Connect with us

Business

Nvidia CEO Jensen Huang says AI will ‘probably’ bring 4-day work weeks: ‘Every industrial revolution leads to some change in social behavior’

Published

on



Nvidia CEO Jensen Huang says the world is “at the beginning of the AI revolution,” and the rapid adoption of artificial intelligence across industries could bring “probably” a transition to four-day work weeks, marking another shift in social behavior akin to previous industrial revolutions. But that doesn’t mean life will slow down.

“I have to admit that I’m afraid to say that we are going to be busier in the future than now,” Huang told Liz Claman on Fox Business Network’s The Claman Countdown. He pointed to AI’s uncanny ability to take time-consuming things and get them done very quickly, and predicted that the way this will actually work is to realize the ideas of more business leaders with many ideas in their heads, like himself. “I’m always waiting for work to get done because I’ve got more ideas,” he told Claman, adding that he thinks “most companies have more ideas than we know what to pursue.  And so the more productive we are, the more opportunity we get to go pursue new ideas.”

“Every industrial revolution leads to some change in social behavior,” Huang noted in a wide-ranging interview, predicting that GDP will grow and productivity will increase. Certainly his company is growing. Huang was speaking to Claman in the aftermath of Nvidia’s record $46.7 billion second quarter earnings announced just a few days beforehand. His company still has a market capitalization north of $4 trillion, the largest in the world.

Bank of America Research has predicted a sweeping productivity boom for the S&P 500 as companies learn to do more with less, solving the “productivity paradox” that has been a characteristic of much of the computer age: you can see the revolution everywhere except in the productivity statistics. BofA Research’s Head of US Equity & Quantitative Strategy, Savita Subramanian, told Fortune this was partially, but not entirely, due to AI. The key is the same thing identified by Huang: doing things more efficiently. “If you’re productive, you are doing things more efficiently, you need less labor. And this is more labor efficiency than anything else.”

Extraordinary growth and demand for AI

Huang emphasized that AI capabilities now touch nearly every sector, from cloud computing to manufacturing, robotics, and even self-driving vehicles. He detailed the explosive growth in demand for Nvidia’s AI chips, especially their new Blackwell Ultra architecture (code-named GB300), fueled by surging global investments in data centers. Huang estimated that through the end of the decade, about $3 to $4 trillion of AI factory infrastructure will be built out.

Looking to the future, Huang acknowledged both anxiety and excitement about AI’s effect on work.

The interview also touched on the geopolitical tension of chip exports to China and the Trump administration’s stance on licensing. Huang positioned US technology as a potential global standard, remarking, “Having the world build AI on American tech stack helps America win.” Nvidia remains eager to resume China shipments, which could reclaim a share of a $50 billion AI hardware market there.

The 4-day week is already reality in some places

Fortune highlights that several companies pioneering the four-day work week have seen notable wins: productivity climbed by up to 24%, burnout was halved, and turnover dropped sharply. Large-scale studies in Britain and North America found that workers can accomplish the same results in around 33 to 34 hours weekly—and the drop from five to four days led to significantly better health, job satisfaction, and a dramatic reduction in sick days and quitting rates, suggesting that the current five-day work week is largely performative.

In the Netherlands, Fortune has reported, workers routinely put in just 32 hours a week, enjoying the quality-of-life improvements that come from a four-day schedule. Employees overwhelmingly want to keep the shorter week after pilot programs end and organizations that switch to them rarely revert to five days, supporting Huang’s assertion that industrial revolutions bring lasting social change.

Huang noted that with the advent of modern capitalism, the seven- or six-day work week evolved into a a world of five-day work weeks.  “Every industrial revolution leads to some change in social behavior,” he said, adding that he expects the economy to be doing very well because of AI and automation.” He returned to the hotly debated impact on jobs, where Huang has been optimistic and peers such as Anthropic’s Dario Amodei have predicted that 50% of white-collar work will vanish. “Some jobs will go away,” Huang said. “Many jobs will be new and invented. But one thing for sure, every job will be changed as a result of AI.” He added that he believes “life quality will get better, of course, over time.”

Nvidia declined to comment further.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. 



