Nvidia’s AI business takes center stage - DTNSB 4965
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Guaranteed to fit every time. eBay. Things people love. This is the Daily Tech News for Thursday, February 27th, 2025. We tell you what you need to know, follow up on the context of those stories, and help each other understand. Today, Dr. Nikki tells us about science paper mills and more from your emails. I'm Jason Howell. I'm Poyntwet Dow. Let's start with what you need to know with The Big Story. ♪

So NVIDIA reported its fourth quarter earnings just yesterday afternoon, and things are looking pretty good as the company dominates in the AI sector, largely in part to its data center GPUs. Data center revenue saw a huge increase of 93% annually, making up 91% of the company's total sales. So if that doesn't say it right there, nothing else will. Demand,

For AI accelerators like the Blackwell series, a huge part of that increase. Gaming, of course, used to be a very central focus of NVIDIA's business. And it's not like it's not part of its business anymore, but it did see an 11% revenue drop in that gaming division. NVIDIA attributes the drop to limited supply of its Blackwell and Ada GPUs. Still, the impact of that drop

is pretty minimal when you compare it to the company's booming AI business. So it's kind of like, yeah, gaming department drop a little bit, but you know what? Doesn't matter because we got AI.

NVIDIA is also seeing some impressive gains in the automotive industry with 103% year-over-year increase in sales. That's attributed to its self-driving platforms. And the automotive division for NVIDIA might not actually be the biggest portion of NVIDIA's business.

But the good news is it reflects a really large area of growth for the company, for the chips that are used in cars and then beyond that in robotics, which is another huge growth area right now. And AI intertwines with robotics in really interesting ways. So kind of seems like NVIDIA is set up well for the future.

NVIDIA also seems unfazed by the emergence of more efficient AI models like DeepSeq's R1. The company stated that new AI methods requiring extensive reasoning could actually increase demand for NVIDIA chips very significantly. CEO Jensen Huang told CNBC that this phase of reasoning models will require 100 times more compute than we saw back then.

with the initial release of ChatGPT, so scaled up exponentially. If that's the case, NVIDIA offers, in my opinion, the right hardware at the right time, but time will, of course, tell. NVIDIA closed out by saying that its Blackwell chips were made for this moment in AI and that all...

configurations are in full production because there had been shortages for quite a while. The company, I believe, is transforming before our very eyes, if not already, almost fully into an AI-centric company. These earnings seem to reflect that transition. What are your thoughts, Wayne?

I mean, it makes a lot of sense. And so I used to be a gamer. And so it's really interesting to see kind of more into what NVIDIA is as a whole. So as a gamer, I used to generally only care about NVIDIA when the new chips came out. And so, of course, as many gamers were disappointed, I think, by the release of the 5090 and 5080 this year, or rather in the last year, they kind of went out of my reach.

brainscape a little bit, especially with competition from like other, you know, OEMs in that space. But it makes a lot of sense, you know, and again, like I think my own, like, I guess, less aware state was thinking, oh yeah, I mean, I remember when, you know, cryptocurrency mining was a big thing and then there was a run on, you know, for example, NVIDIA and other graphics card. Like, oh yeah, I guess it makes sense that

a chip, the chips that they work on would work for these purposes. So, I mean, I guess now I'm just kind of saying, oh, well, duh. It kind of makes sense that, you know, this obviously AI being the thing, the zeitgeist, the

the technology kind of niche that all companies seem to be putting their, all of their eggs, the basket into which all companies are putting their eggs in the basket too. It doesn't make sense. Whether you like it or not. Whether you like it or not. Yes. But I mean, it makes so much sense just because, you know, part of like the advance that we've been seeing in AI is just the advancement in both technology and also both like the capacity and like the kind of like the, the,

the ability for them to kind of, you know, the computing power. So, I mean, I think it makes so much sense. And I think it's fascinating, again, as someone who just kind of grew up with NVIDIA being synonymous with gaming. I congratulate them for, I mean, for the pivot or just for the ability to kind of take this. And I mean, with the DeepSeek news, I think the second headline I saw after DeepSeek came out was that, oh no, for NVIDIA, but that seems like kind of maybe...

Was premature or just more reactionary, it seems like, than like an actual detriment to their business.

