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Huawei challenges Nvidia in global AI chip market

Huawei Technologies is exploring AI chip exports to the Middle East and Southeast Asia in a bid to compete with Nvidia, according to a Bloomberg News report published Thursday.

The Chinese telecom firm has contacted potential buyers in the United Arab Emirates, Saudi Arabia, and Thailand to promote its Ascend 910B chips, an earlier-generation AI processor.

The offer involves a limited number of chips, reportedly in the low thousands, although specific quantities remain undisclosed. No deals have been finalised so far. Sources cited in the report said there is limited interest in the UAE, and the status of talks in Thailand remains uncertain.

Government representatives in Thailand and Saudi Arabia did not immediately respond to Reuters’ requests for comment. Huawei also declined to comment. The initiative is part of a broader strategy to expand into markets where US chipmakers have long held dominance.

Huawei also promotes remote access to CloudMatrix 384, a China-based AI system built using its more advanced chipsets. However, due to supply limitations, the company cannot export these high-end models outside China.

The Middle East has quickly become a high-demand region for AI infrastructure, attracting interest from leading technology companies. Nvidia has already struck several regional deals, positioning itself as a major player in AI development across Saudi Arabia and neighbouring countries.

Huawei is simultaneously focusing on domestic sales of its newer 910C chips, offering them to Chinese firms that cannot purchase US AI chips due to ongoing export restrictions imposed by Washington.

US administrations have long cited national security concerns in limiting China’s access to cutting-edge chip technologies, fearing their potential use in military applications.

‘With the current export controls, we are effectively out of the China datacenter market, which is now served only by competitors such as Huawei,’ an Nvidia spokesperson told Reuters.

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US targets Southeast Asia to stop AI chip leaks to China

The US is preparing stricter export controls on high-end Nvidia AI chips destined for Malaysia and Thailand, in a move to block China’s indirect access to advanced GPU hardware.

According to sources cited by Bloomberg, the new restrictions would require exporters to obtain licences before sending AI processors to either country.

The change follows reports that Chinese engineers have hand-carried data to Malaysia for AI training after Singapore began restricting chip re-exports.

Washington suspects Chinese firms are using Southeast Asian intermediaries, including shell companies, to bypass existing export bans on AI chips like Nvidia’s H100.

Although some easing has occurred between the US and China in areas such as ethane and engine components, Washington remains committed to its broader decoupling strategy. The proposed measures will reportedly include safeguards to prevent regional supply chain disruption.

Malaysia’s Trade Minister confirmed earlier this year that the US had requested detailed monitoring of all Nvidia chip shipments into the country.

As the global race for AI dominance intensifies, Washington appears determined to tighten enforcement and limit Beijing’s access to advanced computing power.

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Samsung profits slump as US chip ban hits AI exports

Samsung Electronics expects its second-quarter operating profits to exceed half, citing Washington’s export controls on advanced AI chips to China.

The company announced a projected 56% year-on-year drop in operating profit, falling to 4.6 trillion won ($3.3 billion), with revenue down 6.5% from the previous quarter.

The semiconductor division, a core part of Samsung’s business, suffered due to reduced utilisation and inventory value adjustments.

US restrictions have made it difficult for South Korea’s largest conglomerate to ship high-end chips to China, forcing some of its production lines to run below capacity.

Despite weak performance in the foundry sector, the memory business remained relatively stable. Analysts pointed to weaker-than-expected sales of HBM chips used for AI and a drop in NAND storage prices, while a declining won-dollar exchange rate further pressured earnings.

Looking ahead, Samsung expects a modest recovery as demand for memory chips, mainly from AI-driven data centres, improves in the year’s second half.

The company is also facing political pressure from Washington, with threats of new tariffs prompting talks between Seoul and the US administration.

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Reliance set for $50 billion growth with AI and green energy

According to analysts at Morgan Stanley, Reliance Industries is set to grow its market value by $50 billion through large-scale investments in AI infrastructure and new energy. The conglomerate, led by Mukesh Ambani, is retooling its energy and digital units as part of a long-term transformation strategy.

Central to this growth is constructing a generative AI data centre in Jamnagar, India, which will feature 1GW of capacity powered by 1.3GW of green energy. Reliance plans to source this power from its rapidly scaling renewable ecosystem, including solar and green hydrogen.

