Germany, France and Italy Reach Agreement on Future AI Regulation

FILE PHOTO: European Union (EU) flags fly in front of the headquarters of the European Central Bank (ECB) in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski/File Photo
FILE PHOTO: European Union (EU) flags fly in front of the headquarters of the European Central Bank (ECB) in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski/File Photo
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Germany, France and Italy Reach Agreement on Future AI Regulation

FILE PHOTO: European Union (EU) flags fly in front of the headquarters of the European Central Bank (ECB) in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski/File Photo
FILE PHOTO: European Union (EU) flags fly in front of the headquarters of the European Central Bank (ECB) in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski/File Photo

France, Germany and Italy have reached an agreement on how artificial intelligence should be regulated, according to a joint paper seen by Reuters, which is expected to accelerate negotiations at the European level.
The three governments support commitments that are voluntary, but binding on small and large AI providers in the European Union that sign up to them.
The European Commission, the European Parliament and the EU Council are negotiating how the bloc should position itself.
In June, the European Parliament presented an "AI Act" designed to contain the risks of AI applications and avoid discriminatory effects, while harnessing the innovative power of AI.
During the discussions, the European Parliament proposed that the code of conduct should initially only be binding for major AI providers, which are primarily from the US.
The three EU governments have said this apparent competitive advantage for smaller European providers could have the drawback of reducing trust in them and of resulting in fewer customers.
The rules of conduct and transparency should therefore be binding for everyone, they said.
Initially, no sanctions should be imposed, according to the paper.
If violations of the code of conduct are identified after a certain period of time, however, a system of sanctions could be set up. In future, a European authority would monitor compliance with the standards, the paper said.
Germany's Economy Ministry, which is in charge of the topic together with the Ministry of Digital Affairs, said laws and state control should not regulate AI itself, but rather its application.
Digital Affairs Minister Volker Wissing told Reuters he was very pleased an agreement had been reached with France and Germany to limit only the use of AI.
"We need to regulate the applications and not the technology if we want to play in the top AI league worldwide," Wissing said.
State Secretary for Economic Affairs Franziska Brantner told Reuters it was crucial to harness the opportunities and limit the risks.
"We have developed a proposal that can ensure a balance between both objectives in a technological and legal terrain that has not yet been defined," Brantner said.
As governments around the world seek to capture the economic benefits of AI, Britain in November hosted its first AI safety summit.
The German government is hosting a digital summit in Jena, in the state of Thuringia, on Monday and Tuesday that will bring together representatives from politics, business and science.



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.