TL;DR

Builder.ai files for bankruptcy; Nvidia launches China AI chip; Trump targets Apple, Samsung with new tariffs.

Highlights

• Builder.ai, backed by Microsoft and QIA, files for bankruptcy after burning $500K/day and owing $115M; faces "AI washing" allegations and mass layoffs 1.
• Nvidia to launch a lower-spec Blackwell AI chip for China in June, aiming to regain market share lost to Huawei amid U.S. export restrictions 2.
• SpaceX set for Starship Flight 9 on May 27, marking the first Super Heavy booster reflight; Starlink now serves 5M+ customers in 125 countries 3.
• OpenAI upgrades Operator AI agent to the o3 model for ChatGPT Pro, improving reasoning, safety, and code-related capabilities 4.
• Amazon-backed Zoox issues its second software recall in a month after a San Francisco robotaxi collision, highlighting ongoing AV deployment risks 5.
• Google expands Veo 3 video generation to Pro subscribers in 71 countries (excluding UK), adds trial packs, and lowers per-generation costs 6.
• Polygon co-founder Mihailo Bjelic resigns, the third founder to exit, raising leadership stability concerns 7.
• China accelerates robotics, AI, and EV advances, with the "Manus" chatbot reportedly outperforming ChatGPT; China now leads U.S. in key tech research 8.
• Trump imposes 25% tariff on non-U.S.-made smartphones (targeting Apple , Samsung) and 50% on EU imports, pressuring global supply chains and tech margins 9.
• U.S. faces a tech talent outflow as restrictive policies and science funding cuts threaten startup formation and innovation 1015.
• U.S. Bitcoin and Ethereum ETFs post $1B+ daily inflows, with BlackRock’s IBIT leading; crypto prices hit new highs 13.
• Trump administration slashes NSF grants by 50%, causing $40M shortfall and layoffs at the National Academies; deep STEM funding cuts 15.
• Honda cuts EV investment by 30%, pivots to hybrids amid slowing demand and tariffs; China’s GAC invests $1B+ to build an EV factory in Brazil 14.
• X (formerly Twitter) suffers global outages after an Oregon data center fire 12; Musk resumes 24/7 schedule to address reliability at X, Tesla , and Starship 11.

Commentary

Builder.ai's bankruptcy, despite high-profile backers and significant capital, underscores the risks of aggressive burn rates and overhyped AI claims 1. The fallout is a reminder for investors to scrutinize AI startups for technical depth and operational transparency, especially as "AI washing" becomes more prevalent 1. Similarly, Zoox’s repeated software recalls highlight the persistent challenges and regulatory risks in autonomous vehicle deployment, even for well-capitalized, strategic-backed ventures 5.

Nvidia ’s launch of a China-specific Blackwell chip reflects how U.S.-China tech tensions are reshaping global AI hardware supply chains and market dynamics 2. The move comes as China’s domestic players, like Huawei, gain ground, and as China’s broader tech push consolidates its leadership in robotics, AI, and EVs 8. For VCs, this points to both increased competition and new opportunities in domestic manufacturing, supply chain technology, and cross-border partnerships 28.

U.S. policy shifts are creating headwinds for innovation. New tariffs on smartphones and EU imports threaten to compress margins for hardware startups and complicate global supply chains 9. The sharp reduction in NSF grants and the resulting talent outflow further weaken the U.S. early-stage innovation pipeline, making it harder for VCs to source technical founders and deep tech bets 1015. Investors may need to adjust diligence processes and consider global talent strategies 10.

In digital assets, surging ETF inflows and record crypto prices signal robust institutional interest, but leadership turnover at Polygon and ongoing regulatory uncertainty remain challenges for web3 and blockchain ventures 713. Meanwhile, Honda ’s EV retrenchment and GAC’s Brazil expansion illustrate divergent strategies in the mobility sector as demand and policy pressures shift 14.

Overall, the environment is becoming more selective and risk-aware. Investors should focus on startups with defensible technology, resilient supply chains, and strong regulatory positioning, particularly in AI, mobility, and cross-border tech.