Samsung expects second-quarter profits to more than halve as it struggles to capture AI demand
The memory chip and smartphone maker said in its guidance that operating profit for the quarter ending June was projected to be around 4.6 trillion won for the April-June period, down from 10.44 trillion Korean won year over year.
The figure is a deeper plunge compared to smart estimates from LSEG, which are weighted toward forecasts from analysts who are more consistently accurate.
According to the smart estimates, Samsung was expected to post an operating profit of 6.26 trillion won ($4.57 billion) for the quarter. Meanwhile, Samsung projected its revenue to hit 74 trillion won, falling short of LSEG smart estimates of 75.55 trillion won.
Samsung is a leading player in the global smartphone market and is also one of the world's largest makers of memory chips, which are utilized in devices such as laptops and servers.
However, the company has been falling behind competitors like SK Hynix and Micron in high-bandwidth memory chips — an advanced type of memory that is being deployed in AI chips.
"The disappointing earnings are due to ongoing operating losses in the foundry business, while the upside in high-margin HBM business remains muted this quarter," MS Hwang, Research Director at Counterpoint Research, said about the earnings guidance.
SK Hynix, the leader in HBM, has secured a position as Nvidia's key supplier. While Samsung has reportedly been working to get the latest version of its HBM chips certified by Nvidia, a report from a local outlet suggests these plans have been pushed back to at least September.
The company did not respond to a request for comment on the status of its deals with Nvidia.
Ray Wang, Research Director of Semiconductors, Supply Chain and Emerging Technology at Futurum Group told CNBC that it is clear that Samsung has yet to pass Nvidia's qualification for its most advanced HBM.
"Given that Nvidia accounts for roughly 70% of global HBM demand, the delay meaningfully caps near-term upside," Wang said. He noted that while Samsung has secured some HBM supply for AI processors from AMD, this win is unlikely to contribute to second-quarter results due to the timing of production ramps.
Meanwhile, Samsung's chip foundry business continues to face weak orders and serious competition from Taiwan Semiconductor Manufacturing Company, Wang added.
Reuters reported in September that Samsung had instructed its subsidiaries worldwide to cut 30% of staff in some divisions, citing sources familiar with the matter.
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Tom's Guide
34 minutes ago
- Tom's Guide
My favorite Prime Day deals that are at least 50% off — save big on Samsung, iRobot, Ring and more
It's no secret that Prime Day is one of the best times of the year to save big — and so far, this year's savings event is no exception. We're already seeing discounts of 50% off and more on everything from smart home devices and TVs to vacuums and kitchen appliances. For instance, you can get a Ring Battery Doorbell with Ring Indoor Cam 2nd Gen for $69 (was $139). If you're in the market for a new TV, we have an amazing deal for you. The Samsung 55" Frame TV is sporting a 52% discount bringing it down to $797. Plus, the new iRobot Roomba Plus 405 is now $400 off for Prime Day. To help you get the absolute best bang for your buck, I've decided to roundup the best deals that are at least half off for Prime Day. Keep scrolling to check them out. Add a smart bulb to your home for just $9 thanks to this deal. If you own other smart devices, you can connect this bulb via Alexa or Google Home. If not, you can control the bulb fully via the Kasa Smart app. You can set timers, routines, and adjust brightness levels — perfect for movie nights. Bring Alexa into your car with the Amazon Echo Auto. In our Amazon Echo Auto review, we called it a much more refined version of its predecessor. We also liked the new design, improved microphones, and roadside assistance. Keep your hands safe from the heat while cooking and handling hot pans and dishes with these oven mitts. They are heat resistant up to 500 degrees, waterproof and slip-resistant. Thanks to their silicone material, they can be easily cleaned and rinsed off with water. If you're willing to live without active noise-cancellation, these Soundcore by Anker P20i buds are fantastic value for money. Offering 10mm drivers for impressive "big" bass, along with Bluetooth 5.3, 30-hour battery life, water-resistance, 22 preset EQs and in-app customisation, which is great for this price. The Blink Mini 2 is Blink's new indoor and outdoor security camera. It's weatherproof and comes with several useful features like color night vision, person detection and an easy-to-use companion app. We noted in our Blink Mini 2 review that it didn't have the best sound quality, but if you want a cheap security camera with Alexa integration, you can't go wrong here. This 2-in-1 styling tool combines a hair dryer and round brush, featuring three heat settings, ceramic coating for heat protection, and ionic technology for frizz control. The oval design with mixed bristles detangles while styling, creating volume at roots and smooth ends in one pass. I've never had a home blow-out look this good. The Blink Outdoor is a fully wireless home security camera that records video in 1080p, lets you store video locally (or in the cloud) and has a two-year battery life. The Editor's Choice camera holds a spot in our list of the best home security cameras. Nothing adds outdoor ambiance like a killer playlist and the very best