Google Faces Internal Battle Over Research on AI to Speed Chip Design

The logo of Google is pictured during the Viva Tech start-up and technology summit in Paris, France, May 25, 2018. REUTERS/Charles Platiau
The logo of Google is pictured during the Viva Tech start-up and technology summit in Paris, France, May 25, 2018. REUTERS/Charles Platiau
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Google Faces Internal Battle Over Research on AI to Speed Chip Design

The logo of Google is pictured during the Viva Tech start-up and technology summit in Paris, France, May 25, 2018. REUTERS/Charles Platiau
The logo of Google is pictured during the Viva Tech start-up and technology summit in Paris, France, May 25, 2018. REUTERS/Charles Platiau

Alphabet Inc's Google said on Monday it had recently fired a senior engineering manager after colleagues, whose landmark research on artificial intelligence software he had been trying to discredit, accused him of harassing behavior.

The dispute, which stems from efforts to automate chip design, threatens to undermine the reputation of Google's research in the academic community. It also could disrupt the flow of millions of dollars in government grants for research into AI and chips.

Google's research unit has faced scrutiny since late 2020 after workers lodged open critiques about its handling of personnel complaints and publication practices.

The new episode emerged after the scientific journal Nature in June published "A graph placement methodology for fast chip design" led by Google scientists Azalia Mirhoseini and Anna Goldie. They discovered that AI could complete a key step in the design process for chips, known as floorplanning, faster and better than an unspecified human expert, a subjective reference point.

But other Google colleagues in a paper that was anonymously posted online in March - "Stronger Baselines for Evaluating Deep Reinforcement Learning in Chip Placement” found that two alternative approaches based on basic software outperform the AI. One beat it on a well-known test, and the other on a proprietary Google rubric.

Reuters said that Google declined to comment on the leaked draft, but two workers confirmed its authenticity.

The company said it refused to publish Stronger Baselines because it did not meet its standards, and soon after fired Satrajit Chatterjee, a leading driver of the work. It declined to say why it fired him.

"It’s unfortunate that Google has taken this turn," said Laurie Burgess, an attorney for Chatterjee. "It was always his goal to have transparency about the science, and he urged over the course of two years for Google to address this."

Google researcher Goldie told the New York Times, which on Monday first reported the firing, that Chatterjee had harassed her and Mirhoseini for years by spreading misinformation about them.

Burgess denied the allegations, and added that Chatterjee did not leak Stronger Baselines.

Patrick Madden, an associate professor focused on chip design at Binghamton University who has read both papers, said he had never seen a paper before the one in Nature that lacked a good comparison point.

"It's like a reference problem: Everyone gets the same jigsaw puzzle pieces and you can compare how close you come to getting everything right," he said. "If they were to produce results on some standard benchmark and they were stellar, I would sing their praises."

Google said the comparison to a human was more relevant and that software licensing issues had prevented it from mentioning tests.

Studies by big institutions such as Google in well-known journals can have an outsized influence on whether similar projects are funded in the industry. One Google researcher said the leaked paper had unfairly opened the door to questions about the credibility of any work published by the company.

After "Stronger Baselines" emerged online, Zoubin Ghahramani, a vice president at Google Research, wrote on Twitter last month that "Google stands by this work published in Nature on ML for Chip Design, which has been independently replicated, open-sourced, and used in production at Google."

Nature, citing a UK public holiday, did not have immediate comment. Madden said he hoped Nature would revisit the publication, noting that peer reviewer notes show at least one asked for results on benchmarks.
"Somehow, that never happened," he said.



Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
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Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)

Samsung Electronics' preliminary fourth-quarter operating profit missed estimates by a large margin, with the South Korean tech giant hit hard by extra costs as it works towards providing high-end chips to Nvidia.

Its earnings were dented by rising research and development costs and the ramp-up of manufacturing capacity for advanced semiconductors, the company said in a statement. Slowing demand for conventional memory chips used in PCs and mobile phones also weighed on earnings, it added.

The world's largest memory chip, smartphone and TV maker expects to log an operating profit of 6.5 trillion won ($4.5 billion) for the three months ended Dec. 31, well below an LSEG SmartEstimate of 7.7 trillion won.

The expected profit is 131% higher than the same period a year earlier, but down 29% from a disappointing third quarter. Preliminary revenue came in at 75 trillion won, slightly lower than analysts' estimates.

Rival SK Hynix is Nvidia's main supplier of high-bandwidth memory (HBM) chips used in artificial intelligence graphics processing units (GPUs) whereas Samsung has struggled to meet Nvidia's requirements.

Nvidia CEO Jensen Huang told reporters in Las Vegas on Tuesday that Samsung has to "engineer a new design" to supply HBM chips to his company, adding that "they can do it and they are working very fast," Korea JoongAng Daily reported.

Samsung said at the time of its third-quarter earnings that it was making progress in supplying HBM chips to Nvidia but has not made any public updates since then.

Greg Noh, an analyst at Hyundai Motor Securities, said Samsung's profit was possibly eroded by one-off costs as well as disappointing chip and display earnings.

Samsung finished 3.4% higher with analysts attributing the gain to the sense that the company's woes had already been factored in and were unlikely to get worse.

"There are concerns about Samsung's major businesses continuing to lose competitiveness. But chip demand may have bottomed already," said Lee Min-hee, an analyst at BNK Investment & Securities, adding that smartphone demand in China may gradually improve.

Shares of Samsung, South Korea's biggest company by market value, slumped 32% last year, far more than a 10% decline for the wider market.

By contrast, SK Hynix is expected to post record earnings for the fourth quarter and its stock surged 23% last year.

Samsung will release detailed fourth-quarter results on Jan. 31.

RISING COMPETITION

Samsung said fourth-quarter earnings also fell for its division that designs and manufactures logic chips, hit by slower mobile phone demand, lower utilization rates at its factories and higher research and development costs.

The division may have widened losses to about $1.5 billion in the fourth quarter from about $960 million in the preceding quarter due to struggles to increase production yields, analysts said.

Earnings for its devices business, which includes mobile phones, TVs and household appliances, dropped as it has been some time since new mobile phone models were launched and because competition has increased, Samsung said.

Analysts said its mobile division earnings may have declined year on year due to lower sales for its premium foldable phones.

Slowing demand likely offset the positive impact of weakness in the local currency which boosts earnings from overseas.

The South Korean won dropped to its weakest level in 15 years in December after President Yoon Suk Yeol's martial law decree triggered political turmoil. It was also hurt by US President-elect Donald Trump's pledges of higher tariffs on imports.