Nvidia and AMD to pay 15% share of China AI chip revenue to secure US export licences

Nvidia and Advanced Micro Devices have agreed to hand 15% of their Chinese AI chip sales revenue to the US government in return for export licences.

The arrangement, covering Nvidia’s H20 accelerator and AMD’s MI308 model, is considered unusual and could prove contentious for both companies and Beijing.

The deal reflects Washington’s willingness to link trade concessions to financial payments, but analysts note there is little precedent for such a targeted export levy.

Critics warn the move could undermine the national security rationale for export controls, making it harder to convince allies to adopt similar measures. Beijing, meanwhile, has voiced security concerns over the H20 chip’s performance and alleged vulnerabilities.

Industry observers suggest the payment requirement could discourage further expansion by US chipmakers in China, the world’s largest semiconductor importer, and give local producers an advantage in building domestic capacity.

Chinese firms such as Huawei are already increasing market share amid tighter restrictions on US technology.

The potential sums involved are significant. Before restrictions were imposed, Nvidia had generated over $7 billion in H20 sales to China in a single quarter. In comparison, AMD could earn up to $5 billion annually if full access to the market resumed.

However, uncertainties over demand and regulatory conditions remain.

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Dojo team disbanded amid AI strategy shift

Tesla has disbanded its Dojo supercomputer team, with team leader Peter Bannon departing amid a shift in AI strategy. Resources are being reallocated to other company data centres and computing projects.

The supercomputer was initially intended to process large volumes of vehicle data and video to train its autonomous‑driving systems. The team had recently lost around 20 members to the start‑up DensityAI.

Tesla plans to rely more on external partners for compute and chip supply. Strategic collaborations with Nvidia, AMD and Samsung Electronics are being pursued to bolster capacity.

The company focuses on integrating AI, including robotics and self‑driving technologies, across its business. A recent $16.5 billion agreement with Samsung aims to support services like robotaxi, humanoid robots and data‑centre operations.

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Kiwi.com eyes agentic AI future with new booking technology

Kiwi.com has unveiled an AI-powered system that enables direct airline bookings, partnering with AIpic to launch the industry’s first Model Context Protocol (MCP) server. However, this technology links flight inventory directly with major AI platforms.

MCP is an open standard likened to a ‘USB-C for AI’. It lets large language models access real-time services beyond their pre-trained data. The access enables AI agents to search and book flights on a user’s behalf.

Kiwi.com says the technology positions it to capture growing demand, as consumers increasingly use AI platforms like ChatGPT, Claude, and Microsoft Copilot to plan travel. Experts anticipate that agentic AI systems will become the dominant interface for online services.

With MCP, users can request flights in natural language, specifying dates, destinations, passenger numbers, and cabin preferences. The AI agent accesses Kiwi.com’s inventory, returning curated results in the user’s preferred currency and time zone and an instant booking link.

The company considers the integration a new distribution channel and a potential model for other online travel agencies. It adapts to changing search and booking behaviours driven by AI.

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Musk ends in-house ‘Dojo’ AI chip programme, shifts focus to external partners

Tesla has reportedly shut down its Dojo supercomputer project following multiple high-profile departures, including that of project head Peter Bannon. CEO Elon Musk ended the AI chip programme, reassigning the remaining staff to other data centre projects.

Dojo aimed to process vehicle data for autonomous driving and reduce Tesla’s reliance on Nvidia and AMD. The project faced delays, with leaders such as Jim Keller, Ganesh Venkataramanan, and Bannon departing before its closure.

About 20 former Dojo employees have joined DensityAI, a stealth startup founded by ex-Tesla staff, which is expected to work on AI chips for robots and data centres. Tesla will now rely more on Nvidia, AMD, and Samsung.

Samsung recently secured a $16.5 billion deal to supply AI chips for Tesla’s self-driving cars, robots, and data centres. Musk said Samsung’s Texas factory will produce Tesla’s AI6 chips, with AI5 chips to be made in 2026.

Musk suggested that combining AI5 and AI6 chips could form a ‘Dojo 3’ system, while Dojo 2 would not launch. The shutdown comes as Tesla restructures, with executive exits, job cuts, and renewed focus on AI integration across Musk’s companies.

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GitHub CEO says developers will manage AI agents

GitHub’s CEO, Thomas Dohmke, envisions a future where developers no longer write code by hand but oversee AI agents that generate it. He highlights that many developers already use AI tools to assist with coding tasks.

Early adoption began with debugging, boilerplate and code snippets, and evolved into collaborative brainstorming and iterative prompting with AI. Developers are now learning to treat AI tools like partners and guide their ‘thought processes’.

According to interviews with 22 developers, half expect AI to write around 90 percent of their code within two years, while the rest foresee that happening within five. The shift is seen as a change from writing to verifying and refining AI-generated work.

