Nvidia to acquire Arm, Pentagon announces AI Partnership for Defense, Senate committee clears Groen nomination to be JAIC Director

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Worth Knowing

Nvidia To Acquire Arm for $40B: On Sunday, U.S. GPU designer Nvidia announced plans to acquire U.K. chip company Arm from current owner SoftBank for $40 billion. Arm develops and licenses designs that are used to produce chips, including those inside most smartphones — an area where Nvidia is not currently a major player. Nvidia CEO Jensen Huang said that together, the two companies will create the “leading computing company for the age of AI.” Nvidia will maintain Arm’s open-licensing model, letting Arm continue to serve customers around the world, though some authorities worry the deal would effectively place Arm under U.S. control amid U.S.-China tensions. Assuming regulatory approval, the purchase should take 18 months to complete; if finalized, it would be the largest-ever semiconductor deal.
Portland, OR Enacts Strictest Facial Recognition Ban in the US: The Portland City Council unanimously voted last Wednesday to ban both private and government use of facial recognition due to privacy concerns as well as gender and racial inaccuracies. The strictest ordinance of its kind in the nation to date, it prohibits companies from using the technology in any “place of public accommodation” where goods or services are offered. The prohibition goes into effect on January 1, 2021. Portland Mayor Ted Wheeler said he hopes it encourages other cities to enact more stringent legislation as well.
Chinese Tech Executives Launch Domestic Tech Fund: A group of Chinese tech executives plans to launch a “domestic replacement” fund to support Chinese tech companies focusing on AI, 5G and semiconductors, Reuters reports. The fund aims to assist companies affected by U.S. sanctions and create China’s next tech giant. Venture capital firm China Europe Capital  expects to raise 5 billion yuan ($730 million) with the help of former executives from Huawei and chipmaker SMIC. China Europe Capital Chairman Zhang Jun said the group sees the U.S.-China tech war as “a matter of life and death,” and that it hopes to provide blacklisted companies with extra support to “survive, and run, although with a limp.” 
Machine Learning Spotlight — Standards For Clinical Trials Involving AI: A consortium of experts has proposed the first international standards for clinical trials involving AI. The guidelines were published simultaneously in leading medical journals BMJ, Nature Medicine and Lancet Digital Health after being developed with input from more than 150 authorities. The authors developed a list of 14 AI-specific additions to the standard journal protocols for reporting on clinical trials, including describing the type of algorithm, the training data and the data analysis process. AI is a “strong driver” of new medical interventions, the authors say, and they hope the standards will help editors and readers accurately appraise the quality of new interventions.
Government Updates

Esper Announces AI Partnership for Defense: The Joint AI Center will launch the AI Partnership for Defense this week in collaboration with allies, Secretary of Defense Mark Esper said at the Defense Department’s AI Symposium and Exposition. Formed with at least 10 other nations’ militaries and defense departments, the partnership will focus on data sharing, ensuring interoperability of AI systems and incorporating ethics into the AI pipeline. Esper described the partnership as part of a democratic alternative to China and Russia’s authoritarian approach to AI. In the same talk, Esper highlighted two AI training programs for DOD staff and announced that a real-world dogfight between AI and human pilots will occur in 2024.

Groen Nomination To Be JAIC Director Clears Major Senate Hurdle:  On Tuesday, the Senate Armed Services Committee advanced the nomination of Maj. Gen. Michael Groen to be Director of the Joint AI Center. He now awaits Senate confirmation. Groen has served in the Marine Corps for more than 30 years and is currently the deputy chief of computer network operations at the National Security Agency. If appointed, he would be promoted to lieutenant general, as the JAIC previously announced the position would be filled by a three-star general or flag officer.

Trump Administration Reportedly Considers Blacklisting SMIC: According to Reuters, the Trump administration is considering blacklisting Chinese chipmaker Semiconductor Manufacturing International Corporation over  concerns about its relationship with China’s military. SMIC said in a statement it was in “complete shock and perplexity” about the possible blacklisting, claiming it complies with all U.S. regulations and has no relationship with the Chinese military. If enacted, SMIC’s addition to the Entity List would require U.S. government approval of American suppliers shipping to the company. SMIC shares fell 23 percent on the news.

House Approves Bill Authorizing AI Center of Excellence: On a Monday voice vote, the House passed legislation codifying an AI Center of Excellence within the General Services Administration. The AI in Government Act of 2020, introduced by Rep. McNerney and then-Rep. Meadows, tasks the Center of Excellence with improving “cohesion and competency” of government AI use, convening stakeholders to discuss trends in AI and publishing relevant information online. The Center is also intended to provide agencies with advice on acquisition and use of AI and advise the Director of the Office of Management and Budget on developing policies related to the use of AI. The Senate companion bill was approved by committee but has not yet received a floor vote.

In Translation
CSET’s translations of significant foreign language documents on AI

AI Engineer and Technician Employment Prospects: A New Occupation — An Analytical Report on Current Employment Prospects for AI Engineers and Technicians. This government report analyzes the AI industry in China. It finds that demand for AI professionals continues to exceed supply and that the U.S. job market attracts the majority of highly qualified Chinese AI researchers.

Technical Domains for Made in China 2025: Roadmap of Major Technical Domains for Made in China 2025. A partial translation of a 2015 roadmap for the Made in China 2025 strategy, this section focuses on China’s IT industry, including specific targets for the country to meet by 2025 in the semiconductor, telecom, software and intelligent manufacturing equipment industries. The goals are intended to improve China’s self-sufficiency in these strategic technologies.

Policies To Promote Circuit and Software Industries: State Council Notice on the Publication of Certain Policies To Promote the High-Quality Development of the Integrated Circuit Industry and the Software Industry in the New Period. This is a list of policies that the Chinese government has enacted to spur the growth of the integrated circuit and software industries. The policies provide tax breaks to companies in these industries and encourage investment.

What We’re Reading

Report: China’s Artificial Intelligence Technology Industry Development Under New Challenges and Opportunities, China’s New Generation Artificial Intelligence Technology Industry Development Report (June 2020)

Report: Brain-Computer Interfaces: U.S. Military Applications and Implications, An Initial Assessment, RAND (August 2020) 

Commentary: Deepfakes Are Coming for American Democracy. Here’s How We Can Prepare, Clint Watts and Tim Hwang (September 2020)

Report: Facial Recognition: CBP and TSA are Taking Steps To Implement Programs, but CBP Should Address Privacy and System Performance Issues, United States Government Accountability Office (September 2020)

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