Episode 233, this episode aired on September 23, 2024
Analyst(s): Daniel Newman, Patrick Moorhead
Document #: SF233DNPM202410
In Episode 233 of The Six Five Webcast, Daniel Newman and Patrick Moorhead dive into significant industry updates, including Salesforce’s Agentforce AI, Intel’s government contracts, and T-Mobile’s advancements in AI-driven 5G. They also discuss energy demands in the AI boom and the importance of innovative infrastructure solutions.
What Are Covered in This Episode:
- Salesforce’s Dreamforce event and the introduction of Agentforce AI
- Intel’s government contracts and AI silicon development
- Qualcomm’s rumored takeover bid of Intel
- T-Mobile’s first responder initiative, T-Priority and AI-RAN developments
- Microsoft and BlackRock’s partnership to address energy needs for AI infrastructure
Access the video link of the September 23, 2024 Six Five episode here.
Salesforce’s Dreamforce Event and Agentforce
Dreamforce saw the announcement of Salesforce’s newest AI-driven platform, Agentforce. This development marks Salesforce’s commitment to AI by focusing on AI agents that drive transactions and efficiency. The hosts describe Agentforce as a significant leap forward for Salesforce, positioning it as a competitor to Microsoft Copilot and Google’s various AI tools.
Salesforce’s unveiling of Agentforce aligns with the broader shift toward AI-driven automation, which aims to streamline business processes. Major tech firms, such as Microsoft and ServiceNow, have also been experimenting with AI agents to help companies manage transactions and interactions more efficiently. The excitement around Agentforce lies in its focus on delivering tangible business outcomes. Marc Benioff, CEO of Salesforce, proudly touted how Agentforce was continuously refined until the night before Dreamforce.
The competitive atmosphere between Salesforce and Microsoft continues to grow, especially in AI. Copilot has experienced explosive growth, with 60% quarter-over-quarter adoption, particularly within the Fortune 500. This tug-of-war between major players such as Salesforce and Microsoft highlights the growing pressure on companies to innovate in AI and cloud computing to maintain competitive advantages.
T-Mobile’s Expansion into AI and First Responders with T-Priority
Shifting to T-Mobile, a major announcement during the event was T-Priority, T-Mobile’s initiative for first responders. This solution ensures that first responders have guaranteed communication during critical situations. With 5G at its core, T-Priority offers capabilities that allow emergency services to utilize prioritized bandwidth to ensure stable and fast connectivity during times of crisis, such as natural disasters.
T-Mobile’s partnership with the City of New York is a significant win over competitors such as AT&T and Verizon, who have traditionally dominated the first responder communications space. The rollout of AI-RAN (AI-driven Radio Access Networks) is another crucial component of T-Mobile’s strategy. AI-RAN optimizes 5G connectivity, using AI to manage network traffic and resources efficiently. This focus on AI-driven efficiency could revolutionize emergency services and consumer and enterprise 5G applications.
Intel’s Tumultuous Week: Government Contracts and Qualcomm Rumors
Intel has had a whirlwind of news, starting with their government contract win. Intel secured up to $3 billion in funding to manufacture secure chips for the Department of Defense (DoD). This is a significant step for Intel’s foundry services, as it highlights their potential to manufacture advanced, secure chips domestically, which is critical for the U.S. government’s efforts to reduce reliance on foreign-made semiconductors.
Additionally, Intel won an important contract with AWS to produce AI mesh fabric network chips. Though smaller than some of their other wins, this deal signifies the importance of Intel’s AI capabilities in cloud infrastructure. AWS is methodical in choosing partners, so Intel’s ability to secure this contract indicates that they’re on the right track in their AI silicon development efforts.
The most buzzworthy news, however, revolves around rumors of Qualcomm making a bid to take over Intel. While these rumors seem unlikely to materialize, such a move would be a strategic disruption. There are potential synergies between Qualcomm and Intel, particularly in areas such as connectivity, but skepticism still arises about the regulatory feasibility of such a deal.
The Power Conundrum: Microsoft, BlackRock, and the Energy Demands of AI
Another key development is Microsoft’s new partnership with BlackRock, which will establish a $30 billion fund to develop data center infrastructure. The partnership will help fund renewable and clean energy sources to power the massive data centers needed to support AI workloads. With power consumption becoming a critical issue in the tech industry, this move signals a growing realization that current energy infrastructure may not be enough to meet the demand created by AI development.
Leading tech firms such as Amazon and Oracle are exploring nuclear power as a potential solution to power shortages. In particular, Oracle’s CTO, Larry Ellison, has been vocal about building specialized nuclear facilities to handle the energy requirements of AI-driven workloads. This could represent a fundamental shift in how companies approach energy, moving away from traditional renewables such as wind and solar and embracing more sustainable but controversial options such as nuclear.
As AI expands, the tech industry must focus on power efficiency, particularly as GPUs and other accelerators require massive amounts of energy to operate. Companies such as AWS, NVIDIA, and Intel will likely continue to invest in specialized silicon chips to improve energy efficiency. Still, the larger issue of finding enough power to run data centers remains.
AI and Cloud Innovation Dominate the Week
The discussion on The Six Five Webcast offers a snapshot of a technology industry racing forward, driven by rapid advancements in AI, cloud computing, and telecommunications. Salesforce’s launch of Agentforce, T-Mobile’s pioneering AI-RAN, and Intel’s strategic government contracts illustrate innovation at a breakneck pace as significant players position themselves to capitalize on new market opportunities. This episode highlights the mounting competitive pressures that push companies to consistently enhance their AI capabilities, expand 5G connectivity, and develop solutions to meet the increasing demands of AI-driven workloads.
As we look toward the future, it’s evident that AI will continue to dominate technological advancements, influencing everything from enterprise operations to consumer applications. Yet, innovation cannot come without its challenges. Companies must not only refine AI and cloud solutions but also contend with practical limitations such as energy consumption, environmental impact, and the complexities of infrastructure development. With AI models and cloud data centers consuming unprecedented amounts of power, the industry is at a crossroads where sustainability must be part of the equation. The long-term success of these innovations will depend on how well companies navigate these logistical hurdles, ensuring that AI’s growth is both scalable and sustainable.
Ultimately, the tech industry’s future will be defined by how intelligently it builds AI systems and its ability to solve real-world challenges, from energy efficiency to infrastructure readiness. As AI continues to reshape industries, the interplay between cutting-edge innovation and operational practicality will determine which companies lead and which fall behind.
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Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
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Author Information
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
Six Five Media is a joint venture of two top-ranked analyst firms, The Futurum Group and Moor Insights & Strategy. Six Five provides high-quality, insightful, and credible analyses of the tech landscape in video format. Our team of analysts sit with the world’s most respected leaders and professionals to discuss all things technology with a focus on digital transformation and innovation.
