Nvidia sounds the alarm: Chinese AI talent defecting to Huawei as U.S. chip curbs push them out the door
Nvidia is sounding the alarm about the unintended impact of US export restrictions on sending chips to China, as the company's senior VP of research and chief scientist, Bill Dally, said that the chipmaker is now witnessing an increasing number of former Nvidia AI researchers joining Huawei, a move prompted primarily by the tightening export controls, as per a PC Gamer report.According to Dally's calculation, the number of AI researchers working in China has grown from a third of the world's total in 2019 to nearly half at present, reported PC Gamer, which cited a translation from the Taiwan Economic Daily report.
The AI chipmaker's rationale is that without US restrictions, Huawei wouldn't be forced to focus so much on domestic AI solutions, but now it must do so to keep up, according to the PC Gamer report.
However, this is not the first time Nvidia is pointing out that the US export restrictions for China are harming the AI industry in America. Even during Computex last month, Nvidia CEO Jensen Huang said, "AI researchers are still doing AI research in China and if they don't have enough Nvidia, they will use their own [chips]," and he also spoke regarding Huawei specifically, saying the company has become "quite formidable", reported PC Gamer. While, it is not just the US national interest that has urged Nvidia to highlight all the possible negatives of export controls, as these restrictions have cost and will cost the chipmaker lots of money, according to the report. Nvidia had revealed that after billions of dollars lost due to the restrictions of its H20 chips to China in Q1, it's expecting another $8 billion to be lost for the same reason in Q2, reported PC Gamer.
According to the report, Huawei's latest Ascend 910 and 920 chips, with the help of China's SMIC (Semiconductor Manufacturing International Corporation), would be a better option for Chinese AI companies than trying to get their hands on Nvidia chips, as per the report.
Why is Nvidia concerned about its AI researchers joining Huawei?
Because it signals that export restrictions might be pushing top talent and innovation into China, instead of slowing its progress.
How much money has Nvidia lost from these restrictions?
Nvidia says it lost billions in Q1 and expects another $8 billion in losses in Q2 due to blocked chip sales to China.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
35 minutes ago
- Time of India
China says willing to improve communication with countries on rare earth controls
China's commerce ministry said on Saturday that it has approved a certain number of compliant rare earth export applications and will continue to refine its examination and approval process. The ministry also expressed willingness to enhance communication with other countries over export controls, according to a statement on its website, Reuters reported. The announcement comes at a time when Indian automakers are facing worsening shortages of rare earth magnets , critical components for electric vehicles (EVs) and other high-tech industries. According to Bloomberg, Beijing has turned down at least two recent applications for India-bound shipments of rare earth magnets, raising fears of an imminent disruption in Indian automobile production . Industry and government officials told Bloomberg that while shipments to the German and U.S. units of a global firm were cleared, the same request to its Indian arm was rejected. Since April 4—when China began enforcing tighter curbs on exports of seven rare earth elements—supplies to Indian auto parts manufacturers have been stuck at Chinese ports. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villa For Sale in Dubai Might Surprise You Villas in Dubai | Search ads Learn More Undo These new controls require importers to certify that the magnets will not be used for defense purposes or re-exported to the U.S. The new end-user certification process can take at least 45 days and is now facing a global backlog. As per the Bloomberg report, at least 30 Indian applications endorsed by the Indian government are still awaiting Chinese approval, while over 10 applications from other countries have reportedly been cleared. According to a May 28 presentation by the Society of Indian Automobile Manufacturers (SIAM), no Indian applications have received final approval from China's commerce ministry despite many having secured embassy endorsements. Live Events 'Even if one magnetised part is missing, the vehicle cannot be built,' SIAM warned in the presentation, adding that some Indian firms may consider shifting operations to China if the supply crunch continues. The squeeze has heightened concern among Indian automakers. 'The rare earth situation is a very difficult one,' Bajaj Auto 's Executive Director Rakesh Sharma told analysts. 'Supplies and stocks are getting depleted as we speak, and if there's no relief in shipments, production will be seriously impaired in July.' To address the growing crisis, a delegation of Indian businesses is planning to visit Chinese counterparts this month with help from the Indian Embassy in Beijing. The embassy has reached out to China's commerce ministry, seeking expedited clearance of pending applications. A meeting was recently held at the Indian Prime Minister's Office to discuss options for resolving the impasse. Indian officials have advised manufacturers to explore alternative supply chains and consider local refining capacities—though such solutions are long-term in nature. Meanwhile, the Indian government is also encouraging firms to explore ferrite magnets or magnet-free designs, though these come with compromises in cost and performance. As a result, some companies are considering stop-gap measures such as importing motors or shifting production to fossil-fuel-powered vehicles. With inputs from agencies
