AI Industry: nvidia and amd Moves

China has significantly escalated its efforts to achieve technological self-reliance, issuing a directive that bans foreign AI chips from state-funded data centers. This new rule, reported on November 5 and effective for new projects by November 5, 2025, mandates the use of domestically produced chips from companies like Huawei, Cambricon, Enflame, and Moore Threads. Projects less than 30% complete must remove or cancel plans for foreign chips, including even Nvidia's H20 chips, which were previously designed to comply with U.S. export rules. This move directly impacts major foreign chipmakers such as Nvidia, AMD, and Intel, though it risks widening China's AI computing power gap with the U.S. Meanwhile, major U.S. tech giants are pouring vast sums into AI. Google, Meta, Microsoft, and Amazon collectively plan to spend $370 billion this year on data centers, with Meta CEO Mark Zuckerberg even acknowledging potential overinvestment. These massive expenditures are now complicating antitrust lawsuits from the DOJ and FTC, as companies argue such spending in an uncertain future does not indicate monopoly behavior. Across the Atlantic, Nvidia CEO Jensen Huang met with UK Technology Secretary Liz Kendall to discuss AI investment, following Nvidia's £2 billion UK investment announcement in June, as the UK promotes 'AI Growth Zones.' The broader economic implications of AI are also a key concern for Federal Reserve Chair Jerome Powell, who likens setting monetary policy without current data to driving in fog. Powell highlights challenges related to AI's impact on productivity, inflation, jobs, and the potential for stock market and credit market bubbles, with global AI investment expected to reach $350 billion in 2025. The AI industry itself faces increasing pressure to demonstrate profitability, as developing and deploying AI is costly and requires powerful computing and skilled workers. Companies like Bank of America are aggressively integrating AI, increasing annual tech spending to $4 billion in 2025. Their AI virtual assistant, Erica, has handled over three billion client interactions since 2018 and will expand to desktop next year, while an internal version, Erica for Employees, is used by over 90% of staff, cutting IT calls by half. The bank currently has 15 generative AI tools commercially live. In contrast, French online sales group Showroomprivé plans to cut up to 121 jobs, or 11% of its staff, by the second quarter of 2026, following a €17 million net loss in fiscal 2024 and a 12.2% revenue drop. Despite this, the company will invest heavily in AI for process automation and content generation. Cybersecurity is also seeing significant AI investment, with Israeli startup Daylight Security raising $33 million in Series A funding for its AI-driven managed detection and response platform. On a more personal and ethical front, author Pennie Hunt shares her mixed feelings about AI, using it for practical tasks while feeling uneasy about its personalized interactions. The GW Law Animal Law Program is also hosting a conference from November 7 to November 9 to explore how AI technology affects animal law, discussing potential benefits and harms, ethics, and regulation.

Key Takeaways

  • China has banned foreign AI chips, including Nvidia's H20, from state-funded data centers, requiring domestic alternatives from companies like Huawei and Cambricon.
  • This ban, effective for new projects by November 5, 2025, aims for technological self-reliance but risks widening China's AI computing gap with the U.S.
  • Major tech companies, including Google, Meta, Microsoft, and Amazon, plan to spend $370 billion this year on data centers, which complicates current antitrust lawsuits.
  • Nvidia CEO Jensen Huang met with UK Technology Secretary Liz Kendall to discuss AI investment, following Nvidia's £2 billion UK investment announcement in June.
  • Federal Reserve Chair Jerome Powell highlights AI's potential economic challenges, including impacts on productivity, inflation, jobs, and the risk of market bubbles, with global AI investment projected at $350 billion in 2025.
  • The AI industry faces increasing pressure to demonstrate profitability, as developing and deploying AI is costly and funding becomes tighter.
  • Bank of America is increasing its annual tech spending to $4 billion in 2025, with its AI virtual assistant Erica handling over 3 billion client interactions and an internal version used by over 90% of staff.
  • French online sales group Showroomprivé is cutting up to 121 jobs while investing heavily in AI for process automation and content generation, following a €17 million net loss in fiscal 2024.
  • Israeli cybersecurity startup Daylight Security raised $33 million in Series A funding for its AI-driven managed detection and response platform.
  • A GW Law conference is exploring the ethical and regulatory implications of AI on animals and the environment, while individuals are navigating personal interactions with AI.

