Nvidia is facing challenges with its AI chips as approximately $1 billion worth of them were smuggled into China, despite tightened U.S. export rules. These chips, including the high-end B200 processors, are available on the black market, but Nvidia has stated that using smuggled chips to build data centers is not efficient, as they only support authorized products. CEO Jensen Huang mentioned plans to resume selling H20 chips to China after working with the Trump administration on regulations, though one expert warns that providing China with advanced AI chips could allow them to surpass the U.S. in critical areas. Meanwhile, SandboxAQ reports that many enterprises are adopting AI without proper security measures, leaving them vulnerable to AI-enhanced cyberattacks. In other AI developments, a MEXC report indicates that 67% of Gen Z crypto traders are using AI-powered trading bots, and Incheon, Korea, will host APEC talks focusing on AI and food security. AI researchers are also warning that advanced AI systems could pose risks due to a lack of oversight, and Audere is using AI in South Africa to combat the HIV crisis with Aimee, an AI companion on WhatsApp. While AI is assisting with investment research, human decisions remain crucial. Interestingly, former President Trump has expressed his dislike for the term 'artificial intelligence'. Lastly, experts emphasize that AI regulation is essential for fostering innovation and addressing concerns about misinformation and privacy, and careful study is needed to identify good health AI investment opportunities.
Key Takeaways
- Nvidia AI chips worth $1 billion were smuggled into China despite U.S. export rules.
- Nvidia states that data centers built with smuggled chips are not efficient.
- Jensen Huang plans to resume selling H20 chips to China after regulatory adjustments.
- An expert warns that selling AI chips to China could help them surpass the U.S. in critical areas.
- SandboxAQ reports that 79% of organizations use AI in production, but only 6% have strong AI security strategies.
- 67% of Gen Z crypto traders use AI-powered trading bots, according to a MEXC report.
- Incheon, Korea, will host APEC talks focusing on AI and food security.
- AI researchers warn that advanced AI systems could pose risks due to a lack of oversight.
- Audere is using Aimee, an AI companion on WhatsApp, to combat the HIV crisis in South Africa.
- Trump said he dislikes the name 'artificial intelligence'.
Nvidia AI chips worth $1B smuggled into China despite US rules
Nvidia's AI chips, worth $1 billion, were smuggled into China after the U.S. tightened export rules. These high-end B200 processors, which are banned in China, are available on the black market. Nvidia stated that using smuggled products to build data centers is not efficient. The U.S. Commerce Department is considering adding more export controls to countries like Thailand. Chinese distributors are selling restricted processors like the H100 and H200 through Southeast Asian countries.
Nvidia says smuggled AI chips in China are a 'losing proposition'
Nvidia responded to a report about $1 billion worth of its AI chips being smuggled into China. The company says that data centers built with smuggled chips are not a good idea because Nvidia only supports authorized products. Nvidia CEO Jensen Huang said they will soon resume selling H20 chips to China after working with the Trump administration on regulations. The U.S. has restricted sales of advanced processors to China due to national security concerns.
Nvidia AI chips worth $1B smuggled into China despite US rules
Nvidia's advanced AI chips, valued at $1 billion, were smuggled into China after the U.S. tightened export controls. The banned B200 processors are widely available on China's black market. Nvidia says using smuggled products for data centers is inefficient because they only support authorized products. The U.S. Commerce Department is considering adding more export controls to countries like Thailand. Nvidia will resume sales to China after the Trump administration reversed restrictions on chips like H20.
Selling AI chips to China is a mistake, expert warns
An expert says allowing China to buy advanced AI chips from Nvidia is a mistake. This decision gives China control of the global computing power supply chain. China relies on these chips for its military and AI companies. Nvidia's H20 chip was designed to bypass U.S. export controls, but it could help China surpass the U.S. in critical areas like military operations and drone warfare.
