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.



Nations Building Their Own AI Models Add to Nvidia's Growing Chip Demand

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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Nations Building Their Own AI Models Add to Nvidia's Growing Chip Demand

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration, taken June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Nations building artificial intelligence models in their own languages are turning to Nvidia's chips, adding to already booming demand as generative AI takes center stage for businesses and governments, a senior executive said on Wednesday.
Nvidia's third-quarter forecast for rising sales of its chips that power AI technology such as OpenAI's ChatGPT failed to meet investors' towering expectations. But the company described new customers coming from around the world, including governments that are now seeking their own AI models and the hardware to support them, Reuters said.
Countries adopting their own AI applications and models will contribute about low double-digit billions to Nvidia's revenue in the financial year ending in January 2025, Chief Financial Officer Colette Kress said on a call with analysts after Nvidia's earnings report.
That's up from an earlier forecast of such sales contributing high single-digit billions to total revenue. Nvidia forecast about $32.5 billion in total revenue in the third quarter ending in October.
"Countries around the world (desire) to have their own generative AI that would be able to incorporate their own language, incorporate their own culture, incorporate their own data in that country," Kress said, describing AI expertise and infrastructure as "national imperatives."
She offered the example of Japan's National Institute of Advanced Industrial Science and Technology, which is building an AI supercomputer featuring thousands of Nvidia H200 graphics processors.
Governments are also turning to AI as a measure to strengthen national security.
"AI models are trained on data and for political entities -particularly nations - their data are secret and their models need to be customized to their unique political, economic, cultural, and scientific needs," said IDC computing semiconductors analyst Shane Rau.
"Therefore, they need to have their own AI models and a custom underlying arrangement of hardware and software."
Washington tightened its controls on exports of cutting-edge chips to China in 2023 as it sought to prevent breakthroughs in AI that would aid China's military, hampering Nvidia's sales in the region.
Businesses have been working to tap into government pushes to build AI platforms in regional languages.
IBM said in May that Saudi Arabia's Data and Artificial Intelligence Authority would train its "ALLaM" Arabic language model using the company's AI platform Watsonx.
Nations that want to create their own AI models can drive growth opportunities for Nvidia's GPUs, on top of the significant investments in the company's hardware from large cloud providers like Microsoft, said Bob O'Donnell, chief analyst at TECHnalysis Research.