September 18, 2025

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Nvidia Rival SMIC Tests DUV Machine, Scale AI Lands $100M Pentagon Deal

The global landscape of artificial intelligence continues to evolve rapidly, with significant developments in both hardware and software. In China, SMIC is testing its first domestically produced deep-ultraviolet (DUV) lithography machine, a move aimed at achieving self-sufficiency in chip production and countering Western rivals like NVIDIA. This advancement, though potentially over a year away from mass production, has boosted SMIC's stock. Meanwhile, Scale AI has secured a substantial contract with the Pentagon, potentially worth up to $100 million, to provide its AI platform for developing and deploying defense capabilities, even on top-secret networks. The company is also expanding its services beyond data labeling, with a strong focus on government contracts. In the software realm, Amazon has launched a browser extension for its Amazon Q Business assistant to enhance workplace productivity, allowing employees to access AI directly within their browsers. Microsoft has recognized VeriPark with its AI Business Solutions Inner Circle award, highlighting VeriPark's achievements and collaboration in reshaping financial services. DataDasher AI has also introduced a SOC 2-certified platform for financial professionals, designed to save wholesalers significant time through AI-powered task streamlining. Despite the advancements, challenges remain for agentic AI adoption, including trust, infrastructure, and security concerns. Interestingly, the need for human oversight in AI is creating new opportunities, with companies like Fiverr seeing growth in AI management services. On a different note, the rock band Foo Fighters is teasing an upcoming tour with an AI-themed video, and China has issued a warning about the potential risks of AI enabling the creation of devastating weapons.

Key Takeaways

  • China's SMIC is testing its first domestically made DUV lithography machine, aiming for AI chip production independence and to rival Western suppliers.
  • SMIC's stock reached a record high following reports of its new AI chipmaking tool tests.
  • Scale AI has landed a potential $100 million contract with the Pentagon for its AI platform, enabling AI development on secure networks.
  • Scale AI is expanding its business into AI applications and services, with a focus on government contracts.
  • Amazon has released a browser extension for its Amazon Q Business assistant to boost workplace productivity.
  • VeriPark received the Microsoft AI Business Solutions Inner Circle award for its AI achievements and partnership.
  • DataDasher AI launched a SOC 2-certified platform using its Brain Language AI technology to streamline tasks for financial professionals.
  • Despite AI advancements, human oversight remains crucial, benefiting companies like Fiverr in AI management services.
  • Agentic AI faces adoption hurdles related to trust, infrastructure, security, and societal concerns.
  • China has warned of the risks associated with AI enabling the creation of dangerous weapons.

China tests new AI chipmaking tools to rival West

China's top chip producer, SMIC, is testing its first domestically made advanced chipmaking equipment. This effort aims to challenge Western rivals in producing artificial intelligence processors. The new deep-ultraviolet (DUV) lithography machine, made by Shanghai-based Yuliangsheng, could help China overcome US export controls and reduce reliance on foreign technology. If successful, it marks a significant step towards self-sufficiency in chip production, though mass production readiness may take time.

SMIC stock hits record high on AI chip tool rumors

SMIC, China's largest chipmaker, saw its stock price surge over 5% to an all-time high following reports of testing its first domestically produced DUV lithography machine. This development is crucial for China's goal of semiconductor self-sufficiency, aiming to reduce dependence on foreign suppliers like ASML. The company intends to use this new technology to manufacture advanced AI chips, a rapidly growing global market. The stock's performance reflects market optimism about SMIC's technological progress.

China advances AI chip goals with new lithography tool tests

China is reportedly taking a significant step towards semiconductor independence as SMIC tests a new deep-ultraviolet (DUV) lithography machine made by local startup Yuliangsheng. This move supports China's push for domestic AI chips to counter NVIDIA. While the machine uses immersion technology similar to ASML's, some components are still imported, though localization efforts are underway. Early test results are promising, but scaling for mass production may take over a year, with potential for 7nm chips and possibly 5nm at lower yields.

Scale AI lands $100 million Pentagon contract for AI platform

Data labeling company Scale AI has secured a significant contract with the Pentagon, potentially worth up to $100 million. This deal will allow the Department of Defense (DOD) to access Scale AI's platform for developing and deploying artificial intelligence capabilities, even on top-secret networks. The initial project involves a $40.7 million commitment to provide AI-ready data. Scale AI offers end-to-end services, including its data engine and generative AI platform, aiming to move AI from labs to operational use.

