Startup
It’s important to infuse academic education with entrepreneurial spirit: Rector of Dresden University of Technology
German university Technische Universität Dresden (Dresden University of Technology)—which has a special relationship with IIT Madras—is keen to intensify this alliance around three major areas: sustainability science, diabetes, and microelectronics and advanced material science in conjunction with AI applications.
Technische Universität Dresden (TUD) wishes to join forces with the premier Indian institute and venture capital (VC) funds in Tamil Nadu and the German state of Saxony to “infuse academic education with entrepreneurial spirit and ideas.”
“The future of entrepreneurship is global. We need to bring together the best VCs with the best entrepreneurs, wherever they are, and develop structures that facilitate that,” says Professor Ursula Staudinger, Rector of Technische Universität Dresden (TUD).
She believes global collaborations between academic institutions and other stakeholders in the ecosystem can help build these structures and bring great inventions and patterns quickly to fruition for the market.
In a connected world, collaboration is the way to complement each other rather than reinventing the wheel at different ends of the globe, she adds.
Commenting on the challenges of entrepreneurs globally, Prof Staudinger says the startup ecosystem needs a “scaffolding” so it gets more visible for private funders.
TUD hopes to provide this support along with IIT Madras and IIT Madras Research Park through workshops and curated pitches—“so that aspiring entrepreneurs can be refined towards founding a successful startup.”
“Eventually, we hope to join forces with different VC funds from Tamil Nadu and India, and with the ones in Germany, in Saxony,” says Prof Staudinger, who was in Chennai recently to open the Saxon Science Liaison Office India in the city on behalf of Saxon’s Ministry of Science and Saxon universities.
The Science Liaison Office aims to foster cooperation between scientists and entrepreneurs in India and Saxony. The office will also support student selection for study programmes in STEM subjects at Saxon universities. TUD is one of the state-run universities of excellence, in Saxony, located in the capital city of Dresden.
Prof Staudinger spoke to YourStory on the scope of TUD’s collaboration with IIT Madras and what the liaison office aims to achieve.
YourStory (YS): Could you take us through the Saxon Science Liaison Office India? What does it hope to achieve?
Prof Staudinger: TUD has opened the Saxon Science Liaison Office India in Chennai on behalf of the Ministry of Science, Saxony. We are basically conducting stewardship for 14 universities in Saxony. TUD is one of the users of this liaison office.
The office, which is doing service to all of Saxony, will focus on activities in Chennai and Tamil Nadu, which is a lot to cover already. Of course, there are natural links to Hyderabad and Bengaluru. For instance, some of the companies we are working with have a presence in these cities. So, the liaison office will also connect with other places in India if it’s relevant. But our focus is Tamil Nadu.
YS: TUD has a special relationship with the Indian Institute of Technology Madras. How is that shaping up?
Prof Staudinger: TUD has been engaged for more than two years with IIT Madras and IIT Madras Research Park. These conversations have been taking more concrete steps, and we are now ready to intensify our cooperation.
With IIT Madras, we are keen to intensify our activities around three big areas.
The first area is sustainability science. We are interested in basic research and how we can join forces and bring great inventions and patterns very quickly to fruition for the market.
The second area is health—all the research around diabetes and the underlying metabolic processes. There will be entrepreneurship activity and joint academic education. We are working on a joint graduate programme and a PhD programme, which brings together PhDs from IIT Madras and TUD around that topic.
The third area is microelectronics and advanced material science in conjunction with AI applications.
It is the whole range—from basic research and great inventions to patenting and inspiring and exciting young researchers to become entrepreneurs. We have been developing this new level of cooperation with IIT Madras successfully.
YS: Why did you choose Chennai for the India office?
Prof Staudinger: TUD is one of the Ivy League universities in Germany; so it’s really important we partner with the best of the best, and IIT Madras is just that.
Also, when we did our research, we found that the high school system, colleges, and bachelor education in Tamil Nadu is exquisite. For us, as a research-intensive university, this is important. There is a great number of potential students who might enjoy studying with us, together with IIT Madras and TUD.