solar lights. This outdoor-rated pack is built with shatterproof plastic bulbs that are currently 54% off at Amazon. Plug them in when the sun sets and enjoy 27 feet-worth and up to six full hours of a soft, white glow. Perfect to use on its own or pair with the duvet cover mentioned above, this 100% polyester-filled comforter offers the perfect amount of warmth and comfort for all seasons. It features eight tabs on each corner and side so you can easily match it with a duvet cover and ensure it stays in place. The new Fire TV Stick 4K (2023) sports an upgraded 1.7GHz quad-core processor that's 30% more powerful than the previous model. It also offers Wi-Fi 6 support and a Live TV guide button. Other features include Dolby Vision/HDR10/HDR10+/HLG support on the video front and Dolby Digital Plus/Dolby Atmos support on the audio side. In our Amazon Fire TV Stick 4K (2nd gen) review we called it a good streaming option, especially when on sale. Knock a nice 50% off this Pan-Tilt camera, designed specifically for pet owners. With a 169° tilt and 360° pan angles, you can monitor every nook and cranny of your home when you're away. The Instant Pot Duo Plus has 9 cooking settings, including pressure cook and sous vide. I made everything from one-pot pastas, to soups, to cake when I was testing this multi-cooker. It's one of the easiest Instant Pots to use, and best for beginners. If you've got a controller for your Xbox Series X|S and want to spruce up your setup with an aesthetic yet powerful charging dock, this deal from Razer is too good to pass up. It's capable of fully charging your controller in under 3 hours, and the dock is compatible with all old-school and new-gen Xbox controllers. With active noise canceling on board, for this incredibly low price, you're not going to find much better than the Echo Buds. They're small, comfortable, and sound pretty good to boot — and there's also a massive discount applied right now to pull you in. This bundle gets you a Blink Outdoor 4 Camera and a Blink Floodlight Mount for just $59. The wireless setup runs entirely on battery so it can be placed on virtually any surface without existing floodlight wiring. It's perfect for use in dark areas like on a shed or the side of your home. Did you know Instant Pot makes more than just pressure cookers? This 4-quart air fryer can broil, roast, dehydrate, bake, reheat, and of course, air fry food — all in one convenient machine. It features a large, intuitive touch display, and you can instantly access over 100 recipes via the Instant Pot app to help you get started. The Fire HD 8 Kids Pro is also heavily discounted to $69 for slightly older kids who want a bit more from their tablet. With an all-time low price, this deal is not to be missed for the tablet with a larger screen and more power than the Fire 7. The Ring Battery Doorbell can be easily installed to watch your front door, while the Indoor Cam can be set up in less than ten minutes to view the interior of your home and give you a 1080p HD view complete with motion detection and a privacy cover. Though the Indoor Cam does require a power outlet, it also provides two way audio and noise cancellation and has a wide field of view. The Fire HD 10 offers a good-looking 10-inch screen that's perfect for watching movies and videos thanks to its 1080p display. We called the tablet a "white-hot deal" in our Fire HD 10 review at the $139 price. At $69, it's a deal not to be missed. This smart range comes with four cleaning modes and three intensities, including clean, white+, gum health and DeepClean+ Care. In addition, it's Bluetooth enabled via the Sonicare app to provide real-time, progress reports on your brushing regime. What's more, BrushSync Technology lets you know when it's time to replace your brush head — which is always handy. With 50% off, this is a deal worth snapping up. The Beats Solo 4 might not feature noise canceling, but they make up for it by sounding pretty good. They're comfortable as well thanks to Beats new foam, and they fold up super small so that they can fit into any bag. There's also loads of battery life — 50 hours, to be exact. We've never seen them cheaper than this so grab them while you can. The Keurig K-Elite Single-Serve K-Cup Pod Coffee Maker is one of Keurig's most popular machines. In our K-Elite review, it scored 4.5 stars and used to sit at the top of our buying guide due to its speedy brew times and handy brew-ahead setting, which allows you to schedule the machine ahead of time. At under $99, it's an outstanding saving at 47% off. Amazon's digital assistant is invading new territory: Your face. These smart glasses make your life easier by letting you complete tasks hands-free. You can ask for the latest news, weather, or have them play music via their built-in speakers. They also work with Siri and Google Assistant. In our Amazon Echo Frames 3rd gen review, we said they're Amazon's best glasses to date injecting some much-needed style into the smart glasses category, while improving audio quality and boosting battery life. If you have pets and after incredible power, this is a great deal. Recommended for all floor types, it also has a low profile design to reach under low spaces. It comes with an XL dust cup to handle all your debris and handy LED headlights to make cleaning easier. It also promises 40-minute battery life. And with its 23% discount, this is a great price. The Beats Studio Pro are specifically designed to bring back that thumping bass Beats is known for. They offer improved active noise cancelation and boosted battery life (up to 40 hours with ANC