Nvidia’s latest Blackwell AI chip racks are facing overheating issues, prompting major customers to delay or reduce their orders. Early shipments have reportedly suffered from technical glitches, affecting how the chips connect within data centre racks. As a result, companies including Microsoft, Amazon, Google, and Meta have scaled back their purchases, some opting for older Nvidia AI chips instead.
The hyperscalers had initially placed orders worth at least $10 billion each but are now reconsidering their plans. Microsoft, for example, intended to install 50,000 Blackwell chips in a Phoenix facility but has since switched to Nvidia’s previous-generation Hopper chips at OpenAI’s request. Nvidia has not commented on the situation, while Microsoft, Google, and Meta have yet to respond to inquiries.
Concerns over Nvidia’s sales extend beyond the overheating issues, as the US government has announced tighter restrictions on AI chip exports, potentially impacting revenue. Despite the setbacks, CEO Jensen Huang remains optimistic, stating that the company is still on track to generate billions in revenue from Blackwell chips this quarter. Huang has also denied earlier reports of overheating in liquid-cooled Blackwell servers.
Apple is defending itself against a $1.8 billion mass lawsuit in a London tribunal, accused of abusing its market dominance by charging app developers a 30% commission through its App Store. The lawsuit, brought on behalf of around 20 million UK iPhone and iPad users, claims the fees have unfairly inflated app costs for consumers.
Rachael Kent, the academic leading the case, argues Apple has leveraged its monopoly to exclude competition and impose restrictive terms on app developers. Apple’s lawyers counter that the fees reflect the benefits of its iOS ecosystem, emphasising its focus on security, privacy, and innovation. They also noted that most developers are exempt from paying commissions.
This trial marks the UK’s first class-action-style lawsuit against a tech giant under its evolving legal framework. Similar cases against Google, Meta, and Amazon are in progress, including a $1.1 billion lawsuit against Google over Play Store fees scheduled for later this year. The trial is expected to last seven weeks, with testimony from Apple’s CFO anticipated soon.
Ming Shing Group, a construction firm based in Hong Kong, has made a $47 million investment in Bitcoin, purchasing 500 BTC at an average price of $94,375 per coin. The investment, made through its subsidiary Lead Benefit, is intended as a short-term strategy to enhance liquidity and asset value using idle company reserves.
Wenjin Li, director of Ming Shing, stated that the firm sees the Bitcoin market as highly liquid, allowing for quick asset disposal if needed for operational purposes. The announcement boosted Ming Shing’s Nasdaq-listed shares by 10%, closing at $7.91.
The move aligns with Hong Kong‘s growing interest in cryptocurrency adoption. Legislator Wu Jiexhuang recently suggested incorporating Bitcoin into the region’s national reserves to enhance financial security, further underscoring the city’s commitment to exploring digital asset opportunities.
Synopsys has secured conditional approval from the European Commission for its $35 billion acquisition of simulation software company Ansys. The deal, aimed at merging Synopsys’ semiconductor design expertise with Ansys’ simulation capabilities, promises to enhance solutions for complex chip and system creation. However, the acquisition is still awaiting regulatory approval in the UK and the US.
To address competition concerns, both companies have agreed to divest key business units. Synopsys will sell its Optical Solutions Group to Keysight Technologies, while Ansys will part with its PowerArtist tool, both of which are critical for tech industries like augmented reality and autonomous vehicles. These divestitures are intended to preserve healthy competition in crucial technology markets.
The deal is expected to close by mid-2025, pending final approvals and the completion of the divestments.
The US government has announced new restrictions on exporting AI chips and technology, seeking to safeguard its dominance in AI development while limiting China’s access to advanced computing capabilities. The regulations, unveiled during the final days of President Biden’s administration, impose strict caps on AI chip exports to most countries, with exemptions for close allies such as Japan, the UK, and South Korea. Countries like China, Russia, Iran, and North Korea remain barred from accessing this critical technology.
Commerce Secretary Gina Raimondo emphasised the importance of maintaining US leadership in AI to support national security and economic interests. The regulations, which build on a four-year effort to block China’s acquisition of advanced chips, also close existing loopholes and enforce tighter controls. New limits target advanced graphics processing units (GPUs), essential for training AI models, and introduce worldwide licensing requirements for cutting-edge AI technologies. Major cloud providers like Microsoft and Amazon will face new authorisation processes to establish data centres globally under stringent conditions.
Industry leaders, including Nvidia, have expressed concerns over the broad scope of the rules, warning of potential harm to innovation and market dynamics. Nvidia called the restrictions an “overreach,” while Oracle cautioned that the measures could inadvertently benefit Chinese competitors. Despite this criticism, US officials argue the rules are vital for maintaining a competitive edge, given AI’s transformative potential in sectors like healthcare, cybersecurity, and defence. China’s Commerce Ministry condemned the move, vowing to protect its interests in response to the escalating technology standoff.