The economy of Tamil Nadu is strong and growing. We prefer this exclusive and intensive relationship with the state, with a presence in Chennai, rather than being in a densely populated pond like Delhi or Mumbai.
YS: How will the office support networking with entrepreneurs in Tamil Nadu?
Prof Staudinger: One of the tasks of the liaison office is to build a network, know the stakeholders and some of the interesting players, and then bring them together with our (TUD) connection with IIT Madras Research Park and IIT Madras.
Then we will develop workshop opportunities where we can propose calls. And young entrepreneurs can apply and come to Saxony, or our entrepreneurs can come to Chennai. This will be, in a way, a type of incubator activity. We will do exchanges to make it profitable for entrepreneurs in Tamil Nadu and Saxony.
YS: You also aim to facilitate collaborations between universities and research institutions in Saxony and Tamil Nadu. How will it benefit students and aspiring entrepreneurs of both states?
Prof Staudinger: To give an example of our best practice in Taiwan—Saxony has established a science liaison office in Taipei. One of our strategic company partners is Taiwan Semiconductor Manufacturing Co (TSMC). With them, we developed an exclusive internship programme for students. TSMC has opened its doors for our students in their educational fab, so they can have hands-on experience in the semiconductor world and study at the top university in Taiwan.
We hope to develop something similar here. We (TUD) hope, together with IIT Madras Research Park, we can create workshop opportunities for young and aspiring entrepreneurs who need a little bit of tutoring and scaffolding so that they can be refined towards founding a successful startup.
Eventually, we hope to join forces with different VC funds from Tamil Nadu and India and with the ones in Germany in Saxony, where we organise pitches and curate startup ideas beforehand. Then, we have a highly selective field of pitches to make it attractive to VC funds.
YS: TUD has entered into a trans-campus agreement with IIT Madras. What does this entail?
Prof Staudinger: Trans-campus is an important tool that TUD has developed in the past 10-12 years, which links strategic university partners with us. There are multiple elements to it—joint faculty, jointly used facilities in TUD and IIT Madras, joint PhD students, and joint degrees to be developed in microelectronics and chip design.
The agreement brings together existing human power and resources of the two universities to be used together cooperatively, so it becomes a vibrant real and virtual campus.
YS: Could you share some details on the soon-to-be-signed MoU with IIT Madras Research Park?
Prof Staudinger: The research park is the incubator joining forces with TUD|Excite—an excellence centre for innovation, technology transfer, and entrepreneurship—to do workshops and incubate great patents to become startup ideas. In the next step, we will contribute to the conference that IIT Madras Research Park is planning for January 2025 in energy and sustainability.
YS: How do you view the startup ecosystem in India and globally? What are the promising areas and opportunities for collaboration?
Prof Staudinger: The climate crisis is posing a huge challenge the world over. So, anything about CO2 reduction and resource conservation is on target, and any technology or idea that furthers this cause is a hot topic.
The other hot topic is the digitisation of AI—the applications of AI in health. Rural medical care, any type of digital approach, e-health, and long-distance surgery are all topics on target.
Then there is a join between AI and Co2 reduction. The new LLMs (large language models) are energy-intensive. The more sophisticated they get, the more energy-intensive they become. We are interested in green electronics—how can we build semiconductors and computer systems that require less energy, and how can we make a closed energy system so the heat produced is fuelled back into the system.
The issues of startups are the same the world over. It is hard to find high-risk funding in the early days. To bridge the Valley of Death is an issue everywhere. That’s where universities come in, and that’s where public money comes in. The ecosystem needs a scaffolding so it becomes more visible to private funders. We need to infuse all of our academic education much more with entrepreneurial spirit and ideas.
We also need to develop new and innovative models of win-win cooperation between bigger companies and their R&D departments and the excellent basic research happening in institutions like IIT Madras and TUD. Many of the deep tech inventions sometimes are not affordable for public institutions, but the companies have it (money).
The future of entrepreneurship is global. We need to bring together the best VCs with the best entrepreneurs, wherever they are, and develop structures that facilitate that.