The firm aims to integrate 10GW of solar capacity by 2026 and has launched lithium battery and green hydrogen projects on a 2,000-acre site in Gujarat. Nvidia’s Blackwell chips will power the upcoming data centres, signalling Reliance’s ambition to make India a hub for next-gen digital infrastructure.

Morgan Stanley estimates up to $60 billion in value creation from the clean energy vertical alone, as Reliance uses electricity to drive data centres, refineries, and chemical facilities. The strategy reflects a broader vision to replace traditional operations with AI-driven, sustainable systems at a global scale.

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DDN gears up for AI boom with next-gen storage systems

DataDirect Networks (DDN) is positioning itself at the heart of the coming AI boom, projecting that enterprise adoption of AI will soon surge — and with it, demand for powerful storage systems.

The company, a veteran in high-performance computing (HPC) storage, expects orders from existing HPC clients to triple or quadruple by 2027. DDN co-founder Paul Bloch highlighted Elon Musk’s xAI cluster in Memphis, which currently uses 200,000 GPUs — a number he says could grow to one million.

DDN has upgraded its core storage systems with the AI400X3, delivering up to 140GBps read speeds and major improvements in resilience and fault tolerance. The system supports NVMe-over-TCP and integrates seamlessly with Nvidia’s SpectrumX and Blackwell GPU architectures.

The company also released Infinia 2.1, a revamped object storage platform designed for enterprise AI. It offers a 100x speed boost, supports major AI frameworks like PyTorch and TensorFlow, and is now available via Google Cloud.

DDN is already supporting 700,000 GPUs across 7,000 customers, including 4,000 focused on AI. Backed by Blackstone’s recent $300 million investment, DDN plans to expand into new enterprise markets and increase hiring by over 20% this year.

With AI adoption spreading across industries, DDN says the need for scalable, GPU-optimised storage will become mission-critical.

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Sam Altman reverses his stance on AI hardware as current computers can’t meet the demands

Sam Altman, CEO of OpenAI, has returned from his earlier position, saying that AGI would not need new hardware.

Speaking on a podcast with his brother, Altman said current computers are no longer suited for the fast-evolving demands of AI. Instead of relying on standard hardware, he now believes new solutions are necessary.

OpenAI has already started developing dedicated AI hardware, including potential custom chips, marking a shift from using general-purpose GPUs and servers.

Altman also hinted at a new device — not a wearable, nor a phone — that could serve as an AI companion. Designed to be screen-free and aware of its surroundings, the product is being co-developed with former Apple design chief Jony Ive.

The collaboration, however, has run into legal trouble. A federal judge recently ordered OpenAI and Ive to pause the promotion of the new venture after a trademark dispute with a startup named IYO, which had previously pitched similar ideas to Altman’s investment firm.

OpenAI’s recent $6.5 billion acquisition of io Products, co-founded by Ive, reflects the company’s more profound commitment to reshaping how people interact with AI.

Altman’s revised stance on hardware suggests the era of purpose-built AI devices is no longer a vision but a necessary reality.

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SoftBank shifts focus to AI and next-generation chips

Masayoshi Son, founder and CEO of SoftBank, has indicated his readiness to pass the leadership baton after decades at the helm. Speaking to shareholders in Tokyo, the 67-year-old entrepreneur said he had mentally prepared to step aside and had already identified internal candidates.

However, he noted that revealing a successor prematurely could affect dynamics within the company.
While succession planning is underway, Son focuses on positioning SoftBank as a global leader in artificial superintelligence (ASI).

The company is pursuing aggressive investments, including a proposed $30 billion stake in OpenAI, the acquisition of UK-based Graphcore, and a potential purchase of US firm Ampere Computing.

Plans are also in motion to build a central tech hub in Arizona, modelled on Shenzhen, featuring advanced chip infrastructure and a possible partnership with TSMC.

SoftBank’s reach extends well beyond the US and Japan. India has invested over $10 billion across 24 companies, including Paytm, Ola Electric, and Swiggy. These ventures have spurred rapid growth and successful IPOs, reinforcing SoftBank’s influence over the country’s digital economy.

Shareholder confidence plays a crucial role in sustaining SoftBank’s bold innovation strategy. Many Japanese retail investors have remained loyal for decades, drawn by Son’s enduring vision and the promise of future breakthroughs.

