News/AI Chips
US takes 15% cut from Nvidia and AMD China chip sales under new deal
Nvidia and AMD have agreed to pay the U.S. government 15% of revenues from sales of advanced AI chips to China, including Nvidia's H20 and AMD's MI308 processors, according to a U.S. official. The arrangement serves as a condition for obtaining export licenses after the Trump administration halted such sales in April, raising questions about whether chip exports to China constitute a national security risk or simply a revenue opportunity. What you should know: The revenue-sharing agreement applies specifically to advanced AI chips that were previously restricted from Chinese markets. Nvidia's H20 chips, described by Commerce Secretary Howard Lutnick as...
read Aug 8, 2025Qualcomm plans AI server chips for 2028 amid competitive challenges
Qualcomm has announced plans to develop server CPUs and full rack systems for AI inferencing clusters in hyperscale data centers, marking a significant expansion beyond its mobile chip dominance. The company is currently in "advanced discussions" with a leading hyperscaler about custom silicon, though revenue from this initiative won't begin until fiscal 2028—potentially giving competitors a substantial head start. What you should know: Qualcomm is positioning itself to capitalize on the shift toward ARM-based processors in cloud computing as AI workloads demand better efficiency metrics. CEO Cristiano Amon explained the company is developing "a general purpose CPU" specifically aimed at...
read Aug 8, 2025Tesla shuts down Dojo supercomputer team, focuses on AI5 and AI6 chips
Tesla has shut down its Dojo supercomputer team and reassigned workers to other projects, with team leader Peter Bannon departing the company. The move reflects CEO Elon Musk's strategic pivot toward consolidating AI chip development rather than dividing resources across multiple custom silicon projects, as the company increasingly relies on external partners like Nvidia and Samsung for its AI computing needs. The big picture: Tesla is streamlining its AI strategy by abandoning its custom Dojo supercomputer in favor of focusing development efforts on its next-generation AI5 and AI6 chips.• Musk explained on X that "it didn't make sense for Tesla...
read Aug 7, 2025Data center spending to hit $1.2T as AI reshapes infrastructure
The global data center industry is experiencing unprecedented growth, driven by an artificial intelligence boom that's reshaping how companies think about computing infrastructure. New research reveals that worldwide data center capital expenditure will surge at a 21% compound annual growth rate through 2029, reaching $1.2 trillion in total investment over the next five years. This explosive growth represents far more than incremental technology upgrades. It signals a fundamental shift in how businesses process information, with artificial intelligence applications demanding entirely new categories of specialized computing hardware and infrastructure capabilities. The hyperscaler effect Hyperscalers—the massive cloud computing providers like Amazon Web...
read Aug 6, 20252 LA residents charged with illegally exporting $10M in AI chips to China
Two Los Angeles County residents face federal charges for allegedly illegally exporting tens of millions of dollars' worth of artificial intelligence microchips to China over nearly three years. The case highlights ongoing U.S. efforts to prevent sensitive AI technology from reaching China amid growing geopolitical tensions over semiconductor exports. What you should know: Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, were arrested Saturday for allegedly violating federal export controls through their company ALX Solutions Inc. Both are Chinese nationals, with Geng holding lawful permanent resident status and Yang having overstayed her visa. They operated an...
read Aug 5, 2025AMD beats revenue but stock drops 3% on $800M China export impact
AMD reported weaker-than-expected second-quarter earnings despite beating revenue estimates, with adjusted earnings per share of 48 cents versus the expected 49 cents, while revenue reached $7.69 billion against expectations of $7.42 billion. The chipmaker's stock dropped about 3% in extended trading as the company continues battling U.S. export controls that cost it $800 million in the quarter. Major AI customers like Meta and OpenAI are increasingly turning to AMD as an alternative to Nvidia's dominant graphics processing unit (GPU) offerings. Key financial results: AMD's mixed quarterly performance reflects both growth opportunities and regulatory headwinds in the AI chip market. Net...
