Digital cooperation

Nvidia unveils cheaper AI chip for China

Nvidia is preparing to launch a lower-cost AI chip for China that complies with US export restrictions, with mass production expected to begin as early as June.

The upcoming GPU will be based on the latest Blackwell architecture but will carry reduced specifications compared to the recently restricted H20 model. It is expected to sell for $6,500 to $8,000, significantly cheaper than the $10,000–$12,000 H20, reflecting its simpler design and less advanced components.

Sources say the new chip, likely named either the 6000D or B40, will use GDDR7 memory instead of high-bandwidth memory and will avoid Taiwan Semiconductor Manufacturing Co’s CoWoS packaging technology.

Nvidia had initially planned to downgrade the H20, but tighter US rules made that unviable. Instead of relying on its older Hopper architecture, the company is shifting to Blackwell for future developments in China.

Nvidia has been forced to adapt repeatedly due to tightening US export restrictions aimed at slowing China’s technological progress. Its market share in China has dropped from 95% before 2022 to around 50% today, as competitors like Huawei gain ground with chips like the Ascend 910B.

CEO Jensen Huang noted that continuing restrictions could further drive Chinese firms towards domestic alternatives, cutting Nvidia off from more of the $50 billion data centre market.

Huang also revealed that US curbs have forced Nvidia to write off $5.5 billion in inventory and abandon $15 billion in potential sales. New limits now target GPU memory bandwidth, a key factor for AI performance, capping it at around 1.8 terabytes per second.

The upcoming chip is expected to remain just within this limit, allowing Nvidia to retain a foothold in China instead of exiting the market entirely.

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Oracle and OpenAI target AI leadership with massive chip project

Oracle has reportedly acquired around 400,000 Nvidia GB200 AI chips valued at approximately $40 billion for deployment at a data centre in Abilene, Texas.

The location will be the first site of the Stargate project—a $500 billion AI infrastructure initiative backed by OpenAI, Oracle, SoftBank, and Abu Dhabi’s MGX fund, which President Trump announced earlier this year.

Once completed, the Abilene facility is expected to provide up to 1.2 gigawatts of computing power, rivalling Elon Musk’s Colossus project in Memphis.

Although Oracle will operate from the site, the land is owned by AI infrastructure firm Cruso and US investment company Blue Owl Capital, which have collectively invested more than $15 billion through financing.

Oracle will lease the campus for 15 years, using the chips to offer computing power to OpenAI for training its next-generation AI models.

Previously dependent solely on Microsoft’s data centres, OpenAI faced bottlenecks due to limited capacity, prompting it to end the exclusivity agreement and look elsewhere.

While individual investors have committed funds, the Stargate project has not officially financed any facility yet. In parallel, OpenAI has announced Stargate UAE—a 5-gigawatt site in Abu Dhabi using over 2 million Nvidia chips, built in partnership with G42.

A surging demand for AI infrastructure has significantly boosted Nvidia’s market value, with the company reclaiming its top global ranking in late 2024.

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Nvidia recovers as DeepSeek fears fade

Earlier this year, Nvidia shares declined following concerns over DeepSeek and the possibility that tech giants might reduce AI-related spending. Worries over export restrictions added to investor unease.

However, Wedbush Securities’ managing director Matt Bryson believes the DeepSeek issue is now firmly behind the company. According to Bryson, DeepSeek — mostly a China-based phenomenon — unexpectedly boosted demand for AI servers, which ultimately benefited Nvidia instead of hurting it.

Another key development is Oracle’s plan to spend around $40 billion on Nvidia’s GB200 chips to power OpenAI’s new data centre.

Bryson suggested this is part of a broader trend among hyperscalers like Oracle and Crusoe, which recently secured funding to build new facilities. He expects this spending to appear in Nvidia’s earnings as early as Q2 or Q3, instead of being delayed until the next chip generation, the GB300.

