E-commerce and trade

AI and crypto stocks drop after Microsoft move

Microsoft has scrapped plans for over 2GW of data centre leases in the US and Europe, signalling a strategic shift in its AI infrastructure support.

The move appears linked to scaled-back OpenAI workloads and concerns over market oversupply.

The decision has sent shockwaves through US tech markets, with shares of AI players like Nvidia and Dell taking hits. Bitcoin mining stocks also slumped by up to 12%, as hopes for sustained AI-driven demand dimmed.

While Microsoft steps back, Google and Meta are ramping up their own capacity, trying to fill the gap.

Analysts warn that crypto miners, already facing profitability pressure, may need to rethink their business models in light of this new reality.

For more information on these topics, visit diplomacy.edu.

CoreWeave scales back IPO with lower share price

CoreWeave, the Nvidia-backed AI infrastructure company, has reduced the size of its US initial public offering (IPO) and priced its shares below the initial range, raising concerns over investor interest in AI infrastructure.

The company will offer 37.5 million shares, 23.5% fewer than originally planned, with shares priced at $40 each, well below the lower end of the expected price range.

Despite strong backing from Nvidia, which committed to a $250 million order, the IPO has faced a tepid reception due to concerns about CoreWeave’s long-term growth and capital-intensive business model.

Investors have expressed worries over the company’s reliance on Microsoft’s shifting AI strategy, which could affect demand for its GPU chips. Additionally, CoreWeave’s high debt levels and lack of profitability have raised doubts about its financial sustainability.

The reduced IPO comes at a time when the US IPO market is struggling, with fewer equity deals and lower transaction values in 2024 compared to last year.

CoreWeave’s stock market debut, once seen as a test for the AI infrastructure market, now signals waning investor confidence in AI companies, especially those without a proven profit history.

For more information on these topics, visit diplomacy.edu.

Former Meta AI leaders launch Yutori with $15 million in funding

Two former Meta AI executives have secured $15 million in funding for Yutori, a San Francisco-based startup focused on developing AI personal assistants.

The funding round was led by Radical Ventures, with backing from prominent investors including AI pioneer Fei-Fei Li and Google DeepMind’s Jeff Dean.

Yutori aims to create autonomous AI agents capable of executing complex online tasks without human intervention. Unlike traditional chatbots, these AI assistants will handle real-world actions, from ordering food to managing travel plans, streamlining everyday digital interactions.

The company is also advancing post-training techniques to enhance AI models’ ability to navigate the web efficiently.

With a team of experts who previously worked on Meta’s AI projects, including the development of Llama 3 and Llama 4 models, Yutori is positioning itself at the forefront of AI-driven automation.

For more information on these topics, visit diplomacy.edu.

SK Hynix sees surge in chip orders ahead of US tariffs

South Korea’s SK Hynix has reported that some customers are accelerating orders ahead of potential US tariffs on semiconductor imports.

Speaking at the company’s annual shareholder meeting, Head of Global Sales and Marketing Lee Sang-rak noted that this trend, combined with reduced customer inventory, has contributed to favourable market conditions.

However, he cautioned that it remains uncertain whether the demand surge will continue.

The US government is considering a 25% tariff on semiconductor imports, prompting fears of price increases and supply chain disruptions. Analysts at Nomura have observed preemptive stockpiling in response, though the final decision on tariffs is still pending.

Meanwhile, competitors Micron, SanDisk, and China’s YMTC have raised their memory chip prices due to strong demand from the AI sector.

SK Hynix remains optimistic about growth, particularly in the high-bandwidth memory (HBM) chip market. CEO Kwak Noh-Jung stated that demand is expected to soar this year, with sales for 2025 already sold out and 2026 orders nearing finalisation.

He also dismissed concerns that Chinese AI startup DeepSeek’s low-cost models would slow demand for high-performance accelerators, arguing that AI advancements will drive further expansion in the memory chip industry.

For more information on these topics, visit diplomacy.edu.

Quantum chip network boosts data security

Chinese scientists have developed a compact chip-based quantum digital signature network that drastically improves both speed and efficiency.

The system replaces bulky, expensive equipment with streamlined silicon chips, making it easier to integrate into today’s fibre networks.

The new setup allows multiple users to share a single central detector, reducing cost and complexity. By adopting a star network design and a new cryptographic protocol, the system can handle longer documents with fewer resources and lower delays.

The Chinese experiment outperformed previous quantum signature technologies, achieving reliable performance even over a 200 km fibre link.

Experts say this research opens the door to future applications in quantum e-commerce, secure communication, and digital finance.

For more information on these topics, visit diplomacy.edu.

Nvidia boosts AI strategy with Lepton deal

Nvidia is reportedly close to acquiring Lepton AI, a startup that rents out servers powered by Nvidia’s AI chips. The deal, said to be worth several hundred million dollars, would mark Nvidia’s entry into the server rental space.