turned off). There's also Spatial Audio support and Beats' signature strong brand look. However, our Beats Studio Pro review found the clamping force high, which may affect comfort levels for some wearers. Having a reliable set of luggage is a must on your next trip. And whether you're checking a bag, bringing a carry-on or both, this set of expandable luggage will get the job done. It includes a spinner and carry-on and will be your trusty travel sidekicks. The luggage is extremely light, has a durable shell and the double spinner wheels allow you to roll the suitcase easily. With a 50% discount, this makes this Shark robot vacuum a steal. With impressive suction power, this can easily pick up dirt, debris and pet hair on all floor types. It also has tons of features like Matrix Clean, precision mapping, AI voice control and a 60-day self-emptying capacity. A Roomba for 50% off? Sign me up! Not only is the iRobot Roomba Plus 405 a vacuum, it also happens to be a mop. It devours messes from crumbs to pawprints with 70x more suction than previous Roomba models. It also has an auto washing dock and 75 days of auto emptying. Samsung's The Frame comes highly regarded as both a valiant display and chic art piece. It uses a 60Hz refresh rate on a anti-reflective matte display for the quality picture performance that could pass for art museum décor. Samsung's art gallery is packed with a wide range of paintings and assorted art for you to enjoy, and it's made all the better under $1,000 this Prime Day.
Bloomberg
34 minutes ago
- Bloomberg
China Wants 115,000 Nvidia Chips to Power Data Centers in the Desert
By Andy Lin Mackenzie Hawkins Colum Murphy James Mayger Graphics by Jin Wu Adrian Leung July 8, 2025 Yiwu Advanced Computing Cluster There's a construction boom under way on the edge of the Gobi desert in Xinjiang, where cranes are at work in fields of rock and the sound of jackhammers fills the air. Here in the modest county of Yiwu, China is building out its ambitions to lead the world in artificial intelligence. The futuristic structures are data centers that the operators seek to equip with high-end American semiconductors — chips that the US government doesn't want its geopolitical rival to obtain. A Bloomberg News analysis of investment approvals, tender documents and company filings shows that Chinese firms aim to install more than 115,000 Nvidia Corp. AI chips in some three dozen data centers across the country's western deserts. Operators in Xinjiang intend to house the lion's share of those processors in a single compound — which, if they can pull it off, could be used to train foundational large-language models like those of Chinese AI startup DeepSeek. The complex as envisioned would still be dwarfed by the scale of AI infrastructure in the US, but it would significantly boost China's computing prowess as President Xi Jinping pushes for technological breakthroughs. Such a project also would raise serious concerns for officials in Washington, who restricted leading-edge Nvidia chip sales to China in 2022 over worries that advanced AI could give Beijing a military edge. Yet the Chinese documents contain no explanation of how companies plan to acquire the chips, which cannot be legally purchased without licenses from the US government, permits that haven't been given. The companies listed in the filings, state officials and central government representatives in Beijing declined to comment when asked to explain. To gauge whether Chinese entities could realistically procure that quantity of restricted processors, Bloomberg News spoke with more than a dozen people who've been involved in or privy to US government investigations into the matter, as well as several people with direct knowledge of the black market in China. None of those familiar with the US probes said they previously knew of the data center buildout in Xinjiang. All said that while they believe there are indeed banned chips in China, they're not aware of an illicit trade network sophisticated enough to procure more than 100,000 such processors and direct that hardware to a centralized location. But the US government doesn't appear to have reached a consensus on the number of restricted Nvidia chips currently in the Asian country. Most of the people interviewed for this story said they were unaware of an agreed-upon estimate, while some offered rough numbers that differed by tens of thousands of processors. Two senior Biden administration officials said they believe there are around 25,000 banned Nvidia chips in China — a number that, one of them added, would not be terribly concerning. That volume of semiconductors, assuming they are integrated into servers and designated for the same facility, could power at most one mid-sized data center. The US Commerce Department — whose Bureau of Industry and Security, known as BIS, is tasked with implementing and enforcing chip trade restrictions — did not answer detailed questions for this story, including how many banned Nvidia chips the Trump administration believes are in China, nor whether Trump officials were previously aware of the projects in Xinjiang. 'Posting a web page asking about restricted products is not the same as successfully licensing, building, and operating a datacenter,' Nvidia said in an emailed response to questions about the Chinese companies' claims. 