read Aug 4, 2025Distance running: Broadcom’s Jericho4 chip connects AI data centers up to 60 miles apart
Broadcom has launched its next-generation Jericho4 networking chip designed to connect data centers up to 60 miles apart and accelerate artificial intelligence computation. The chip addresses growing demands from cloud computing giants like Microsoft and Amazon for faster, more sophisticated networking infrastructure as AI workloads become increasingly computationally intensive and require connecting thousands of graphics processors. What you should know: The Jericho4 introduces several performance enhancements specifically designed for large-scale AI data center operations. A single system can encompass roughly 4,500 chips, enabling massive deployment across extensive networks that operate inside and between data centers. The chip uses the same...
read Aug 4, 2025Monkey brain, explained: Chinese researchers build AI system with 2B neurons to mimic macaque neurology
Chinese researchers at Zhejiang University have created the Darwin Monkey, an AI system that models a macaque's brain using 960 specialized chips with over 2 billion artificial neurons and 100 billion synapses. The project represents the world's largest neuromorphic computer and marks a significant step toward brain-inspired computing that could revolutionize AI efficiency and capabilities. What you should know: The Darwin Monkey uses China's DeepSeek AI model to perform complex cognitive tasks including logical reasoning, content generation, and mathematical problem solving. The system approaches the neural complexity of an actual macaque brain, making it the first neuromorphic computer based on...
read Aug 4, 2025No right to repair: China’s underground shops fix thousands of banned Nvidia AI chips monthly
A thriving underground repair industry has emerged in China focused on fixing Nvidia's banned AI chips, with around a dozen Shenzhen-based firms claiming to service thousands of H100 and A100 graphics processing units (GPUs) monthly despite strict US export controls. This shadow economy highlights the persistent demand for high-end AI hardware in China and raises questions about the long-term viability of aging smuggled chips operating without official support. What you should know: Small repair shops are processing massive volumes of restricted Nvidia chips that officially cannot be sold or serviced in China. One company repairs up to 500 Nvidia AI...
read Aug 4, 2025AMD’s $1.2K R9700 GPU challenges Nvidia in professional AI computing market
AMD's latest professional graphics card has arrived with serious firepower for AI workloads, and major manufacturers are racing to deliver their own versions. The Radeon AI Pro R9700 represents the chip giant's most powerful GPU to date, designed specifically for artificial intelligence training, scientific computing, and high-end rendering tasks that demand sustained performance under intensive workloads. Unlike consumer graphics cards optimized for gaming, professional GPUs like the R9700 prioritize reliability, memory capacity, and multi-card scalability over peak gaming performance. This matters because AI training and scientific simulation often require cards to run at maximum capacity for days or weeks without...
read Jul 29, 2025Trump reconsiders China AI chip export controls amid bipartisan pushback
The Trump administration is reconsidering its tough stance on China technology export controls, potentially scrapping plans to replace a Biden-era AI export rule that restricts US chip technology from flowing to China and Russia. This shift reflects conflicting priorities as Trump seeks leverage in trade negotiations while maintaining his reputation as tough on China, drawing bipartisan criticism from lawmakers who argue the moves could strengthen Beijing's AI capabilities. What you should know: The administration has already approved sales of certain Nvidia semiconductors to China and is debating whether to abandon the AI diffusion rule entirely. Two industry sources told Semafor...
read Jul 29, 2025Positron raises $51.6M to challenge Nvidia with 5x more efficient AI chips
Positron, a private AI chip startup, has raised $51.6 million in Series A funding to challenge Nvidia's dominance in AI inference chips with its Atlas hardware platform. The company claims its specialized inference accelerators deliver 2x to 5x better performance per watt and dollar compared to Nvidia's solutions, targeting enterprises seeking more efficient AI deployment without requiring liquid cooling or extreme power densities. What you should know: Positron's Atlas chip is already shipping and in production just 15 months after the company's founding, with confirmed deployments at major enterprises including Cloudflare, a security and cloud content networking provider, and across...