IIT Madras and TUD have a strong network and partners across the world. We want to bring them together for the sake and profit of entrepreneurs.
Startup
The Trillion-Dollar AI Showdown: Microsoft, Google, and Meta in the Race to Dominate Tech’s Next Frontier
Artificial Intelligence (AI) has swiftly transitioned from a futuristic concept to a cornerstone of modern technology, reshaping industries and daily life. Leading this transformation are tech giants Microsoft, Google, and Meta, each investing billions into AI development. This article delves into their strategies, financial commitments, and the broader implications of this trillion-dollar AI race.
Microsoft: Integrating AI Across the Board
Microsoft has seamlessly woven AI into its suite of products, enhancing user experience and productivity. A notable example is Copilot, an AI assistant embedded in applications like Word and Excel, designed to streamline tasks and boost efficiency. This integration has resonated with enterprises; nearly 70% of Fortune 500 companies have adopted Copilot, with firms like Vodafone reporting weekly time savings of approximately three hours per employee.
Financially, Microsoft’s AI endeavors are yielding significant returns. In the fiscal quarter ending September 30, 2024, the company reported a 16% increase in revenue, totaling $65.6 billion. This growth was largely driven by Azure and cloud services, which saw a 33% increase in revenue, with 12 percentage points stemming from AI-related products and services.
To support this AI expansion, Microsoft has invested heavily in infrastructure. The company spent $20 billion in the recent quarter, evenly divided between building data centers and acquiring computing equipment like servers and AI chips. This substantial investment underscores Microsoft’s commitment to meeting the growing demand for AI services.
Google: Building a Comprehensive AI Ecosystem
Google’s approach to AI focuses on developing a complete stack, from hardware to software, to create powerful and efficient systems. The company has made significant strides in AI integration, with AI now generating about 25% of all new code at Google, subsequently reviewed by human engineers before deployment.
The impact of AI on Google’s services is evident. Google Lens handles over 20 billion visual searches each month, and AI-enhanced search features serve more than a billion people across 100 countries. In the business sector, Google Cloud, which houses the company’s AI services, grew 35% in the recent quarter, generating $11.4 billion in revenue.
To sustain this growth, Google invested $13 billion in the recent quarter, with $7 billion directed toward new data center construction specifically for AI. The company relies on a mix of custom Tensor Processing Unit (TPU) chips and Nvidia’s GPUs to power its AI initiatives.
Meta: Embracing Open-Source AI
Meta has taken a unique approach by adopting an open-source strategy for its AI development. This means making some of its AI tools and models available to the public, fostering collaboration and innovation within the programming community.
The integration of AI into Meta’s social platforms has been substantial. AI-driven recommendations have increased time spent on Facebook by 8% and on Instagram by 6%. In the advertising domain, over a million advertisers used Meta’s AI tools last month alone to create more than 15 million ads, boosting conversion rates by about 7% for businesses utilizing AI-generated images.
Meta’s commitment to AI is further demonstrated by its investment of $9.2 billion in the recent quarter, with around 60% allocated directly to servers and AI-specific hardware. The company follows a strict five-year cycle for updating its equipment, ensuring it remains at the forefront of technological advancements.
The Broader Implications
The combined efforts of Microsoft, Google, and Meta highlight a collective belief in AI’s transformative potential. In a single quarter, these three companies collectively generated approximately $182.5 billion in revenue, with a net income of about $66.7 billion. This excludes other tech giants like Amazon and Apple, underscoring the massive scale of investment and return in the AI sector.
However, these advancements come with challenges. Building data centers is a complex endeavor, often taking up to two years and requiring locations with sufficient power and cooling capabilities. Additionally, the energy consumption of these centers is significant, prompting companies like Google to commit to powering their AI data centers with nuclear energy, aiming to generate 500 megawatts of carbon-free power.
