Latest news with #Nivida
Business Insider
5 days ago
- Business
- Business Insider
Nvidia warns that any GPU 'kill switch' or 'backdoor' into its AI chips would 'fracture trust in US technology'
Nvidia wants to make it crystal clear how it feels about the idea of AI chip "kill switches" and backdoors. The chip giant said governments should not be allowed to spy on its customers, emphatically arguing against software backdoors into its GPUs, which are used to train and run many of the AI models created by Big Tech companies and startups. "NVIDIA GPUs do not and should not have kill switches and backdoors," Nvidia's chief security officer, David Reber Jr, wrote in a Tuesday blog post titled "No Backdoors. No Kill Switches. No Spyware." Chinese officials expressed concern to Nivida last week about potential "backdoor security risks" in Nivida's H20 chips, which are specifically designed for the Chinese market, and requested a meeting with the company, The New York Times reported. Nvidia said that allowing potential backdoors, or a way for outside parties to access or control the chips without the owner's detection, would make the overall technology more vulnerable and "fracture trust in US technology." Apple has previously strongly opposed the idea of software backdoors, with CEO Tim Cook once calling the idea "the software equivalent of cancer." Apple publicly fought FBI pressure in 2016 to create custom software to help unlock a dead shooter's iPhone and earlier this year pushed back against a"secret order" from the UK government seeking to force the company to grant backdoor access to iCloud user data. Nvidia's chips are a hot commodity in the AI industry, and are used by OpenAI, Meta, and other major companies to train and operate advanced AI language models. "Hardwiring a kill switch into a chip is something entirely different: a permanent flaw beyond user control, and an open invitation for disaster," Nvidia's Reber wrote. "It's like buying a car where the dealership keeps a remote control for the parking brake — just in case they decide you shouldn't be driving. That's not sound policy. It's an overreaction that would irreparably harm America's economic and national security interests." Reber said it isn't accurate to compare some potential monitoring to "Find my iPhone" or similar services. "That comparison doesn't hold water — optional software features, controlled by the user, are not hardware backdoors," he said. Nvidia CEO Jensen Huang recently secured a major win with President Donald Trump, with the company planning to resume shipments of its H20 chips to the Chinese market after receiving what it said were assurances from the Trump administration that the exports would be approved following earlier restrictions. Huang has repeatedly said that if the US wants to win the AI race, it must allow US companies to do business around the world, including in China. Nvidia declined to comment further to Business Insider. Trump's AI plan calls for the government to work with industry partners to "explore leveraging new and existing location verification features on advanced AI compute to ensure that the chips are not in countries of concern." The White House's location tracking recommendation mirrors a bipartisan bill in Congress, the Chip Security Act, which would require the Secretary of Commerce to ensure that certain chips are outfitted with location security mechanisms. Unlike the White House plan, the legislation also allows for additional security safeguards, though any additional measures would only come after a security review. "The Chip Security Act is the best approach to disrupt nefarious actors from gaining access to critical technologies," Rep. Bill Huizenga of Michigan, a Republican and the bill's lead author in the House, said in a statement to BI. "This bipartisan legislation does not require the inclusion of spyware or kill switches—any statements to the contrary are disingenuous." A senior congressional aide working on the bill told Business Insider that the legislation would likely not require Nvidia or other major chip manufacturers to make hardware changes to their chips. "The legislation is focused instead on location verification capabilities, which are already included in the majority of high-end AI chips and would likely require no hardware changes whatsoever," the aide said.