read Jul 29, 2025Samsung invests $150M in Rebellions as South Korea targets AI chip market
South Korean AI chip startup Rebellions has secured investment from Samsung as part of a $150-200 million funding round ahead of its planned IPO. The startup, which merged with Sapeon last year to create a potential Nvidia rival, is collaborating with Samsung to manufacture its AI inference chips using cutting-edge 4-nanometer technology. What you should know: Rebellions has raised $220 million since its 2020 founding and was last valued at $1 billion, with the current round expected to push that valuation higher. Major investors include SK Hynix (a South Korean memory chip giant), SK Telecom, Korea Telecom, and Saudi Aramco,...
read Jul 28, 2025Samsung lands $16.5B Tesla AI chip deal through 2033
Samsung has secured a $16.5 billion contract to manufacture Tesla's AI chips through 2033, with production set to take place at Samsung's new Texas fabrication facility. The deal represents a strategic partnership that will see Samsung produce Tesla's next-generation AI6 chips specifically designed for the company's self-driving vehicle technology. What you should know: This massive chip manufacturing agreement solidifies Samsung's role as Tesla's primary AI processor supplier for nearly a decade. The contract was initially spotted in regulatory filings on July 27 for an unnamed consumer tech company before Elon Musk, Tesla's CEO, confirmed Tesla as the client on X....
read Jul 24, 2025SK Hynix posts record $6.7B profit as AI chip demand soars
SK Hynix posted record quarterly profits and announced plans to boost spending this year as the Nvidia supplier works to address investor concerns about slowing AI chipset demand. The South Korean memory chipmaker reported a 69% jump in operating profit to 9.2 trillion won ($6.69 billion) for Q2, driven by strong demand for high-bandwidth memory (HBM) chips essential for AI processing. What you should know: SK Hynix is doubling down on AI chip production despite market uncertainties, positioning itself as the dominant player in advanced memory technology. The company plans to double HBM chip sales for the full year compared...
read Jul 24, 2025Chip 5400, where are you? Trump administration proposes location tracking for advanced AI chips
The Trump administration has recommended implementing location verification technology for advanced AI chips to prevent them from reaching foreign adversaries like China. The proposal, part of a broader AI blueprint released Wednesday, received bipartisan support from lawmakers who have introduced similar legislation to track semiconductors after they're sold. What you should know: The recommendation aims to ensure that advanced AI chips from companies like Nvidia and AMD don't end up in restricted countries despite export controls. The administration wants to "explore leveraging new and existing location verification features on advanced AI compute to ensure that the chips are not in...
read Jul 22, 20257 AI infrastructure stocks positioned for the boom beyond NVIDIA
The artificial intelligence boom has created a complex investment landscape where traditional tech giants compete alongside specialized infrastructure providers and emerging players across the entire AI value chain. Understanding where to allocate capital requires recognizing that AI's exponential growth demands massive investments in computing power, energy infrastructure, and specialized components that extend far beyond software companies. Smart investors are positioning themselves across multiple layers of the AI ecosystem, from the semiconductors that power machine learning to the data centers that house them. This approach recognizes that AI's infrastructure requirements create opportunities across industries that might not immediately appear connected to...
read Jul 21, 2025Act now, Nvidia warns Chinese customers, as H20 AI chip supplies are limited
Nvidia has warned Chinese customers that supplies of its H20 artificial intelligence chip are severely limited, creating uncertainty for China's major technology companies that depend on these processors for their AI development programs. The warning comes as the U.S. government delays issuing new export licenses that would allow the American chipmaker to resume sales to Chinese clients. The H20 represents Nvidia's most advanced AI processor currently approved for sale in China—a specially designed version of the company's flagship chips that complies with U.S. export restrictions while still providing substantial computing power for machine learning applications. These processors serve as the...