The New York Department of Financial Services (NYDFS) has unveiled a Transatlantic Regulatory Exchange programme, fostering collaboration with the Bank of England to advance oversight of digital assets and emerging payment systems. This initiative will facilitate a six-month staff exchange starting February, aiming to enhance regulatory alignment and share expertise.
NYDFS Superintendent Adrienne Harris, who has led the regulator since 2022, emphasised the importance of the programme for global harmonisation in digital asset regulation. The department, renowned for its 2015 BitLicense scheme, views this partnership as a step towards strengthening crypto oversight.
The UK and US differ significantly in their approaches to digital currencies. The Bank of England continues exploring a central bank digital currency, while the US administration resists a government-backed digital dollar. With such exchanges, both regulators hope to gain deeper insights into navigating the challenges of the crypto landscape.
MicroStrategy Inc. has bolstered its position as a Bitcoin powerhouse, purchasing $243 million worth of the cryptocurrency in its 10th consecutive weekly acquisition. The company, based in Virginia, now controls over 2% of Bitcoin’s finite supply, continuing a strategy initiated by co-founder and Chairman Michael Saylor in 2020.
The firm acquired 2,530 Bitcoin between 6 and 12 January at an average price of $95,972 per token, according to a regulatory filing. With plans to raise $42 billion in capital by 2027 through stock sales and debt offerings, MicroStrategy intends to invest heavily in Bitcoin. It has already reached two-thirds of its equity-raising goals in just a few months and could potentially purchase an additional $6.5 billion in Bitcoin.
MicroStrategy’s shares have risen 13% this year, closing at $327.91 last week, while Bitcoin itself has experienced a slight dip, losing 3% in value after a 120% surge in 2024. The firm’s approach has drawn attention from hedge funds employing convertible arbitrage strategies, betting on the volatility of MicroStrategy’s stock as the company advances plans to expand its equity offerings.
Britain’s antitrust regulator, the Competition and Markets Authority (CMA), has launched an investigation into Google’s search operations to assess their impact on consumers, businesses, and competition. With Google handling 90% of UK online searches and supporting over 200,000 businesses through advertising, the CMA aims to ensure fair competition and innovation in search services, said CMA chief Sarah Cardell.
The probe will evaluate whether Google’s dominant position restricts market entry and innovation, as well as whether it provides preferential treatment to its own services. The CMA will also investigate the company’s extensive collection and use of consumer data, including its role in AI services. The findings, expected within nine months, could lead to measures such as requiring Google to share data with rivals or giving publishers more control over their content.
Google has defended its role, stating that its search services foster innovation and help UK businesses grow. The company pledged to work constructively with the CMA to create rules that benefit both businesses and users. The investigation follows similar scrutiny in the US, where prosecutors have pushed for major reforms to curb Google’s dominance in online search.
Two Democratic lawmakers have called on President Joe Biden and Congress to extend the looming 19 January deadline for ByteDance, TikTok’s China-based parent company, to sell its US operations or face a nationwide ban. The Supreme Court recently heard arguments from ByteDance’s lawyer, Noel Francisco, who argued that a sale by next week’s deadline would be impossible and that a ban would effectively shut down TikTok, which has 170 million American users.
Senator Edward Markey announced plans to propose a 270-day extension to the deadline, warning of the ban’s cultural and economic consequences. Markey emphasised that TikTok is a vital platform for social and economic interactions, stating, ‘We cannot allow millions to be silenced.’ Representative Ro Khanna echoed these concerns, urging Biden and President-elect Donald Trump to delay the ban to safeguard free speech and livelihoods tied to the app.
Without intervention, TikTok could face immediate restrictions, including bans on new downloads from app stores and eventual service degradation. While the White House has not commented, Biden retains the authority to extend the deadline if ByteDance demonstrates substantial progress toward divestiture—though meeting that standard appears unlikely.
China’s State Administration for Market Regulation (SAMR) announced plans to strengthen regulations on online platforms and the growing livestream e-commerce sector. The move aims to foster fair competition, protect smaller businesses, and improve consumer trust, according to SAMR Deputy Head Shu Wei.
At a press briefing, Shu highlighted plans to enhance transparency, reduce merchants’ operational costs, and address concerns over platform practices that disrupt fair competition. The regulator aims to improve existing frameworks to safeguard merchants’ and consumers’ rights against platform rule abuse.
The SAMR also intends to crack down on deceptive marketing in livestream e-commerce, a sector experiencing rapid growth but facing criticism for misleading tactics. The initiative is expected to address dishonest practices while ensuring a healthier and more balanced market environment.
