Latest news with #Lutnick


Time of India
a day ago
- Business
- Time of India
Top Republican on China panel objects to resumption of Nvidia H20 chip shipments
By Karen Freifeld WASHINGTON: The head of a House of Representatives panel on China told U.S. Commerce Secretary Howard Lutnick that resuming sales of Nvidia 's H20 chips to China threatens to advance Beijing's AI capability, stepping up his criticism of the decision and saying the original ban was "the right call." Republican Representative John Moolenaar , in a letter to Lutnick on Friday, warned the chips could undermine the U.S.' AI advantage and may help Chinese companies capture global AI model market share. "The Commerce Department made the right call in banning the H20," Moolenaar said in the letter, demanding more information. "We can't let the (Chinese Communist Party) use American chips to train AI models that will power its military, censor its people, and undercut American innovation ." Nvidia's announcement this week that it would be allowed to resume sales reversed an export restriction imposed by the Trump administration in April to keep advanced AI chips such as the H20 out of Chinese hands over national security concerns, an issue that has found rare bipartisan support. It drew swift questions and criticism from U.S. legislators, including Moolenaar, who said on Monday that he would seek "clarification" from the Commerce Department. Shares of Nvidia turned negative on Friday after Moolenaar came out with the stronger criticism. An Nvidia spokesperson later defended the U.S.' relaxation of restrictions, saying America wins when the world builds on U.S. technology. "The government made the best decision for America, promoting U.S. technology leadership, economic growth and national security," the spokesperson said in a statement. A representative of the Commerce Department did not immediately respond to a request for comment. The letter was an unusual example of public disagreement with a Trump administration policy from a fellow Republican, signaling the depth of the national security concerns around the AI chip's export to China among China hawks in Washington. On Tuesday, Lutnick said the planned resumption of sales of the H20 chip was part of U.S. negotiations on rare earths and magnets. It also was a sign the United States was relaxing restrictions on the export of AI technology to China. Nvidia designed the H20 chip for the Chinese market after the Biden administration restricted exports of other of its advanced chips to China. But the H20 is still competitive at inference, where AI models serve up answers to users, which is fast becoming the biggest part of the AI chip market. Its capabilities also could be used in supercomputers. According to an April 2025 report by the Select Committee on China, Nvidia's H20 chips were instrumental in enabling an AI model by Chinese company DeepSeek that surprised the world earlier this year. Tech companies like China's Tencent also have used H20s to train massive AI systems, according to Moolenaar, who said there was growing evidence H20 chips are being used by Chinese AI companies to build supercomputers. Under the policy change, the U.S. still must approve licenses for the export of H20 chips. But Nvidia said it had been assured licenses would be granted, and it hoped to start deliveries soon. In his letter to Lutnick, Moolenaar requested a briefing as soon as possible, but no later than August 8, on how the Department of Commerce plans to evaluate license applications for the H20 and similar chips, the estimated number of H20s to be exported and to whom. "The H20 significantly outperforms anything Chinese chipmakers like Huawei can currently produce" at scale, Moolenaar wrote, "and would therefore provide a substantial increase to China's AI development."


