The week ending February 28, 2025, proved to be a dynamic period for the IT industry, marked by significant advancements, record-breaking financial performance, and strategic acquisitions. From quantum computing breakthroughs to the surging demand for AI compute infrastructure, the sector continues to evolve at an unprecedented rate. Here’s a recap of the key events that shaped the tech landscape.
Quantum Leap: AWS Unveils “Ocelot” Chip
Amazon Web Services (AWS) made waves with the launch of its new quantum computing chip, “Ocelot.” 1 This innovative chip utilises an architecture based on “cat qubits,” which are designed to suppress certain types of errors that plague quantum computations1. Experts believe this breakthrough could significantly reduce the cost of quantum error correction by up to 90%, potentially accelerating the development of practical quantum computers by up to five years1. This development marks a significant step towards making quantum computing more accessible and commercially viable, with potential implications for fields like drug discovery, materials science, and financial modeling.
Nvidia Rides the AI Wave to Record Earnings
Nvidia, the leading graphics processing unit (GPU) manufacturer, announced record quarterly revenue of US$39.3 billion for Q4 2024, culminating in a fiscal year with revenues exceeding US$130.5 billion1. This remarkable growth can be attributed to the surge in demand for AI compute infrastructure, where Nvidia’s GPUs have become the industry standard for training and running large language models (LLMs)1. Nvidia’s dominance in the AI chip market positions it as a key player in the ongoing artificial intelligence revolution, with its technology powering advancements in natural language processing, computer vision, and machine learning across various industries.
Microsoft Expands its Phi Family of Small Language Models
Microsoft unveiled two new additions to its Phi family of small language models (SLMs): Phi-4-multimodal and Phi-4-mini1. These models are designed to be smaller and more efficient than their predecessors while maintaining or even exceeding the capabilities of larger models in certain tasks1. This development highlights the growing trend of developing smaller, more accessible LLMs for edge computing and resource-constrained environments.
| Model | Size | Capabilities | Applications |
| Phi-4-multimodal | 5.6B parameters | Combines speech, vision, and text processing | Content creation, virtual assistants, robotics |
| Phi-4-mini | Smaller than Phi-4-multimodal | Supports extensive text processing with a maximum token sequence length of 128,000 | Code generation, document summarisation, translation |
The smaller size of these models offers several advantages, including reduced computational costs, faster processing, and increased accessibility for developers. This could lead to wider adoption of LLMs in various applications, from smartphones and embedded devices to robotics and industrial automation.
Meta Invests in Subsea Connectivity
Meta, the parent company of Facebook, is making a significant investment in Project Waterworth, the world’s longest underwater cable project1. This ambitious 50,000-kilometer network will connect five continents, further expanding global internet infrastructure1. This move reflects the increasing role of technology companies in building the physical infrastructure that underpins the digital world. By investing in subsea cables, Meta aims to improve internet connectivity, speed, and reliability for its users worldwide, particularly in underserved regions. This initiative also highlights the growing importance of global internet infrastructure in supporting the metaverse and other emerging technologies.
Satellite Internet Heats Up with New Players
The satellite internet market is undergoing a transformation as major global powers recognise the strategic importance of these orbital communication networks1. With companies like SpaceX\’s Starlink already operational, new players are entering the market, leading to increased competition and innovation in this critical sector1. The expansion of satellite internet constellations promises to bridge the digital divide by providing internet access to remote and underserved areas. This increased competition could also lead to lower prices and improved service quality for consumers.
Fintech Sector Sees Acquisitions and Funding Rounds
The fintech sector witnessed notable activity during the week. Monument Bank is reportedly seeking a £200 million Series C funding round ahead of a planned Nasdaq listing in 20272. This move suggests that Monument Bank is aiming for significant growth and expansion in the coming years, with the Nasdaq listing providing access to a broader investor base.
Flywire expanded its travel payments business with the acquisition of Sertifi for $330 million2. This acquisition strengthens Flywire’s position in the travel payments market by adding Sertifi’s hospitality and travel-focused software and payments platform to its portfolio. This move allows Flywire to offer a wider range of services to its clients in the travel industry.
Stripe, the online payment processing giant, saw its valuation climb to $91.5 billion following an employee share sale2. This impressive figure reflects the company’s strong performance in 2024, processing $1.4 trillion in payments and serving a significant portion of Fortune 100 companies2. Stripe’s continued growth and high valuation underscore its dominance in the online payment processing market and its importance to the global digital economy.
Regulatory Landscape in Flux
The UK government is reportedly considering merging the Payment Systems Regulator (PSR) into the Financial Conduct Authority (FCA)2. This potential regulatory shift could have significant implications for the fintech industry in the UK2. The proposed merger aims to streamline financial regulation and create a more efficient regulatory framework. However, it could also raise concerns about potential conflicts of interest and the impact on competition in the fintech sector.
Furthermore, Worldline, a prominent player in the payments industry, appointed Pierre-Antoine Vacheron as its new CEO2. Vacheron, a seasoned executive with experience at Groupe BPCE, is expected to focus on strengthening Worldline’s talent pool, enhancing client experience, and driving further growth for the company.
Conclusion
The week ending February 28, 2025, was a testament to the rapid pace of innovation and disruption in the IT industry. From quantum computing breakthroughs to record-breaking financial performance and strategic acquisitions, the sector continues to evolve at an unprecedented rate. These developments highlight the increasing influence of technology on various aspects of our lives, from finance and communication to global infrastructure and scientific research.
Several overarching trends emerged during the week. The growing importance of AI is evident in Nvidia’s record earnings and Microsoft’s development of smaller language models. The increasing role of tech companies in infrastructure development is highlighted by Meta’s investment in subsea connectivity and the expansion of satellite internet constellations. The regulatory landscape is also evolving, with potential changes in the UK’s financial regulation framework.
These trends suggest that the IT industry will continue to be a driving force in shaping the future. As technology becomes increasingly integrated into our lives, we can expect further innovation and disruption in the years to come.
Disclaimer
The information presented in this article is based on publicly available information and may not be exhaustive. While every effort has been made to ensure accuracy, the IT landscape is constantly evolving, and new developments may have occurred since the publication of this article. The authors are not liable for any losses incurred as a result of relying on this information.
References
1. This Week\’s Top 5 Stories in Technology | Technology Magazine, accessed on March 1, 2025, https://technologymagazine.com/articles/this-weeks-top-5-stories-in-technology-28-february-2025
2. FinTech Futures: Top five news stories of the week – 28 February 2025, accessed on March 1, 2025, https://www.fintechfutures.com/2025/02/fintech-futures-top-five-news-stories-of-the-week-28-february-2025/