Yahoo
16-05-2025
- Business
- Yahoo
Better U.S.-China Tariff Deal Buy: Amazon vs Nvidia
High tariffs on imports represented a risk for tech stocks such as Amazon and Nvidia. A trade agreement between the U.S. and China is a positive move, signaling tariffs may not harm earnings growth. These 10 stocks could mint the next wave of millionaires › Over the past couple of months, one particular element has guided stock market movement, and that's President Trump's import tariff plan. Trump set out a broad framework early last month, including double-digit tariffs on countries worldwide and a tariff on China that reached 145%, and that sent stocks spiraling lower. The concern was high tariff levels would weigh on the economy and even lead to a recession. That wouldn't be good news for corporate earnings or share prices. But, when Trump halted the plan for 90 days to allow for negotiations with countries, indexes rebounded. And just this week as the U.S. and China reached an initial deal that greatly lowered tariff levels, the three major indexes soared. The S&P 500 even moved into positive territory for the year after earlier falling as much as 15%. Among the biggest gainers in the market were tech stocks. Though Trump has exempted electronics for now, he indicated duties specifically for these products were on the way -- and tech companies rely heavily on manufacturing abroad. So, a satisfactory trade deal between the U.S. and China suggests any tariffs on electronics also would be manageable. Against this backdrop, let's consider which of the following market leaders -- Amazon (NASDAQ: AMZN) or Nivida (NASDAQ: NVDA) -- make the better buy today. You may know Amazon well as a seller of everything from groceries and essentials to mass merchandise. And since many of those items are imported from China or other countries, the company clearly is exposed to the tariff risk. On top of this, Amazon Web Services (AWS), the cloud computing unit, sells products -- such as artificial intelligence (AI) chips -- that are produced abroad to U.S. customers. That, too, represents exposure to tariffs. This means agreements with lower-than-expected tariffs represent good news for Amazon. Of course, any tariff at all will add to costs or could push prices higher, but a well-established powerhouse like Amazon has what it takes to handle the challenge. The company said in its recent earnings call that it's already taken steps to manage the situation -- for example, buying some inventory early to lock in lower prices. Meanwhile, it's important to keep in mind that third-party sellers on Amazon may have different strategies -- some may pass costs on to customers while others may not. So, with the enormous selection of products on Amazon, even in a tariff environment, shoppers still should be able to find bargains. Now, though, with the tariff situation looking brighter, there's even more reason to be optimistic about ongoing growth from Amazon, a company that's delivered an impressive earnings track record over the years. And as Amazon continues to win in AI -- its AI offerings helped AWS deliver a $117 billion annual revenue run rate in the recent quarter -- growth could take off. Nvidia has become the name that's practically synonymous with AI. The company is the world's top seller of AI chips and has developed an entire ecosystem of related products and services -- making it the "go to" destination for any potential customer looking to develop an AI platform. All of this has helped Nvidia generate double- and triple-digit quarterly revenue growth, with that revenue reaching record levels. This momentum led Nvidia shares higher in recent years -- but tariff news weighed heavily on them over the past couple of months. Investors worried about an eventual tariff on electronics imports hurting Nvidia's revenue growth since the company relies on manufacturing in Taiwan. Immediately, Nvidia took action, setting out a plan to invest in U.S. manufacturing and eventually make AI supercomputers in the U.S. for the first time. Mass production is expected to ramp up at two facilities over the coming 12 to 15 months. So, like Amazon, Nvidia has been taking action to control the level of risk presented by tariffs. But, of course, the idea that tariffs in general may be much lower than originally expected is fantastic news for the company. It means Nvidia may not have to rush to shift production to the U.S. and instead can pace its investment -- without being crushed by massive tariff levels in the meantime. So, like Amazon, Nvidia is positioned to benefit from this new tariff climate, making it a solid stock to own right now. Which of these tech giants makes the better buy following the U.S. and China tariff talks? Let's consider valuation before answering the question. Right now, both of these stocks are trading at very reasonable levels, much lower in relation to forward earnings estimates from earlier in the year. But Nvidia looks particularly interesting from this valuation perspective, and I would even consider it cheap at today's level. As mentioned, high tariff levels represented a risk for both Amazon and Nvidia -- and today, the worst-case scenario has disappeared, replaced by a situation that should be much more manageable. That makes both of these stocks a great buy at the moment, but considering valuation, Nvidia gets extra points in my book -- so if you can only choose one of these top AI stocks, Nvidia makes the better buy right now. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $350,971!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,309!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $620,719!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of May 12, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy. Better U.S.-China Tariff Deal Buy: Amazon vs Nvidia was originally published by The Motley Fool Sign in to access your portfolio
