AI Companies Will Need to Start Reporting their Safety Tests to the US Government

AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken June 23, 2023. (Reuters)
AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken June 23, 2023. (Reuters)
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AI Companies Will Need to Start Reporting their Safety Tests to the US Government

AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken June 23, 2023. (Reuters)
AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken June 23, 2023. (Reuters)

The Biden administration will start implementing a new requirement for the developers of major artificial intelligence systems to disclose their safety test results to the government.
The White House AI Council is scheduled to meet Monday to review progress made on the executive order that President Joe Biden signed three months ago to manage the fast-evolving technology.
Chief among the 90-day goals from the order was a mandate under the Defense Production Act that AI companies share vital information with the Commerce Department, including safety tests.
Ben Buchanan, the White House special adviser on AI, said in an interview that the government wants "to know AI systems are safe before they’re released to the public — the president has been very clear that companies need to meet that bar.”
The software companies are committed to a set of categories for the safety tests, but companies do not yet have to comply with a common standard on the tests. The government's National Institute of Standards and Technology will develop a uniform framework for assessing safety, as part of the order Biden signed in October.
AI has emerged as a leading economic and national security consideration for the federal government, given the investments and uncertainties caused by the launch of new AI tools such as ChatGPT that can generate text, images and sounds. The Biden administration also is looking at congressional legislation and working with other countries and the European Union on rules for managing the technology.
The Commerce Department has developed a draft rule on US cloud companies that provide servers to foreign AI developers.
Nine federal agencies, including the departments of Defense, Transportation, Treasury and Health and Human Services, have completed risk assessments regarding AI's use in critical national infrastructure such as the electric grid.
The government also has scaled up the hiring of AI experts and data scientists at federal agencies.
“We know that AI has transformative effects and potential,” Buchanan said. “We’re not trying to upend the apple cart there, but we are trying to make sure the regulators are prepared to manage this technology.



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.