'Datacenters are massive and complex systems, making smuggling extremely difficult, and we do not provide any support or repairs for restricted products.' The California-based company also said that 'trying to cobble together a datacenter from smuggled, previous-generation products makes no business or engineering sense,' especially since chips and servers made by Huawei Technologies Co. are widely available in China. Jensen Huang, Nvidia's chief executive officer, made his position clear at a May conference in Taipei: 'There's no evidence of any AI chip diversion,' he said. Yet the head of BIS pointedly contradicted that assertion just weeks later, telling US lawmakers that there is clearly a problem with AI chip smuggling. 'It's happening,' said Commerce Under Secretary Jeffrey Kessler. 'It's a fact.' Although Kessler didn't mention Nvidia by name, the company is by far the dominant provider of such semiconductors. Kessler also said that US efforts to restrict Huawei's chipmaking capabilities will keep China's output at just 200,000 AI processors this year — a number far short of domestic demand. To be sure, Bloomberg News has not found evidence that China has amassed, or can amass, 115,000 banned Nvidia chips — nor evidence that smaller volumes of restricted semiconductors that US officials believe are in the country have been directed to centralized locations. And yet in Yiwu, the construction goes on. Looming out of the desert, a tower the height of the Golden Gate Bridge radiates an intense light that pierces the surrounding dust clouds. Arrays of reflectors focus the sun's energy onto a receiver that allows the daytime heat of the arid plains to be stored, ensuring continuous power generation. It's one main reason for the choice of Yiwu, just to the south over a mountain pass. On the barren hill behind one new building stands a wall with a slogan picked out in red Chinese letters two meters high: 'Data-electricity fusion shows great promise.' Xinjiang, and especially the Hami region which includes Yiwu County, is rich in wind and solar energy, as well as abundant in coal, offering a ready source of affordable power. Local governments there are at the forefront of a state strategy to take advantage of those energy resources — along with cheap land and cool weather at altitude, helping counter the heat generated by racks of servers — to meet the AI computing-power demand of more economically developed regions such as Shanghai and Shenzhen. Xinjiang, China's Major Hub for Renewable Energy Rich in wind and solar energy resources, Hami in eastern Xinjiang has become one of China's largest renewable power bases On a midweek day in March, workers loaded windmill blades onto the back of trucks traveling the road between the prefectural capital of Hami City and Yiwu, over bleak terrain past occasional camels grazing, and through a new tunnel leading out to a plain with views of snow-capped mountains. The main road into town leads past the first data center, still under construction, with a man welding from his perch on metal scaffolding. Hami is best known for its sweet melons, and Yiwu claims to be the site of the last battle on the mainland of the Chinese civil war in 1949. There's a monument downtown dedicated to a horse that played a role in the final engagement between Communist forces and nationalists loyal to Chiang Kai-shek. The authorities in Xinjiang are particularly suspicious of foreigners due to Western allegations of human-rights abuses against ethnic Uyghurs. Interview requests sent to eight data center operators in Yiwu were ignored, rejected or agreed to and then cancelled at short notice. The Xinjiang government and Ministry of Industry and Information Technology (MIIT), the central government ministry overseeing data center development, didn't reply to Bloomberg requests for comment. The most important part of a giant data center is relatively small. Nvidia dominates the market for so-called AI accelerators, highly coveted components that have propelled the chipmaker's valuation to nearly $4 trillion. The processors are connected together in giant arrays numbering tens of thousands and used to sift through mountains of data to create new computer code that can in many ways approximate human intelligence. The US barred China from importing Nvidia's best chips in October 2022, a month before OpenAI's ChatGPT debut roiled the tech industry and sparked a global race that now includes DeepSeek among its top players. Washington several times has ratcheted up those curbs, restricting sales to China of a variety of advanced semiconductors and the machines used to make them — with additional sanctions levied on specific Chinese tech companies. That sweeping effort, which dates back to Trump's first term, has become a primary source of tension with Beijing — one that Chinese officials repeatedly raised in recent trade talks with the US after the Trump administration imposed punitive tariffs. 'All the greatest chips in the world are American, right? So of course they want them,' Commerce Secretary Howard Lutnick told CNBC last month, speaking about China's position during negotiations in London. 