
China Just Got a Big Leg Up in the AI Race
The Nvidia chip deal just helps Beijing achieve its AI goals, explains Bloomberg Opinion columnist Dave Lee. (Source: Bloomberg)

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The Hill
16 minutes ago
- The Hill
Trump's chip deal raises legal questions
The two firms have agreed to share 15 percent of the revenue generated from selling advanced artificial intelligence (AI) chips to China in order to secure export licenses after a months-long pause, a U.S. official confirmed to The Hill on Monday. 'It's bizarre in many respects and pretty troubling because Congress didn't have anything to say about this,' said Gary Hufbauer, a nonresident senior fellow at the Peterson Institute for International Economics. 'It's just the president's own negotiating with the individual companies,' he continued. 'That's not how, historically, we've done business in this country.' Under the agreement, Nvidia will share 15 percent of its revenue from H20 chip sales to China, while AMD will share the same portion of its MI308 chip sales. Both of the Nvidia and AMD chips in question, which are graphics processing units (GPUs) designed for the Chinese market with U.S. export controls in mind, faced new restrictions from the Trump administration in April, effectively blocking sales to China. Last month, Nvidia and AMD said the U.S. government had assured them it would begin approving export licenses for the H20 and MI308 chips, although the Commerce Department reportedly did not start issuing licenses for several weeks. The new revenue-sharing agreement comes after Nvidia CEO Jensen Huang met with President Trump at the White House last week, according to Bloomberg. Huang has found himself in a tricky situation, balancing Washington and Beijing's interests as both countries vie for AI dominance. The agreement appears to remove a major impediment for both companies. Nvidia said earlier this year it incurred $4.5 billion in charges associated with the chip restrictions in the first quarter and expected an $8 billion sales hit in the second quarter. AMD forecast a $1.5 billion hit to revenue this year. The deal represents a notable shift in how the government approaches export controls. 'It's quite extraordinary because it turns the export control function of the government into a money-raising proposition, and that's never happened before,' Hufbauer said.


Business Insider
44 minutes ago
- Business Insider
Intel CEO meets with Trump, Cardinal Health to acquire Solaris: Morning Buzz
The major averages were broadly higher near noon after the headline consumer price index rose 0.2% in July and the core increased 0.3%, exactly as forecast. The news reassured investors who were concerned about Trump's tariff policies potentially spiking prices in the U.S. economy. The tame inflation report might give the Federal Reserve the green light to cut interest rates next month, traders appear to be surmising. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Looking to commodities, gold prices were fractionally lower, falling to below $3,400 for the first time in weeks. Meanwhile, oil prices continue their decline ahead of Tuesday's API crude numbers. morning Fly By on YouTube. 1. STOCK NEWS: Intel (INTC) said CEO Lip-Bu Tan had a 'candid' and 'constructive' discussion with President Trump, with the president calling the meeting 'interesting' Meanwhile, Trump said that Goldman Sachs (GS) CEO David Solomon should 'focus on being a DJ' instead of running a bank, tying the criticism to Goldman's previous statement's about tariffs Cardinal Health (CAH) provided a 'beat and raise' report for Q4 and agreed to acquire Solaris Health for $1.9B in cash China is urging companies not tot use Nvidia's (NVDA) H20 chips, Bloomberg reports Sinclair (SBGI) has launched a strategic review for its broadcast business 2. WALL STREET CALLS: Starbucks (SBUX) upgraded at Baird, here's why Piper upgraded Chipotle (CMG) to Overweight after 31% selloff Shopify (SHOP) downgraded to Neutral from Accumulate at Phillip Securities Palo Alto Networks (PANW) upgraded to Overweight from Neutral at Piper Sandler PubMatic downgraded to Neutral at B. Riley and Hold at Lake Street after softer than expected Q3 outlook 3. AROUND THE WEB: Perplexity has offered $34.5B to acquire Google's (GOOGL) Chrome browser, The Wall Street Journal reports Gildan Activewear (GIL) is weighing a cash and stock offer for Hanesbrands (HBI) that would value the company at about $6 a share, Bloomberg reports Citigroup (C) Chief Executive Officer Jane Fraser is in Mexico City for talks with President Claudia Sheinbaum that include the potential public listing of her bank's retail unit Banamex, Bloomberg says Amdocs (DOX) is set to lay off 'hundreds' of employees, including many in Israel, Globes reports General Motors (GM) seeks to hire back some former employees of its Cruise autonomous vehicle business in a renewed push to develop self-driving cars, Bloomberg reports 4. MOVERS: WideOpenWest (WOW) increases after announcing it will be taken private by DigitalBridge in a $1.5B deal Green Dot (GDOT) higher after reporting Q2 results and raised its guidance for FY25 Gevo (GEVO) and 3D Systems (DDD) gains after reporting quarterly results Fluence Energy (FLNC) lower after reporting Q3 results and backing its guidance for FY25 BigBear. ai (BBAI) and Microvast (MVST) fall after reporting quarterly results 5. EARNINGS/GUIDANCE: On Holding (ONON) reported Q2 results and raised its guidance for FY25 Celanese (CE) reported Q2 results, with EPS and revenue beating consensus Smithfield Foods (SFD) reported Q2 results, with CEO Shane Smith commenting, 'Our strong second quarter results demonstrate the agility and resilience of our business' Venture Global (VG) reported Q2 results and backed its guidance for FY25, with CEO Mike Sabel commenting, 'We are pleased to announce another strong quarter' Circle Internet (CRCL) reported Q2 results, with revenue beating consensus INDEXES: Near midday, the Dow was up/down xxx, or xxx%, to xxx, the Nasdaq was up/down xxx, or xxx%, to xxx, and the S&P 500 was up/down xxx, or xxx%, to xxx.