Scale AI CEO: Company is growing and expanding into AI services

Interim CEO Jason Droege stated that Scale AI is thriving and expanding beyond its data-labeling roots into AI applications and services, with a strong focus on government contracts. Despite recent challenges, including a major investment from Meta and some layoffs, Droege highlighted the company's growth, fueled by a $100 million Defense Department deal and work with the U.S. Army. Both its data and applications businesses are generating significant revenue, and the company is also developing projects in areas like healthcare.

Fiverr and others profit as AI needs human oversight

Despite fears of AI replacing jobs, companies like Fiverr are benefiting because advanced AI tools still require significant human input. Fiverr's fastest-growing segment involves humans teaching others how to manage AI tools and providing AI management services. Even sophisticated AI relies on human-created content for training and continuous supervision. This need for human expertise in areas like AI management, content quality, and nuanced translation highlights that AI is currently a tool best utilized by skilled individuals.

Trust and infrastructure challenges hinder agentic AI adoption

Agentic AI, which involves AI agents performing complex tasks, faces significant barriers to widespread adoption. Key challenges include building trust in AI's reliability and data handling, the lack of infrastructure for AI agents to interact with third-party systems, and security concerns regarding potential hijacking by cybercriminals. Additionally, societal discomfort with AI decision-making and concerns about job displacement present cultural hurdles. Overcoming these issues requires demonstrating trustworthy and ethical AI performance while preparing society for a new way of working with machines.

Foo Fighters tease upcoming tour with AI-assisted video

The rock band Foo Fighters has released a promotional video that playfully incorporates AI themes, hinting at an upcoming tour. The video features band members discussing the importance of authentic music while referencing common AI glitches like extra fingers. The clip ends with the message "Stay tuned... there's more to come!", suggesting a tour announcement is imminent. The band recently debuted their new drummer, Ilan Rubin, and has existing tour dates in Singapore, Japan, and Mexico.

VeriPark earns Microsoft AI Business Solutions Inner Circle Award

VeriPark has been selected for the 2025-2026 Microsoft AI Business Solutions Inner Circle award, recognizing its outstanding sales achievements and innovation. This honor places VeriPark among Microsoft's top global partners for AI Business Solutions. CEO Ozkan Erener highlighted the award as a testament to their commitment to innovation and collaboration with Microsoft in reshaping financial services. VeriPark, a long-standing Microsoft partner since 2011, is recognized for its expertise in AI, Dynamics 365, and the Microsoft Cloud for financial institutions.

DataDasher AI launches SOC 2 certified platform for financial pros

DataDasher AI has launched a new SOC 2-certified platform designed for investment sponsors and wholesaling teams, using its proprietary Brain Language AI technology. This platform aims to save wholesalers 10 to 15 hours per week by streamlining tasks like meeting preparation, client interaction, and follow-ups. It offers features such as real-time data queries, automated email drafting, meeting transcription, and task detection. The system integrates with major CRM and meeting platforms, ensuring secure data handling and compliance.

China warns of AI weapon risks amid busy holiday travel

China has issued a warning that artificial intelligence could enable individuals to create devastating weapons, including nuclear, biological, and chemical arms. This warning comes as China anticipates a significant surge in travel bookings during the upcoming "golden week" holiday, a key period for consumer spending. The country is also seeing advancements in its reusable rocket technology, with multiple companies aiming for orbital launches by year's end. Additionally, the offshore yuan has strengthened against the US dollar, reflecting shifts in China's monetary policy.

Amazon Q Business browser extension boosts productivity

Amazon has launched a browser extension for its Amazon Q Business generative AI assistant, aimed at enhancing workplace productivity. This tool allows employees to access AI assistance directly within their browsers, integrating seamlessly with existing workflows without manual data transfer. Use cases include analyzing web content for strategic insights and improving content quality by incorporating various data sources. The extension is available to Amazon Q Business subscribers and is already being used by Amazon employees to boost efficiency.

Glens Falls prioritizes security over AI in new camera system

The city of Glens Falls, New York, has installed 69 new security cameras, with 21 more planned, but will not utilize their advanced AI capabilities. Mayor Bill Collins stated that the cameras are intended solely as an investigative tool for the police department, with footage retained for 30 days. While the cameras use Turing Advanced AI software, the city is not exploring features like facial recognition or predictive monitoring. Some cameras will also be used to combat speeding, with potential for issuing tickets after public discussion and policy review.

Sources

AI chips SMIC lithography machine semiconductor self-sufficiency US export controls Scale AI Pentagon contract data labeling AI platform generative AI human oversight AI management agentic AI AI adoption challenges trust in AI AI infrastructure AI security AI weapon risks Amazon Q Business browser extension workplace productivity security cameras AI in law enforcement Microsoft AI Business Solutions VeriPark DataDasher AI financial services AI AI for wholesalers