China Bans Foreign AI Chips in State Data Centers

Chinese authorities recently ordered state-funded data centers to stop using foreign AI chips. Projects under 30% complete must remove or cancel plans for these chips. More advanced projects will be reviewed individually. This move is a strong step by China to remove foreign technology from its important infrastructure. It aims to help China become self-reliant in technology.

China Orders Local AI Chips for State Data Centers

China has told new state-funded data centers to only use AI chips made in China. This rule could lower demand for foreign chips from companies like Nvidia, AMD, and Intel. It aims to boost Chinese chipmakers such as Huawei and Cambricon. However, this decision might cause China to fall further behind the U.S. in AI computing power.

China Bans All Foreign AI Chips in State Data Centers

China has reportedly banned all foreign AI chips from state-funded data centers. This new rule requires projects to use only Chinese-made chips from companies like Huawei, Cambricon, and Enflame. Even Nvidia's H20 chips, designed for U.S. export rules, are now forbidden. Data centers less than 30% complete must remove any foreign chips already installed. This move aims to boost local chipmakers but could widen the AI technology gap with the U.S.

China Mandates Domestic AI Chips for State Data Centers

On November 5, Reuters reported that China now requires state-funded data centers to use only domestically-made AI chips. Projects under 30% completion must remove or cancel foreign chip purchases. This aggressive move aims to cut China's reliance on advanced foreign AI chips, including those from Nvidia. It also boosts local companies like Huawei and Moore Threads. While this supports domestic chipmakers, it risks increasing the AI computing power gap between the U.S. and China.

China Requires Homegrown AI Chips in New Data Centers

China is reportedly requiring new state-funded data centers to use only homegrown AI hardware. This is China's latest effort to move away from U.S.-made technology. One project in a northwestern province that planned to use Nvidia chips has already been stopped. The new rule also covers Nvidia's H20 chips, which were previously the most powerful AI chips allowed for sale in China. This move comes amid ongoing tech tensions between the U.S. and China.

China Builds AI Chip Firewall Bans Foreign Tech

China has reportedly banned foreign-made AI chips in all state-funded data centers. This new rule, effective November 5, 2025, requires new projects to use only domestically produced chips, impacting companies like Nvidia, AMD, and Intel. Projects less than 30% complete must remove any foreign chips. This move aims to boost Chinese chipmakers such as Huawei and Cambricon and reduce reliance on U.S. technology. The ban is a direct response to U.S. export controls and marks an escalation in the U.S.-China tech rivalry.

Showroomprivé Cuts Jobs and Boosts AI Investment

French online sales group Showroomprivé plans to cut up to 121 jobs, or 11% of its 1,100 staff, by the second quarter of 2026. This reorganization is due to a tough economy, falling revenue, and increased competition. The company reported a €17 million net loss in fiscal 2024 and a 12.2% revenue drop in the first nine months of the year. Showroomprivé will invest heavily in AI, mobile usability, payment security, and digital marketing. It aims to use AI for process automation and content generation, following other competitors.

Showroomprivé Reduces Staff and Invests in AI

French online sales company Showroomprivé announced plans to cut up to 121 jobs, which is 11% of its 1,100 employees, by the second quarter of 2026. This decision comes after a 12.2% revenue drop in the first nine months of the year and a €17 million net loss in fiscal 2024. The company faces a difficult economy and strong competition. Showroomprivé will invest significantly in AI, mobile usability, payment security, and digital marketing to streamline its operations and use AI-driven content generation.

Federal Reserve Faces AI Economic Challenges

Federal Reserve Chair Jerome Powell compares setting monetary policy without current data to driving in fog. The Fed now faces new challenges from the Artificial Intelligence revolution. They must understand how quickly AI affects productivity, inflation, and jobs. There are also concerns about AI creating a stock market and credit market bubble. Global AI investment is expected to reach $350 billion in 2025. Powell believes it is best to avoid major policy changes now and wait for new economic data.

Nvidia CEO Meets UK Tech Secretary for AI Growth

Nvidia CEO Jensen Huang will meet UK Technology Secretary Liz Kendall on Wednesday to discuss AI investment. Nvidia, a leader in AI chips, sees Britain as a key area for growth and announced a £2 billion UK investment in June. Huang is also in the UK to speak at the Cambridge Union and receive an engineering award. The UK government is promoting AI as an economic driver through new 'AI Growth Zones' in places like Oxfordshire and Northumberland. This meeting aims to strengthen ties and boost private sector investment in data infrastructure.