With AI now firmly at the centre of SoftBank’s roadmap, the company is betting big on a future it hopes to shape.

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DeepSeek struggles to launch R2 amid NVIDIA chip shortage

The launch of DeepSeek’s next-generation AI model, R2, is expected to face delays due to a shortage of NVIDIA H20 chips in China.

These chips, designed specifically for the Chinese market following US export restrictions, are essential for running DeepSeek’s highly optimised models.

The ban on H20 shipments in April has triggered widespread concern among cloud providers about the scalability of R2, especially if it outperforms existing open-source models.

CEO Liang Wenfeng has reportedly held back the model’s release, expressing dissatisfaction with its current performance.

Engineers continue refining R2, but the lack of compatible hardware poses a deeper challenge. DeepSeek’s reliance on NVIDIA architecture makes switching to Chinese chips inefficient, as the models are tightly built for NVIDIA’s software and hardware ecosystem.

Some Chinese firms have begun using workarounds by flying engineers to Malaysia, where NVIDIA chips are still available in local data centres.

After training their models abroad, teams return to China with trained systems. Others rely on gaming GPUs like the RTX 5090, which are easier to access via grey markets despite restrictions.

While Chinese tech giants ordered 1.2 million H20 chips earlier in 2025 to meet demand sparked by R1’s success, inventory is still unlikely to support a full R2 rollout.

Companies outside China may launch R2 more easily without facing the same export hurdles.

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Nvidia becomes world’s most valuable company after stock surge

Nvidia shares hit an all-time high on 25 June, rising 4.3 percent to US$154.31. The stock has surged 63 percent since April, adding another US$1.5 trillion to its market value.

With a total market capitalisation of about US$3.77 trillion, Nvidia has overtaken Microsoft to become the world’s most valuable listed company.

Strong earnings and growing AI infrastructure spending by major clients — including Microsoft, Meta, Alphabet and Amazon — have reinforced investor confidence.

Nvidia’s CEO, Jensen Huang, told shareholders that demand remains strong and that the computer industry is still in the early stages of a major AI upgrade cycle.

Despite gaining 15 percent in 2025, following a 170 percent rise in 2024 and a 240 percent surge in 2023, Nvidia still appears reasonably valued. It trades at 31.5 times forward earnings, below its 10-year average and close to the Nasdaq 100 multiple, even though its projected growth rate is higher.

Analyst sentiment remains firmly bullish. Nearly 90 percent of analysts tracked by Bloomberg recommend buying the stock, which trades below their average price target.

Yet, Nvidia is less widely held among institutional investors than peers like Microsoft and Apple, indicating further room for buying as AI momentum continues into 2026.

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SoftBank plans $1 trillion AI and robotics park in Arizona

SoftBank founder Masayoshi Son is planning what could become his most audacious venture yet: a $1 trillion AI and robotics industrial park in Arizona.

Dubbed ‘Project Crystal Land’, the initiative aims to recreate a high-tech manufacturing hub reminiscent of China’s Shenzhen, focused on AI-powered robots and next-gen automation.

Son is courting global tech giants — including Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung — to join the vision, though none have formally committed.

The plan hinges on support from federal and state governments, with SoftBank already discussing possible tax breaks with US officials, including Commerce Secretary Howard Lutnick.

While TSMC is already investing $165 billion in Arizona facilities, sources suggest Son’s project has not altered the chipmaker’s current roadmap. SoftBank hopes to attract semiconductor and AI hardware leaders to power the park’s infrastructure.

Son has also approached SoftBank Vision Fund portfolio companies to participate, including robotics startup Agile Robots.

The park may serve as a production hub for emerging tech firms, complementing SoftBank’s broader investments, such as a potential $30 billion stake in OpenAI, a $6.5 billion acquisition of Ampere Computing, and funding for Stargate, a global data centre venture with OpenAI, Oracle, and MGX.

While the vision is still early, Project Crystal Land could radically shift US high-tech manufacturing. Son’s strategy relies heavily on project-based financing, allowing extensive infrastructure builds with minimal upfront capital.

As SoftBank eyes long-term AI growth and increased investor confidence, whether this futuristic park will become a reality — or another of Son’s high-stakes dreams remains to be seen.

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