Google recently presented TurboQuant, a technology that drastically reduces the amount of memory needed to run large language models. The technology can significantly lower the costs of training AI models and increase the efficiency of large-scale cloud services using advanced AI accelerators. The specific technical details or mechanisms TurboQuant uses to achieve these memory reductions remain unclear, and the timeline for its deployment and expected impact on memory market dynamics has not been disclosed.
In the short term, shares of leading memory manufacturers fell. SK Hynix dropped up to 6.4% on the Korea Exchange, while Kioxia Holdings fell similarly in Tokyo. Micron Technology and Sandisk declined earlier in New York. Investors interpreted the news as a signal of potentially reduced memory demand.
Several analysts point to Jevons paradox: increased efficiency can in the long term lead to higher demand. Morgan Stanley's Shawn Kim argues that TurboQuant could benefit memory manufacturers through lower cost per token, which could drive increased usage. JPMorgan notes that profit-taking could explain today's decline but that memory consumption in the short term is not threatened. Analysts at Ortus Advisors point out that the news likely does not significantly affect demand given there is already a large memory shortage. For Kioxia, the decline is seen as a natural profit-taking after the stock rose 700% since August. TurboQuant can thus create both short-term volatility and long-term opportunities for AI-driven memory solutions.
Separately, Sweden is falling behind in AI. EY's Charlotta Kvarnström points out three concrete measures that determine whether Sweden enters the top tier or continues to stand on the sidelines.
In domestic policy, the government is moving forward with a legislative proposal to stop fraud via telephone and SMS. In a referral to the Council on Legislation, it is proposed that operators should have a clear responsibility to block suspected calls and messages before they reach the recipient.
In other AI news, OpenAI is shutting down its AI video service Sora, less than two years after its launch. At the same time, the high-profile partnership with Disney, worth up to a billion dollars, is scrapped.