'And of course we said 'absolutely not.'' The Xinjiang effort suggests that China's AI ambitions — which hinge in large part on locally produced chips from the likes of Huawei — still include some hope of accessing restricted Nvidia hardware too. Project approval documents show that in the fourth quarter of 2024, local governments in Xinjiang and in neighboring Qinghai province green-lit a total of 39 data centers that intend to use more than 115,000 Nvidia processors. All of the companies stated in their investment plans that they aim to obtain H100 or H200 chips, two Nvidia GPUs, or graphics processing units, that were the industrial standard for training large language models such as OpenAI's GPT4o and Google's Gemini through last year. Nvidia this year debuted a new, more advanced model — dubbed the Grace Blackwell — that is banned along with the H100 and H200 from export to China without a US government license. Seven Xinjiang projects that aim to use those processors had started construction or won open tenders for AI computing service as of June 2025, according to tender documents obtained by Bloomberg. One operator says it's already using advanced hardware facilities to support cloud access to DeepSeek's R1 model, according to local news reports. Still, the provincial projects' description of their intended computing capabilities may be somewhat aspirational: Local party officials try to signal to Beijing that they are working toward national priorities, but Chinese companies frequently launch initiatives that are never completed. One of the largest projects involves a company ultimately controlled by Nyocor Co., a Tianjin-based energy firm mainly engaged in solar and wind power. It proposes to build a data center powered by 625 H100 servers, one of the banned Nvidia models. It would start with 250 servers in the first phase. That's 2,000 H100 chips. Tender documents show the Nyocor project has started installing servers and other equipment at the data center building, and has asked China Bester Group, a Hubei-based IT company, to supply the hardware. Unlike the investment approval documents, which explicitly state the company wants to use H100s, the tenders don't specify whether the installed servers run on Nvidia chips or some alternative. The amount of the investment was not disclosed. Nyocor is selling its computing power to Infinigence AI, one of the largest AI infrastructure companies in China. The company has raised one billion yuan since creation. "Our goal is to turn computing service into facilities like water and gas, readily available when developers turn on the switch," said Infinigence's CEO in an interview with local media in September 2024. Bloomberg estimates that in order to complete all of the 39 projects as outlined, companies would need to figure out a way to purchase more than 14,000 data servers or 115,000 Nvidia H100 or H200 chips, both banned for China-based entities. Bloomberg estimates these chips would be worth billions of dollars based on black market prices in China. Nyocor declined to comment. China Bester and China Energy Investment didn't reply to requests for comment. Infinigence AI couldn't be reached for a response. Around 70% of computing power planned by the identified projects is in a single compound set up by the local government in Xinjiang. That makes the region — the epicenter of Western charges of Chinese rights abuses including forced labor and religious persecution — pivotal to China's efforts to seize the lead from the US in a sphere seen as key to future global technological, and geopolitical, dominance. Even if successful, the Xinjiang complex would only involve the number of Nvidia chips that one major hyperscaler — a term for massive data center operators like Microsoft Corp. and Amazon Web Services — deploys in a single week, according to data Nvidia provided on a recent earnings call. Still, Chinese companies like DeepSeek are beginning to show they can do more with less. 'The gap between leading US and Chinese AI labs is closing,' said Kevin Xu, a tech investor and founder of US-based Interconnected Capital, who put it at around three months. Players like DeepSeek, which says it trained its R1 model using less-advanced Nvidia chips, are 'very serious and sincere' about pursuing artificial general intelligence, Xu said. The fact that leading Chinese models are open source means they spread faster globally, he added, while noting that diffusion is hard to track: 'Beijing sees this trend as a source of technological soft power worth embracing.' DeepSeek and other Chinese AI startups have already expressed interest in collaborating with the data center projects in Xinjiang, according to an employee of one of the largest investors in the Yiwu sites. That employee, whose name has been withheld to protect their identity, said in a message exchange that their company will invest more than 5 billion yuan ($700 million) in data center projects there in 2025 and 2026. China's data center industry is expected to surpass 300 billion yuan in scale this year, according to the Securities Times. Chinese entities are collectively expected to invest nearly that amount on an annual basis by 2028, according to the China Communications Industry Association — a more than threefold increase from a half-decade prior. Xinjiang has already brought its first 'intelligent computing center' online, and constructed 24,000 petaflops of computing power for demand from the logistics hub of Chongqing, Chairman of the People's Government of Xinjiang Erkin Tuniyaz said in an annual government work report in January, without specifying the type of chips installed. The cited computing power is equivalent to roughly 12,000 server-integrated Nvidia H100s. Prospective investors in such projects are attracted with the promise of free electricity worth up to 20% of total power costs. Data center operators also can access government support ranging from one-off payments for construction to operation incentives for up to five years, depending on company size, according to local government documents reviewed by Bloomberg. Experts in 'green computing' areas are also eligible for favorable terms on accommodation, children's education and research funding. From a standing start, 'Xinjiang's intelligent computing