Nvidia's Campaign to Sell AI Chips to China Finally Pays Off Beijing reportedly approved the sale of hundreds of thousands of Nvidia H200 chips to Chinese AI companies--the culmination of a dramatic shift in US tech policy. Jensen Huang sure seems to be having a lot of fun in China this week. The Nvidia CEO has been spotted going for a leisurely bike ride and browsing a fresh fruit stand in Shanghai, as well as enjoying beef hot pot at a humble restaurant in Shenzhen. The carefree tour is not just good optics. Huang has real reason to be feeling upbeat: His long-running lobbying campaign in Washington has, in effect, finally paid off.

Two important things happened on January 20, 2025. In Washington, D.C., Donald Trump was inaugurated as President of the United States. In Hangzhou, China, a little-known Chinese firm called DeepSeek released R1, an AI model that industry watchers called a "Sputnik moment" for the country's AI industry. "Whether we like it or not, we're suddenly engaged in a fast-paced competition to build and define this groundbreaking technology that will determine so much about the future of civilization," said Trump later that year, as he announced his administration's AI action plan, which was titled "Winning the Race." There are many interpretations of what AI companies and their governments are racing towards, says AI policy researcher Lennart Heim: to deploy AI systems in the economy, to build robots, to create human-like artificial general intelligence.

Nvidia unveils'reasoning' AI technology for self-driving cars Nvidia boss Jensen Huang on Monday announced Alpamayo, a tech platform the company says will help self-driving cars think like humans. Alpamayo brings reasoning to autonomous vehicles, allowing them to think through rare scenarios, drive safely in complex environments, and explain their driving decisions, Huang said on stage at the annual CES technology conference in Las Vegas. Huang also said Nvidia has begun producing a driverless car powered by its technology, the Mercedes-Benz CLA, in partnership with the German automaker. The vehicle will be released in the US in the coming months before being rolled out in Europe and Asia. Wearing his trademark black leather jacket, Huang told an audience of hundreds that the project has taught Nvidia an enormous amount about how to help partners build robotic systems. Analysts say the announcement reinforces Nvidia's leadership in integrating AI hardware and software, deepening its push into physical AI.

OpenAI would also rent more data center capacity from Amazon. Amazon is in discussions with OpenAI to invest $10 billion in the company while supplying more of its AI chips and cloud computing services, according to . The deal would push OpenAI's valuation over $500 billion but is likely to raise more questions about the company's circular investment agreements involving chips and data centers. The two companies are also in talks about the possibility of OpenAI helping Amazon with its online marketplace, similar to deals it has made with Etsy, Shopify and Instacart. However, any agreement still wouldn't allow Amazon to market OpenAI's most advanced models on its developer cloud platform, as Microsoft holds the exclusive rights to those until the 2030s.

US President Donald Trump has announced that he will allow AI chip giant Nvidia to sell its advanced H200 chips to approved customers in China. We will protect National Security, create American Jobs, and keep America's lead in AI, Trump said on social media on Monday. The decision will apply to other US chip companies like AMD and comes after extensive lobbying by Nvidia boss Jensen Huang, who visited Washington last week to drum up support. Nvidia - both the world's leading chip firm and most valuable company - has found itself at the centre of a geopolitical tug-of-war between the US and China in recent months, and had been banned from selling its most advanced chips to Beijing. Trump reversed the chip-selling ban in July, but demanded that Nvidia pay 15% of its Chinese revenues to the US government. Beijing then reportedly ordered its tech companies to stop buying Nvidia chips manufactured for use in the Chinese market.

Nvidia has claimed it is a generation ahead of rivals in the artificial intelligence (AI) industry amid growing suggestions a rival may emerge to threaten to its market dominance - and multi-trillion dollar valuation. Shares in the chip giant fell on Tuesday, following a report Meta planned to spend billions on AI chips developed by Google to power its data centres. In a statement on X, Nvidia, the world's most valuable company, said it was the only platform which runs every AI model and does it everywhere computing is done. In response, Google said it was committed to supporting both its own and Nvidia's chips. Nvidia's chips have become a critical part of powering the data centres behind many of the most popular AI tools, such as ChatGPT.

Nvidia has forecast fourth-quarter revenue above Wall Street estimates and is betting on booming demand for its AI chips from cloud providers even as widespread concerns of an artificial intelligence bubble grow stronger. The world's most valuable company expects fourth-quarter sales of $65bn, plus or minus 2 percent, compared with analysts' average estimate of $61.66bn, according to data compiled by LSEG. Anthropic's AI hacking claims divide experts "The AI ecosystem is scaling fast with more new foundation model makers, more AI start-ups across more industries and in more countries. AI is going everywhere, doing everything, all at once," Nvidia CEO Jensen Huang said in a statement. Before the results, doubts had pushed Nvidia shares down nearly 8 percent in November after a 1,200 percent surge in the past three years.

US chip giant Nvidia will supply more than 260,000 of its most advanced artificial intelligence (AI) chips to South Korea's government, as well as Samsung, LG, and Hyundai. The companies will all deploy the AI chips in factories to make everything from semiconductors and robots to autonomous vehicles and meant that South Korea can now produce intelligence as a new export, chief executive Jensen Huang said. Mr Huang did not disclose the value of the South Korean deals. It caps off a busy week for Nvidia, which on Wednesday became the first company to be valued at $5 trillion and on Thursday saw signs of a thaw in US-China trade relations that may mean it can export more of its chips to China . Speaking at a CEO summit on the sidelines of Asia Pacific Economic Cooperation (Apec) in Gyeongju, South Korea, Mr Huang added that with the chips, companies would be able to create digital twins with other factories around the world.

AMD's shares surge on deal to supply AI chips to OpenAI United States chipmaker AMD will supply artificial intelligence chips to OpenAI in a multi-year deal that would bring in tens of billions of dollars in annual revenue and give the ChatGPT creator the option to buy up to roughly 10 percent of the company. Shares of the chipmaker surged more than 34 percent on Monday when the deal was announced, putting them on track for their biggest one-day gain in more than nine years and adding roughly $80bn to the company's market value. "We view this deal as certainly transformative, not just for AMD, but for the dynamics of the industry," AMD executive vice president Forrest Norrod told the Reuters news agency. The agreement closely ties the startup at the centre of the AI boom to AMD, one of the strongest rivals of Nvidia, which recently agreed to make substantial investments in OpenAI. Analysts said it was a significant vote of confidence in AMD's AI chips and software but is unlikely to dent Nvidia's dominance, as the market leader continues to sell every AI chip it can make.

Earlier this year, MIT Technology Review published a comprehensive series on AI and energy, at which time none of the major AI companies would reveal their per-prompt energy usage. Google's new publication, at last, allows for a peek behind the curtain that researchers and analysts have long hoped for. The study focuses on a broad look at energy demand, including not only the power used by the AI chips that run models but also by all the other infrastructure needed to support that hardware. "We wanted to be quite comprehensive in all the things we included," said Jeff Dean, Google's chief scientist, in an exclusive interview with MIT Technology Review about the new report. Another large portion of the energy is used by equipment needed to support AI-specific hardware: The host machine's CPU and memory account for another 25% of the total energy used.