Source link

Continue Reading

Business

The rise of AI reasoning models comes with a big energy tradeoff

Published

on



Nearly all leading artificial intelligence developers are focused on building AI models that mimic the way humans reason, but new research shows these cutting-edge systems can be far more energy intensive, adding to concerns about AI’s strain on power grids.

AI reasoning models used 30 times more power on average to respond to 1,000 written prompts than alternatives without this reasoning capability or which had it disabled, according to a study released Thursday. The work was carried out by the AI Energy Score project, led by Hugging Face research scientist Sasha Luccioni and Salesforce Inc. head of AI sustainability Boris Gamazaychikov.

The researchers evaluated 40 open, freely available AI models, including software from OpenAI, Alphabet Inc.’s Google and Microsoft Corp. Some models were found to have a much wider disparity in energy consumption, including one from Chinese upstart DeepSeek. A slimmed-down version of DeepSeek’s R1 model used just 50 watt hours to respond to the prompts when reasoning was turned off, or about as much power as is needed to run a 50 watt lightbulb for an hour. With the reasoning feature enabled, the same model required 7,626 watt hours to complete the tasks.

The soaring energy needs of AI have increasingly come under scrutiny. As tech companies race to build more and bigger data centers to support AI, industry watchers have raised concerns about straining power grids and raising energy costs for consumers. A Bloomberg investigation in September found that wholesale electricity prices rose as much as 267% over the past five years in areas near data centers. There are also environmental drawbacks, as Microsoft, Google and Amazon.com Inc. have previously acknowledged the data center buildout could complicate their long-term climate objectives

More than a year ago, OpenAI released its first reasoning model, called o1. Where its prior software replied almost instantly to queries, o1 spent more time computing an answer before responding. Many other AI companies have since released similar systems, with the goal of solving more complex multistep problems for fields like science, math and coding.

Though reasoning systems have quickly become the industry norm for carrying out more complicated tasks, there has been little research into their energy demands. Much of the increase in power consumption is due to reasoning models generating much more text when responding, the researchers said. 

The new report aims to better understand how AI energy needs are evolving, Luccioni said. She also hopes it helps people better understand that there are different types of AI models suited to different actions. Not every query requires tapping the most computationally intensive AI reasoning systems.

“We should be smarter about the way that we use AI,” Luccioni said. “Choosing the right model for the right task is important.”

To test the difference in power use, the researchers ran all the models on the same computer hardware. They used the same prompts for each, ranging from simple questions — such as asking which team won the Super Bowl in a particular year — to more complex math problems. They also used a software tool called CodeCarbon to track how much energy was being consumed in real time.

The results varied considerably. The researchers found one of Microsoft’s Phi 4 reasoning models used 9,462 watt hours with reasoning turned on, compared with about 18 watt hours with it off. OpenAI’s largest gpt-oss model, meanwhile, had a less stark difference. It used 8,504 watt hours with reasoning on the most computationally intensive “high” setting and 5,313 watt hours with the setting turned down to “low.” 

OpenAI, Microsoft, Google and DeepSeek did not immediately respond to a request for comment.

Google released internal research in August that estimated the median text prompt for its Gemini AI service used 0.24 watt-hours of energy, roughly equal to watching TV for less than nine seconds. Google said that figure was “substantially lower than many public estimates.” 

Much of the discussion about AI power consumption has focused on large-scale facilities set up to train artificial intelligence systems. Increasingly, however, tech firms are shifting more resources to inference, or the process of running AI systems after they’ve been trained. The push toward reasoning models is a big piece of that as these systems are more reliant on inference.

Recently, some tech leaders have acknowledged that AI’s power draw needs to be reckoned with. Microsoft CEO Satya Nadella said the industry must earn the “social permission to consume energy” for AI data centers in a November interview. To do that, he argued tech must use AI to do good and foster broad economic growth.



Source link

Continue Reading

Business

SpaceX to offer insider shares at record-setting valuation

Published

on



SpaceX is preparing to sell insider shares in a transaction that would value Elon Musk’s rocket and satellite maker at a valuation higher than OpenAI’s record-setting $500 billion, people familiar with the matter said.

One of the people briefed on the deal said that the share price under discussion is higher than $400 apiece, which would value SpaceX at between $750 billion and $800 billion, though the details could change. 