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Sam Altman praises rapid AI adoption in India

OpenAI’s new GPT‑5 model has been unveiled, and the company offers it free to all users. Three model versions, gpt‑5, gpt‑5‑mini and gpt‑5‑nano, offer developers a balance of performance, cost and latency.

CEO Sam Altman applauded India’s rapid AI adoption and hinted that India, currently OpenAI’s second‑largest market, may soon become the largest. A visit to India is planned for September.

The new GPT‑5 achieves a level of expertise akin to a PhD‑level professional and is described as a meaningful step towards AGI. OpenAI intends to make the model notably accessible through its free tier.

Head of ChatGPT Nick Turley noted that GPT‑5 significantly enhances understanding across more than twelve Indian languages, reinforcing India as a key market for localisation.

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James Cameron warns AI could spark a real-life Terminator apocalypse

James Cameron, the director behind the iconic Terminator franchise, has warned that the real-world use of AI could lead to a catastrophic scenario similar to the series’ apocalyptic Judgement Day.

While Cameron is writing the script for Terminator 7, he has expressed concern that mixing AI with weapons systems, including nuclear defence, poses grave risks.

He explained that the rapid pace of decision-making in such systems might require superintelligent AI to respond quickly. Yet, human error has already brought the world close to disaster in the past.

Cameron also highlighted three major existential threats humanity faces: climate change, nuclear weapons, and superintelligence. He suggested that AI might ultimately offer a solution rather than just a danger, reflecting a nuanced view beyond simple dystopian fears.

His evolving perspective mirrors the Terminator franchise itself, which has long balanced the destructive potential of AI with more hopeful portrayals of technology as a possible saviour.

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AI-generated video misleads as tsunami footage in Japan

An 8.8-magnitude earthquake off Russia’s Kamchatka peninsula at the end of July triggered tsunami warnings across the Pacific, including Japan. Despite widespread alerts and precautionary evacuations, the most significant wave recorded in Japan was only 1.3 metres high.

A video showing large waves approaching a Japanese coastline, which went viral with over 39 million views on platforms like Facebook and TikTok, was found to be AI-generated and not genuine footage.

The clip, appearing as if filmed from a plane, was initially posted online months earlier by a YouTube channel specialising in synthetic visuals.

Analysis of the video revealed inconsistencies, including unnatural water movements and a stationary plane, confirming it was fabricated. Additionally, numerous Facebook pages shared the video and linked it to commercial sites, spreading misinformation.

Official reports from Japanese broadcasters confirmed that the actual tsunami waves were much smaller, and no catastrophic damage occurred.

The incident highlights ongoing challenges in combating AI-generated disinformation related to natural disasters, as similar misleading content continues to circulate online during crisis events.

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GPT-5 launch sparks backlash as OpenAI removes ChatGPT model choice

OpenAI has launched GPT-5, replacing previous ChatGPT models and removing the model picker option. CEO Sam Altman called it a PhD-level AI, claiming improvements in reasoning, writing, coding, accuracy, and health-related queries, with fewer hallucinations. The rollout followed right after the announcement.

GPT-5 includes both an efficient and a reasoning model, but users no longer choose which to engage, OpenAI’s system automatically routes queries. The change has frustrated many, as favourite models like GPT-4o and o3 are no longer available.

Users on social media and forums complain that GPT-5 gives shorter, less engaging answers and has less personality. Some say the model ignores instructions, gets basic things wrong, and is slower despite not running in ‘thinking mode’.

Several users allege OpenAI shortened responses deliberately to reduce costs, removing emotional intelligence to discourage casual chatting. Critics believe the move could result in lost subscriptions despite efficiency gains.

Others describe GPT-5 as more organised but clipped in tone, with no clear quality improvement over earlier models. The loss of previous models has left some feeling that the upgrade is a downgrade, with one user saying it feels like ‘watching a close friend die’.

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The Browser Company unveils a paid plan for AI browser

The Browser Company has introduced a $20 monthly Pro subscription for Dia, its AI-powered web browser, offering unlimited access to advanced chat and skills features.

Free users will now encounter limits on AI usage, although light users engaging with AI a few times a week can still use the browser without paying. CEO Josh Miller mentioned plans to launch multiple subscription tiers, ranging from $5 to several hundred dollars, based on different feature sets.

The Pro plan was briefly available online before being removed, but it is now accessible again through Dia’s settings. It marks The Browser Company’s first paid offering following its previous success with the Arc browser.

The Browser Company has secured $128 million in funding from investors, including Pace Capital and several prominent tech leaders such as Jeff Weiner and Dylan Field.

The launch comes amid intensifying competition in the AI browser space, with rivals like Perplexity’s Comet, Opera’s upcoming Neon browser, and AI integrations from Google and Microsoft vying for user attention.

The Browser Company’s subscription model aims to capitalise on growing interest in AI-enhanced browsing experiences.

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