whereby cyberhackers have to be successful just once to a system whereas a defender has to be successful every time in order to protect it.

“AI disproportionately helps the people defending because you’re getting a tool which can impact it at scale versus the people who are trying to exploit,” he said.

“So, in some ways, we are winning the race,” he added.

Google last week announced a new initiative offering AI tools and infrastructure investments designed to boost online security. A free, open-source tool dubbed Magika aims to help users detect malware — malicious software — the company said in a statement, while a white paper proposes measures and research and creates guardrails around AI.

Pichai said the tools were already being put to use in the company’s products, such as Google Chrome and Gmail, as well as its internal systems.

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“AI is at a definitive crossroads — one where policymakers, security professionals and civil society have the chance to finally tilt the cybersecurity balance from attackers to cyber defenders. 

The release coincided with the signing of a pact by major companies at MSC to take “reasonable precautions” to prevent AI tools from being used to disrupt democratic votes in 2024’s bumper election year and beyond.

Adobe, Amazon, Google, IBM, Meta, Microsoft, OpenAI, TikTok and X, formerly Twitter, were among the signatories to the new agreement, which includes a framework for how companies must respond to AI-generated “deepfakes” designed to deceive voters.

It comes as the internet becomes an increasingly important sphere of influence for both individuals and state-backed malicious actors.

Former U.S. Secretary of State Hillary Clinton on Saturday described cyberspace as “a new battlefield.”

“The technology arms race has just gone up another notch with generative AI,” she said in Munich.

“If you can run a little bit faster than your adversary, you’re going to do better. That’s what AI is really giving us defensively.

Mark Hughes

president of security at DXC

A report published last week by Microsoft found that state-backed hackers from Russia, China, and Iran have been using its OpenAI large language model (LLM) to enhance their efforts to trick targets.

Russian military intelligence, Iran’s Revolutionary Guard, and the Chinese and North Korean governments were all said to have relied on the tools.

Mark Hughes, president of security at IT services and consulting firm DXC, told CNBC that bad actors were increasingly relying on a ChatGPT-inspired hacking tool called WormGPT to conduct tasks like reverse engineering code.

However, he said that he was also seeing “significant gains” from similar tools which help engineers to detect and reserve engineer attacks at speed.

“It gives us the ability to speed up,” Hughes said last week. “Most of the time in cyber, what you have is the time that the attackers have in advantage against you. That’s often the case in any conflict situation.

“If you can run a little bit faster than your adversary, you’re going to do better. That’s what AI is really giving us defensively at the moment,” he added.

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Ride-hailing giant Grab posts first profitable quarter, announces $500 million share buyback

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Ride-hailing giant Grab posts first profitable quarter, announces 0 million share buyback

A attendee walks past a banner with a Grab logo before a bell-ringing ceremony as Grab begins trading on the Nasdaq, in Singapore, on Thursday, Dec. 2, 2021.

Ore Huiying | Bloomberg | Getty Images

SINGAPORE — Grab posted its first-ever profitable quarter, raking in $11 million in profit, the Southeast Asian ride-hailing giant said in its fourth-quarter earnings report Thursday.

This compares with a $391 million loss recorded in the same period a year ago. The boost was “primarily due to the improvement in Group adjusted EBITDA, fair value changes in investments, and lowered share-based compensation expenses,” the company said.

Revenue for the quarter hit $653 million, exceeding LSEG analysts’ estimates of $634.86 million.

Losses for full year 2023 came to $485 million, down 72% from $1.74 billion a year ago.

In addition to ride-hailing, the company also provides financial services like payments and insurance, as well as deliveries for food, groceries and packages.

“We exited [2023 with] mobility exceeding pre-Covid levels. We are seeing a very strong demand in the mobility space,” Grab CFO Peter Oey told CNBC in an exclusive interview on Friday, adding that tourism is “growing very much.”

“If you look at the deliveries business, we have another record 13% year-over-year growth. We have now more users on our platform also at the same time. So we have really strong momentum,” he said on CNBC’s “Squawk Box Asia.”

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Grab announced Thursday it would be repurchasing up to $500 million worth of class A ordinary shares for the first time.

Grab was largely unprofitable during its years of operation, having amassed billions of dollars in losses since its inception in 2012.

In the initial years of business, tech startups tend to prioritize growth over profitability, which usually means burning a lot of cash. But with global macro uncertainties slowing growth, they have been forced to renew their focus on profitability and be more prudent with costs.

During the fourth quarter, total incentives — which include partner and consumer incentives — were further reduced to 7.3% of total value of goods sold, Grab said in its report. That’s compared to 8.2% in the same period a year ago “as we continued to improve the health of our marketplace.”

Grab had been doling out incentives to attract drivers and passengers to its platform but that’s tapering now as the company moves to drive up profitability.

On whether Grab would reach a time where it wouldn’t need to incentivize people to stay on the platform, Oey said incentives will “always be a lever” for the business.

“I don’t think we’re going to see a world where there’s no incentive whatsoever,” he told CNBC, adding that incentives help “to make sure we have enough supply” of drivers and attract price-sensitive customers.

For 2024, Grab expects revenue to come in between $2.70 billion and $2.75 billion, lower than LSEG analysts’ consensus of $2.8 billion.

Grab’s shares closed 8.41% lower on Thursday. Its share price has plummeted 75.8% from its $13.06 opening price in December 2021, when the firm first listed on the Nasdaq.

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