The company’s latest tender offer was discussed by its board of directors on Thursday at SpaceX’s Starbase hub in Texas. If confirmed, it would make SpaceX once again the world’s most valuable closely held company, vaulting past the previous record of $500 billion that ChatGPT owner OpenAI set in October. Play Video

Preliminary scenarios included per-share prices that would have pushed SpaceX’s value at roughly $560 billion or higher, the people said. The details of the deal could change before it closes, a third person said. 

A representative for SpaceX didn’t immediately respond to a request for comment. 

The latest figure would be a substantial increase from the $212 a share set in July, when the company raised money and sold shares at a valuation of $400 billion.

The Wall Street Journal and Financial Times, citing unnamed people familiar with the matter, earlier reported that a deal would value SpaceX at $800 billion.

News of SpaceX’s valuation sent shares of EchoStar Corp., a satellite TV and wireless company, up as much as 18%. Last month, Echostar had agreed to sell spectrum licenses to SpaceX for $2.6 billion, adding to an earlier agreement to sell about $17 billion in wireless spectrum to Musk’s company.

Subscribe Now: The Business of Space newsletter covers NASA, key industry events and trends.

The world’s most prolific rocket launcher, SpaceX dominates the space industry with its Falcon 9 rocket that launches satellites and people to orbit.

SpaceX is also the industry leader in providing internet services from low-Earth orbit through Starlink, a system of more than 9,000 satellites that is far ahead of competitors including Amazon.com Inc.’s Amazon Leo.

SpaceX executives have repeatedly floated the idea of spinning off SpaceX’s Starlink business into a separate, publicly traded company — a concept President Gwynne Shotwell first suggested in 2020. 

However, Musk cast doubt on the prospect publicly over the years and Chief Financial Officer Bret Johnsen said in 2024 that a Starlink IPO would be something that would take place more likely “in the years to come.”

The Information, citing people familiar with the discussions, separately reported on Friday that SpaceX has told investors and financial institution representatives that it is aiming for an initial public offering for the entire company in the second half of next year.

A so-called tender or secondary offering, through which employees and some early shareholders can sell shares, provides investors in closely held companies such as SpaceX a way to generate liquidity.

SpaceX is working to develop its new Starship vehicle, advertised as the most powerful rocket ever developed to loft huge numbers of Starlink satellites as well as carry cargo and people to moon and, eventually, Mars.



Source link

Continue Reading

Business

U.S. consumers are so strained they put more than $1B on BNPL during Black Friday and Cyber Monday

Published

on



Financially strained and cautious customers leaned heavily on buy now, pay later (BNPL) services over the holiday weekend.

Cyber Monday alone generated $1.03 billion (a 4.2% increase YoY) in online BNPL sales with most transactions happening on mobile devices, per Adobe Analytics. Overall, consumers spent $14.25 billion online on Cyber Monday. To put that into perspective, BNPL made up for more than 7.2% of total online sales on that day.

As for Black Friday, eMarketer reported $747.5 million in online sales using BNPL services with platforms like PayPal finding a 23% uptick in BNPL transactions.

Likewise, digital financial services company Zip reported 1.6 million transactions throughout 280,000 of its locations over the Black Friday and Cyber Monday weekend. Millennials (51%) accounted for a chunk of the sizable BNPL purchases, followed by Gen Z, Gen X, and baby boomers, per Zip.

The Adobe data showed that people using BNPL were most likely to spend on categories such as electronics, apparel, toys, and furniture, which is consistent with previous years. This trend also tracks with Zip’s findings that shoppers were primarily investing in tech, electronics, and fashion when using its services.

And while some may be surprised that shoppers are taking on more debt via BNPL (in this economy?!), analysts had already projected a strong shopping weekend. A Deloitte survey forecast that consumers would spend about $650 million over the Black Friday–Cyber Monday stretch—a 15% jump from 2023.

“US retailers leaned heavily on discounts this holiday season to drive online demand,” Vivek Pandya, lead analyst at Adobe Digital Insights, said in a statement. “Competitive and persistent deals throughout Cyber Week pushed consumers to shop earlier, creating an environment where Black Friday now challenges the dominance of Cyber Monday.”

This report was originally published by Retail Brew.



Source link

Continue Reading

Trending

Copyright © Miami Select.