read Jul 17, 2025TSMC reports record $12.9B profit as AI chip demand soars
Taiwan Semiconductor Manufacturing Company (TSMC) is expected to report a record-breaking 52% surge in second-quarter profit to T$377.4 billion ($12.9 billion) on Thursday, driven by soaring demand for advanced AI chips. However, the world's largest contract chipmaker faces mounting concerns over potential U.S. tariffs under President Trump and a strengthening Taiwan dollar that could pressure future margins. What you should know: TSMC's anticipated quarterly profit would mark its highest-ever net income and sixth consecutive quarter of growth, reflecting the company's central role in the AI boom. The company has already flagged a 38.6% rise in second-quarter revenue for the three...
read Jul 15, 2025Nvidia to resume H20 AI chip sales to China, eyeing $15-20B revenue
Nvidia will resume sales of H20 AI chips to China after CEO Jensen Huang met with President Donald Trump, with Chinese firms already rushing to place orders for the restricted processors. The move could generate $15 billion to $20 billion in additional revenue for Nvidia this year, marking a significant shift in US-China technology relations after the chips were effectively banned in April. What you should know: Nvidia expects to receive US government licenses soon to restart shipments of H20 chips, which represent the company's most capable AI processors legally available in China. The US government has assured Nvidia that...
read Jul 15, 2025Broadcom’s Tomahawk Ultra chip connects 4x more AI processors than Nvidia
Broadcom has launched the Tomahawk Ultra networking chip, designed to accelerate AI data processing by connecting hundreds of chips within data centers. The processor directly challenges Nvidia's dominance in AI infrastructure, offering four times the connectivity capacity of Nvidia's competing NVLink Switch chip while using enhanced ethernet protocols instead of proprietary systems. Why this matters: The chip represents Broadcom's strategic push to compete with Nvidia in the lucrative AI hardware market, particularly as companies like Google seek alternatives to Nvidia's graphics processors for AI workloads. Key technical advantages: The Tomahawk Ultra serves as a traffic controller for data moving between...
read Jul 14, 2025China plans to deploy 115K banned Nvidia AI chips despite U.S. restrictions
Chinese companies are planning to deploy approximately 115,000 restricted Nvidia AI chips across dozens of data centers in Xinjiang, despite U.S. export bans that have prohibited such sales since 2022. The ambitious infrastructure project highlights China's determination to build AI computing capacity using banned semiconductors, though U.S. officials and Nvidia question whether such large-scale smuggling operations are feasible. What you should know: The data center plans center around Xinjiang's energy advantages and a massive government-backed computing facility. Around 70% of the planned computing power is concentrated in a single compound backed by the Xinjiang regional government, likely the "converged computing...
read Jul 10, 2025LG plans to triple AI data center cooling orders by 2030
LG Electronics has unveiled a strategic roadmap to become a global HVAC leader by 2030, with a particular focus on AI data center cooling solutions. The company expects to more than triple its data center cooling orders in 2025 and is investing heavily in liquid cooling technologies, positioning itself to capitalize on the surge in demand for specialized thermal management as AI workloads generate unprecedented heat levels. What you should know: LG is making a significant push into the AI-era HVAC market through both hardware and software solutions. The company established a dedicated AI data center HVAC solution lab at...
read Jul 10, 2025Jensen Huang is meeting with Trump amid chip export controls, stellar Nvidia valuation
Nvidia CEO Jensen Huang will meet with President Donald Trump at the White House on Thursday, as the AI chipmaker becomes the first company to close a trading day with a market cap exceeding $4 trillion. The high-profile meeting comes amid ongoing tensions over export controls on Nvidia's AI chips that the Trump administration implemented in April, which have effectively cut off the company's access to China's lucrative semiconductor market. What you should know: Nvidia achieved a historic milestone by becoming the first company to close above a $4 trillion market valuation, surpassing Apple and Microsoft. The company's stock rose...
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