Startup
ED searches 19 premises of Amazon, Flipkart vendors in FEMA probe
The Enforcement Directorate Thursday conducted searches against some of the “main vendors” operating on platforms of ecommerce giants
and as part of a foreign investment “violation” investigation, official sources said.A total of 19 premises of these “preferred” vendors located in Delhi, Gurugram and Panchkula (Haryana), Hyderabad (Telangana), and Bengaluru (Karnataka) were covered as part of the action, the sources said.
It is learnt that the ED inspected documents and took copies of some from the premises of about six such vendors who were not named.
The sources said a probe has been initiated by the federal agency under the provisions of the Foreign Exchange Management Act (FEMA) after it received several complaints against the two large ecommerce companies, where it is alleged that they were “violating India’s FDI (foreign direct investment) rules by directly or indirectly influencing the sale price of goods or services and not providing level playing field for all the vendors”.
There was no immediate response from the two ecommerce companies.
Meanwhile, the Confederation of All India Traders (CAIT) welcomed the ED action.
“The CAIT, along with several other trade bodies, has been raising these issues for the past few years. I welcome the Enforcement Directorate’s actions as a step in the right direction,” CAIT Secretary General Praveen Khandelwal said in a statement.
He claimed that the Competition Commission of India (CCI) had also issued “penalty notices” to Amazon and Flipkart, and their “preferred” sellers, for “engaging” in anti-competitive practices that have adversely affected small traders and ‘kirana’ (grocery) stores.
It has been reported in the past that the CCI, which works to ensure fair business practices across sectors in the marketplace, is already looking into alleged anti-competitive ways of ecommerce companies.
The CAIT and mainline mobile retailers’ association AIMRA had also petitioned the CCI sometime back seeking immediate suspension of operations of Flipkart and Amazon as they alleged that the companies engaged in predatory pricing and were burning cash to offer heavy discounts on products.
These practices, in turn, are creating a grey market of mobile phones, causing losses to the exchequer “as players in the grey market evade taxes”, they had said.
Commerce and Industry Minister Piyush Goyal had recently flagged the same concerns as he had questioned Amazon’s announcement of a $1 billion investment in India, saying the US retailer was not doing any great service to the Indian economy but filling up for the losses it had suffered in the country.
He had said in August that their huge losses in India “smells of predatory pricing”, which is not good for the country as it impacts crores of small retailers.
Goyal said e-commerce companies were eating into the small retailers’ high-value, high-margin products that are the only items through which the mom-and-pop stores survive.
The minister had said that with the fast-growing online retailing in the country, “are we going to cause huge social disruption with this massive growth of ecommerce”.
Khandelwal said that the CAIT has urged the CCI and the ED to protect the businesses of small traders.
“In the new Bharat, led by Prime Minister Narendra Modi Ji, no one is above the law. I am hopeful that now the law will take its rightful course and protect the livelihoods of small shopkeepers.
“This government is committed to ensuring that no entity can harm the trading community. In response to multiple complaints filed by the trading community regarding FDI violations and the anti-competitive practices of quick-commerce companies such as Blinkit, Swiggy, and Zepto, we urge both the CCI and the ED to take swift action and prevent any further, irreparable damage to the businesses of small traders,” he said in the statement.
Startup
Irdai proposes to amend regulatory sandbox norms
Regulator Irdai has proposed to amend the norms related to ‘regulatory sandbox’ by incorporating principle-based approach and further facilitating the adoption of innovative ideas and new concepts across the insurance value chain.
Regulatory sandbox usually refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may or may not permit certain relaxations.
The Insurance Regulatory and Development Authority of India (Irdai) constituted an internal committee to review the Irdai (Regulatory Sandbox) Regulations.
Based on the recommendations of the committee, it has proposed amendments to the regulatory sandbox regulations and seeks comments from the public at large on the proposed amendments.
Issuing an exposure draft on regulatory sandbox regulations, Irdai said the amendment seeks adoption of principle based approach over rule based approach.
The changes to the norms are also aimed to facilitate the introduction of innovative ideas/new concepts across the insurance value chain, Irdai said.
Irdai has invited comments from the stakeholders on ‘Exposure draft – Irdai (Regulatory Sandbox) (Amendment) Regulations, 2024’ by November 25.
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