Pennie Hunt Explores Her New AI Friend

Author Pennie Hunt shares her mixed feelings about Artificial Intelligence. Twenty years ago, she found AI terrifying, and she still worries about its impact on writing and education. However, Hunt has started using AI for practical tasks, like quickly getting information about her sick dog. She also interacts with a male-voiced AI on her phone, whom she calls "Mr. AI." This AI remembers personal details about her life, making their conversations feel surprisingly personal, which sometimes makes her uneasy.

GW Law Hosts Conference on AI Animals and Law

The GW Law Animal Law Program will host a conference on Artificial Intelligence, Animals, and the Law from November 7 to November 9. This three-day event on the GW Law campus will explore how AI technology affects animal law. Experts will discuss AI's potential benefits and harms to animals and the environment. Assistant Dean Kathy Hessler stresses the need for careful thought and proper rules to prevent new problems. Panels will cover topics like AI ethics, regulation, and its impact on animal research.

High AI Spending Challenges Big Tech Antitrust Cases

Soaring investments in Artificial Intelligence by major tech companies are challenging antitrust lawsuits from the DOJ and FTC. Google, Meta, Microsoft, and Amazon plan to spend $370 billion this year on data centers, with some increasing their initial budgets. Meta CEO Mark Zuckerberg even admitted they might be overinvesting. These companies argue that such massive spending in an uncertain future does not show monopoly behavior. The author suggests that current antitrust cases, started years ago, are outdated given the rapid changes in the tech sector.

AI Companies Must Now Earn Serious Money

The AI industry, fueled by huge investments, now faces pressure to show real profits. Michael Lippert of Lightrock stated that AI companies need to start generating serious income. While innovation is fast, many AI startups lack a clear path to making significant money. Developing and deploying AI is very costly, requiring powerful computing and skilled workers. As funding becomes harder to get, AI companies must focus on creating new business models and proving their value to investors and customers.

Daylight Security Gets $33M for AI Cyber Defense

Daylight Security, an Israeli cybersecurity startup, raised $33 million in Series A funding to expand its AI-driven managed detection and response platform. Founded by Hagai Shapira and Eldad Rodich, the platform uses AI agents for continuous monitoring and initial threat fixes. Human analysts then handle more complex decisions. This system aims to reduce false alarms and quickly resolve cyber threats, integrating easily with existing company setups. Craft Ventures Management led the funding round, with other investors also participating.

Bank of America Boosts AI Spending to $4 Billion

Bank of America is increasing its annual spending on new technology, including AI, to $4 billion in 2025. This marks a 44% increase over the last decade. Hari Gopalkrishnan, the chief technology and information officer, leads these investments, focusing on AI tools that can be used across all eight business lines. Their AI virtual assistant, Erica, has handled over three billion client interactions since 2018 and will expand to desktop next year. An internal version, Erica for Employees, is used by over 90% of staff and cut IT calls by half. The bank has 15 generative AI tools commercially live, including "AskGPS" for quick employee answers.

Sources

NOTE:

This news brief was generated using AI technology (including, but not limited to, Google Gemini API, Llama, Grok, and Mistral) from aggregated news articles, with minimal to no human editing/review. It is provided for informational purposes only and may contain inaccuracies or biases. This is not financial, investment, or professional advice. If you have any questions or concerns, please verify all information with the linked original articles in the Sources section below.

China AI Chips State Data Centers Domestic Technology Technology Self-Reliance Nvidia AMD Intel Huawei Cambricon Enflame Moore Threads AI Computing Power US-China Tech Rivalry E-commerce Showroomprivé Job Cuts AI Investment Process Automation Content Generation Digital Marketing Mobile Usability Payment Security Federal Reserve Jerome Powell Monetary Policy Economic Impact of AI Productivity Inflation Jobs Stock Market Bubble Credit Market Bubble UK Jensen Huang AI Growth Zones Data Infrastructure AI in Writing AI in Education AI Assistant AI Ethics GW Law Animal Law AI Regulation AI Impact on Animals Animal Research Big Tech Antitrust DOJ FTC Monopoly AI Industry AI Startups Profitability Business Models Cost of AI Daylight Security Cybersecurity AI-driven Platform Managed Detection and Response Threat Detection AI Agents Bank of America Generative AI Internal AI Tools Financial Services

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