has achieved a historic breakthrough,' Tuniyaz said in January. China's Planned Computing Power Corridors China's East Data West Computing initiative brings together AI data centers and computing power demands Policymakers in Washington for years have been aware that limiting China's access to US technology is not as simple as writing a regulation. Not two months after the chip restrictions took effect, Chinese officials caught a woman hiding forbidden hardware in a baby bump. The American AI company Anthropic recently said smugglers have packed GPUs next to live lobsters. Nvidia has dismissed both examples as 'tall tales' that ignore the complexity of building data centers, which require operational support to run properly — support that Nvidia does not provide for restricted products in China. Still, conversations with people privy to illicit semiconductor transactions, as well as media reports from a range of outlets, indicate that smuggling networks have gotten more sophisticated over time. Those stories — which have helped inform US investigations, people familiar with the matter said — have cited examples ranging from dozens of illicit processors to more than a thousand. Potential smuggling in Malaysia has become a big concern for the Trump administration, which plans to restrict Nvidia sales there to halt possible diversion to China, and also has asked Malaysian authorities to crack down on the issue — a request the government has said it'll heed. Officials in Singapore, meanwhile, are prosecuting three men for alleged fraud in exports to Malaysia of AI servers that likely contained advanced Nvidia processors — bound for an unknown final destination. In response to queries about Washington's export control plans, Malaysia's Ministry of Investment, Trade & Industry said the country will 'act firmly against any company or individual should there be strong evidence' of misuse or diversion of advanced tech. The ministry added that Malaysia welcomes a dialogue with the US and other nations to 'clarify any misunderstandings and to strengthen mutual trust.' Trump officials are separately investigating whether DeepSeek may have accessed restricted chips through intermediaries in Singapore, and a bipartisan congressional committee focused on China recently requested Nvidia's customer data for 11 Asian countries, related to concerns that DeepSeek may have circumvented US export controls. (None of the documents viewed or interviews conducted through the course of this investigation indicated any link between the Xinjiang projects and supply chains in Singapore or Malaysia. Nvidia is not accused of any wrongdoing in Singapore's probe or in the US investigation into DeepSeek.) Read More: Lutnick Urges Tougher Enforcement of Export Curbs on China Nvidia consistently has said it abides by all US rules, but Huang has made no secret that he doesn't like Washington's strategy. Years of curbs — including on crucial semiconductor manufacturing equipment — have 'failed' to contain Huawei's rise, he said at the May conference in Taipei. Nvidia now sees Huawei as a formidable competitor, and the company worries its Chinese rival will continue to improve and gain market share — unless the US government allows Nvidia to compete on Huawei's home turf. Washington isn't buying it. The Trump administration has already further limited the types of chips Nvidia can sell in China, at a $5.5 billion hit to the company. White House AI Advisor Sriram Krishnan, asked about Huang's urge to lift those curbs, said that 'there is still bipartisan and broad concern about what can happen to these GPUs once they're physically inside' the Asian country. Meanwhile, Chinese companies continue to build their data centers, a sign they expect to receive AI chips from somewhere. Two such construction projects were approved by the Qinghai government in December 2024, with a total investment of 13.5 billion yuan, documents from Qinghai's investment review website show. The companies applying for construction permits for both projects were founded that same month. China's company registry services show both entities can be traced by shareholding data to the same group of controlling companies: one real estate firm in Qinghai named Qinghai Borong Group and one AI tech company in Sichuan called Chengdu Qingshu Technology. They didn't respond to requests for comment. Neither is on Nvidia's official resellers list. Related tickers: NVDA:US (NVIDIA Corp) 40978Z:CH (Huawei Technologies Co Ltd) 600821:CH (NYOCOR Co Ltd) 603220:CH (China Bester Group Telecom Co Ltd) Additional reporting by Ian KingYuan GaoEdwin ChanJenny Leonard Edited by Alan CrawfordJane PongPeter Elstrom Photos edited by Yuki Tanaka Methodology Bloomberg News obtained the investment plan documents from Xinjiang and Qinghai's government websites exhibiting investment approvals, the description of which specify the investing company's name, date of approval and how many H100/200 servers are to be installed or the planned total computing power. Bloomberg cross-checked the company details in the documents with China's company registry information to identify their ultimate parents, and looked them up in the tender databases in China for announced procurement and tender information. Bloomberg reporters also found details of Yiwu's AI development project when conducting reporting in the town, with billboards showcasing the industrial park's master plan. Terms of Service Do Not Sell or Share My Personal Information Trademarks Privacy Policy Careers Made in NYC Advertise Ad Choices Help ©2025 Bloomberg L.P. All Rights Reserved.
