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Volkswagen, like other car giants, are pushing heavily into AI to boost their technology credentials and make their cars smarter.

Ismail Aslandag | Anadolu via Getty Images

German automaker Volkswagen has established its own artificial intelligence lab, the company said Wednesday, reflecting growing ambitions from the car industry to adopt the buzzy technology.

In a press release, Volkswagen said that its new AI lab will serve as a “globally networked competence center and incubator” to produce proofs of concept in the field of the tech surrounding automotive innovations.

AI labs are research and development hubs for exploring AI breakthroughs. Common examples of such labs are those of OpenAI, which Microsoft has backed with billions of dollars of funds, and Google’s DeepMind, which the Alphabet-owned tech giant acquired in 2014.

Volkswagen claimed it would bring its lab’s AI innovations to its own vehicles to make them smarter.

“We want to offer our customers genuine added value with artificial intelligence. We aim to link external digital ecosystems with the vehicle, creating an even better product experience,” says Oliver Blume, CEO of the Volkswagen Group and Porsche AG.

“Collaboration with technology companies is crucially important for us. In [the] future, we intend to simplify cooperation in organizational and cultural terms.”

Volkswagen isn’t planning on manufacturing any production models of its own, but the company intends to hold talks with partners about licensing its proprietary AI technology for use in their vehicles. Volkswagen did not name any potential partner.

The carmaker said some of the AI solutions pursued by the lab will deal with optimizing electric vehicle charging, predictive maintenance for cars, and linking vehicles with customers’ homes through internet-connected devices.

The company also said it would explore AI uses to enable in-car voice recognition.

The announcement comes as other car firms are pushing heavily into artificial intelligence to boost their technology credentials and make their cars smarter.

French carmaker DS automobiles began integrating ChatGPT into its vehicles late last year. Mercedes-Benz and Microsoft started testing in-car ChatGPT support as early as June 2023. Chinese electric vehicle giant BYD, meanwhile, launched an AI-powered smart car system to better compete with rivals on advanced technologies, such as automated parking.

Reducing reliance on tech giants

Volkswagen’s AI lab launch echoed the ambition of established technology companies that have set up or invested in their own artificial intelligence research units.The move could see Volkswagen become more independent, reducing its reliance on external AI software from technology giants like Microsoft, Apple, Google, and Amazon.

Volkswagen has already extended its work on AI, most recently announcing that it would integrate ChatGPT in its cars at the Consumer Electronics Show in Las Vegas, Nevada. As part of that, the automaker was relying on OpenAI as a technological partner, rather than depending on its own proprietary technology.

By creating an AI lab, Volkswagen will be able to determine its own future in terms of what kinds of AI uses it adopts — though it has a steep hill to climb to compete with the caliber of AI technologies coming out of already advanced AI labs.

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Amazon Web Services is building equipment to cool Nvidia GPUs as AI boom accelerates

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Amazon Web Services is building equipment to cool Nvidia GPUs as AI boom accelerates

The letters AI, which stands for “artificial intelligence,” stand at the Amazon Web Services booth at the Hannover Messe industrial trade fair in Hannover, Germany, on March 31, 2025.

Julian Stratenschulte | Picture Alliance | Getty Images

Amazon said Wednesday that its cloud division has developed hardware to cool down next-generation Nvidia graphics processing units that are used for artificial intelligence workloads.

Nvidia’s GPUs, which have powered the generative AI boom, require massive amounts of energy. That means companies using the processors need additional equipment to cool them down.

Amazon considered erecting data centers that could accommodate widespread liquid cooling to make the most of these power-hungry Nvidia GPUs. But that process would have taken too long, and commercially available equipment wouldn’t have worked, Dave Brown, vice president of compute and machine learning services at Amazon Web Services, said in a video posted to YouTube.

“They would take up too much data center floor space or increase water usage substantially,” Brown said. “And while some of these solutions could work for lower volumes at other providers, they simply wouldn’t be enough liquid-cooling capacity to support our scale.”

Rather, Amazon engineers conceived of the In-Row Heat Exchanger, or IRHX, that can be plugged into existing and new data centers. More traditional air cooling was sufficient for previous generations of Nvidia chips.

