Competition regulation

NVIDIA eyes recovery in China after export deal ahead of Q2 report

NVIDIA is due to report its Q2 2026 financial results after the US market closes on 27 August, and analysts are expecting strong performance.

Consensus forecasts place revenue at around US $45.9 billion, up about 50 percent year-on-year, driven by ongoing demand for Blackwell GPUs, data centre expansion and redistribution of AI infrastructure investments globally.

Export changes are also pivotal. After entering a deal to resume H20 chip sales to China, despite revenue-sharing conditions, NVIDIA could reclaim as much as US$8 billion during Q2, mitigating past losses caused by restrictions.

Beyond geopolitical shifts, the Blackwell Ultra GPU is central to growth. Offering up to 50 times faster AI inference than earlier models, it is increasingly stocked by cloud providers and hyperscalers. Markets view this as a strategic advantage, fueling long-term AI momentum.

Risks remain. Gross margins may recover from prior pressure due to licensing charges, but margin expansion depends on supply and TAM realisation. China’s policy environment is also uncertain, making future guidance cautious for some analysts.

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Senior OpenAI executive Julia Villagra departs amid talent war

OpenAI’s chief people officer, Julia Villagra, has left the company, marking the latest leadership change at the AI pioneer. Villagra, who joined the San Francisco firm in early 2024 and was promoted in March, previously led its human resources operations.

Her responsibilities will temporarily be overseen by chief strategy officer Jason Kwon, while chief applications officer Fidji Simo will lead the search for her successor.

OpenAI said Villagra is stepping away to pursue her personal interest in art, music and storytelling as tools to help people understand the shift towards artificial general intelligence, a stage when machines surpass human performance in most forms of work.

The departure comes as OpenAI navigates a period of intense competition for AI expertise. Microsoft-backed OpenAI is valued at about $300 billion, with a potential share sale set to raise that figure to $500 billion.

The company faces growing rivalry from Meta, where Mark Zuckerberg has reportedly offered $100 million signing bonuses to attract OpenAI talent.

While OpenAI expands, public concerns over the impact of AI on employment continue. A Reuters/Ipsos poll found 71% of Americans fear AI could permanently displace too many workers, despite the unemployment rate standing at 4.2% in July.

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Trump downplays TikTok security concerns as ban stalls

US President Donald Trump has dismissed national security and privacy concerns surrounding TikTok as ‘highly overrated,’ signalling once again that the popular video-sharing platform is unlikely to face a ban anytime soon. Although Congress passed legislation requiring TikTok’s Chinese parent company, ByteDance, to sell its controlling stake or face a nationwide ban, Trump has repeatedly pushed back enforcement deadlines, with the next one set for 17 September.

Trump has already issued three extensions since taking office for his second term. The first came on 20 January, after TikTok briefly went offline when the court-approved ban took effect. Another followed in April, when a potential US buyout collapsed after China objected to Trump’s tariff moves. Trump insists that American buyers remain interested but says the process is ‘complex,’ justifying further delays.

Despite the legal framework for a ban, Trump’s administration has not faced significant legal challenges over his executive orders keeping TikTok active, which contrasts with many of his other directives. The White House even launched its own TikTok account this week, underscoring the platform’s mainstream role in US politics. Trump himself admitted he is a fan, noting its popularity among his children and younger voters.

Public opinion on TikTok remains deeply divided. A Pew Research Center survey found only about one-third of Americans now support a ban, a sharp decline from half of respondents in 2023. Roughly equal shares oppose a ban or remain undecided. Among supporters of restrictions, most cite concerns about user data security. Still, with Trump downplaying risks and signalling a willingness to keep the app alive, TikTok’s future in the US looks increasingly secure.

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Court filing details Musk’s outreach to Zuckerberg over OpenAI bid

Elon Musk attempted to bring Meta chief executive Mark Zuckerberg into his consortium’s $97.4 billion bid for OpenAI earlier this year, the company disclosed in a court filing.

According to sworn interrogations, OpenAI said Musk had discussed possible financing arrangements with Zuckerberg as part of the bid. Musk’s AI startup xAI, a competitor to OpenAI, did not respond to requests for comment.

In the filing, OpenAI asked a federal judge to order Meta to provide documents related to any bid for OpenAI, including internal communications about restructuring or recapitalisation. The firm argued these records could clarify motivations behind the bid.

Meta countered that such documents were irrelevant and suggested OpenAI seek them directly from Musk or xAI. A US judge ruled that Musk must face OpenAI’s claims of attempting to harm the company through public remarks and what it described as a sham takeover attempt.

The legal dispute follows Musk’s lawsuit against OpenAI and Sam Altman over its for-profit transition, with OpenAI filing a countersuit in April. A jury trial is scheduled for spring 2026.

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Russia pushes mandatory messaging app Max on all new devices

Russia will require all new mobile phones and tablets sold starting in September, including a government-backed messenger called Max. Developed by Kremlin-controlled tech firm VK, the app offers messaging, video calls, mobile payments, and access to state services.

Authorities claim Max is a safe alternative to Western apps, but critics warn it could act as a state surveillance tool. The platform is reported to collect financial data, purchase history, and location details, all accessible to security services.

Journalist Andrei Okun described Max as a ‘Digital Gulag’ designed to control daily life and communications.

