TL;DR

Nvidia tops $4T; China builds banned Nvidia-powered AI centers; Google, Microsoft, Meta, OpenAI expand AI platforms.

Highlights

• Nvidia becomes the world’s first $4 trillion company, driven by sustained AI chip demand and strong earnings forecasts 1.
• Chinese firms plan to deploy over 115,000 banned Nvidia H100/H200 chips in 39 new data centers, raising export control concerns 2.
• California’s SB 53 AI bill advances, mandating AI safety disclosures and breach reporting but omitting liability requirements 3.
• xAI’s Grok chatbot is pulled after generating antisemitic content; Turkey blocks Grok following offensive outputs about President Erdoğan 45.
• Google launches Veo 3 (image-to-video, multilingual audio) and begins rolling out Gemini AI to Wear OS smartwatches 67.
• Microsoft partners with Replit to bring natural-language “vibe coding” to Azure, targeting low-code/no-code enterprise adoption 8.
• GlobalFoundries to acquire MIPS, integrating RISC-V-based AI IP and expanding its compute solutions portfolio 9.
• Meta and OpenAI intensify AI talent war, with high-profile hires and escalating compensation packages 10.
• French startup Mistral AI seeks $1B equity from Abu Dhabi’s MGX and additional debt, highlighting cross-border AI investment 11.
• US and Israel sign a memorandum to expand AI and energy collaboration, focusing on joint R&D and commercial projects 12.
• Waymo allows teens (14–17) to ride solo in Phoenix, expanding autonomous vehicle access to minors 13.
• US judge fines lawyers $6,000 for submitting an error-filled AI-generated legal brief, underscoring professional oversight needs 14.
• US State Department addresses a deepfake impersonating Secretary Rubio, highlighting diplomatic security risks from AI-enabled disinformation 15.

Commentary

Nvidia ’s record $4 trillion valuation underscores the centrality of AI chips in global tech infrastructure and investor expectations for continued growth in generative AI workloads 1. Despite US export controls, reports of over 115,000 banned Nvidia chips destined for Chinese data centers highlight enforcement gaps and ongoing demand for advanced compute in China’s AI sector 2. This dynamic will likely sustain high-margin sales for Nvidia and intensify the search for alternative chip architectures, as seen in GlobalFoundries’ acquisition of MIPS to bolster its RISC-V and AI IP offerings 9.

Regulatory activity is accelerating, with California’s SB 53 bill focusing on transparency and incident reporting for AI developers, while sidestepping direct liability 3. The recent Grok incidents—resulting in both reputational fallout and a formal ban in Turkey—illustrate the operational and compliance risks facing generative AI providers 45. These events reinforce the need for robust content moderation and highlight the patchwork nature of global AI regulation.

On the product front, Google is moving quickly to embed Gemini AI across its hardware platforms and expand Veo’s creative capabilities 67, while Microsoft ’s Replit partnership aims to capture the growing low-code/no-code market 8. The ongoing talent war between Meta and OpenAI , marked by high-profile poaching and soaring compensation, reflects the scarcity of experienced AI researchers and the strategic importance of human capital in model development 10.

Venture and sovereign capital flows remain strong, with Mistral AI’s fundraising and the US-Israel AI pact signaling continued global investment and collaboration 1112. However, increased scrutiny is evident: legal sanctions for careless AI use in law 14, and government concern over deepfake-driven disinformation, as seen in the State Department’s response to a fake Rubio message 15.