News/China
DeepSeek delays AI model launch after Huawei chip training fails
DeepSeek, a Chinese artificial intelligence company, has delayed the launch of its new AI model after failing to successfully train it using Huawei's chips, according to a Financial Times report. This setback highlights the ongoing challenges facing China's efforts to reduce dependence on U.S. technology amid ongoing trade restrictions. The big picture: China's push for technological self-sufficiency is encountering significant technical hurdles as domestic chip alternatives struggle to match the performance of banned U.S. semiconductors. Why this matters: The delay underscores the complex reality of replacing advanced U.S. technology infrastructure, particularly in AI development where computational power is critical for...
read Aug 13, 2025Tencent revenue jumps 15% to $25.7B as AI investments pay off
Tencent, China's largest tech conglomerate, reported a 15% jump in second-quarter revenue to $25.7 billion, driven by strong gaming performance and strategic AI investments across its platform. The company's capital expenditures surged 119% as it doubled down on AI upgrades for advertising, gaming, and its WeChat social media service, positioning itself to capitalize on the growing intersection of entertainment and artificial intelligence. Key financial highlights: Tencent's Q2 2025 results exceeded expectations across multiple metrics. Revenue reached 184.504 billion Chinese yuan ($25.7 billion), up from 161.117 billion yuan in the same period last year. Operating profit climbed to 63.052 billion yuan,...
read Aug 12, 2025Western firms test dual AI strategies with Chinese and US models
IMD Business School professor Amit Joshi argues that global companies should consider integrating Chinese AI tools alongside Western models to stay competitive, despite security and regulatory concerns. His research suggests that Chinese AI platforms like DeepSeek have achieved remarkable cost efficiency and industry-specific customization that could benefit Western enterprises willing to navigate the associated risks. What you should know: China rapidly closed the AI gap after initially lagging behind when ChatGPT launched in 2022. DeepSeek emerged in January 2025 as an open-source model that matched or exceeded OpenAI's performance while using significantly less expensive infrastructure. Chinese companies pivoted quickly from...
read Aug 12, 2025Trump weighs allowing downgraded Nvidia Blackwell chips to China
President Donald Trump has signaled openness to allowing Nvidia to sell a downgraded version of its most advanced Blackwell AI chip to China, potentially reducing performance by 30-50%. This development comes as part of ongoing negotiations over semiconductor exports, with Nvidia and AMD already agreeing to pay the U.S. government a 15% revenue cut from Chinese chip sales in exchange for export licenses. What you should know: Trump indicated he would consider approving a "somewhat enhanced — in a negative way" Blackwell processor for Chinese markets. The president said he plans to meet with Nvidia CEO Jensen Huang specifically about...
read Aug 6, 2025Anduril opens Taiwan office to sell AI attack drones amid China tensions
US defense technology company Anduril is opening a Taiwan office and will sell AI-powered attack drones to the island nation, marking a significant expansion of American defense tech presence in the region. The move comes amid escalating tensions between Taiwan and China, as fears of a potential Chinese invasion continue to mount. Why this matters: Taiwan's strategic importance to US technological leadership makes its defense capabilities critical to American interests, particularly given the island's dominance in semiconductor manufacturing that powers AI development. What Anduril is saying: The company frames Taiwan's defense as essential to broader regional stability and American strategic...
read Aug 6, 2025Nvidia rejects U.S. demands for AI chip backdoors and kill switches
Nvidia has rejected U.S. government demands to include backdoors and kill switches in its AI chips, with the company's chief security officer publishing a blog post calling such measures "an open invitation for disaster." The pushback comes as bipartisan lawmakers consider legislation requiring tracking technology in AI chips, while Chinese officials have alleged that backdoors already exist in Nvidia's hardware sold in China. What you should know: Nvidia's stance directly opposes the proposed Chip Security Act, which would mandate security measures including potential remote kill switches. The bipartisan bill introduced in May would require Nvidia and other manufacturers to include...
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 5, 2025OpenAI releases first open source models in 6 years amid China competition
OpenAI has returned to its open source origins with the release of two new frontier language models: gpt-oss-120b (120 billion parameters) and gpt-oss-20b (20 billion parameters). This marks the company's first open source language model release in over six years, positioning OpenAI to compete directly with the surge of high-performing open source models from Chinese competitors like DeepSeek while offering enterprises maximum privacy and control over their AI deployments. The big picture: OpenAI's strategic pivot back to open source reflects mounting competitive pressure from Chinese AI companies that have released powerful open source models matching proprietary performance at zero cost....
read Aug 5, 2025And they’re off! Baidu eyes Lyft partnership to challenge Waymo in global robotaxi race
Tu Le, founder and managing director of Sino Auto Insights, a China-focused automotive research firm, believes Lyft and Baidu could form an ideal partnership in the robotaxi market. Baidu, China's largest search engine company, is using autonomous vehicles as a key component of its transformation into an AI-focused company. Why this matters: Baidu views robotaxis as central to its broader pivot toward becoming recognized as an artificial intelligence company rather than just a search engine.• The Chinese tech giant is leveraging autonomous vehicle technology as a flagship demonstration of its AI capabilities.• This shift represents a significant strategic repositioning for...