Gen Z crypto traders rely on AI bots, study shows
A new report from MEXC shows that most Gen Z crypto traders use AI tools to make investment decisions. 67% of Gen Z traders used AI-powered trading bots in the second quarter of 2025. Gen Z uses AI tools more than older age groups, averaging 11.4 days per month. AI helps reduce impulsive selling and promotes disciplined trading. By 2028, MEXC predicts that over 80% of Gen Z traders will depend on AI for portfolio management.
Incheon to host APEC talks on AI and food security
Incheon, Korea will host the Third Senior Officials’ Meeting (SOM3) for APEC, focusing on AI and food security. Thousands of officials will gather to discuss key issues before the APEC Economic Leaders’ Meeting in October. The meetings will cover topics like anti-corruption, digital governance, and women’s economic empowerment. Incheon was chosen because it is home to international organizations and Korea’s busiest airport. The city aims to promote trade, investment, and regional cooperation.
AI may think in ways we can't understand, scientists warn
AI researchers warn that advanced AI systems could pose a risk to humans. They say a lack of oversight could lead to AI misbehavior. Monitoring AI's reasoning process, called chains of thought (CoT), is important for safety. However, AI may not always show its reasoning or may use reasoning humans don't understand. Scientists suggest using other AI models to monitor and improve AI transparency.
AI won't pick your stocks and funds for you yet
AI can help with investment research, but human decisions are still important. People believe AI is already managing mutual funds and analyzing stocks, but that's not quite true. Technology can assist with research, but investment decisions still need human judgment. AI is valuable for tasks you understand, but risky for those you don't.
Trump dislikes the name 'artificial intelligence'
President Trump said he doesn't like the name 'artificial intelligence' because he dislikes anything artificial. He thinks it should be called something else because it's pure genius. Some alternative names for AI include machine learning, neural networks, and thinking computers. Trump's comments are surprising given his past policies on genetically modified crops.
Aimee AI helps South Africa fight HIV crisis
Audere is using AI to help address the HIV crisis in South Africa, where women and young girls are at high risk. They created Self-Care from Anywhere, which uses Aimee, an AI companion on WhatsApp. Aimee provides sexual health information and HIV counseling. Healthcare providers monitor conversations and offer personalized guidance. Aimee takes on different personas to build trust and empower users.
Trump's AI policy misses key point regulation boosts innovation
An expert argues that Trump's approach to AI lacks understanding of how regulation helps innovation. Tech companies are asking for AI regulations to ease adoption and build trust. People are concerned about misinformation, privacy, and ethical issues related to AI. Public intervention is essential for private innovation in AI.
What makes a good health AI investment VC shares thoughts
Jason Smith, a venture fellow at MATTER, discusses what makes a good health AI investment. He says it takes careful study to find the best opportunities and get a return on investment.
Enterprises adopt AI without security, says SandboxAQ
SandboxAQ reports that many companies are using AI without proper security measures. 79% of organizations use AI in production, but only 6% have strong AI security strategies. Security leaders are worried about AI-enhanced cyberattacks and AI finding new vulnerabilities. Most organizations use security tools not designed for AI. SandboxAQ offers AQtive Guard to help organizations improve AI security.
Sources
- Nvidia AI chips worth $1 billion entered China despite US curbs, FT reports
- Nvidia addresses AI chip smuggling, says bootleg datacenters are a 'losing proposition'
- Nvidia AI chips worth $1 billion entered China despite US curbs, FT reports
- Opinion | America Will Come to Regret Selling A.I. Chips to China
- AI Bots Now Power 67% of Gen Z Crypto Trades, Study Shows
- AI, food security on the agenda as Incheon gears up for APEC SOM3 talks
- AI could soon think in ways we don't even understand — evading our efforts to keep it aligned — top AI scientists warn
- AI won't pick your stocks and funds for you
- 'We should change the name' Trump says of artificial intelligence: 'I actually mean that, I don't like anything that's artificial'
- Meet Aimee, The Artificial Intelligence Ally Taking On South Africa’s HIV Crisis
- What Trump Doesn’t Get About AI Innovation
- What makes for a good health AI investment? One VC has some thoughts
- SandboxAQ: Are Enterprises Racing Into AI Without Security?