OpenAI CEO Reverses Earlier Threat to Leave Europe

FILE PHOTO: The logo of OpenAI is displayed near a response by its AI chatbot ChatGPT on its website, in this illustration picture taken February 9, 2023. REUTERS/Florence Lo/Illustration/File Photo
FILE PHOTO: The logo of OpenAI is displayed near a response by its AI chatbot ChatGPT on its website, in this illustration picture taken February 9, 2023. REUTERS/Florence Lo/Illustration/File Photo
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OpenAI CEO Reverses Earlier Threat to Leave Europe

FILE PHOTO: The logo of OpenAI is displayed near a response by its AI chatbot ChatGPT on its website, in this illustration picture taken February 9, 2023. REUTERS/Florence Lo/Illustration/File Photo
FILE PHOTO: The logo of OpenAI is displayed near a response by its AI chatbot ChatGPT on its website, in this illustration picture taken February 9, 2023. REUTERS/Florence Lo/Illustration/File Photo

OpenAI has no plans to leave Europe, CEO Sam Altman said on Friday, reversing a threat made earlier this week to leave the region if it becomes too hard to comply with upcoming laws on artificial intelligence.

The EU is working on what could be the first set of rules globally to govern AI and Altman on Wednesday said the current draft of the EU AI Act was "over-regulating".

"We are excited to continue to operate here and of course have no plans to leave," Altman said in a tweet on Friday.

His threat of quitting Europe had drawn criticism from EU industry chief Thierry Breton and a host of other lawmakers.

Altman has spent the past week crisscrossing Europe, meeting top politicians in France, Spain, Poland, Germany and the Britain to discuss the future of AI, and progress of ChatGPT.

According to Reuters, he called his tour a "very productive week of conversations in Europe about how to best regulate AI!"

OpenAI had faced criticism for not disclosing training data for its latest AI model GPT-4. The company had cited a "competitive landscape and safety implications" for not disclosing the details.

While debating the AI Act draft, EU lawmakers added new proposals that would force any company using generative tools, like ChatGPT, to disclose copyrighted material used to train its systems.

"These provisions relate mainly to transparency, which ensures the AI and the company building it are trustworthy," Dragos Tudorache, a Romanian member of the European Parliament who is leading the drafting of EU proposals, told Reuters on Thursday.

"I don't see a reason why any company would shy away from transparency."



Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
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Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell Technologies raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its AI-optimized servers that are powered by Nvidia's powerful chips, sending its shares up about 3% in extended trading.

Dell's infrastructure solutions group, which includes Nvidia-powered servers, surged 38% to a record revenue of $11.65 billion in the second quarter.

The company's servers are engineered to handle AI systems' intense computational demands, including training large language models.

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," Chief Operating Officer Jeff Clarke said in a post-earnings call.

Clarke said that Dell sees an emerging opportunity in "sovereign AI" by leveraging the company's strong relationships with governments globally.

Nvidia on Wednesday said nations building AI models in their own languages were turning to its chips, and that this would contribute about low double-digit billions to its revenue in the financial year ending in January 2025.

Nvidia CEO Jensen Huang called out the partnership with Dell earlier this year, saying they were helping businesses create their own "AI factories."

Dell's stock has risen 45% this year.

Dell said on Thursday it now expects annual revenue outlook to be between $95.5 billion and $98.5 billion, up from $93.5 billion and $97.5 billion previously. It also raised its annual adjusted profit per share forecast to $7.80, plus or minus 25 cents.

Demand for its AI-optimized servers rose about 23% sequentially to $3.2 billion in the second quarter. The backlog for these AI servers was $3.8 billion.

"Our pipeline has grown to several multiples of our backlog," Clarke said in a statement.

Revenue for the second quarter ended Aug. 2 rose about 9% to $25.03 billion, beating analysts' average estimate of $24.14 billion, according to LSEG data. It reported adjusted profit per share of $1.89 per share, compared with estimates of $1.71 per share.

While AI server demand soared, Dell's PC business struggled, losing market share to rivals. However, a strong refresh cycle for

AI PCs are expected next year after Microsoft ends support for Windows 10.

Revenue for the client solutions group - home to PCs - fell about 4% to $12.41 billion.

"Dell lost PC shipment shares in key markets in the second quarter. It is the top vendor in the US business market, but its competitors have shown growth and gained more shares than they did a year ago," said Mikako Kitagawa, director analyst at Gartner.

The company took a $328 million charge for workforce reductions in the second quarter.

Separately, Reuters exclusively reported earlier on Thursday that Dell is again exploring a possible sale of cybersecurity firm SecureWorks, following previous unsuccessful attempts to find a buyer.