Well, I mean, DeepSeek certainly has been disruptive in how we look at these AI models and what's required. And, you know, I think there was a big reaction that you're referring to in the perspective of, oh, we're so used to these big models, you know, requiring or the big tech companies making the case that in order to compete in AI,

artificial intelligence, we need massive amounts of money and massive amounts of these ultra powerful servers. And then come along comes, you know, the deep seek narrative, which is that they trained it, you know, on a fraction of the cost and lower end hardware and all this stuff. And I think it's still kind of at a position right or point right now where that is contested a little bit, like how, how truthful that was to the end. So that's a little uncertain, but

Regardless of all that, the case that NVIDIA seems to be making right now around AI is even if that's the case, where we are right now is a moment of reasoning models like R1. And, you know, all these companies now are releasing their reasoning models. And those reasoning models, they're thirsty. They do require hard work.

But I think what that leads me to is if this is the moment that we're in now with AI, you know, NVIDIA has evolved from gaming, like you said, into being this AI powerhouse company. Like what is next beyond the rapid pace of development of AI? This reasoning moment is going to last for a certain amount of time. If history is, you know, this short amount of history is any indication that's going to lead to,

What and is that what still keeping NVIDIA relevant two, three, five years down the line? Yeah, it does seem like a current, like a very welcome but short-term reprieve. And I mean, none of us know what the...

I mean, end game seems like very final. There's not really an end game, I suppose, in technology. Yeah, we're at lead. So it would be interesting. I am fascinated, though, by the mention of the impressive gains in the automotive industry, though, because that could also be another venue, especially with self-driving platforms. And I mean, the demand for self-driving platforms, I guess, depends.

individually as a person depends on how you feel about self-driving cars, but it's not going away. And certainly plenty of different companies are investing in different types of technologies and aspects of self-driving platforms. I mean, it's kind of cool. I think it seems like they have at least a couple of parachutes. Yeah, right. If you could say kind of out of the current situation. I'd be kind of honestly interested to see what the automotive industry, you know, how that grows as well. Because again, like the automotive industry is changing, you know, with like the...

Kind of like the rise of EVs and even just like, and all the kind of different infrastructure, all the legal, all the challenges, all that. I think that would be really interesting to see if they can make themselves a space there. Could you imagine maybe in 10 years, maybe we don't think about NVIDIA for any kind of computing at all, but they're in your car in some way. You know what I mean? Like that would be kind of fascinating. I don't know. I don't think that's actually going to happen, but yeah.

It does seem like they have a lot of, they're diversifying, which I hear is a good business strategy. I'm an engineer, so I don't know. But like kind of putting their fingers in different pies, which sounds gross, but probably smart for the long term. Yeah, hopefully they wash their hands before they do that. No, always do that, please. Yeah.

Well, DTS is made possible by you, the listener. Thanks to Miranda Janelle, that Charlie dude, Justin Zellers, and lifetime patron, da-da-da-da, Logan Larson. Man, awesome. Thank you, patrons. Lifetime. That's a long time. Lifetime Logan Larson. Picture this. You're in the garage, hands covered in grease, just finished up tuning your engine with a part you found on eBay, and you realize, you know what?

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That's BlueNile.com to find the perfect jewelry gift for any occasion. BlueNile.com. All right, there's more that we need to know today, and we're going to get right to it in the briefs. Well, Instagram Reels might soon have its own separate app according to an anonymous source to the information. So this is codenamed Project Ray.

And this dedicated app would be moved to better compete with, of course, TikTok, complete with improvements to the recommendation algorithm, as well as an increase from one minute reels, which they are currently now in the app, to three, three minute reels, three minute reel videos in the US. Hmm, a separate app. I feel like Instagram's done that before. I know they have.

Yeah, well, it remains to be seen whether that's the right approach. I'd be curious to see. I mean, it kind of makes sense. And I feel like three minute reels is really getting three minutes is really interesting just because most content of this form is just like, you know, like even shorts on YouTube or whatever.

I mean, I guess TikTok. Wait, sorry. I'm not much of a TikToker. What's the limit on TikTok videos? God, I think you can do like 10 minute TikToks now. Okay. The idea of short form is we've reinvented short form and it's actually long form disguised as short form and vertical. Seems to be the way of the world right now.

You are aware of the Pixel Watch 3. I do not have one myself, but Google's Pixel Watch 3 is one step closer to finally offering its promised loss of pulse detection feature. This was first announced last year, late last year, when they announced the devices that made by Google. U.S. regulators have granted FDA clearance for the feature, paving the way for a rollout to devices starting next month. So that's March 2025. Once the event is declared,

the watch will prompt the wearer to confirm if they are okay and follow up with a call to emergency services along with providing location data for rescue if you do not provide that confirmation. So it saves you if it detects that your heart has stopped beating. That's very, very useful. Absolutely. So Sony is slashing the cost of the PlayStation VR 2 by $150 to a new fixed price of $399 in the U.S.,

449 and sorry. I know they always do the 99s. The 99s are driving me crazy. 450 euros. Sorry, we're going to round up because there's so many nines. 450 euros and 400 British pounds. So this price cut is the latest news in signaling that the headset might not be selling quite as well as Sony had hoped.