Time of India
an hour ago
- Time of India
Xiaomi's game-changing chip stuns tech world, even China cheers while the U.S. watches nervously
Xiaomi Xring 01 chip sets new benchmark, challenges Apple and Qualcomm as China applauds breakthrough- Xiaomi Xring 01 chip is making global headlines, not just for its powerful performance but for what it represents — a major leap in China's bid to become a tech powerhouse. This is Xiaomi's first true high-end processor, developed entirely in-house and launched to compete directly with Qualcomm's Snapdragon 8 and Apple's A18 Pro. In a rare move, even the Chinese government publicly praised the chip, underlining its national significance. After four years of intense development, this chip could reshape the balance in the global semiconductor industry. What is Xiaomi's Xring 01 chip and why is it a big deal? The Xiaomi Xring 01 is a newly launched System-on-a-Chip (SoC) designed to power flagship devices like the Xiaomi 15S Pro and Xiaomi Pad 7 Ultra. Built on licensed ARM architecture, it uses a unique ten-core configuration split into four clusters: 2 Cortex-X925 cores at 3.9 GHz (for top-level performance) 4 Cortex-A725 cores at 3.4 GHz (for high-load tasks) 2 Cortex-A725 cores at 1.9 GHz (for medium use) 2 Cortex-A520 cores at 1.8 GHz (for efficiency and power saving) This architecture lets the chip balance raw power with energy efficiency. According to Xiaomi, it's been benchmarked to outperform Qualcomm's Snapdragon 8 Elite and even the Apple A18 Pro — two of the most powerful chips on the market today. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo How much did Xiaomi invest in developing the Xring 01 chip? The Xring 01 is the result of four years of R&D, involving over 2,500 engineers and a massive investment of 13.5 billion yuan (around €1.67 billion). This is not a one-time push. Xiaomi's CEO, Lei Jun, confirmed that the company plans to pour another €6 billion into semiconductor development over the next ten years. This chip also marks the birth of a new processor line for Xiaomi, as the '01' naming signals the beginning of an entire Xring family. The company isn't just trying to make devices faster — it's aiming to become a serious player in the global chip industry. Live Events Can Xiaomi's chip really compete with Apple and Qualcomm? Initial tests say yes — and that's a big deal. Xiaomi claims the Xring 01 matches or beats Qualcomm's top-tier Snapdragon 8 Elite and performs better than Apple's A18 Pro. These are early benchmarks, so real-world performance might vary, but the results have already turned heads. This isn't Xiaomi's first time building chips. Back in 2017, they introduced the Surge S1, but it never made a serious impact. The Xring 01, by contrast, appears to be in a completely different class, positioning Xiaomi alongside the world's most advanced tech companies. Why is the Chinese government praising the Xring 01 chip? China has long wanted to reduce its dependence on foreign tech — especially American chips. That's why the launch of a powerful homegrown chip like the Xring 01 has drawn praise from Chinese officials, who see it as a national achievement in the global tech race. With rising tensions between China and the United States, chip technology has become a strategic battleground. After the U.S. blocked Huawei from accessing chip-making giant TSMC, Chinese firms have rushed to find local alternatives. Huawei now uses SMIC, a Chinese chip foundry, but it still can't compete at the sub-7nm level. Xiaomi, for now, still uses TSMC to manufacture the Xring 01. But with global pressure mounting, the company is reportedly working on a 'Plan B', anticipating the kind of trade sanctions that hit Huawei. What does the future hold for Xiaomi and China's chip industry? Xiaomi's breakthrough is more than just a technical win — it's a geopolitical milestone. With the Xring 01, the company has proven it can design chips that rival or surpass the global best. What's left is manufacturing autonomy. If China can close that final gap, it could challenge the U.S. and Taiwan's dominance in semiconductors. For now, Xiaomi has joined the frontlines of this tech revolution. As more Chinese firms follow, the global chip landscape may never look the same again. FAQs: Q1. What is the Xiaomi Xring 01 chip? It's Xiaomi's powerful new processor that competes with Apple's A18 Pro and Snapdragon 8 Elite. Q2. Which devices use the Xiaomi Xring 01 chip? It powers the Xiaomi 15S Pro and Xiaomi Pad 7 Ultra.