Looking ahead, investors remain focused on whether major tech firms will sustain their AI investment. Bryson pointed out that recent earnings reports from companies like Microsoft, Alphabet, and Meta show they remain committed to high capital expenditures.

Instead of retreating, Big Tech appears set to continue driving demand for AI infrastructure, which supports Nvidia’s long-term prospects.

Bryson also noted a significant new factor in AI growth: sovereign deals from countries such as Saudi Arabia and the UAE. He emphasised that the UAE’s expected chip purchases may even surpass Oracle’s.

The new demand, combined with increasing investments in AI-powered edge products — such as those hinted at by OpenAI’s collaboration with Jony Ive — signals that AI spending beyond 2025 will remain strong instead of slowing.

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Pakistan aims to become global crypto and AI leader

Pakistan has set aside 2,000 megawatts of electricity in a major push to power Bitcoin mining and AI data centres, marking the start of a wider national digital strategy.

Led by the Pakistan Crypto Council (PCC), a body under the Ministry of Finance, this initiative aims to monetise surplus energy instead of wasting it, while attracting foreign investment, creating jobs, and generating much-needed revenue.

Bilal Bin Saqib, CEO of the PCC, stated that with proper regulation and transparency, Pakistan can transform into a global powerhouse for crypto and AI.

By redirecting underused power capacity, particularly from plants operating below potential, Pakistan seeks to convert a longstanding liability into a high-value asset, earning foreign currency through digital services and even storing Bitcoin in a national wallet.

Global firms have already shown interest, following recent visits from international miners and data centre operators.

Pakistan’s location — bridging Asia, the Middle East, and Europe — coupled with low energy costs and ample land, positions it as a competitive alternative to regional tech hubs like India and Singapore.

The arrival of the Africa-2 subsea cable has further boosted digital connectivity and resilience, strengthening the case for domestic AI infrastructure.

It is just the beginning of a multi-stage rollout. Plans include using renewable energy sources like wind, solar, and hydropower, while tax incentives and strategic partnerships are expected to follow.

With over 40 million crypto users and increasing digital literacy, Pakistan aims to emerge not just as a destination for digital infrastructure but as a sovereign leader in Web3, AI, and blockchain innovation.

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Microsoft bets on AI openness and scale

Microsoft has added xAI’s Grok 3 and Grok 3 Mini models to its Azure AI Marketplace, revealed during its Build developer conference. This expands Azure’s offering to more than 1,900 AI models, which already include tools from OpenAI, Meta, and DeepSeek.

Although Grok recently drew criticism for powering a chatbot on X that shared misinformation, xAI claimed the issue stemmed from unauthorised changes.

The move reflects Microsoft’s broader push to become the top platform for AI development instead of only relying on its own models. Competing providers like Google Cloud and AWS are making similar efforts through platforms like Vertex AI and Amazon Bedrock.

Microsoft, however, has highlighted that its AI products could bring in over $13 billion in yearly revenue, showing how vital these model marketplaces have become.

Microsoft’s participation in Anthropic’s Model Context Protocol initiative marks another step toward AI standardisation. Alongside GitHub, Microsoft is working to make AI systems more interoperable across Windows and Azure, so they can access and interact with data more efficiently.

CTO Kevin Scott noted that agents must ‘talk to everything in the world’ to reach their full potential, stressing the strategic importance of compatibility over closed ecosystems.

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Meta and PayPal users targeted in new phishing scam

Cybersecurity experts are warning of a rapid and highly advanced phishing campaign that targets Meta and PayPal users with instant account takeovers. The attack exploits Google’s AppSheet platform to send emails from a legitimate domain, bypassing standard security checks.

Victims are tricked into entering login details and two-factor authentication codes, which are then harvested in real time. Emails used in the campaign pose as urgent security alerts from Meta or PayPal, urging recipients to click a fake appeal link.

A double-prompt technique falsely claims an initial login attempt failed, increasing the likelihood of accurate information being submitted. KnowBe4 reports that 98% of detected threats impersonated Meta, with the remaining targeting PayPal.