Bloomberg reported last March that Sony was pausing production and shifting all of its unsold inventory due to lack of sales back then. So this kind of price slash seems to indicate that the headset is still not doing as strongly as Sony would hope.

Yeah, I mean, it's a pricey device. I think that the VR headset itself was more expensive than the actual console. And that gave me a bad taste right when it launched as well. So I'm not surprised about this at all. I haven't heard a lot of people talking about it either. So there's that.

U.S. Director of National Intelligence Tulsi Gabbard condemned a U.K. order compelling Apple to break its encrypted storage. Gabbard called it a violation of American rights and potential breach of the Cloud Act. The order required...

Apple to create a backdoor to bypass its advanced data protection and led to the removal of the secure storage option for UK customers. Gabbard stressed the need to respect U.S. law and constitutional rights, supporting strong encryption against things like cyber threats.

Amazon Web Services has created its first quantum computing chip called Ocelot. The chip uses cat qubits. So that's a Schrodinger's cat reference for those keeping track. And a stacked silicon architecture, which Amazon believes can drastically reduce the cost of building quantum computers by up to 90% compared to other approaches.

Amazon joins Google and Microsoft, who have shown off their own quantum computing hardware in recent months. Quantum. It's a thing. It is a thing. Life360 Inc., the location sharing service that owns Tile, has acquired a Phantix incorporated unit that in an effort to enhance its advertising capabilities through artificial intelligence.

The acquisition will bring Fantix founders into Life360's team to focus on that goal with the aim of connecting Life360's 77 million users to relevant brands and services. Aren't you lucky, users?

All right. Well, Meta had to address an error on Instagram that unfortunately led to users being inundated with graphic and violent content in their Reels feed. The company says the issue has been resolved and apologized for the error. It is worth noting, though, that Meta has very recently announced its plans to alter its moderation practices to promote free expression on the platform. And this includes layoffs to the integrity and safety teams.

Yeah, I mean, you know, that that last note there is just kind of something to to notice whether that has any sort of influence over this event happening or not is another story is total, you know, total guessing. But I will say just, you know, just anecdotally yesterday evening.

I was driving my daughter and a bunch of her swim team, you know, all high school students to their swim, about 20 minute drive. And they were all having mixed reactions to their Instagram feed, talking about how suddenly they're seeing all this violent content. And I was just in the car just

Kind of seething at the fact that like whether this is a mistake or whether it's a result of, you know, cutbacks or whatever the case may be, it really stinks that in that moment they were being presented with content that, you know, was really appalling to some of them and to others. It was interesting. It was kind of like riling them up. And I was just like, oh, this is not OK. This is this is gross.

I mean, that's, so I will say, and this is, again, I've never worked at Meta and I don't work at Meta. So this is my speculation as a software engineer, or this is just my opinion as a software engineer that has worked at big and small companies. People make mistakes. Software engineers make a lot of mistakes. I will totally admit to that. I do feel that a lot of times when you're working at a big company, there is a lot to be said. And I'm not like necessarily one for, you know, working at a big company and all the

as well as positives that can bring. But I do feel that a lot of times when a company has a vision, particularly for things like safety, privacy, it does filter down. And being an individual engineer and having to take on a lot of personal responsibility for mistakes that can cause incidents like this, it's a lot to put on a single engineer. And that's why a lot of times, as much as

I as an individual might try my best to prevent these things from happening. It is very beneficial to have teams and people that their job is to focus on these things. And that's what I'll say. I do think it's beneficial. And I do think attitude and priority and vision do trickle down to the everyday schlubs like myself. So I'm just going to say that. I appreciate you saying that. Those are the essentials for today. Let's dive a little deeper in the ongoing stories and follow up.

Well, spam is a problem for email, but it's also a problem for science. Science. And Dr. Nikki tells us why. I know not many of you live near paper mills, but if you have, you know how much it stinks. And you've probably heard, even if you haven't lived near a paper mill, well, it turns out digital paper mills stink too.