Time of India
an hour ago
- Time of India
China leaders take reins at TikTok Shop in US as sales miss goal
ByteDance Ltd., TikTok 's parent company, has been replacing US-hired staff near Seattle with leaders connected to China, aiming to replicate its e-commerce success in Asia after sales fell short in America. TikTok Shop initially set a goal to increase its US e-commerce business tenfold last year to $17.5 billion in transaction volume, but the company had to drastically lower that goal, according to people familiar with the plan who spoke on condition of anonymity because they were not authorized to talk publicly. TikTok established its Shop business in the Seattle area near Inc., the online retail giant it was aiming to displace. Meetings that used to be held in English are now often conducted in Mandarin and managers increasingly write in Chinese when communicating on Feishu, ByteDance's internal Slack-like app, with English-speaking staff forced to rely on the built-in translation function. More than 100 TikTok Shop employees in the US have been fired or have left amid confusion between leaders that has worsened the work environment, according to people familiar with the company. The cultural transition taking place in the company coincides with its fight for survival in the US — due mainly to the app's Chinese ties. A national security law passed by Congress last year requires TikTok's US business to be spun off from its Chinese parent company or it will face a ban. Lawmakers warned that TikTok's ties to China pose a threat to the safety and security of American users. President Donald Trump has twice delayed the ban — with legal assurances from his attorney general — and another deadline for divestiture looms later this month, though that might also be extended, Wall Street Journal has reported. ByteDance has said it doesn't intend to sell. The TikTok Shop near Seattle in February began requiring workers to be in the office five days a week for eight hours a day, according to a memo reviewed by Bloomberg. The change is in contrast to some other major tech companies that still offer flexible work schedules, and has been particularly burdensome for employees who often join late-night calls with colleagues in Asia after they leave the office, according to former employees. US-based staff require human resources and manager pre-approval to work from home. The changes were introduced after Bob Kang, China-based global head of TikTok's e-commerce division, visited the office in Bellevue, Washington, earlier this year and found there weren't enough staff pressent on a work day, according to multiple people who spoke on the condition of anonymity for fear of retaliation. Increasing influence Increasing Chinese influence over TikTok's fastest-growing business may raise questions about its previous corporate promise to distance the US operation from China. After Trump initially tried to ban the app during his first term, the company announced a security plan dubbed 'Project Texas' and vowed to wall off the app's US data and operations from any Chinese oversight. TikTok Shop is the biggest source of revenue for the video-sharing app besides advertising, and it has become a major investment area for ByteDance. Adding full-scale commerce to its eye-catching content and popular influencers sets it apart from rivals like Instagram and YouTube. The company still aims to challenge Amazon in major markets. To better compete, TikTok Shop recruited aggressively near Seattle over the past three years, targeting people with experience at Amazon, according to a review of Linkedin profiles and people who worked at both companies. In some corners of TikTok's Bellevue office of roughly 1,000 employees, the workflow felt like a remix of previous Amazon teams, the people said. But since January, growing tension in the teams below Kang and Nico Le Bourgeois, who oversaw TikTok's e-commerce operations in the US, became a distraction for staff who were often unsure about whose orders to follow, the people said. TikTok's uncertain fate in the US also weighed on morale. The company carried out a round of layoffs in April. A second batch followed in May. In the first round, Le Bourgeois was demoted when Mu Qing, a Chinese executive from ByteDance's e-commerce platform Douyin moved to the Seattle area to run TikTok Shop in the US. After the second bout, Mu sent an internal message saying Le Bourgeois was leaving to pursue other opportunities, according to a copy of the message seen by Bloomberg. Those cuts were intended to improve TikTok's 'efficiency,' according to former employees, though it wasn't clear to staff what factors contributed to a worker's efficiency rating. More like Douyin With these changes, ByteDance leaders are bringing in people who are familiar with what worked for the company in China, where Douyin, its TikTok clone for the Chinese market, has evolved into a $490 billion shopping phenomenon. In addition to Mu, who was the head of Douyin's e-commerce, six other leaders with Chinese backgrounds were appointed in April, according to a different internal memo from Kang viewed by Bloomberg. One challenge is that habits of many American users trend toward passive TikTok scrolling as opposed to making purchases in the app. Some US sellers told Bloomberg that they have also been reluctant to invest in the platform, given the possible ban. The final tally for 2024 sales came in at around $9 billion, according to an estimate by Singapore-based consultancy Momentum Works, far below the internal goal of $17.5 billion in transaction volume. A TikTok spokesperson previously called the $17.5 billion internal goal 'inaccurate.' TikTok Shop's US struggles haven't halted the company's global shopping ambitions. ByteDance in 2021 rolled out e-commerce services in countries including Indonesia, Vietnam and the UK. In Southeast Asia, it's already the region's biggest shopping platform after Shopee, according to Momentum Works. Last year, TikTok Shop opened in five countries in Europe, including Germany and Spain. The Europe expansion was delayed because the company first prioritised US growth, Bloomberg reported. A TikTok spokesperson did not respond to an emailed request for comment for this story. This is a crucial month for TikTok in the US. The company will host merchants and creators in Los Angeles next week for a summit featuring some of the new leaders of the e-commerce unit. The current deadline for ByteDance to sell the TikTok's US operation is June 19 and there have been several interested suitors. The company came close to a possible spin-off in April to a consortium of investors that included Oracle Corp., but the deal was scuttled in part because of Trump's trade war with China. Meanwhile, the churn of e-commerce employment continues in the Seattle area. Current and former TikTok Shop employees told Bloomberg that they get hounded by recruiting messages from Temu , another Chinese e-commerce competitor.