Google confirmed it has taken steps to reduce the campaign’s impact by improving AppSheet security and deploying advanced Gmail protections. The company advised users to stay alert and consult their guide to spotting scams. Meta and PayPal have not yet commented on the situation.

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EX90 will be first to feature Gemini AI

Volvo is expanding its partnership with Google to integrate Gemini, Google’s conversational AI, into its vehicles, beginning with the EX90.

Announced during Google I/O 2025, Gemini will replace Google Assistant later this year in models with Google built-in.

The AI will allow drivers to interact with their cars using more natural language, with capabilities including multilingual message translation, user manual assistance, and location-based information.

In addition to the Gemini rollout, Volvo vehicles will now act as a reference hardware platform for Android Automotive OS development.

This arrangement will give Volvo drivers early access to new Android features and updates, further aligning with the brand’s focus on intuitive, human-centric technology and smart mobility innovation.

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Meta aims to boost Llama adoption among startups

Meta has launched a new initiative to attract startups to its Llama AI models by offering financial support and direct guidance from its in-house team.

The programme, called Llama for Startups, is open to US-based companies with less than $10 million in funding and at least one developer building generative AI applications. Eligible firms can apply by 30 May.

Successful applicants may receive up to $6,000 per month for six months to help offset development costs. Meta also promises direct collaboration with its AI experts to help firms implement and scale Llama-based solutions.

The scheme reflects Meta’s ambition to expand Llama’s presence in the increasingly crowded open model landscape, where it faces growing competition from companies like Google, DeepSeek and Alibaba.

Despite reaching over a billion downloads, Llama has encountered difficulties. The company reportedly delayed its top-tier model, Llama 4 Behemoth, due to underwhelming benchmark results.

Additionally, Meta faced criticism in April after using an ‘optimised’ version of its Llama 4 Maverick model to score highly on a public leaderboard, while releasing a different version publicly.

Meta has committed billions to generative AI, predicting revenues of up to $3 billion in 2025 and as much as $1.4 trillion by 2035.

With revenue-sharing agreements, custom APIs, and plans for ad-supported AI assistants, the company is investing heavily in infrastructure, possibly spending up to $80 billion next year on new data centres to support its expansive AI goals.

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OpenAI buys Jony Ive’s AI hardware firm

OpenAI has acquired hardware startup io Products, founded by former Apple designer Jony Ive, in a $6.5 billion equity deal. Ive will now join the company as creative head, aiming to craft cutting-edge hardware for the era of generative AI.

The move signals OpenAI’s intention to build its own hardware platform instead of relying on existing ecosystems like Apple’s iOS or Google’s Android. By doing so, the firm plans to fuse its AI technology, including ChatGPT, with original physical products designed entirely in-house.

Jony Ive, the designer behind iconic Apple devices such as the iPhone and iMac, had already been collaborating with OpenAI through his firm LoveFrom for the past two years. Their shared ambition is to create hardware that redefines how people interact with AI.

While exact details remain under wraps, OpenAI CEO Sam Altman and Ive have teased that a prototype is in development, described as potentially ‘the coolest piece of technology the world has ever seen’.

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Quantum computing partnership launches in Doha

Quantinuum and Al Rabban Capital have announced a new venture aimed at advancing quantum computing in Qatar and the region.

The partnership seeks to provide access to Quantinuum’s technologies, co-develop relevant quantum applications and train a new generation of developers.

This move aligns with Qatar’s ambition to become a hub for advanced technologies. Applications will focus on energy, medicine, genomics, and finance, with additional potential in emerging fields like Generative Quantum AI.

The venture builds on existing collaborations with Hamad Bin Khalifa University and the Qatar Center for Quantum Computing. Quantinuum’s expansion into Qatar follows growth across the US, UK, Europe, and Indo-Pacific.

Leaders from both organisations see this as a strategic milestone, strengthening technological ties between Qatar and the West. The joint venture not only supports national goals but also reflects rising global demand for quantum technologies.

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