In the past decade, scientific literature has suffered from a growing epidemic of bogus papers aided by the rise of easily accessible LLMs. It doesn't take much to have an LLM chunk out a bunch of stuff. Some of it could be garbage. A lot of times it can be garbage. So-called paper mills are profiting from undermining literature that researchers from biomechanical to engineering are more reliant on. As we know, it's more and more difficult to detect problems.

fraud. Nikki, what's going on here? So, yeah, as with a lot of other things right now in the kind of AI age, there's a bunch of junk getting pumped out and that is now affecting science. It is pretty hard to retract science

a scientific paper, but officially about 55,000 have been retracted for various reasons, including just general gibberish. And when you say it's difficult to retract, is that, that means like once, once it's in there, you have to go through a lot of paperwork to retract. So once a paper is published, you have to go back to the journal and give them reasons to retract and like go through a whole process of like approvals and it takes forever. And most of the time it doesn't get done. Honestly. Yeah.

And yet 55,000 have been retracted. Okay. And.

And very likely there's way more that are out there that haven't been retracted. And the issue is even or even flagged. Notice that they're there. We have these things called predatory journals, and they basically just publish papers without verifying or removing any kind of false data. OK, that was going to be my next question is like, well, then why do they get published in the first place? Let's talk a little bit for people who don't know about how the publishing system works in science.

I can easily get riled up about this because it directly affects my job, but I'm going to keep it clean for DTNS. So, okay. When you want to publish a paper, say, uh, I found a new thing about headbutting and I want to publish this in nature. So you submit and let's say it's great. It gets accepted and it gets published. You then pay a article processing charge, many journals, not all of them, but most of them work this way.

And especially if you want to make your work accessible to the public, it's even more expensive. So, for example, if I want to publish in Nature Neuroscience, it's about $10,000. It's actually gone up since I checked. Yeah, it's not a little bit of money. Also, the people who provide peer review, you've heard of peer review science, are other scientists. They provide this for free.

It's a bit of an uneven system. So like I said, non-open access articles are a little bit cheaper, but then they charge access to the reader and often for federally funded science, which they have paid for with their taxpayer money. So yeah.

system. Also, open access publications are required for federally funded research. So you do have to pay more to publish your federally funded research. So the funds that the Fed gives you, some of which has to go to pay to get the research published at the end. Yeah. We write into our grants certain amounts for publishing that we are mandated. But anyway. Which then funds open access. So that part isn't bad, at least. Yes. But that means that the grants are bigger. Right.

because of how expensive it is to publish in open access. So this is maybe not the most ethical or well-met system, but that's not what we're going to talk about today. My point is the academic job market is very competitive right now and has just been more and more ever since it...

got created. And there's a big emphasis on publishing a lot of papers and having lots of publications on your CV. And that has created a niche for predatory journals to take advantage of this model, charging a publication fee for any submission and basically just turning a blind eye to the contents. And we've talked about this before on DTNS, Tom. I don't know if you remember the infamous AI penis rat. How could I forget? Yeah.

How could you forget? This is one of the first like very obviously fake AI figures that got published. And I want to say this was last year and many, many more have come out since then. Not just just figures, but also text, of course. I assume these digital paper mills in the predatory journals aren't doing peer review. Is that they they have to. So they're technically doing peer review, but nobody's like because this is kind of based on.

trusting scientists they just say that they did it and then they don't actually do anything so somebody puts their name down like yep i looked at it but maybe they're not really looking but this person is also part of this like publishing ring yeah okay it's a whole thing so uh what's being done about this obviously people are aware of it i'm sure a lot of people want it to stop what what are people doing

Bogus papers are usually spotted by kind of volunteers. So other scientists who just see them pop up in their field or actually it has been getting more and more popular that some scientists will become amateur sleuths on their own time. But like I said in the beginning, academic publications are really slow to issue retractions.

We have some people that have kind of become pretty notorious for this. So there's a super spotter of duplicated images who I love called her name's Elizabeth Bick. She has dedicated like she has paused her career and dedicated all of her time to spotting faked figures and publications. And she posts about them on social media. She's a really good follow and kind of has the audience play along. And you'll notice that a lot of pictures are copy pasted and some of them are just AI generated.

It's amusing, but it's also problematic because the onslaught of all of these fake papers is basically slowing down essential research. You can imagine if you're diving in to look for a COVID-19 paper and there's 20,000 of them that are just gibberish, it makes it hard to find what you're actually looking for. Yeah, no kidding. I mean-

I suppose an easy thing for the average person is like, if you've never heard of the journal, be suspicious. But for a scientist, you know, there's going to be journals that are useful that you may not have heard of. You really don't want to have to be checking every single source or limiting yourself to only the biggest journals. And there are indexes for good, quote unquote, and bad journals, but it has been slipping into the quote unquote good journals where you'll see these certain fingerprints, which...

Maybe we can talk about it. Yeah. So how do you detect if a paper might not be up to snuff? Some researchers have been looking at this. They're part of a team from a website that reports on retractions and fraudulent papers called Retraction Watch.