Yahoo
an hour ago
- Yahoo
From AI to Trump 2.0, Here's What's Looming Over Sun Valley
The place to be this week for the tech and media elite is not the Amalfi Coast, the Hamptons, or Jeff Bezos' wedding (that was so last week). As is the case each year following the 4th of July weekend, Sun Valley, Idaho, is about to be inundated with private jets that are flying in a who's who of billionaires and industry bigwigs to attend investment firm Allen & Company's annual conference. Everyone from Walt Disney CEO Bob Iger to, yes, Bezos himself, will be at the so-called 'summer camp for billionaires' when it kicks off on Wednesday. More from TheWrap From AI to Trump 2.0, Here's What's Looming Over Sun Valley Joe Rogan Says OpenAI's Sam Altman Comes Across Like He's Running for President | Video Senate Eliminates AI Regulation Ban From 'Big, Beautiful Bill' Controversial AI Provision in Trump's 'Big Beautiful Bill' Reduces State Regulation Ban to 5 Years Sun Valley has historically played host to the media and tech industry's wheelings and dealings, famously serving as the launchpad of deals such as Disney's 1995 acquisition of ABC and Comcast's $30 billion takeover of NBCUniversal in 2011. The conference comes right after Paramount's $16 million settlement with President Donald Trump, widely seen as a way to push through its pending merger with Skydance Media. This year's conference comes at a particularly unique time, from the rise of artificial intelligence threatening to disrupt everything to companies figuring out how to navigate an environment made unpredictable by Trump. That's in addition to the typical merger talks that arise out of Sun Valley. Here's what to expect and what to watch at the conference this week. AI, like it has everywhere else, will likely take center stage in Sun Valley. Each of the industries represented at the conference, from media to entertainment to tech, are currently grappling with how to implement the technology and to what extent. Executives have already been less gun-shy about talking about AI's effects on jobs. Amazon CEO Andy Jassy told CNBC last week that AI will lead to more automation and 'fewer jobs' for humans in the near future, and Zuckerberg has said AI will erase a number of engineering jobs. Hollywood is also coming to grips with how to use AI. Brian Grazer and his Imagine co-founder Ron Howard said last month they were both 'excited' by the technology and use it for a number of projects, including post-production work and for helping brainstorm ideas. But they also said they cannot see it replacing professional writers anytime soon. That prediction may be tested in the near future after AI companies scored a critical legal victory in June, allowing them to use copyrighted work to train AI models. How the entertainment world — as well as media outlets, which are looking at how to implement AI in the newsroom — can coexist with the major AI companies will likely be on the agenda. Even OpenAI COO Brian Armstrong has said a 'level of trust' has yet to be established between Hollywood and the AI world so far; perhaps this week will lay the foundation — or it risks driving the two sides further apart. Speaking of AI, the two attendees most likely to be at odds would be Meta CEO Mark Zuckerberg and OpenAI CEO Sam Altman (both are invited). Meta has emerged as OpenAI's top rival of late — leapfrogging Elon Musk, who has been Altman's most prominent critic in recent years — as the two companies battle for position in the budding AI field. Over the last several months, Zuckerberg poached four top OpenAI researchers and spent big bucks to make it happen, offering up to $100 million in first-year pay for employees to switch sides. Altman has made it clear he is not thrilled with the development, at least to those inside the ChatGPT parent company. He downplayed Meta's hirings, saying the company 'didn't get [OpenAI's] top people and had to go quite far down their list,' in an internal memo obtained by Wired; Altman added he found Meta's poaching was 'somewhat distasteful.' Having the two occupy the same halls of the Sun Valley conference could lead to some awkward tension. Attending tech and media executives will also likely be trading their opinions on the best way to lead their companies in today's volatile political environment. Paramount and ABC's recent settlements with Trump will be fresh on everyone's mind, as well as the stock market, which has rebounded from its steep decline in April, following the president's 'Liberation Day' tariff plan announcement, to hit new all-time highs. (The pause on those tariffs is set to lift on Wednesday.) What is the best approach to take? Cutting deals with the 'Art of the Deal' author has been one approach for some attendees, at least so far. OpenAI has partnered with the White House on its $500 million 'Stargate' AI infrastructure plan — a plan the president has said will help the U.S. 