Where’s the next boom? Maybe in `cleantech’

October 6, 2009

Energy breakthroughs could be the next big thing, but how many jobs can they generate?

By Jordan Robertson, AP Technology Writer
9:33 pm EDT, Tuesday October 6, 2009

SAN FRANCISCO (AP) — Our economy sure could use the Next Big Thing. Something on the scale of railroads, automobiles or the Internet — the kind of breakthrough that emerges every so often and builds industries, generates jobs and mints fortunes.

Silicon Valley investors are pointing to something called cleantech — alternative energy, more efficient power distribution and new ways to store electricity, all with minimal impact to the environment — as a candidate for the next boom.

And while no two booms are exactly alike, some hallmarks are already showing up.

Despite last fall’s financial meltdown, public and private investments are pouring in, fueling startups and reinvigorating established companies. The political and social climates are favorable. If it takes off, cleantech could seep into every part of the economy and our lives.

Some of the biggest booms first blossomed during recessions. The telephone and phonograph were developed during the depression of the 1870s. The integrated circuit, a milestone in electronics, was invented in the recessionary year of 1958. Personal computers went mainstream, spawning a huge industry, in the slumping early 1980s.

A year into the Great Recession, innovation isn’t slowing. This time, it’s better batteries, more efficient solar cells, smarter appliances and electric cars, not to mention all the infrastructure needed to support the new ways energy will be generated and the new ways we’ll be using it.

Yet for all the benefits that might be spawned by cleantech breakthroughs, no one knows how many jobs might be created — or how many old jobs might be cannibalized. It also remains to be seen whether Americans will clamor for any of its products.

Still, big bets are being placed. The Obama administration is pledging to invest $150 billion over the next decade on energy technology and says that could create 5 million jobs. This recession has wiped out 7.2 million.

And cleantech is on track to be the dominant force in venture capital investments over the next few years, supplanting biotechnology and software. Venture capitalists have poured $8.7 billion into energy-related startups in the U.S. since 2006.

That pales in comparison with the dot-com boom, when venture cash sometimes topped $10 billion in a single quarter. But the momentum surrounding clean energy is reminiscent of the Internet’s early days. Among the similarities: Although big projects are still dominated by large companies, the scale of the challenges requires innovation by smaller firms that hope to be tomorrow’s giants.

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Apple, Dell, HP laptop owners sue Nvidia over faulty graphics

July 27, 2009

Five plaintiffs join forces to demand class-action lawsuit
By Gregg Keizer
May 11, 2009 12:00 PM ET

Computerworld – Owners of Apple (AAPL), Dell (DELL) and Hewlett-Packard (HPQ) laptops have combined their lawsuits against Nvidia (NVDA) in an attempt to force the graphics chip maker to replace allegedly flawed processors, according to court documents.

If granted class-action status, the case could involve millions of laptop computer owners, the plaintiffs said.

The five plaintiffs, including a Louisiana man who bought an Apple MacBook Pro a year ago, filed an amended complaint last week in a San Francisco federal court, accusing Nvidia of violating consumer-protection laws.

Nvidia admitted to the problem in July 2008, when it said some older chipsets that had shipped in “significant quantities” of notebooks were flawed. In a subsequent filing with the U.S. Securities and Exchange Commission (SEC), the company argued that its chip suppliers, the laptop makers and even consumers were to blame.

Nvidia later told the SEC that it would take a $196 million charge to pay for replacing the graphics processors.

Apple, Dell and HP have all told users that some of their laptops contain faulty Nvidia chipsets. Apple, in fact, essentially said that Nvidia had misled it. “Nvidia assured Apple that Mac computers with these graphics processors were not affected,” Apple said in a support document posted last October. “However, after an Apple-led investigation, Apple has determined that some MacBook Pro computers … may be affected.”

Although Apple promised it would repair any defective MacBook Pro for two years after its purchase date, whether it was in warranty or not, HP and Dell first issued BIOS updates designed by Nvidia that boosted fan speed. The increased fan speed was intended to ward off chip failure. Later, however, both companies also extended warranties for the affected laptops, and in some cases offered free repairs.

The plaintiffs in the combined lawsuit said that anything other than a replacement of the flawed chips was insufficient. “This is a grossly inadequate ‘remedy,’ as it results in additional manifest defects, including, without limitation, further degraded battery life, system performance and increased noise in the Class Computers,” the complaint read.

“Worse, this ‘remedy’ fails to solve the actual problem. Instead, this measure only ensures that the Class Computers will fail after the OEM’s express warranty period expires, potentially leaving consumers with a defective computer and no immediate recourse,” the lawsuit continued. “Finally, even after this purported ‘update,’ video and system performance is still degraded due to unacceptably high heat and part failures.”

Todd Feinstein of Louisiana was the one plaintiff who had purchased an Apple laptop. After buying a MacBook Pro in April 2008, the computer ran hot, periodically shut down without warning and displayed only gray or black at times, Feinstein said.

He sent a letter to Nvidia in September 2008 demanding that the company fix his MacBook. “Nvidia has failed to respond,” he said in the complaint.

Other plaintiffs who live in California, Illinois, New Jersey and New Mexico bought Dell or HP notebooks.

The lawsuit requests the case be granted class-action status, and if it prevails, that Nvidia replace the faulty chips and pay unspecified damages.

Last September, a New York law firm sued Nvidia, accusing the company of breaking U.S. securities laws by concealing the existence of a serious defect in its graphics chip line for several months before admitting the problem. That case has been put on hold awaiting a decision by an appellate court.


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