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 1, 2025China summons Nvidia over H20 chip backdoor concerns
Beijing has summoned Nvidia to address concerns that its H20 AI chips contain backdoors, following a US proposal to add tracking capabilities to advanced semiconductors sold overseas. This marks China's latest countermeasure in the escalating tech rivalry, as both nations increasingly weaponize national security concerns around AI and semiconductor technologies. What you should know: The Nvidia meeting comes after the Trump administration recently reversed a Biden-era ban, allowing the company to export H20 chips to China. Jensen Huang's company had lost billions in sales due to the previous restrictions, making China's approval crucial for Nvidia's business. Huang recently completed a...
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, 2025ByteDance’s Trae IDE sends 26MB of user data to China despite opt-out
A developer has discovered that ByteDance's Trae AI-powered IDE continues collecting extensive user data and sending it to Chinese servers, even when users disable telemetry settings. The findings raise significant privacy and security concerns about data sovereignty, particularly given ByteDance's persistent data collection despite user preferences and the lack of transparency about what information is being gathered. What you should know: Trae's telemetry toggle appears to be non-functional, with data collection continuing regardless of user settings. A GitHub report documented around 500 network calls in just seven minutes, transferring approximately 26MB of data to ByteDance servers on the byteoversea[.]com domain....
read Jul 28, 2025Chinese AI startup Zhipu releases GLM-4.5 to challenge OpenAI dominance
Chinese AI startup Zhipu is set to release GLM-4.5, its largest open-source model to date, as early as Monday, marking another significant entry in the global competition with OpenAI. The release represents part of a broader trend among Chinese AI companies ramping up their free artificial intelligence offerings as they seek to establish market presence and influence future industry standards. What you should know: GLM-4.5 represents Zhipu's most ambitious open-source release, positioning the company as a direct challenger to OpenAI's dominance in the AI model space. The model is an update to Zhipu's flagship GLM series, designed to compete on...
read Jul 28, 2025Alibaba enters smart glasses market with AI-powered Quark eyewear launching end of 2025
Alibaba unveiled Quark AI Glasses on Monday, marking the Chinese e-commerce giant's first entry into the smart glasses market as a direct competitor to Meta's Ray-Ban collaboration. The AI-powered wearables, set to launch in China by the end of 2025, represent Alibaba's strategic push into hardware distribution for its Quark AI assistant, positioning the company to compete in what many tech leaders view as the next frontier of computing beyond smartphones. What you should know: The Quark AI Glasses will be powered by Alibaba's Qwen large language model and feature the company's advanced AI assistant called Quark. The glasses will...
read Jul 24, 2025Trump rejects AI copyright payments as impractical against China
President Trump rejected the idea of requiring AI companies to pay copyright holders for training data, arguing it would be impractical and put the U.S. at a competitive disadvantage against China. Speaking at an AI Summit in Washington, D.C., Trump called for a "common sense" approach that allows unfettered AI development, comparing AI learning to human reading where knowledge is gained without copyright violations. What Trump said: The president drew parallels between human learning and AI training to justify his position on copyright compensation. "You can't be expected to have a successful AI program when every single article, book or...
read Jul 23, 2025Trump unveils AI strategy targeting China while promoting open-source models
The White House has unveiled a new artificial intelligence policy plan aimed at achieving "global dominance" in the AI sector, with President Donald Trump calling for open-source AI models to be freely available worldwide. The plan also directs the Commerce Department to investigate Chinese AI models for potential alignment with Communist Party messaging and restricts federal AI funding to states with burdensome regulations. Key policy priorities: The administration's strategy centers on promoting open AI development while scrutinizing foreign competitors. Open-source and open-weight AI models should be made freely available by developers for global download and modification. The Commerce Department will...
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 18, 2025Trump to unveil AI executive orders targeting China competition
President Donald Trump is set to unveil several executive orders next week aimed at securing America's artificial intelligence advantage over China. The anticipated measures include streamlining data center permitting, promoting US tech exports, and other initiatives designed to accelerate the nation's AI capabilities, with Trump expected to deliver a major speech outlining his administration's AI vision. What you should know: The executive orders represent Trump's most comprehensive AI policy framework since taking office, targeting key infrastructure and trade barriers that could slow US AI development. The orders will focus on expediting permitting processes for data center construction, addressing a critical...
read Jul 16, 2025China takes the plunge with $223M wind-powered underwater data center off Shanghai
China has launched construction of a wind-powered underwater data center six miles off the coast of Shanghai, marking a significant expansion of its pioneering approach to ocean-based computing infrastructure. The project represents China's bid to address the massive water consumption challenges facing AI and cloud computing while positioning itself as a global leader in sustainable digital infrastructure. The big picture: China is pulling ahead of other nations in deploying underwater data centers as an alternative cooling solution for AI computing, moving from pilot projects to commercial-scale deployments in less than 30 months. Why this matters: Traditional data centers consume hundreds...
read Jul 16, 2025This ain’t Pelé: China tests humanoid robots on soccer fields in rare tech reveal
CNN Business reporter Marc Stewart gained exclusive access to China's AI-powered robotics industry, including a company testing humanoid robots on soccer fields. The rare behind-the-scenes look highlights China's strategic push to dominate advanced technologies, with applications spanning from commercial delivery services to potential military uses. What you should know: China is aggressively developing AI-powered robotics as part of its broader technological leadership strategy.• Companies are using soccer as a testing ground for humanoid robot development, providing a complex environment to refine AI capabilities and physical coordination.• The robotics applications extend far beyond sports, with potential uses in food delivery, manufacturing,...
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...
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