Nvidia’s shares plummeted nearly 9% on 3 March following an announcement by US President Donald Trump confirming new tariffs on imports from Canada and Mexico, set to take effect on 4 March. The decline contributed to a broader market downturn, with the Dow Jones falling by 800 points and the Nasdaq dropping by over 3%. Nvidia’s market value took a sharp hit, losing around $265 billion and falling to $2.79 trillion, a steep drop from its previous $3 trillion valuation.
Despite reporting strong earnings, with revenue surging 78% year-over-year to $39.33 billion, Nvidia’s stock has lost 13% since 26 February. The 25% tariffs could affect the company’s operations, particularly as some of its systems are manufactured in the US and Mexico. However, CEO Jensen Huang remains optimistic, highlighting Nvidia’s AI advancements and the upcoming Blackwell chips, which he says will drive strong performance in the next quarter.
Nvidia also plans to play a key role in Taiwan Semiconductor’s $100 billion expansion in the US, a project mentioned by Trump. While the company faces short-term market volatility and policy challenges, its long-term strategy remains focused on technological growth and innovation.
For more information on these topics, visit diplomacy.edu.
Google has urged the Trump administration to reconsider efforts to break up the company as part of ongoing antitrust lawsuits.
The meeting with government officials took place last week, according to a source familiar with the matter. The United States Department of Justice (DOJ) is pursuing two cases against Google, focusing on its dominance in search and advertising technology.
Executives at Google have expressed concerns that proposed remedies, including the potential divestment of the Chrome browser and changes to search engine agreements, could negatively impact the American economy and national security.
The DOJ has not yet commented on the discussions. A trial to determine appropriate remedies is set for April, with a final ruling expected in August.
President Trump’s administration is expected to take a softer approach to antitrust enforcement compared to his predecessor.
Industry experts believe this could lead to adjustments in the DOJ’s stance on breaking up Google, potentially reshaping the legal battle over its market power.
For more information on these topics, visit diplomacy.edu.
Malaysian authorities are investigating whether local laws were breached in the shipment of servers that may have contained advanced AI chips subject to U export controls.
The case is linked to a fraud investigation in Singapore, where three men were recently charged over transactions involving servers supplied by US firms. The equipment was allegedly transferred to Malaysia and may have included Nvidia’s artificial intelligence chips.
The Malaysian government confirmed it is working closely with the United States and Singapore to determine whether US-sanctioned chips were involved. Authorities aim to find effective measures to prevent such transactions from violating trade regulations.
Singapore has not specified whether the chips in question fall under US export restrictions but acknowledged they were used in servers that passed through Malaysia.
US officials are also examining whether DeepSeek, a Chinese AI firm whose technology gained attention in January, has been using restricted US chips.
Washington has tightened controls on AI chip exports to China, and any unauthorised shipments could lead to further scrutiny of supply chains in the region.
For more information on these topics, visit diplomacy.edu.
US District Judge Yvonne Gonzalez Rogers ruled that Musk did not meet the high standards required to block the move. However, the judge indicated that she would expedite a trial on the matter, which is expected to take place later this year.
Musk, who co-founded OpenAI in 2015 but left before its major success, argued that OpenAI had initially sought his charitable funding to create AI for the public good, but has since shifted its focus towards making profits.
His lawyer, Marc Toberoff, expressed satisfaction that the judge had agreed to a swift trial, claiming that the case involves urgent public interest concerns.
OpenAI, which is seeking to become a for-profit entity to attract the necessary capital for its AI projects, welcomed the court’s decision.
The company emphasised that its goal is to develop advanced AI models to benefit society. Musk’s legal action, which also includes antitrust claims, stems from his frustration with OpenAI’s shift in direction since he departed from the organisation.
For more information on these topics, visit diplomacy.edu.
CoreWeave, backed by Nvidia, announced on Tuesday that it is acquiring AI developer platform Weights & Biases as part of its efforts to expand its cloud platform ahead of its upcoming IPO. The deal will merge CoreWeave’s infrastructure and managed cloud services with Weights & Biases’ AI model training and monitoring tools, which are used by major tech companies such as OpenAI and Meta.
While the financial terms of the deal were not disclosed, technology news site The Information reported that it could be valued at approximately $1.7 billion. CoreWeave, based in Roseland, New Jersey, has seen significant growth, with an eight-fold increase in revenue forecast for 2024.
CoreWeave, whose customers include companies like Meta, Microsoft, and hedge fund Jane Street, is aiming for a valuation exceeding $35 billion in its IPO later this year. The acquisition is seen as a move to strengthen CoreWeave’s position in the competitive AI market ahead of its New York listing.
For more information on these topics, visit diplomacy.edu.
Donald Trump has called for the repeal of the CHIPS and Science Act, a key piece of legislation passed in 2022 to support semiconductor manufacturing in the US.
Trump criticised the law during a speech to Congress, describing it as a waste of hundreds of billions of dollars and suggesting the funds should instead be used to reduce national debt. His remarks mark his most forceful criticism of the act to date.
