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 | http://www.gilder.com/ | Issue 303.0/July 20, 2007

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HEADLINES:

-  The Week / Gilder: The Graphics Processor Paradigm
-  Friday Feature / Karlgaard: Tax Cuts Ignite Global Boom
-  Friday Blogger Bonus / Wolfe: Small Signals, Big Impact
-  Readings /

 

Gilder/Forbes Telecosm 2007 CONFERENCE

Hosted by George Gilder and Steve Forbes
October 16 – October 18| The Sagamore Resort | Lake George, New York


**
ANNOUNCING**: Telecosm 2007’s Trillion Dollar Debate, featuring George Gilder

Global Warming: Scientific Fact or Academy Award Winning Propaganda? (Some say the debate in the scientific community is over. These guys disagree.)

 

Register online today: www.Telecosm.info

 

The Week / The Graphics Processor Paradigm

Gilder Telecosm Forum Member (7/15/07): I still have no idea what a GPU does or why it is a hot topic in tech world. Can anyone give a layman's view of what these things do and why it is important?

George Gilder, Gilder Telecosm Forum (7/16/07): GPUs are graphics processing units and they generate or "render" 2D or 3D pictures on a screen from instructions from a keyboard or other input. This takes huge special purpose computing power with intrinsic massively parallel capabilities (image pixels are a naturally parallel function).

However, in recent years (months actually), GPUs have enhanced their shading and light management algorithms that determine the actual appearance of objects on the screen with supercomputer level vector and matrix mathematics, attaining high floating-point accuracy and recursive feedback loops. They also have primitives (instructions) for efficient handling of MPEG motion compensation and decompression. With their capacious buffer memories, they constitute a new general purpose computing architecture.

Using conventional supercomputers the rendering of a frame of a Hollywood animation, for example, may take days. A young genius in LA named Jules Urbach (come and meet him at TELECOSM 2007) figured out how to address graphics processor instructions directly to render “Transformer” images in real time, 30 frames a second, or some 10 thousand times faster than Industrial Light and Magic could
accomplish the feat. This kind of breakthrough has huge implications for the industry….

GPUs will have a devastating effect on many companies in microprocessor, personal computers (bypassing Intel and Microsoft), and game machine business. (All the 3D functions can be performed at a data center so there will be no need for local "game machines" except for the I-O.)

I would guess that new processor companies would be more alert to the opportunity than processor companies with large legacy burdens.


To become a GILDER TELECOSM FORUM member and read more of George’s posts, visit: http://www.gildertech.com/ today.

 

The Gilder Telecosm Forum
 
The
web’s premier technology investment discussion forum, the Gilder Telecosm Forum is a powerful network of talented, tech-savvy investors and thinkers who collaborate online daily by utilizing the very technologies that George Gilder has celebrated and written about for eleven years in Gilder Technology Report.

Become a GTF member today: http://www.gildertech.com/


Friday Feature / Tax Cuts Ignite Global Boom

Rich Karlgaard, Forbes.com (7/17/07): Somebody noticed!

Kudos to U.S. News and World Report for reporting this oddly underreported story.

The global economy from 2003 to 2007 has grown about 5% a year. It is a quarter bigger than it was five years ago--about $15 trillion a year bigger.

That's equivalent to adding a new North America to the global economy. Each year. Wow.

Writes U.S. News:

This is the story of globalization, of free trade, of China, of India. Then there is this: The 21st century has also seen a global effort to reduce tax rates.

How often do you read that? My gosh, people and economies really do respond to lower tax rates. Somebody tell The New York Times. And The Wall Street Journal, for that matter. (Outside the op-ed page, the Journal is no great friend of supply-side economics.)

Check Rich’s Digital Rules blog site & comment on his above post:

http://blogs.forbes.com/digitalrules/2007/07/tax-cuts-ignite.html
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Friday Blogger Bonus / Wolfe: Small Signals, Big Impact

Josh Wolfe, Nanotech Insider (7/20/07): I like to think my office is an organized mess. But there’s long-standing scientific evidence (despite my wife’s undying love for The Container Store) that some mess is good. Things tend towards entropy, disorder. Life and all willful use of energy attempts to subvert this. Some of my most original ideas come from the random juxtaposition of two unrelated pieces of paper sitting on my desk. If I were more organized, they’d be neatly segregated and never have the chance to mingle. Entropy is like the Rosa Parks of ideas.

 

Disorder is discomfort. Even in global politics, our leaders and the media are unsettled by the unsettled. We try to “achieve stability” in “unstable” places. Then the locals throw violent tantrums—not unlike a child forced to clean his room.

 

We make personal long-term plans. Companies have 5 year strategic plans. But the truth is this: there’s too many concatenated things that need to happen that don’t and too many random ones that aren’t expected that do as time unfolds.

 

Back to my point: there’s long-standing scientific evidence that some mess is good and it’s got a name: stochastic resonance. The gregariously generous George Gilder recently pointed me to this concept after I wrote a few weeks ago about how the noise of a hairdryer in a barbershop made the signal of a crackling, poorly-tuned radio station, sound clearer. Stochastic resonance is a complicated idea. Put simply: an extra dose of noise can help rather than hinder some devices.

 

Here’s what IEEE magazine wrote about it: “Stochastic resonance gets its name from the stochastic, or random, signals involved and the fact that, as in a resonance phenomenon, you can get a bigger than expected impact from small-amplitude signals.”

 

Sound like anything you know? The market perhaps. Or the brain. Or Per Bak’s sandpile. Or maybe any complex adaptive system where a small perturbation can have a disproportionate effect.

 

The idea is actually 25 years old, when two scientists used it to explain regular ice ages in our history. They believed that random climate changes, “atmospheric noise” coupled with the force of the Earth’s orbit, could kickstart or stop an ice age. (Of course, today they’d be burned at the stake—which would paradoxically release more CO2.) Scientists have since seen “stochastic resonance” in everything from lasers to medical devices and chemistry ….

Read Josh’s complete comments:

http://news.finanmart.com/2007/07/nanotech-insider-jul-20-stochastic.html

Check out Josh’s site:
http://www.forbesinc.com/newsletters/nanotech/nanotech.jsp?page=insider
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Readings /

 
Punishing Google
http://www.forbes.com/technology/2007/07/19/google-earnings-schmidt-tech-cx_rr_0719google1.html

Verizon and Broadcom in Deal

http://www.nytimes.com/2007/07/20/business/20verizon.html?ref=technology

Microsoft Game Chief Moves to Electronic Arts
http://www.nytimes.com/2007/07/18/technology/18game.html


The Optional Flat Tax
http://www.realclearpolitics.com/articles/2007/07/the_optional_flat_tax_1.html

Motorola Posts $28 Million Loss After Drop in Sales
http://www.nytimes.com/2007/07/20/business/20motorola.html?_r=1&ref=technology&oref=slogin


The Weekly GTI
http://www.gtindex.com/
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FRIDAY LETTER STAFF

Editor: Mary Collins George / mcollins@gilder.com

Research: Sandy Fleischmann / sfleischmann@gilder.com

 

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