😲Musk vs Altman in UAE

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• Musk tried to crash OpenAI’s UAE deal—claimed Trump’s support hinged on xAI’s inclusion

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• NVIDIA and AMD rework AI chips for China—Chipmakers introduce new models to meet US export rules and avoid multi-billion dollar revenue losses

• In other AI news—Elon Musk’s xAI is paying $300M to integrate its Grok chatbot into Telegram for a year, AMD acquires silicon photonics startup Enosemi to boost AI performance, and Infosys rolls out 200+ enterprise AI agents as part of its Topaz AI suite with Google Cloud

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Elon Musk tried to block OpenAI’s mega AI deal in the UAE

Key Points 

• Musk told UAE officials Trump wouldn’t support the deal unless his AI startup xAI was included.

• This is the second time Musk has publicly pushed back against a major AI partnership involving OpenAI.

👨‍💻Context of the news - Last week, OpenAI and a group of American tech giants secured a major win with a deal to build one of the world’s largest AI data centers in Abu Dhabi. 

♨️News - Behind the scenes, Elon Musk wasn’t on board. According to sources, he tried to block the deal unless his AI startup, xAI, was included.

On a call with officials at G42, the UAE-based firm leading the project, Musk warned that the deal had no chance of getting President Trump’s approval unless xAI was part of it. The timing was no coincidence. Musk had just found out that Sam Altman would be joining Trump’s Gulf tour and that this deal was on the agenda. Frustrated, he decided to join the trip himself and appeared alongside Trump in Saudi Arabia.

White House aides say Musk’s complaints triggered a last-minute review. Officials discussed how to manage the situation, especially since Trump and his AI adviser David Sacks wanted to announce the deal before the trip ended. One senior official said Musk raised concerns about fairness for all AI companies.

😵‍💫Déjà Vu from January -  This wasn’t the first time Musk reacted this way. In January, he publicly lashed out when Trump announced a 500 billion dollar AI investment with OpenAI, Oracle, and SoftBank, a deal that also blindsided him.

🥸Why this matters - Musk has become one of the most influential figures in Republican politics, spending 300 million dollars to support Trump’s re-election. With strong White House ties and leadership over five companies, his role in shaping major AI deals is only growing. And as this episode shows, those rivalries are starting to spill into global tech strategy.

Read the full story here. 

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NVIDIA and AMD adapt AI hardware to meet China trade restrictions

Key Points 

• NVIDIA and AMD will launch simplified AI GPUs in China starting July to comply with US export restrictions.

• NVIDIA expects an $8 billion revenue hit in Q2 due to strict licensing rules on advanced chip sales to China.

📰News - To comply with US export restrictions on advanced semiconductor technology to China, NVIDIA and AMD are preparing to sell new AI-focused GPUs designed specifically for the Chinese market, according to Taiwanese tech publication Digitimes. These updated chips aim to meet China’s AI needs while following export rules.

🔜New AI GPUs coming in July - NVIDIA plans to release a simplified AI GPU called “B20,” while AMD will introduce its Radeon AI PRO R9700 workstation GPU, targeting AI workloads as well. Both companies are expected to begin sales of these new chips in China starting in July.

Earlier this week, NVIDIA revealed it took a $4.5 billion charge in the first quarter because licensing restrictions prevented it from selling its high-end H20 AI chip to Chinese companies. In addition, the company was unable to ship another $2.5 billion worth of H20 GPUs during that time. NVIDIA forecasts that these licensing requirements will cause an $8 billion revenue loss in the second quarter.

NVIDIA is also developing a budget AI chip based on its Blackwell architecture specifically for China. This new chip is expected to be priced between $6,500 and $8,000, which is lower than the current $10,000 to $12,000 price range for the H20 GPUs.

Read the full story here.