OpenAI to finalise first custom AI chip by 2026
OpenAI plans to finalise its first custom AI chip, aiming for production by 2026, reducing reliance on Nvidia.
Samsung Electronics, the global leader in memory chips, smartphones, and televisions, has released its fourth-quarter operating profit estimate, revealing a significant shortfall compared to analyst expectations. The South Korean tech giant reported an estimated operating profit of 6.5 trillion won.
Samsung's fourth quater results, although a remarkable 131% increase from the same period last year, missed the consensus estimate of 7.7 trillion won, as projected by LSEG SmartEstimate.
The disappointing earnings were attributed to a number of factors, including Samsung’s struggles in the high-end chip market, where it faced fierce competition from rival SK Hynix. The company has been notably lagging behind SK Hynix in supplying premium chips to Nvidia, a key player in the semiconductor industry. Nvidia's demand for advanced chips, particularly those used in data centers and artificial intelligence (AI) applications, has surged in recent months, but Samsung has not kept pace with its competitors.
Samsung's business of designing and contract manufacturing logic chips also experienced a downturn during the quarter. The slowdown in global smartphone demand, combined with lower factory utilization rates and rising research and development costs, contributed to the overall decline in earnings from this segment. These challenges are particularly evident in the mobile industry, where demand has remained sluggish due to economic uncertainties and changing consumer preferences.
While Samsung’s estimated Q4 profit is still substantially higher than last year’s figures, it marks a significant decline of 29% from the previous quarter. This drop in earnings highlights the ongoing challenges faced by Samsung’s semiconductor business, which has long been a major driver of the company's overall profitability. The slowdown in chip demand, coupled with intense competition from other memory chipmakers, has put pressure on Samsung's market position in recent months.
Despite the disappointing earnings report, Samsung’s shares initially dropped by 1% in early trading following the announcement. However, they later rebounded and rose more than 1%, suggesting that investors remain cautiously optimistic about the company's future prospects, particularly in the long term.
Samsung's ability to regain momentum in its semiconductor business will be crucial to its overall performance in 2025. As competition in the chip industry intensifies, Samsung will need to adapt to changing market dynamics and invest in new technologies to stay competitive. The company’s ability to meet the growing demand for high-end chips, especially those used in AI and data centers, will play a pivotal role in shaping its financial outlook in the coming months.
A tragic crowd crush at New Delhi Railway Station on Saturday night left 18 dead and 10 injured as thousands of people, many heading to the Kumbh Mela festival, attempted to board delayed trains. The incident highlights the ongoing risks of overcrowding at public transportation hubs in India.
A Delta Air Lines regional jet flipped upside down upon landing at Toronto Pearson Airport on Monday, injuring 18 people. Officials are investigating whether strong winds and snow played a role in the incident.
Berlin, February 21, 2025 – German citizens will head to the polls on Sunday, February 23, for a snap general election after the coalition government collapsed late last year.
Washington, D.C., February 17, 2025 – Elon Musk’s Department of Government Efficiency, also known as DOGE, has reduced the staffing of a key team at the National Highway Traffic Safety Administration (NHTSA) responsible for regulating autonomous vehicles, according to The Washington Post.
Russia has resumed wheat exports to Kazakhstan after lifting a ban that was in place until December 31, 2024.
The European Union will seek more gas from countries including the U.S. to replace Russian supplies, and expand renewable energy faster to cut its overall reliance on the fuel, the EU's energy commissioner has said.
BEIJING, Feb 20, 2025 – China is “doing its best” to push for talks with the European Union over tariffs imposed on Chinese-made electric vehicles, a commerce ministry spokesperson said on Thursday.
Berlin, February 20, 2025 – Mercedes-Benz has launched a fresh cost-cutting initiative aimed at reviving sales and margins, as the German carmaker forecasts a significant drop in earnings in 2025.
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