The move is part of Russia’s broader push to replace Western platforms. New restrictions have already limited calls on WhatsApp and Telegram, and officials hinted that WhatsApp may face a ban.

Telegram remains widely used but is expected to face greater pressure as the Kremlin directs officials to adopt Max.

VK says Max has already attracted 18 million downloads, though parts of the app remain in testing. From 2026, Russia will also require smart TVs to come preloaded with a state-backed service offering free access to government channels.

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Google pushes agentic AI worldwide with AI Mode rollout

Google has expanded its AI Mode service to 180 additional countries, extending advanced agentic capabilities to a global audience.

Previously available only in markets such as the US, UK and India, the service allows users to search for information and carry out tasks on their behalf. The update reflects Google’s ambition to move from simple answers to action-oriented assistance.

A key rollout feature is the restaurant booking tool for AI Ultra subscribers. Using natural language requests such as ”find a romantic Italian spot for two tonight,” the system can check availability, offer personalised suggestions and confirm reservations directly within search.

The feature relies on real-time data from partners like OpenTable and highlights how Google’s AI can execute tasks instead of simply presenting options.

Further tools are expected soon, including ticketing for events and appointment scheduling. These are powered by the Gemini models, which tailor recommendations based on user behaviour and allow group planning through shared responses.

While the services could reduce reliance on third-party apps in sectors such as travel and hospitality, they also raise concerns over data privacy, inclusivity and cultural differences in an English-only rollout.

The global expansion strengthens Google’s position against rivals like Microsoft and OpenAI, who are also pushing forward in agentic AI. The company sees subscription upgrades to AI Ultra as a way to offset slower advertising growth, while early reports suggest increased user engagement.

However, the long-term impact will depend on balancing innovation with ethical safeguards as Google works to deliver more multilingual and accessible features.

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Turkey plans 5G rollout after October auction and spectrum allocations

Turkey’s government is preparing a long-awaited 5G frequency auction in October, with the Transport and Infrastructure Minister announcing that the first services should begin in 2026.

The auction will offer 11 spectrum packages across the 700 MHz and 3.5 GHz bands, with individual packages valued between $50 million and $425 million. The minimum total reserve price is set at $2.13 billion. Operators Turkcell, Türk Telekom and Vodafone Turkey are expected to participate.

Existing mobile licences, set to expire in 2029, will be rolled over through this process. Operators will be required to contribute 5 percent of their annual revenues as part of the renewal. The government aims for full nationwide 5G rollout within a few years following the initial launch.

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Fed urges banks to embrace blockchain innovation

Federal Reserve Vice Chair for Supervision Michelle Bowman has warned that banks must embrace blockchain technology or risk fading into irrelevance. At the Wyoming Blockchain Symposium on 19 August, she urged banks and regulators to drop caution and embrace innovation.

Bowman highlighted tokenisation as one of the most immediate applications, enabling assets to be transferred digitally without intermediaries or physical movement.

She explained that tokenised systems could cut operational delays, reduce risks, and expand access across large and smaller banks. Regulatory alignment, she added, could accelerate tokenisation from pilots to mainstream adoption.

Fraud prevention was also a key point of her remarks. Bowman said financial institutions face growing threats from scams and identity theft, but argued blockchain could help reduce fraud.

She called for regulators to ensure frameworks support adoption rather than hinder it, framing the technology as a chance for collaboration between the industry and the Fed.

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MIT highlights divide in business AI project success

A new MIT study has found that 95% of corporate AI projects fail to deliver returns, mainly due to difficulties integrating them with existing workflows.

The report, ‘The GenAI Divide: State of AI in Business 2025’, examined 300 deployments and interviewed 350 employees. Only 5% of projects generated value, typically when focused on solving a single, clearly defined problem.

Executives often blamed model performance, but researchers pointed to a workforce ‘learning gap’ as the bigger barrier. Many projects faltered because staff were unprepared to adapt processes effectively.

More than half of GenAI budgets were allocated to sales and marketing, yet the most substantial returns came from automating back-office tasks, such as reducing agency costs and streamlining roles.

The study also found that tools purchased from specialised vendors were nearly twice as successful as in-house systems, with success rates of 67% compared to 33%.

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Crypto executives urged UK to create national stablecoin strategy

Thirty crypto executives have urged Finance Minister Rachel Reeves to adopt a national stablecoin strategy, warning the UK could fall behind faster-moving markets. Their letter warned that the UK could remain a ‘rule-taker’ in digital assets without regulation.

The executives criticised the UK’s current legal definition of stablecoins as outdated and misleading, likening it to defining a cheque merely as’ paper concerning currency.’

They argue that stablecoins should be recognised as digital payment rails already used globally. Signatories include Coinbase, Kraken, Copper, Fireblocks, BitGo, and VanEck leaders, calling for regulation that treats stablecoins as financial infrastructure rather than risks.

Analysts stress stablecoins remain essential, acting as the ‘cash equivalent’ for digital assets and enabling faster blockchain transfers than traditional banking.

Industry experts, including HSBC’s Daragh Maher, emphasised that growth depends on a suitable regulatory environment. Clear rules could strengthen the UK’s global financial role and let stablecoins play a key part in its digital finance system.

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