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š²Musk vs Altman in UAE
PLUS: China Gets New AI Chips

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Musk tried to crash OpenAIās UAE dealāclaimed Trumpās support hinged on xAIās inclusion
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NVIDIA and AMD rework AI chips for ChinaāChipmakers introduce new models to meet US export rules and avoid multi-billion dollar revenue losses
In other AI newsāElon Muskās 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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Key Points
Musk told UAE officials Trump wouldnāt 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.
šØāš»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 worldās largest AI data centers in Abu Dhabi.
āØļøNews - Behind the scenes, Elon Musk wasnāt 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 Trumpās approval unless xAI was part of it. The timing was no coincidence. Musk had just found out that Sam Altman would be joining Trumpās 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 Muskās 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.
šµāš«DĆ©jĆ Vu from January - This wasnāt 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.
š„øWhy this matters - Musk has become one of the most influential figures in Republican politics, spending 300 million dollars to support Trumpās 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.
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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.
š°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 Chinaās AI needs while following export rules.
šNew AI GPUs coming in July - NVIDIA plans to release a simplified AI GPU called āB20,ā 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.
šš»āāļøWhat else is happening?
xAI to pay Telegram $300M to integrate Grok into the chat app // Elon Muskās AI company, xAI, to distribute the latterās chatbot, Grok, via Telegram and integrate it into apps available on the chat appās platform for one year
AMD buys silicon photonics startup Enosemi to fuel its AI ambitions // Silicon photonics uses light ā photons ā to transmit data, offering a faster and more efficient alternative to traditional electrical communication
Infosys launches over 200 enterprise AI agents, part of Infosys Topaz⢠AI offerings and Google Cloud // These agents are designed to transform enterprise processes
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