Newsweek
4 days ago
- Politics
- Newsweek
Howard Lutnick's Ties to Jeffrey Epstein Come Under Scrutiny
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Howard Lutnick's real estate ties to financier and child sex offender Jeffrey Epstein are once again drawing scrutiny, given the commerce secretary's apparent support for President Donald Trump's dismissal of what he described as "the Epstein case." A 2019 investigation by Crain's found that Epstein—in addition to his infamous townhouse at 9 East 71st Street in Manhattan, also known as the Herbert N. Straus House—had significant links to the adjacent property, which real estate records show is still owned by Lutnick. Newsweek has reached out to the Commerce Department for comment on the property and Lutnick's relationship with his former neighbor. Why It Matters The dispute that has arisen in the Republican Party over Epstein, and the "client list" he is alleged to have possessed, has become a significant thorn in the side of the Trump administration. Prominent MAGA figures including Tucker Carlson and Alex Jones have voiced anger at the refusal to release full details regarding Epstein's past relationships, and the handling of the case has resulted in feuds within and between federal agencies, according to CNN and the BBC. The president himself had long-standing personal ties to Epstein, who died in 2019 from what the Department of Justice recently confirmed as suicide. However, the suicide finding has been disputed by his lawyers and is doubted by a significant number of Americans. U.S. Commerce Secretary Howard Lutnick waves to reporters following a television interview at the White House on June 11, 2025 in Washington, DC. U.S. Commerce Secretary Howard Lutnick waves to reporters following a television interview at the White House on June 11, 2025 in Washington, own links to Epstein stem from overlapping property interests, and do not indicate any interactions or past relationship between the pair. However, the details have nonetheless garnered significant interest on social media, with prominent accounts sharing the information and their posts amassing millions of views. Many are pointing to the findings as further reason to scrutinize the administration's reluctance to provide full transparency over the financer's past connections and the circumstances surrounding his death. What To Know The property at 11 E. 71st St. is situated east of Fifth Avenue, on the Upper East Side of Manhattan. In 2015, Lutnick, then CEO of financial services firm Cantor Fitzgerald, hosted a fundraiser for Democratic Primary candidate Hillary Clinton at the 10,000-square-foot home, and real estate records still list him as the property's owner. In addition to being his neighbor, real estate records show that Epstein was also listed as an owner of the property prior to Lutnick purchasing it in 1998. As first revealed in Crain's 2019 investigation, a now-dissolved entity with links to Epstein called SAM Conversion Corp. bought 11 E. 71st St. in 1988. It was later sold for an unknown consideration to a specialized trust, then to another, the Comet Trust, in 1996. The latter, Crain's found, had financial and familial ties to an individual whose name appeared in Epstein's "black book" of contacts, obtained by the FBI during its investigation. In addition, property records seen by Newsweek show that Epstein was listed as the trustee of the building during these transactions and transfers, while playing a direct role in them. Epstein granted his lawyer Jeffrey Schantz power of attorney over the property in 1996, selling it to the Comet Trust a few weeks later. In 1998, the Comet Trust sold the property to Lutnick, who took out a $4 million mortgage for the purchase, which was paid off in 2018. President Donald Trump speaks to the media after arriving at Joint Base Andrews, Tuesday, July 15, 2025, in Joint Base Andrews, Md., as Secretary of Commerce Howard Lutnick and White House Press Secretary Karoline Leavitt,... President Donald Trump speaks to the media after arriving at Joint Base Andrews, Tuesday, July 15, 2025, in Joint Base Andrews, Md., as Secretary of Commerce Howard Lutnick and White House Press Secretary Karoline Leavitt, center right, look on. More Evan Vucci/AP Photo The reemergence of these facts has drawn significant attention on social media, with many noting Lutnick's response when Trump again dismissed the relevance of the Epstein case to his presidency. Speaking to reporters on Tuesday, Trump said: "I don't understand why the Jeffrey Epstein case would be of interest to anybody. It's pretty boring stuff." Trump then blamed "fake news" for keeping the story relevant, prompting a laugh from Lutnick, who stood beside the president Joint Air Base Andrews. "Howard Lutnick, who is laughing it up next to Trump, was Epstein's neighbor in NYC and lived in one of his previous homes, btw..." the X account of progressive media company MeidasTouch posted. What People Are Saying Mark Shanahan, professor of politics at the University of Surrey, previously told Newsweek: "The Epstein backlash has the power to hurt Trump badly and will be far and away the largest factor in his latest polling slip. Releasing the Epstein Files is the Holy Grail for the MAGA base." YouTuber and self-described "internet detective" Coffeezilla posted the video of Lutnick and Trump alongside the caption: "Howard Lutnick was Epstein's neighbor. The laughing at the end..." White House spokesperson Harrison Fields, responding to reports of internal dissent on the Epstein issue, told NewsNation on July 11: "Any attempt to sow division within this team is baseless and distracts from the real progress being made in restoring public safety and pursuing justice for all." What Happens Next? As Republican infighting over the case continues, Trump has shifted responsibility to Attorney General Pam Bondi, who he said on Tuesday should release "whatever she thinks is credible" regarding Epstein.


