The Cyberspace Administration of China (CAC) has prohibited major tech companies like ByteDance and Alibaba from purchasing Nvidia’s AI chips, including the RTX Pro 6000D, despite initial interest. This decision reportedly stems from Beijing’s confidence in the capabilities of domestic AI chip manufacturers, such as Huawei and Cambricon. Nvidia CEO Jensen Huang expressed disappointment but understanding, highlighting the broader geopolitical context and a commitment to supporting Chinese companies if permitted. These actions, coinciding with scrutiny under China’s anti-monopoly law, may be aimed at fostering domestic technology independence and potentially influencing U.S. trade negotiations.
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A recent New York Times investigation revealed that the Trump administration granted the United Arab Emirates access to advanced AI chips shortly after receiving a $2 billion investment in a cryptocurrency startup founded by members of the Trump family. The report highlighted concerns from national security experts about sharing these chips, crucial for AI dominance, while ethics lawyers noted the deals violated established norms. Despite denials of any explicit connection, the timing of the deals raised suspicions of corruption and weak negotiation tactics. Political observers also expressed shock, with some considering the actions a major public corruption scandal, prompting further questions about the ethical implications.
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The UAE and US have agreed to build the world’s largest AI campus outside the US, a deal facilitated by the Trump administration and granting the UAE access to advanced US AI chips, potentially including 500,000 Nvidia chips annually. This agreement, involving US companies managing data centers, reverses previous restrictions aimed at preventing technology access by China. While boosting the UAE’s AI ambitions and benefiting US tech companies, the deal raises concerns about potential Chinese access to sensitive technology. The campus, a 10-square-mile facility in Abu Dhabi, will be built by a UAE firm but operated by US companies to ensure secure management.
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John Q. Hosedrinker