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Newsletter: Signs of the Tech Revolution #6

By 2027, the AI industry is expected to use the same amount of energy each year as the Netherlands.
Signs of the Tech Revolution logo
Published on
July 5, 2024
Last updated on
July 5, 2024

By 2027, the AI industry is expected to use the same amount of energy each year as the Netherlands. In the last 5 years, Google’s emissions climbed by 48%. But energy isn’t everything, all data centers have to be cooled down. That is done mostly with water. 

Microsoft’s water consumption had jumped by 34% between 2021 and 2022. In 2022 it was 6.4 million cubic meters, that’s 2,500 Olympic swimming pools.

One study estimated that AI could account for up to 6.6bn cubic meters of water use by 2027 – nearly two-thirds of England’s annual consumption.

Let those numbers sink in.

These problems have to be addressed as the consumption and adoption of AI grows. 

Researchers at the University of California, Santa Cruz revealed a more sustainable approach that can transform the way AI companies train their LLMs.

Most models rely on matrix multiplication (MatMul). This process involves multiplying numbers across several layers of a network. The researchers found a way to convert these numbers into ternary values. Instead of binary, ternary also adds -1 into the mix. Such “small” change makes each calculation much easier, since the computer is dealing with only three options at a time and can add them instead of multiplying.

To put this change into perspective.

The researchers were able to run a Llama-2-like model with just 13 watts of power (energy used by an LED light bulb), without any significant drop in performance.

In this newsletter:

  • The change in vendor relationships
  • Low-hanging fruits for cost-effective green IT gains 
  • How JP Morgan is protecting its branches from fraud
  • Why major cloud providers are pushing open source in fintechs
  • and more...

News #1: Provider vs partner - IT leaders change their view on vendor relationships

IT leaders are rethinking their relationships with vendors, shifting from a traditional vendor-client dynamic to a more integrated partnership model. This change is largely driven by the need for agility and innovation in business operations.

IT leaders are moving beyond mere transactions and focusing on building long-term, strategic partnerships with their vendors. This collaboration is not just about procuring technology but co-innovating to drive more growth. The emphasis is on shared goals, transparency, and a deep understanding of each other's business objectives. 

By partnering closely with vendors, organizations can leverage their expertise to navigate complex challenges and seize new opportunities. This partnership approach fosters a more adaptable and responsive IT strategy, crucial for staying competitive in today’s fast-paced market.

For global enterprises, this shift towards partnership can redefine success in the digital age. It's about creating value together and ensuring that both parties are aligned and invested in the shared vision. This approach can significantly enhance operational efficiency, innovation, and long-term business growth.

To start working with a partner who is focused on the long-term schedule a consultation with our team. We will help you get the most out of your investment in technology.

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News #2: AWS, Microsoft, Google Cloud champion open-source for fintechs

Fintech is increasingly embracing open-source technology, with executives from Amazon Web Services (AWS), Intel, and Depository Trust & Clearing Corporation (DTCC) highlighting its significance at an industry event. They underlined how open-source can drive innovation, improve security, and enhance business agility. 

Open-source frameworks allow financial firms to leverage cutting-edge technologies while avoiding vendor lock-in, fostering a more collaborative and flexible environment.

Businesses can benefit from reduced costs and improved interoperability. Moreover, open-source efforts are pivotal in addressing the industry's rigorous regulatory and security demands. Leaders in financial tech are leveraging these tools to develop more robust solutions and infrastructure, fostering a more interconnected financial ecosystem.

By integrating open-source strategies, global enterprises can achieve greater efficiency and flexibility, essential for staying competitive. This approach supports scalable growth but also enhances technological resilience, crucial for today’s dynamic market demands. 

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News #3: Gartner reveals where enterprises can make cost-effective green IT gains

As we move into an era where sustainability is not only beneficial but essential, many companies are overlooking simple strategies to enhance their green IT infrastructure. Common solutions like optimizing data centers and embracing renewable energy sources can lead to significant environmental and financial gains.

Short-term investments in energy efficiency can yield long-term savings and improve corporate reputation. Implementing these changes doesn’t just meet regulatory requirements; it strengthens operational resilience and sustains competitive advantage in a market increasingly prioritizing environmental responsibility. 

Business leaders have to look for ways to integrate green IT practices into their existing strategies. By leveraging rightsizing, purchasing refurbished IT assets, and cultivating closer ties with vendors businesses can drive growth while making a positive environmental impact.

Last but not least, rolling out sustainable user experience to how customer-facing sites and apps function can yield amazing results.

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Other Resources

  • JPMorgan Chase is taking significant steps to enhance fraud prevention in its branches. Recognizing the growing sophistication of fraudulent activities, the bank is deploying advanced technology and robust protocols - Read more
  • Amazon is hiring executives from AI startup Adept for their AGI (Artificial general intelligence) team - Read more
  • Hugging Face has released its second LLM leaderboard to rank the best language models it has tested. Chinese companies took most of the top spots - Read more
  • A Chinese student in Singapore was packing suitcases to return home for vacation, his luggage included Nvidia’s advanced chips. Read about the underground network sneaking Nvidia chips into China - Read more
  • The largest tech companies are looking to buy nuclear power directly from plants - Read more

What does Maxima Consulting do again?

Maxima Consulting helps business leaders get the most out of their tech investments through smart process and operations optimization. Tech leaders work with our project teams to tap into the global talent pool and deliver projects on time and within budget. Maxima Consulting is trusted by global banks, logistics companies, retailers and more of the leading companies in the world.

Curious to see how Maxima Consulting can help you get the most out of your tech investments? Meet with one of our consultants to see how we can help.

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