Time of India
4 days ago
- Business
- Time of India
US chip policy shift boosts outlook for Samsung, SK Hynix
Seoul: The recent decision by the United States to lift restrictions on Nvidia's AI chip exports to China is expected to significantly benefit South Korean chipmakers Samsung Electronics and SK Hynix , particularly in the high-bandwidth memory (HBM) segment, as reported by The Korea Herald. On Tuesday, US Commerce Secretary Howard Lutnick confirmed that the government has cleared Nvidia to sell its H20 graphics processing units (GPUs) to China. The move is part of broader trade talks with Beijing involving rare earth elements and is aimed at increasing China's dependence on American technology. "We don't sell them our best stuff, not our second-best stuff, not even our third-best". Lutnick added, noting that the H20 is Nvidia's "fourth-best" chip. In April, President Donald Trump had blocked H20 exports to China to limit China's access to advanced US technology. The resulting export freeze left Nvidia with unsold stock, leading to a USD 4.5 billion charge and a USD 2.5 billion drop in quarterly revenue. Now that exports are back on track, demand for HBM chips--which power AI accelerators and high-performance servers by delivering faster data processing than traditional DRAM--is expected to rebound. Samsung and SK Hynix, key HBM suppliers to Nvidia, are likely to see a positive impact. The H20 chip includes both HBM3 and the newer HBM3E memory. While it may not excel at training AI models, it is optimized for inference tasks, an area of AI experiencing rapid growth. Samsung has reportedly been supplying HBM3 for the H20 since last year. However, the earlier export ban had taken a toll, contributing to a 55.9 per cent drop in Samsung's operating profit year-over-year for the second quarter. Meanwhile, SK Hynix, which currently holds the top market share in HBM and was the first to supply HBM3E to Nvidia, stands to gain in the short term from the restored H20 exports. "It's a short-term positive development for the AI GPU and HBM sectors that Nvidia is now able to resume exports to China," said Ryu Hyung-keun of Daishin Securities. "SK Hynix is expected to benefit in the near term from the resumption of H20 shipments."


Time of India
4 days ago
- Business
- Time of India
US chip policy shift boosts outlook for Samsung, SK hynix
Academy Empower your mind, elevate your skills The recent decision by the United States to lift restrictions on Nvidia 's AI chip exports to China is expected to significantly benefit South Korean chipmakers Samsung Electronics and SK hynix , particularly in the high-bandwidth memory (HBM) segment, as reported by The Korea Tuesday, US Commerce Secretary Howard Lutnick confirmed that the government has cleared Nvidia to sell its H20 graphics processing units (GPUs) to move is part of broader trade talks with Beijing involving rare earth elements and is aimed at increasing China's dependence on American technology."We don't sell them our best stuff, not our second-best stuff, not even our third-best". Lutnick added, noting that the H20 is Nvidia's "fourth-best" April, President Donald Trump had blocked H20 exports to China to limit China's access to advanced US technology. The resulting export freeze left Nvidia with unsold stock, leading to a $4.5 billion charge and a $2.5 billion drop in quarterly that exports are back on track, demand for HBM chips—which power AI accelerators and high-performance servers by delivering faster data processing than traditional DRAM—is expected to rebound. Samsung and SK hynix, key HBM suppliers to Nvidia, are likely to see a positive H20 chip includes both HBM3 and the newer HBM3E memory. While it may not excel at training AI models, it is optimized for inference tasks, an area of AI experiencing rapid has reportedly been supplying HBM3 for the H20 since last year. However, the earlier export ban had taken a toll, contributing to a 55.9% drop in Samsung's operating profit year-over-year for the second SK hynix, which currently holds the top market share in HBM and was the first to supply HBM3E to Nvidia, stands to gain in the short term from the restored H20 exports."It's a short-term positive development for the AI GPU and HBM sectors that Nvidia is now able to resume exports to China," said Ryu Hyung-keun of Daishin Securities. "SK hynix is expected to benefit in the near term from the resumption of H20 shipments."