Yahoo
an hour ago
- Yahoo
Trump Says He May Allow Lawsuit Against Powell Over Fed Renovation
(Bloomberg) -- President Donald Trump said he is weighing a lawsuit against Federal Reserve Chair Jerome Powell over the renovation of the central bank's headquarters, a project whose cost overruns have drawn scrutiny. Trump in a social media post on Tuesday resumed his criticism of the Fed chair over the central bank's decision to hold interest rates steady and again hammered Powell over the renovation work. Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis To Head Off Severe Storm Surges, Nova Scotia Invests in 'Living Shorelines' Five Years After Black Lives Matter, Brussels' Colonial Statues Remain For Homeless Cyclists, Bikes Bring an Escape From the Streets 'The damage he has done by always being Too Late is incalculable. Fortunately, the economy is sooo good that we've blown through Powell and the complacent Board,' Trump said. 'I am, though, considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings.' White House Press Secretary Karoline Leavitt, when asked if the administration was considering suing the Fed chair over the renovation, responded 'that's what the president is saying.' 'He's considering a lawsuit,' she told reporters at a briefing later Tuesday, adding that she would not speak on the matter further. 'I will allow the president to do that himself.' Asked if a lawsuit would fix problems with the project, Trump trade adviser Peter Navarro in an interview Tuesday responded 'heck, yes.' 'I mean, look, it gets your attention. It's like, what is he doing there?,' Navarro said on Bloomberg Television's , accusing Powell of not paying attention to the cost of the work. The yield curve steepened after Trump's comments, with 10-year yields rebounding from the aftermath of Tuesday's consumer price index numbers and hitting a session high. Data released earlier Tuesday showed underlying inflation picked up in July, though prices of goods rose at a more muted pace, tempering concerns about tariff-driven price pressures and raising expectations for a Fed rate cut in September. The renovation work has become a flashpoint in Trump's pressure campaign against Powell and the central bank for not lowering borrowing costs and saw him tour the construction site last month in a rare presidential visit to the Fed's headquarters. That visit saw a brief detente between Trump and Powell and the president appearing to downplay some of his concerns over the work there. But that criticism resumed after Fed officials left interest rates unchanged in July, followed by a turbulent stretch in which Trump fired the head of the Bureau of Labor Statistics after a report earlier this month that showed a weakening US jobs market. Trump has repeatedly called for Powell to resign. At times, he has mulled whether he should outright fire him before saying he would wait out his term to avoid delivering a shock to markets. Treasury Secretary Scott Bessent is running a search for a candidate to replace Powell when the chair's term is up in May with Trump expected to make his final announcement this fall, according to two administration officials. The president last week also seized on an earlier-than-expected opportunity to put his imprint on the central bank by tapping Stephen Miran, one of his top economic advisers, to serve as a Federal Reserve governor. Miran, who will need Senate confirmation, would only serve the expiring term of Fed Governor Adriana Kugler, which ends in January, allowing Trump more time to search for a permanent replacement. --With assistance from Hadriana Lowenkron. (Updates with Navarro remarks in paragraphs 6-7) Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan Why It's Actually a Good Time to Buy a House, According to a Zillow Economist The Social Media Trend Machine Is Spitting Out Weirder and Weirder Results Dubai's Housing Boom Is Stoking Fears of Another Crash A $340 Million New York Office Makeover Is Converting Boardrooms to Bedrooms ©2025 Bloomberg L.P. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data