Meta and Amazon Make Waves with AI Chips and Major Acquisitions
AI innovation is soaring, Meta and Broadcom are teaming up for powerful chips, and Amazon just snagged Globalstar for $11.57B.
EDITION #137, Apr 14
AI innovation is soaring, Meta and Broadcom are teaming up for powerful chips, and Amazon just snagged Globalstar for $11.57B.
Image Source: Reuters
Key Developments in AI and Satellite Technology
Amazon is set to acquire Globalstar for $11.57 billion, enhancing its Project Kuiper satellite network. This acquisition will add approximately 24 satellites to Amazon's existing fleet, expanding it from over 200 to about 224. The company aims to deploy around 3,200 satellites in low Earth orbit by 2029, with a direct-to-device (D2D) service expected to launch in 2028, directly competing with SpaceX's Starlink.
The deal allows Amazon to continue providing satellite services for Apple’s Emergency SOS and Find My features, maintaining a crucial partnership. This strategic move not only boosts Amazon's satellite capabilities but also positions it to better serve its existing clients, including Delta Airlines and NASA.
- Amazon's acquisition of Globalstar includes 24 satellites, enhancing its fleet for Project Kuiper.
- The deal aims to deploy 3,200 satellites in low Earth orbit by 2029, competing with Starlink.
- D2D service rollout is planned for 2028, reducing reliance on ground cellular networks.
- Globalstar's existing services for Apple will continue post-acquisition, ensuring seamless integration.
Image Source: Reuters
AI CHIP PARTNERSHIP
Meta Extends AI Chip Collaboration with Broadcom
Meta has expanded its partnership with Broadcom to co-develop custom AI chips, committing over 1 gigawatt of computing capacity through 2029. This collaboration aims to enhance Meta's AI capabilities across platforms like WhatsApp and Instagram, leveraging Broadcom’s expertise in high-speed networking and custom silicon design.
The first MTIA chip is already in use, powering Meta's recommendation systems, with plans for three additional generations by 2027. This strategic move underscores Meta's goal to achieve personal superintelligence at scale, integrating advanced AI features into its applications.
Image Source: Reuters
SATELLITE SHOWDOWN
Amazon Acquires Globalstar for $11.57B
Amazon has signed a deal to acquire Globalstar for $11.57 billion, enhancing its satellite capabilities to compete with SpaceX's Starlink. This acquisition will add over 24 satellites to Amazon's Kuiper constellation, aiming for a total of 3,200 satellites by 2029. The deal is expected to close in 2027, pending regulatory approval, and will maintain Globalstar's existing partnerships with Apple for satellite services on iPhone and Apple Watch.
Amazon's move is strategic, aiming to bolster its Direct-to-Device (D2D) connectivity and narrow the gap with Starlink, which currently serves over 9 million users globally. As part of the acquisition, Globalstar's assets will support Amazon's plans to launch satellite internet services later this year, enhancing connectivity in remote areas.
Source: Reuters
NEW CYBER DEFENSE
OpenAI Debuts GPT-5.4-Cyber Model
OpenAI has launched GPT-5.4-Cyber, a specialized model aimed at enhancing cybersecurity efforts. This rollout comes shortly after Anthropic introduced its Mythos model, which has raised concerns about potential vulnerabilities in banking systems. GPT-5.4-Cyber is being deployed to select security vendors and researchers under OpenAI's Trusted Access for Cyber (TAC) program, which is expanding to include thousands of defenders.
The model emphasizes proactive defense strategies, including strict customer validation and iterative deployment to mitigate risks. With the growing threat landscape, financial institutions like Goldman Sachs are already adapting their cybersecurity measures in response to AI-driven risks highlighted by models like Mythos.
Image via Bloomberg
AI FUNDING BOOST
Accenture Raises $5B for AI Investments
Accenture has successfully raised $5 billion to enhance its investments in AI technologies, aiming to strengthen its consulting capabilities. This funding is part of a broader trend where major firms are aggressively pursuing AI innovations, as seen with SoftBank’s recent $3.6 billion bond sale to support its AI initiatives.
The funds will allow Accenture to target strategic partnerships and expand its AI service offerings, reflecting a growing demand for AI solutions across industries. As companies like Jane Street invest heavily in AI infrastructure, Accenture is positioning itself to lead in this rapidly evolving market.
