AI products and services will likely grow between 40 percent and 55 percent annually, potentially reaching up to $990 billion by 2027, the consultancy Bain & Company projects in its latest tech report.
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India’s tech startup funding in 2024 so far lags last year
India’s tech startups have raised less money in 2024 so far, compared with the same period last year, according to data released yesterday by Tracxn, a private markets intelligence provider.
Indian startups raised $7.6 billion in funding between January 1 and September 13, a 7 percent drop from $8.2 billion for the same period in 2023 and a 66 percent decline from $22.4 billion in 2022, according to Tracxn.
There have been six new unicorns in 2024 so far, compared with just one in 2023. IPO numbers have doubled, with 29 tech companies going public in 2024 so far, compared with 15 during the same period in 2023. Bengaluru, Mumbai, and Gurugram are the top cities by startup funding this year so far.
Overall, India’s startup ecosystem ranks fourth worldwide, behind the US, UK, and China, with a cumulative total of 136,000 startups since Tracxn started operating, and 99 active unicorns.
AI market worldwide could touch $1 trillion by 2027, Bain projects
AI products and services will likely grow between 40 percent and 55 percent annually, potentially reaching up to $990 billion by 2027, the consultancy Bain & Company projects in its latest tech report. Bain’s fifth annual Global Technology Report highlights three key growth areas: Larger AI models and data centres, enterprise and sovereign AI initiatives, and enhanced software efficiency.
As AI demand surges, so too will the need for extensive data centres, which are expected to scale from 50-200 megawatts to over a gigawatt in the next five to ten years. This shift could significantly raise the cost of large data centres from $1 billion to between $10 billion and $25 billion.
Bain anticipates a 30 percent increase in demand for GPUs and other components, which could lead to supply chain challenges reminiscent of those seen during the pandemic. Geopolitical tensions may further exacerbate these semiconductor shortages, necessitating a major increase in production capacities across the industry.
OpenAI pitches multiple 5GW data centres in the US
OpenAI has proposed to the US government that America must build massive 5-gigawatt data centres, each potentially consuming as much power as an entire city, to advance AI development and maintain competitiveness against China, Bloomberg reported earlier today.
After a White House meeting with tech leaders, including CEO Sam Altman, OpenAI shared a document outlining the economic and national security benefits of these facilities. A 5 GW data centre could power nearly 3 million homes and is equivalent to five nuclear reactors, according to the report.
Northvolt, EU’s biggest battery startup, lays off 1,600 staff
Northvolt, the EU’s biggest battery manufacturing startup, plans to cut 1,600 jobs in Sweden, representing about 20 percent of its global workforce, due to production issues, weak demand, and fierce competition from China, Reuters reported on September 23.
The company announced it would halt plans for a major expansion of its Northvolt Ett factory in Skellefteå, which was intended to boost capacity by 30 GWh. Instead, Northvolt will focus on ramping up initial production of 16 GWh annually. It currently produces less than 1 GWh.
In June, BMW cancelled a $2 billion contract with Northvolt as the battery maker failed to deliver. And it is moving away from its original plan of being an end-to-end materials-to-recycling provider to a slimmer operation. China accounts for 85 percent of global battery cell production.
CERT-In and SISA launch security certification for AI
The Indian Computer Emergency Response Team (CERT-In) and SISA, a leader in Cyber Security forensics, yesterday, jointly launched the Certified Security Professional for Artificial Intelligence (CSPAI) program, according to a statement from India’s Ministry of Electronics and IT.
This certification, offered via a public-private partnership, is accredited by ANAB, according to the statement. ANAB is the ANSI National Accreditation Board, a prominent accreditation body in the US. It is a subsidiary of the private, non-profit American National Standards Institute. The CSPAI programme equips security professionals with the skills needed to effectively integrate AI into business applications while adhering to sustainable practices, according to the statement.