Semiconductors

Eric Schmidt warns that AI growth is limited by electricity

Former Google chief executive Eric Schmidt has warned that electricity, rather than semiconductors, will limit the future growth of AI.

Speaking on the Moonshots podcast, Schmidt said the push towards artificial superintelligence—AI that exceeds human cognitive ability in almost all domains—will depend on securing sufficient power instead of just developing more advanced chips.

Schmidt noted the US alone may require an extra 92 gigawatts of electricity to support AI growth, equivalent to dozens of nuclear power stations.

Instead of waiting for new plants, companies such as Microsoft are seeking to retrofit closed facilities, including the Three Mile Island plant targeted for relaunch in 2028.

Schmidt highlighted growing environmental pressures, citing Microsoft’s 34% increase in water use within a year, a trend experts link directly to rising AI workloads.

Major AI developers like OpenAI’s Sam Altman also acknowledge energy as a key constraint. Altman has invested in nuclear fusion through Helion, while firms such as Microsoft and AMD are pressing US policymakers to fast-track energy permits.

Environmental groups, including Greenpeace, warn that unchecked AI expansion risks undermining climate goals instead of supporting them.

Schmidt believes superintelligence is inevitable and approaching rapidly, predicting specialised AI tools across all fields within five years. Rather than focusing solely on AI’s capabilities, he stressed the urgent need for planning energy infrastructure today to match tomorrow’s AI demands.

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Huang says Chinese AI science is world class

NVIDIA’s CEO has praised China’s open-source AI work during a high-profile visit to Beijing, spotlighting DeepSeek as an example of world-class science and engineering.

At the International Supply Chain Expo, Huang highlighted the global value of Chinese contributions to AI research.

He told former Alibaba executive Wang Jian that Chinese researchers publish more AI papers than any other nation, calling their output A-plus in both science and engineering. Huang named DeepSeek, Alibaba, Tencent, MiniMax, and Baidu’s Ernie Bot globally significant AI leaders.

The visit coincides with a policy shift by the US government allowing Nvidia to resume H20 chip exports to China. Huang confirmed that export licenses are expected soon, potentially unlocking billions in lost revenue.

Industry watchers see this development as pivotal for Nvidia, which had paused shipments under earlier restrictions. The chipmaker’s renewed access to China’s semiconductor market could reshape global AI infrastructure over the next year.

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South Korea’s new Science Minister pledges AI-led national transformation

South Korea’s new Science and ICT Minister, Bae Kyung-hoon, has pledged to turn the nation into one of the world’s top three AI powerhouses.

Instead of following outdated methods, Bae outlined a bold national strategy centred on AI, science and technology, aiming to raise Korea’s potential growth rate to 3 per cent and secure a global economic leadership position.

Bae, a leading AI expert and former president of LG AI Research, officially assumed office on Thursday.

Drawing from experience developing hyperscale AI models like LG’s Exaone, he emphasised the need to build a unique competitive advantage rooted in AI transformation, talent development and technological innovation.

Rather than focusing only on industrial growth, Bae’s policy agenda targets a broad AI ecosystem, revitalised research and development, world-class talent nurturing, and addressing issues affecting daily life.

His plans include establishing AI-centred universities, enhancing digital infrastructure, promoting AI semiconductors, restoring grassroots research funding, and expanding consumer rights in telecommunications.

With these strategies, Bae aims to make AI accessible to all citizens instead of limiting it to large corporations or research institutes. His vision is for South Korea to lead in AI development while supporting social equity, cybersecurity, and nationwide innovation.

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Broadcom challenges Nvidia with Tomahawk Ultra AI networking chip

Broadcom has introduced a new networking chip designed to boost AI data centre performance, positioning itself against Nvidia in the AI hardware race.

Called Tomahawk Ultra, the chip helps link hundreds of processors within close range, ensuring fast communication vital for large AI models.

Instead of using Nvidia’s proprietary NVLink system, Broadcom’s Tomahawk Ultra operates on an accelerated version of Ethernet and connects up to four times more chips within a server rack.

The chip acts as a traffic controller, enabling what the industry refers to as ‘scale-up’ computing — where AI models tap into combined computing power from tightly grouped chips.

According to Broadcom senior vice president Ram Velaga, it took engineers around three years to design the Tomahawk Ultra, which was originally aimed at high-performance computing but adapted for AI workloads as demand surged.