Customers can now access the AWS service as computing instances that go by the name P6e, Brown wrote in a blog post. The new systems accompany Nvidia’s design for dense computing power. Nvidia’s GB200 NVL72 packs a single rack with 72 Nvidia Blackwell GPUs that are wired together to train and run large AI models.

Computing clusters based on Nvidia’s GB200 NVL72 have previously been available through Microsoft or CoreWeave. AWS is the world’s largest supplier of cloud infrastructure.

Amazon has rolled out its own infrastructure hardware in the past. The company has custom chips for general-purpose computing and for AI, and designed its own storage servers and networking routers. In running homegrown hardware, Amazon depends less on third-party suppliers, which can benefit the company’s bottom line. In the first quarter, AWS delivered the widest operating margin since at least 2014, and the unit is responsible for most of Amazon’s net income.

Microsoft, the second largest cloud provider, has followed Amazon’s lead and made strides in chip development. In 2023, the company designed its own systems called Sidekicks to cool the Maia AI chips it developed.

WATCH: AWS announces latest CPU chip, will deliver record networking speed

AWS announces latest CPU chip, will deliver record networking speed

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Bitcoin rises to fresh record above $112,000, helped by Nvidia-led tech rally

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Bitcoin rises to fresh record above 2,000, helped by Nvidia-led tech rally

The logo of the cryptocurrency Bitcoin can be seen on a coin in front of a Bitcoin chart.

Silas Stein | Picture Alliance | Getty Images

Bitcoin hit a fresh record on Wednesday afternoon as an Nvidia-led rally in equities helped push the price of the cryptocurrency higher into the stock market close.

The price of bitcoin was last up 1.9%, trading at $110,947.49, according to Coin Metrics. Just before 4:00 p.m. ET, it hit a high of $112,052.24, surpassing its May 22 record of $111,999.

The flagship cryptocurrency has been trading in a tight range for several weeks despite billions of dollars flowing into bitcoin exchange traded funds. Bitcoin purchases by public companies outpaced ETF inflows in the second quarter. Still, bitcoin is up just 2% in the past month.

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Bitcoin climbs above $112,000

On Wednesday, tech stocks rallied as Nvidia became the first company to briefly touch $4 trillion in market capitalization. In the same session, investors appeared to shrug off the latest tariff developments from President Donald Trump. The tech-heavy Nasdaq Composite notched a record close.

While institutions broadly have embraced bitcoin’s “digital gold” narrative, it is still a risk asset that rises and falls alongside stocks depending on what’s driving investor sentiment. When the market is in risk-on mode and investors buy growth-oriented assets like tech stocks, bitcoin and crypto tend to rally with them.

Investors have been expecting bitcoin to reach new records in the second half of the year as corporate treasuries accelerate their bitcoin buying sprees and Congress gets closer to passing crypto legislation.

Don’t miss these cryptocurrency insights from CNBC Pro:

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Perplexity launches AI-powered web browser for select group of subscribers

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Perplexity launches AI-powered web browser for select group of subscribers

Dado Ruvic | Reuters

Perplexity AI on Wednesday launched a new artificial intelligence-powered web browser called Comet in the startup’s latest effort to compete in the consumer internet market against companies like Google and Microsoft.

Comet will allow users to connect with enterprise applications like Slack and ask complex questions via voice and text, according to a brief demo video Perplexity released on Wednesday.

The browser is available to Perplexity Max subscribers, and the company said invite-only access will roll out to a waitlist over the summer. Perplexity Max costs users $200 per month.

“We built Comet to let the internet do what it has been begging to do: to amplify our intelligence,” Perplexity wrote in a blog post on Wednesday.

Perplexity is best known for its AI-powered search engine that gives users simple answers to questions and links out to the original source material on the web. After the company was accused of plagiarizing content from media outlets, it launched a revenue-sharing model with publishers last year.

In May, Perplexity was in late-stage talks to raise $500 million at a $14 billion valuation, a source familiar confirmed to CNBC. The startup was also approached by Meta earlier this year about a potential acquisition, but the companies did not finalize a deal.

“We will continue to launch new features and functionality for Comet, improve experiences based on your feedback, and focus relentlessly–as we always have–on building accurate and trustworthy AI that fuels human curiosity,” Perplexity said Wednesday.

WATCH: Perplexity CEO on AI race: The market of providing answers to questions will become a commodity

Perplexity CEO on AI race: The market of providing answers to questions will become a commodity

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