NVIDIA's Back in China — But It's Not That Simple

NVIDIA just announced it’s back in business with China. After months of trade drama and export restrictions, the chip giant is finally allowed to sell its H20 chip to Chinese buyers again. It’s a special version designed to stay on the right side of U.S. regulators — not too powerful, not too threatening, just strong enough to keep business alive.

Why does this matter? Because NVIDIA’s been stuck in limbo. Tariffs from both sides, political pressure, and billions in potential sales just sitting on the sidelines. The H20 chip was created as a loophole — made for China, stripped down enough to not trigger national security alarms. But here’s the twist: that very chip is believed to have powered DeepSeek, one of China’s most promising AI models. So yeah, not exactly harmless.

This is the tightrope NVIDIA’s been walking. On one side, they’re a business. China makes up about 14% of their sales, and every quarter they’re blocked from selling costs them billions. On the other side? They’re the engine behind modern AI. Their chips literally run the tools countries use to compete for global dominance. So now the question is: do you stay loyal to shareholders or to Uncle Sam?

CEO Jensen Huang has made his position clear — cutting China off completely just pushes them to build their own chips faster. Better to keep them in the NVIDIA ecosystem than have them cook up something you can’t control. It’s a compelling argument. It’s also one that toes the line between strategic and self-serving.

For now, the U.S. has given NVIDIA the green light. The licenses are going through, the H20 is back in circulation, and deliveries are expected to start soon. That’s great news for NVIDIA’s stock, which has taken a hit from all the uncertainty. But it’s also a temporary win. The politics haven’t cooled off. Every chip sold could become a headline later, especially if they’re found powering anything remotely sketchy.

So what now? For starters, keep an eye on how fast NVIDIA claws back that China revenue. Wall Street definitely will. Also watch what China does with these chips — because if they’re quietly fueling the next big AI leap, expect some fireworks from DC. There’s a decent chance the rules change again, especially if the H20 starts showing up in places it shouldn’t. For now, NVIDIA’s playing both sides — and walking a tightrope made of money and geopolitics. Stay tuned.

Rapid Fire

🇲🇾 Malaysia is stepping into the AI fight, not as a superpower but as the unlikely enforcer. In a clear show of support for the United States, Malaysia just announced that anyone exporting or moving American-made AI chips through the country will need a trade permit. Even more, companies and individuals must notify authorities thirty days before those chips go anywhere.

Why does this matter? Because the AI world knows that China has been smuggling American chips into the country for years. It is illegal, and it is a serious threat. In a tech arms race, giving your rival the tools they are banned from having is like handing over your blueprints mid-battle. And this is not about someone slipping a few NVIDIA chips into a suitcase. These are elaborate smuggling routes, often routed through third-party countries. Malaysia just blocked one of them.

🚗 Nine years after Elon said Teslas would come to India, it finally happened. Tesla just opened its first location in Mumbai. You can now buy a Model Y for just under seventy grand. That is almost twenty-five thousand more than in the United States. The reason? Tariffs. Lots of them.

But Tesla is not trying to take over the Indian market just yet. This looks more like a quiet toe-dip than a real push. Analysts are calling it a soft power move. Demand is still limited, and Tesla is not about to reshuffle its entire global production strategy to chase early adopters in a country where EV infrastructure is still getting off the ground.

That said, there is a long-term play here. India is serious about going electric, and its relationship with the United States is warming up. If the right incentives show up, think tax breaks, land deals, local battery supply, Tesla might actually build something. For now, the Model Y is a status symbol for rich tech bros in Mumbai and a reminder that Tesla wants to be everywhere, even if it is just window shopping for now.

🪨 Apple just signed a 500 million dollar deal with MP Materials, a Pentagon backed supplier of rare earth magnets used in iPhones, AirPods, and other devices. The magnets will be produced in Texas using recycled materials from MP’s California site, with Apple prepaying 200 million dollars to secure supply starting in 2027. The move comes as Apple faces political pressure to shift production out of China and invest more in domestic manufacturing.

This deal is about more than just magnets. It signals a broader shift in tech supply chains as companies look to reduce reliance on foreign materials and get ahead of trade disruptions. For Apple, it strengthens ties in Washington and reinforces its 500 billion dollar commitment to U.S. investment. For the industry, it could be a preview of what’s next.

Tech Radar

Last week I mentioned how YouTube finally started cracking down on AI slop by demonetizing low-effort garbage. Good for them. But the real surprise? Facebook, the king of AI slop, just decided to step in. If you’ve spent more than three minutes on Facebook lately, you know what I’m talking about. Your feed turns into an AI wasteland almost instantly — junk videos, stolen posts, weird narration, all of it.

Now Meta’s saying enough. They’re rolling out new rules targeting accounts that steal content or pump out mass-produced AI junk. Ten million fake profiles already wiped, half a million more hit with spam penalties. And they’re not just limiting reach, they’re starting to link AI-slapped copies back to the original creators. Basically, if you’re ripping content and trying to cash in, Facebook’s about to tank your views and pull the plug on your payout.

This is big. Facebook let this problem explode, and now it’s scrambling to clean up the mess. Whether they actually care or are just copying YouTube, who knows. But if it sticks, it might be the first real shot at pushing quality over quantity again. And honestly? About time.

Recently Deployed

Germany is planning an “AI offensive” to make artificial intelligence a core part of its economy by 2030. A draft strategy from the country’s economy ministry outlines a goal to generate 10 percent of its GDP from AI-related industries and make the technology central to research across sectors. The German cabinet is expected to approve the plan by the end of July, as the country races to catch up with AI leaders like the United States and China.

The plan also includes coordinated efforts to build large-scale data processing centers, tapping into a 20 billion euro EU fund aimed at supporting AI infrastructure. Germany will work with industry, experts, and state governments to submit proposals by the end of this year. Alongside AI, the strategy sets out goals to expand quantum computing, including the development of two error-corrected quantum computers available for public use by 2030.

That’s a wrap.

Chips are back on the table, trade routes are tightening, and even Facebook’s pretending to care about content quality. The lines between business, politics, and tech are only getting blurrier. Fast. 

We’ll keep watching who bends, who breaks, and who’s just buying time. Catch you in the next one.