Tech News Roundup: Intel's Foundry Struggles, Cryptocurrency in Arms Trade, and Apple's AI Focus

OWITH.ai - Only What's Important to Hear around AI and Tech

Good morning from OWITH.ai: the podcast that gives you only what's important to hear in AI and tech world.Intel recently announced that its foundry business will not break even until 2027, causing its shares to slide by over 7%. Despite securing a $15 billion contract to make Microsoft's custom chips, Intel's decision to forgo the use of advanced chipmaking machines has impacted its cost-effectiveness. The company is also forced to outsource production to its rival TSMC until it can use its own advanced machinery in 2026. CEO Pat Gelsinger reassured investors that Intel Foundry will eventually be profitable, with a forecasted 40% gross margin by 2030. However, this is still behind TSMC's margin of 53% in Q4. Additionally, TSMC recently had to pause production due to an earthquake in Taiwan, potentially affecting the entire chip supply chain.Reports have emerged about the role of cryptocurrency in global arms trade as Treasury's Wally Adeyemo prepares to address illicit finance in front of the Senate. The controversy surrounding the use of digital assets for fundraising by groups like Hamas has prompted calls for better self-policing within the crypto industry. Recent investigations have highlighted the use of stablecoins like Tether in facilitating arms deals, raising concerns about regulatory arbitrage and illicit finance.Tiger Global closed its 16th fund at $2.2 billion, falling short of its $6 billion target due to macroeconomic factors and the firm's challenges. The private equity industry is under pressure to demonstrate discipline in capital deployment.Boeing is in need of a new CEO following safety scandals, with the next CEO likely needing to be young and a hands-on specialist. Sixth Street Partners, a Bay Area investment firm, is emerging as a tech-savvy alternative to Wall Street competitors. Belgium and Italy are surprising leaders in Europe's fastest-growing companies.In 2024, Apple is facing a crisis in China with a significant drop in iPhone shipments leading to a decline in smartphone sales and stock performance. To boost sales, Apple is focusing on incorporating generative AI into its products and is rumored to be partnering with Google for gemini-powered features and openai tech. The upcoming WWDC in June 2024 is expected to showcase new AI updates and features aimed at impressing consumers. Apple's recent pivot towards generative AI, with technologies like Realm, shows a commitment to enhancing on-device intelligence.

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