In today’s newsletter:

• News - 📱 AI Phones: The Game-Changer Chipmakers Crave!

• Culture - 💡 Inside the AI Boomtowns: Electricians Strike Gold

📱 AI Phones: The Game-Changer Chipmakers Crave!

Demand for AI smartphones could be the next big thing for the semiconductor industry, according to Doug Lefever, CEO of chip-testing giant Advantest, an Nvidia supplier. While he keeps an eye on potential slowdowns in data center spending from tech giants like Meta, Google, and Microsoft, Lefever believes the cyclical nature of the industry means any dip will be temporary, even if “vicious.” Meanwhile, the market is buzzing about the potential for a "killer app" that could ignite demand for AI-enabled smartphones, sparking a replacement frenzy akin to the early smartphone booms.

Advantest, dominating over half the semiconductor testing market, is riding the wave of soaring demand for cutting-edge chips. The company’s machines, now testing chips up to 20 times during production, have become essential as chips grow more complex and expensive. This trend has driven its share price up 80% in a year and 500% over five years. Despite global trade tensions, Advantest remains resilient, shifting revenues to other regions when sanctions impact China, and confidently raising its income targets as the AI chip revolution marches on.

🗞️ In Other News…

• OPZ has launched the world’s first AI-powered crypto wallet, combining advanced AI-driven trading strategies, real-time market insights, and cutting-edge security to revolutionize cryptocurrency trading and asset management.

• Retail investors have flocked to Nvidia in 2024, making it the most-bought stock of the year as its AI-driven growth and market dominance continue to captivate everyday traders and fuel substantial portfolio gains.

• Trump's support for AI and cryptocurrency is inadvertently driving massive investments in clean energy, renewables, and natural gas, as data centers' skyrocketing power demands push the need for diverse energy sources.

• Google contractors evaluating its Gemini AI are comparing its responses against Anthropic’s Claude, raising questions about compliance with Anthropic’s terms of service, which forbid using Claude for training or developing competing AI without approval.

• Tom Pey, president of the Royal Society for Blind Children, has called for inclusive AI and tech design to prevent blind and partially sighted individuals from facing increasing discrimination and exclusion from advancements like AI-powered tools and virtual realities.

💡 Inside the AI Boomtowns: Electricians Strike Gold

The tangy smell of Buffalo wings filled Side Chicks Sports Bar in East Wenatchee, Washington, where electricians gathered for "brotherhood night," swapping tales of jobs, foremen drama, and life on the road. These traveling electricians are the muscle behind the data centers powering A.I.'s future, flocking to regions with hydropower to spare, like central Washington. Here, massive overtime and bonuses make six-day workweeks worth it, with some earning $2,800 weekly after taxes. For workers like Sean Nickell and Chris Bennett, the camaraderie and big paychecks outweigh the challenges of life on the move.

Data centers have transformed sleepy towns like Quincy, bringing new schools, property tax windfalls, and skyrocketing housing costs. Yet, the boom has a ticking clock, as power grids max out and construction slows. Locals like Jesus Zafra admit they’re part of the problem, building facilities that offer few permanent jobs. Still, the influx of electricians is reshaping lives and communities, from union apprenticeships welcoming diverse recruits to RV parks catering to this new workforce. For many, like the Nickells, it's a nomadic life with no shortage of opportunity—if you’re willing to chase it.

VC Fundraising Rounds

• Perplexity AI Inc., an AI startup developing a search product to rival Google, has raised $500 million in funding, tripling its valuation to $9 billion. (12/18/24)

• SandboxAQ has raised over $300 million at a valuation exceeding $5.6 billion to advance its AI and quantum sensing technologies, focusing on specialized AI model development. (12/18/24)

• Nuitee, a technology solution provider founded in 2017, has raised $48 million in a Series A funding round to expand its travel and hotel connectivity technology solutions. (12/18/24)

• Databricks is securing an enormous $10 billion in additional funding, a move that will catapult its valuation to $62 billion. (12/17/24)

• Basis, a startup focused on creating AI software for accounting firms, has secured $34 million in early-stage funding. (12/17/24)

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