Founded just two years ago, Lepton AI previously raised $11 million in seed funding and is seen as a key rival to Together AI, a similar firm with over $500 million in backing.

The move follows Nvidia’s recent acquisition of synthetic data startup Gretel.

With AI demand skyrocketing, this acquisition could strengthen Nvidia’s grip on the market by combining its chip dominance with direct cloud-based services. Nvidia has yet to comment on the reported talks.

For more information on these topics, visit diplomacy.edu.

BMW partners with Alibaba to boost AI development

Alibaba and BMW have joined forces to develop advanced AI technologies aimed at shaping the future of mobility in China.

The collaboration brings together Alibaba’s growing AI expertise and BMW’s automotive innovation to produce smarter, more intuitive vehicles tailored to the Chinese market.

The partnership centres on integrating a customised AI engine into BMW’s Intelligent Personal Assistant, using Yan AI—developed by Alibaba’s Banma—as its foundation.

However, this AI-powered assistant is set to debut in BMW’s upcoming Neue Klasse models, manufactured in China from 2026. These vehicles will feature voice-activated controls and real-time assistance, creating a more seamless and personalised driving experience.

BMW plans to introduce two AI agents, Car Genius and Travel Companion, to enhance in-car services such as navigation, traffic updates, and personal scheduling.

The customisable nature of these tools reflects a growing demand for smart, user-friendly features in the automotive space, particularly in tech-savvy markets like China.

As global competition in the electric vehicle sector intensifies, BMW’s strategic pivot towards AI and the Chinese market could strengthen its position against local rivals such as BYD and Geely.

With European subsidies declining, the German carmaker is looking to AI-powered innovation as a key lever to maintain relevance and secure long-term growth.

For more information on these topics, visit diplomacy.edu.

China faces Nvidia chip shortages

Chinese server manufacturer H3C has warned of potential shortages of Nvidia’s H20 chip, the most advanced AI processor still legally available in the country under US export controls.

In a notice to clients, the company revealed that its stock of H20 chips was nearly depleted, citing geopolitical tensions as a major factor affecting global supply chains.

New shipments are expected by mid-April, but future availability remains uncertain due to ongoing trade restrictions and supply disruptions.

The demand for H20 chips has surged, particularly as companies race to integrate AI models developed by Chinese startup DeepSeek.

Major tech firms such as Tencent, Alibaba, and ByteDance have significantly increased their orders, leading to further strain on supply.

H3C stated that future chip distribution will prioritise long-term, high-margin customers under a profit-first approach, raising concerns among smaller buyers about access to the critical technology.

The H20 was introduced after the US tightened export controls on high-performance AI chips in October 2023, blocking Nvidia’s most advanced processors from the Chinese market.

Washington has restricted such exports since 2022, citing national security concerns over China’s potential military applications of AI technology.

Despite these measures, Nvidia has reportedly shipped around one million H20 units in 2024, generating more than $12 billion in revenue. Meanwhile, domestic alternatives from Huawei and Cambricon are emerging as potential substitutes amid the ongoing supply crunch.

For more information on these topics, visit diplomacy.edu.

Trump weighs tariff cuts to secure TikTok deal

US President Donald Trump has indicated he is willing to reduce tariffs on China as part of a deal with ByteDance, TikTok’s Chinese parent company, to sell the popular short-video app.

ByteDance faces an April 5 deadline to divest TikTok’s US operations or risk a nationwide ban over national security concerns.

The law mandating the sale stems from fears in Washington that Beijing could exploit the app for influence operations and data collection on American users.

Trump suggested he may extend the deadline if negotiations require more time and acknowledged China’s role in the deal’s approval. Speaking to reporters, he hinted that tariff reductions could be used as leverage to finalise an agreement.

China’s commerce ministry responded by reaffirming its stance on trade discussions, stating that engagement with Washington should be based on mutual respect and benefit.

The White House has taken an active role in brokering a potential sale, with discussions centring on major non-Chinese investors increasing their stakes to acquire TikTok’s US operations. Vice President JD Vance has expressed confidence that a framework for the deal could be reached by the April deadline.

Free speech advocates, meanwhile, continue to challenge the law, arguing that banning TikTok could violate the First Amendment rights of American users.

For more information on these topics, visit diplomacy.edu.

French tech giant bets on US expansion

Schneider Electric has announced plans to invest more than $700 million into its US operations over the next two years to support the rising energy demands driven by AI technology.

The French firm aims to boost manufacturing capacity and enhance the country’s energy resilience.

The expansion includes new and upgraded facilities across states like Texas, Ohio, and the Carolinas, with over 1,000 new jobs expected. Combined with previous spending, Schneider’s total US investment this decade will exceed $1 billion.

The move also comes amid ongoing trade tensions and tariff threats, which have prompted many global firms to shift production back to US soil.

Schneider says the investment marks a turning point for American industry, driven by AI’s rapid growth.

For more information on these topics, visit diplomacy.edu.