Taiwan Semiconductor Manufacturing Company (TSMC) is producing the processors using its five-nanometre process, and the chips are already shipping to customers.

Rather than requiring major hardware overhauls, the Tomahawk Ultra offers a scalable, Ethernet-based alternative for AI firms looking to build faster, more flexible data centres.

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Europe builds quantum computers with glass and light

European researchers are building quantum computers using glass chips and photons instead of traditional silicon and electricity.

Led by the Italian Polytechnic University of Milan, the project is harnessing the power of light to deliver faster computing and solve real-world challenges.

These chips avoid energy loss by guiding photons through transparent glass, an approach designed to boost precision and reliability in quantum operations.

The collaborative effort includes specialists in photon detection, electronics, and quantum software, all working towards a functioning photonic quantum machine by 2026.

One of its first goals is to help design better lithium-ion batteries, which is vital for Europe’s shift to renewable energy and electric transport.

Europe’s broader ambition is to deploy a quantum-accelerated supercomputer by 2025 and grow a local quantum chip industry by 2030. While talent and innovation are strong, the project highlights a pressing need for greater private investment and commercial scale to match global rivals.

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Nvidia to restart China AI chip sales after US talks

Nvidia has announced plans to resume sales of its H20 AI chip in China, following meetings between CEO Jensen Huang and US President Donald Trump in Beijing.

The move comes after US export controls previously banned sales of the chip on national security grounds, costing Nvidia an estimated $15 billion in lost revenue.

The company confirmed it is filing for licences with the US government to restart deliveries of the H20 graphics processing unit, expecting approval shortly.

Nvidia also revealed a new RTX Pro GPU designed specifically for China, compliant with US export rules, offering a lower-cost alternative instead of risking further restrictions.

Huang, attending a supply chain expo in Beijing, described China as essential to Nvidia’s growth, despite rising competition from local firms like Huawei.

Chinese companies remain highly dependent on Nvidia’s CUDA platform, while US lawmakers have raised concerns about Nvidia engaging with Chinese entities linked to military or intelligence services.

Nvidia’s return to the Chinese market comes as Washington and Beijing show signs of easing trade tensions, including relaxed rare earth export rules from China and restored chip design services from the US.

Analysts note, however, that Chinese firms are likely to keep diversifying suppliers instead of relying solely on US chips for supply chain security.

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Nvidia chief says Chinese military unlikely to use US chips

Nvidia’s CEO, Jensen Huang, has downplayed concerns over Chinese military use of American AI technology, stating it is improbable that China would risk relying on US-made chips.

He noted the potential liabilities of using foreign tech, which could deter its adoption by the country’s armed forces.

In an interview on CNN’s Fareed Zakaria GPS, Huang responded to Washington’s growing export controls targeting advanced AI hardware sales to China.

He suggested the military would likely avoid US technology to reduce exposure to geopolitical risks and sanctions.

The Biden administration had tightened restrictions on AI chip exports, citing national security and fears that cutting-edge processors might boost China’s military capabilities.

Nvidia, whose chips are central to global AI development, has seen its access to the Chinese market increasingly limited under these rules.

While Nvidia remains a key supplier in the AI sector, Huang’s comments may ease some political pressure around the company’s overseas operations.

The broader debate continues over balancing innovation, commercial interest and national security in the AI age.

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Malaysia enforces trade controls on AI chips with US origin

Malaysia’s trade ministry announced new restrictions on the export, transshipment and transit of high-performance AI chips of US origin. Effective immediately, individuals and companies must obtain a trade permit and notify authorities at least 30 days in advance for such activities.

The restrictions apply to items not explicitly listed in Malaysia’s strategic items list, which is currently under review to include relevant AI chips. The move aims to close regulatory gaps while Malaysia updates its export control framework to match emerging technologies.

‘Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities,’ the ministry stated on Monday. Violations will result in strict legal action, with authorities emphasising a zero-tolerance approach to export control breaches.

The announcement follows increasing pressure from the United States to curb the flow of advanced chips to China. In March, the Financial Times reported that Washington had asked allies including Malaysia to tighten semiconductor export rules.

Malaysia is also investigating a shipment of servers linked to a Singapore-based fraud case that may have included restricted AI chips. Authorities are assessing whether local laws were breached and whether any controlled items were transferred without proper authorisation.

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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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