'dominate' rivals like China when it comes to AI. And Apple, led by CEO Tim Cook, earned kudos from the president after the company pledged $500 billion towards U.S. investment over the next few years. Zuckerberg and Bezos, meanwhile, have both warmed up to President Trump following his victory last November. Not coincidentally, both of their companies are trading at all-time highs on Wall Street. Sun Valley attendees appear to have reached a consensus that they will get more with sugar than they do with salt when dealing with the second Trump Administration. Going in the other direction and being critical has not worked out for one prominent ex-attendee recently; Elon Musk's criticism of the Trump-backed 'Big Beautiful Bill' has led to several major stock drops for Tesla. Sun Valley execs may believe keeping their mouths shut for a few years is the best move in order to keep their businesses running smoothly. The following people have been invited by Allen & Company to this week's conference: Tech Alphabet CEO Sundar Pichai Amazon CEO Andy Jassy Amazon founder Jeff Bezos Apple CEO Tim Cook Apple senior vice president Eddy Cue Former Activision Blizzard CEO Bobby Kotick Meta CEO Mark Zuckerberg Microsoft CEO Satya Nadella Microsoft co-founder Bill Gates OpenAI CEO Sam Altman Snap Inc. CEO Evan Spiegel Spotify CEO Daniel Ek YouTube CEO Neal Mohan Media and Entertainment Blumhouse CEO Jason Blum Creative Artists Agency CEO Bryan Lourd Disney CEO Bob Iger Disney co-chairman Dana Walden DreamWorks co-founder Jeffrey Katzenberg ESPN chairman Jimmy Pitaro Fox Corp. CEO Lachlan Murdoch Fox Corp. chairman Rupert Murdoch Former Disney CEO and CAA co-founder Michael Ovitz IAC chairman Barry Diller Imagine Entertainment co-founder and producer Brian Grazer Liberty Media CEO John Malone Live Nation CEO Michael Rapino Motion Picture Association CEO Charles Rivkin Netflix co-CEO Greg Peters Netflix co-CEO Ted Sarandos Netflix co-founder Reed Hastings Sony Pictures CEO Ravi Ahuja Warner Bros. Discovery CEO David Zaslav Wasserman Media Group CEO Casey Wasserman Press ABC News former anchor Diane Sawyer CBS News reporter Gayle King CNBC reporter Becky Quick CNBC and The New York Times reporter Andrew Ross Sorkin CNN anchor Anderson Cooper CNN anchor Erin Burnett Fox News anchor Bret Baier The Free Press founder Bari Weiss The New Yorker writer Evan Osnos The Washington Post columnist David Ignatius Politics Democratic Gov. Wes Moore of Maryland Democratic Sen. Chuck Schumer U.S. Secretary of Commerce Gina Raimondo Republican Gov. Glenn Youngkin of Virginia A few big names are notably absent from the 2025 roll call, including Tesla and X CEO Musk, who last attended in 2022. Another former attendee who will not be in Sun Valley this year is Paramount Chairwoman Shari Redstone, who was at the conference last year. Redstone's absence comes a week after Paramount paid $16 million to settle a lawsuit over how '60 Minutes' edited an interview with Kamala Harris last year — a settlement that has been skewered by many in the press. Oprah Winfrey, who has attended a handful of times in the past, including last year, was not on the invitee list this year, and conference staple Warren Buffett will not be in attendance after announcing he plans to step down as the boss of Berkshire Hathaway at the end of this year. His successor, Greg Abel, is expected to attend once again; it will be worth watching in the years ahead if Abel is more willing to invest in tech companies represented at the conference than Buffett, who has been famously reticent to put money into the sector beyond Apple and Amazon. The post From AI to Trump 2.0, Here's What's Looming Over Sun Valley appeared first on TheWrap.