The CHIPS Act, signed by President Joe Biden, allocated $39 billion in subsidies for US semiconductor production and related industries, along with $75 billion in government-backed loans.
The initiative was part of a broader strategy to reduce reliance on foreign-made chips and address national security concerns.
Trump argued that rather than offering financial incentives, the government could avoid imposing tariffs to encourage semiconductor companies to build factories in the US.
However, the program has garnered support from officials, including Commerce Secretary Gina Raimondo, who played a key role in securing investments from leading global semiconductor firms like Samsung, Intel, and TSMC.
New York Governor Kathy Hochul defended the CHIPS Act, emphasising its role in bringing significant investment and job creation to the state, including Micron’s $100 billion investment in Central New York.
Trump’s comments have raised concerns about the future of these grants and the potential impact on such developments.
For more information on these topics, visit diplomacy.edu.
China is set to release new guidance aimed at promoting the use of open-source RISC-V chips nationwide, a move that signals the country’s growing efforts to reduce its reliance on Western technology. The policy, which could be unveiled as early as this month, is being developed by several government bodies, including the Cyberspace Administration of China and the Ministry of Industry and Information Technology. The final release date remains uncertain as discussions continue.
RISC-V, an open-source chip design technology, has gained popularity in China, particularly among state entities and research institutes, due to its lower cost and geopolitical neutrality. It is seen as a viable alternative to more established, proprietary chip architectures, such as those from Intel and AMD, and is gaining traction in various industries, including AI and mobile technology. This shift has raised concerns in the United States, where lawmakers are wary that China may be leveraging RISC-V’s open-source nature to boost its semiconductor sector.
The growing adoption of RISC-V has sparked a positive movement in the Chinese stock market, with shares of local chip design firms such as VeriSilicon and ASR Microelectronics experiencing significant gains. Industry leaders point out that RISC-V’s potential to reduce costs for smaller companies looking to implement AI, particularly with the rise of technologies like DeepSeek, could further drive its adoption.
As tensions between the US and China over technology intensify, the development of China’s semiconductor industry using RISC-V may become a critical aspect of its strategy to become less dependent on foreign chipmakers, while also advancing its own technological ambitions.
For more information on these topics, visit diplomacy.edu.
Eutelsat shares surged by over 60% on Tuesday, continuing a remarkable rise that saw them increase by 68% the day before. This spike came after geopolitical tensions raised the possibility of OneWeb satellites, owned by the French satellite operator, replacing Elon Musk’s Starlink service in Ukraine. Since Friday, Eutelsat’s stock has nearly tripled in value following a public dispute between Ukrainian President Volodymyr Zelensky and former US President Donald Trump, which has cast doubt on the future of Starlink in the country.
Analysts suggest that the surge in Eutelsat’s stock is driven by the potential for OneWeb to secure the Ukrainian military’s satellite contract, with OneWeb being seen as a viable alternative to Starlink. The situation gained further momentum after a White House official revealed that Trump would pause military aid to Ukraine, potentially allowing Europe to increase its support. On Tuesday, the European Commission unveiled an ambitious 800 billion euro defense plan, further strengthening Europe’s role in the region.
Eutelsat has recently committed to increasing its satellite capacity for Ukraine, highlighting its growing importance for European defence. The French satellite operator has faced challenges, including concerns over rising debt and strong competition from US companies like SpaceX’s Starlink. Despite these hurdles, recent developments have rekindled investor confidence, with shares rising sharply after hitting all-time lows in February due to ongoing financial difficulties.
For more information on these topics, visit diplomacy.edu.
SoftBank CEO Masayoshi Son is planning to borrow $16 billion to expand the company’s investments in AI, with a possible additional $8 billion loan in early 2026.
The financing plan was discussed with banks last week, according to sources cited by The Information.
The Japanese tech conglomerate has already committed $15 billion to the Stargate venture, a partnership with Oracle and OpenAI aimed at maintaining United States dominance in AI development.
Reports suggest SoftBank may invest up to $25 billion in OpenAI, further solidifying its position in the sector.
DeepSeek’s progress is a clear sign of the growing influence of Chinese companies in the AI sector, according to a spokesperson for China’s parliament. Lou Qinjian, speaking to reporters on Tuesday, praised the achievements of DeepSeek’s young team, describing their work as ‘commendable’.
He highlighted the company’s open-source approach and its efforts to spread AI technology globally, contributing ‘Chinese wisdom’ to the world.
The AI startup has been widely celebrated in China, particularly for rolling out AI models that offer a significantly lower cost than those developed by US rivals like OpenAI.
While some countries, including South Korea and Italy, have removed DeepSeek’s chatbot from their app stores over privacy concerns, it has been embraced within China, where local governments and tech firms are integrating it into their systems.
Based in Hangzhou, DeepSeek is rapidly advancing its next-generation model, set to succeed its R1 release from January, as it continues to make waves in the global tech sector.
For more information on these topics, visit diplomacy.edu.