Korea Herald
4 days ago
- Business
- Korea Herald
US chip thaw boosts outlook for Samsung, SK hynix
Nvidia's resumed China exports expected to drive demand for Korea-made HBM chips Anticipation is growing for a boost to Korean chipmakers Samsung Electronics and SK hynix, as the US reversal of restrictions on Nvidia's AI chip sales to China is expected to revive demand for their high-bandwidth memory, or HBM, chips. On Tuesday, US Commerce Secretary Howard Lutnick confirmed that the government had approved Nvidia's sales of its H20 graphics processing units to China. He explained that the decision was part of broader negotiations with Beijing on rare earth materials and a strategic effort to make China reliant on American technology. 'We don't sell them our best stuff, not our second-best stuff, not even our third-best,' Lutnick said, noting that the H20 is Nvidia's 'fourth-best' chip. US President Donald Trump had previously restricted exports of the H20 chips to China in April, as part of efforts to curb Beijing's access to cutting-edge American technology. 'You want to sell the Chinese enough that their developers get addicted to the American technology stack. That's the thinking,' Lutnick added. The restriction had left Nvidia with unsold inventory, resulting in a $4.5 billion charge and a $2.5 billion hit to its quarterly revenue. With Nvidia now set to resume sales in China, Korean chipmakers are expected to benefit from the renewed demand for HBMs. These critical memory components are used in AI accelerators and high-performance servers, enabling significantly faster data transfer compared to conventional DRAM. Nvidia's H20 chip features fourth-generation HBM3 and the latest fifth-generation HBM3E. While it may lag in training AI models, it performs well in inference — the AI process of generating answers to users — which is currently the fastest-growing segment in the AI chip market. Samsung has reportedly been supplying HBM3 for Nvidia's H20 since last year. However, the US trade restrictions appear to have impacted the company's performance, with its operating profit plunging 55.9 percent on-year in the April-June period. Although Samsung's fifth-generation HBM3E has yet to pass Nvidia's quality certification, the resumption of H20 exports to China is expected to help the company expand HBM shipments. Samsung also stands to benefit from Nvidia's upcoming low-end AI chip for the Chinese market, known as the B40, expected to launch later this year. Unlike the H20, the B40 will be equipped with GDDR7, a next-generation graphics DRAM capable of processing more data at once than conventional DRAM. Samsung was the first in the industry to develop a 12-nanometer, 24-gigabit GDDR7 chip. SK hynix, the global leader in HBM market share and the first company in the world to supply HBM3E to Nvidia, is also expected to see a sales boost. 'It's a short-term positive development for the AI GPU and HBM sectors that Nvidia is now able to resume exports to China,' said Ryu Hyung-keun, an analyst at Daishin Securities. 'SK hynix is expected to benefit in the near term from the resumption of H20 shipments.' Sohn In-joon, an analyst at Heungkuk Securities, said the export resumption is likely to benefit SK hynix more significantly, but could also offer Samsung an opportunity to pass Nvidia's qualification test for its HBM3E chips amid tight supply conditions. Industry officials are also expressing hope that the latest approval of Nvidia's exports could signal a broader shift in US trade policy, potentially paving the way for a further easing of chip export restrictions to China. 'The reopening of the Chinese market sends a positive signal for the entire industry. It presents a major opportunity by expanding the demand base for semiconductors,' one industry official said.