And they spent six months investigating paper mills and found nine types of clues that can lead to a fake paper. And these are some that even you would be able to detect. So you probably know these chat GPT fingerprints, such as as an AI language model. I cannot blah, blah, blah, blah, blah. You'd be surprised the amount of papers where that is the first line. That's actually in the journal article. I have seen multiple. Wow. Yeah. Directly in the text, just copy pasted from chat GPT.

They also use something called tortured phrases. This one's kind of fun, but also kind of sad. So these are awkward phrasing that LLMs sometimes come up with and are kind of I don't know why, but multiple LLMs use this kind of tortured phrases. So an example would be using the term creepy crawlies instead of insects. Another one is brain organization instead of neural network.

So these kinds of phrases, once you pick up on them and you start seeing them, it kind of raises a red flag. And while these researchers were conducting this work, they found that these issues affect anywhere from two to forty nine percent of scientific literature. Wow. That's quite a range. That's a lot. Yeah. Even two percent is a lot. Any solutions to this problem? Well, I think with a lot of.

as is the case with a lot of AI related kind of explosions like this, we are in the midst of it and we are kind of scrambling to figure out how to deal with it. The main problem is the for-profit publishing system where journals are basically paid to accept papers, but not necessarily for the papers to be good. And so these researchers suggest maybe shifting the system to pay for rigorous and transparent quality control mechanisms,

And this includes things like making all of the peer review public. This is sometimes the case with certain papers, but not all of them. And also taking these research sleuths more seriously or even having them maybe on a team or, you know, paying people to do this kind of work would at least be a good start. And hopefully we get better at having systems that can identify the use of LLMs

But I don't know where we're at with that. Yeah. In the meantime, it's not that you shouldn't believe scientific papers, but just make sure that they're coming from a source that's credible and maybe check out Reaction Watch or Retraction Watch. Sorry. Yeah. They have a great presence. Yeah. Dr. Nikki, thank you so much. Yeah. And my articles aren't fake. I promise. Well.

We're not fake. Neither one of us. Well. Or are we? If you have feedback about anything that gets brought up on the show, get in touch with us on socials. We are at DTNS Show on X, formerly known as Twitter, Instagram, Threads, Blue Sky, and Mastodon at mastodon.social. For TikTok and YouTube, you can find us at Daily Tech News Show. Picture this.

You're in the garage, hands covered in grease, just finished up tuning your engine with a part you found on eBay. And you realize, "You know what? I can also use new brakes." So where do you go next? Back to eBay. You can find anything there. It's unreal. Wipers, headlights, even cold air intakes. It's all there. And you've got eBay guaranteed fit. You order a part, and if it doesn't fit, send it back. Simple as that.

Look, DIY fixes can be major. Doesn't matter if it's just maintenance or a major mod. You got it, especially when things are guaranteed to fit. So when you dive into your next car project, start with eBay. All the parts you need at prices you'll love. Guaranteed to fit every time. eBay. Things people love.

Ryan Reynolds here from Mint Mobile. I don't know if you knew this, but anyone can get the same premium wireless for $15 a month plan that I've been enjoying. It's not just for celebrities. So do like I did and have one of your assistants assistants switch you to Mint Mobile today.

I'm told it's super easy to do at mintmobile.com slash switch. Upfront payment of $45 for three-month plan, equivalent to $15 per month required. Intro rate first three months only, then full price plan options available. Taxes and fees extra. See full terms at mintmobile.com. All right, we end every episode of DTNS with some shared perspective. And today, Norm, Norm is helping us understand.

Norm writes, glad to have the three-parter interview on pinball. I've always had a modicum of interest in pinball, so the series was cool to hear. Also, the follow-up on the Cassio Ringwatch is something I've always wanted to suggest but never did. Finding stories of note and check in on them a few weeks or months later.

Like it. Yeah, I love the kind of, I love anytime I get the opportunity to talk to Ron Richards, who is of course our mutual co-host on Android Faithful about pinball and specifically about like pinball virtualization and everything. He's such a nut for it. I absolutely love it. It's so nerdy and geeky. Makes me smile. Yeah.

So thank you to Dr. Nikki, of course. Thank you to Norm for contributing to today's show. Thank you, Wynn. And thank you for being along for Daily Tech News Show. The show is made possible by our patrons, patreon.com slash DTNS. DTNS has a live version called DTNS Live. You can catch that on YouTube and Twitch. You can find details on that and so much more at dailytechnewsshow.com. We will talk to you tomorrow.

The DTNS family of podcasts. Helping each other understand. Diamond Club hopes you have enjoyed this program.

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