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US tech giants turn to Mexico to make AI gear, spurning China

Livemint

Livemint · 1y ago

US tech giants turn to Mexico to make AI gear, spurning China

Several major U.S. companies in the AI sector are urging their Taiwanese manufacturing partners, including Foxconn, to increase AI hardware production in Mexico. This move aims to decrease reliance on China and take advantage of the U.S.-Mexico-Canada Agreement (USMCA). Foxconn has invested $27 million in expanding its AI server production in Mexico and has already manufactured AI servers for major companies like Amazon, Google, Microsoft, and Nvidia. The rising presence of Taiwanese firms in Mexico is expected to reshape the country's industrial structure in the next decade, although challenges like crime and wage competition persist.

Related News

Amazon shuts down Shanghai AI research lab: FT report - The Economic Times

Economic Times

Economic Times · 1m ago

Amazon shuts down Shanghai AI research lab: FT report - The Economic Times

Amazon is closing its Shanghai AI lab amid rising US-China tensions, aligning with increased US scrutiny on American companies in China. This move is part of Amazon's global strategy to cut jobs, similar to actions by other tech giants like Microsoft and Meta, who are focusing more on artificial intelligence. The lab shutdown reflects strategic shifts in response to geopolitical challenges and broader industry trends towards AI reliance.

Back doors go both ways.

The Verge

The Verge · 28d ago

Back doors go both ways.

China's Cyberspace Administration has questioned Nvidia over "loopholes and backdoor" vulnerabilities in its H20 AI chips, designed for the Chinese market. This follows a previous antitrust investigation, as China seeks to boost its domestic chip industry. This scrutiny comes amid historical tensions, with the US previously raising security concerns about Chinese tech company Huawei. The situation may reflect broader competitive posturing between China and international tech giants like Nvidia.

Nvidia to have final say on strong earnings season for Big Tech

Economic Times

Economic Times · 3m ago

Nvidia to have final say on strong earnings season for Big Tech

Nvidia's upcoming earnings report will mark the final test in a tech-driven market rally, with shares climbing 40% since April. As other tech giants report resilient outlooks amid uncertain tariffs, Nvidia's results will focus on supply issues with its Blackwell chips and profit margins. US export restrictions to China and investment pledges for AI computing add complexity. Despite recent share rebounds, valuation remains lower relative to anticipated earnings. Investors remain optimistic about Nvidia’s AI-market potential.

FCC head Brendan Carr tells Europe to get on board with Starlink

Arstechnica

Arstechnica · 4m ago

FCC head Brendan Carr tells Europe to get on board with Starlink

FCC Chair Brendan Carr urged Europe to align with US technology, particularly Starlink, amid growing concerns over Chinese influence. Carr criticized EU regulators for their bias against US tech companies and warned of the geopolitical divide between the West and China in AI and satellite tech. He emphasized the need for European countries to make strategic decisions regarding technology partnerships, highlighting the security implications of aligning with Chinese tech alternatives.

Nvidia CEO says will balance compliance and tech advances under Trump

Economic Times

Economic Times · 9m ago

Nvidia CEO says will balance compliance and tech advances under Trump

Nvidia CEO, Jensen Huang, has stated that the company will prioritize both legal compliance and technological advancements under the new Trump administration. Despite potential US-China tensions, Huang remains confident in the global advancement of artificial intelligence. The Biden administration has already imposed restrictions on Nvidia's AI chip sales to China. Huang emphasizes the importance of open science and research in AI, praising China's contributions to AI technology. Nvidia's technology is in high demand globally, as tech giants invest heavily in their AI models and computing capabilities. The company recently surpassed Apple to become the world's highest valued company.

How ‘China toys’ are changing the rules of AI game

Economic Times

Economic Times · 6m ago

How ‘China toys’ are changing the rules of AI game

China is rapidly advancing in the AI sector, releasing new models like Kimi AI and OmniHuman-1, which outperform global counterparts. Despite U.S. chip supply bans, China ranks second in AI model production, with key contributions from tech giants like Alibaba and Tencent. This surge mirrors China’s smartphone industry disruption, but geopolitical issues may limit their global impact. India, among other nations, is cautious due to security concerns, but holds potential to develop its own AI models.

Nvidia discloses more China risks, but CEO Huang praises Trump

Economic Times

Economic Times · 3m ago

Nvidia discloses more China risks, but CEO Huang praises Trump

Nvidia reported a 69% sales growth amid US-China tech conflicts, highlighting new risks from potential US regulation changes affecting its AI business in China. CEO Jensen Huang praised former President Trump’s stance on US tech leadership but criticized recent export curbs impacting Nvidia's sales. Despite these challenges, Nvidia projected strong future sales growth and emphasized maintaining US platforms’ dominance in AI. The company sees potential in global partnerships, with strong investor confidence boosting its market value.

The US is firing back again in the great China chip wars

Business Insider

Business Insider · 1y ago

The US is firing back again in the great China chip wars

The US is ramping up its actions against China in the ongoing chip battle between the two countries. The Biden administration is reportedly considering imposing sanctions on Chinese semiconductor firms connected to Huawei Technologies. At the same time, the US government is set to announce $8.5 billion in grants to Intel for the construction and expansion of chip facilities across the country. These moves are part of the US's efforts to restrict China's chip industry while boosting its own semiconductor manufacturing and AI capabilities. China, in turn, is encouraging its EV makers to prioritize local chipmakers over US ones.

TN CM visits Apple, Microsoft offices in US; inks pact with Google for AI lab

YourStory

YourStory · 12m ago

TN CM visits Apple, Microsoft offices in US; inks pact with Google for AI lab

Tamil Nadu Chief Minister M K Stalin visited the offices of Apple, Google, and Microsoft during his US visit to attract investments to the state. He discussed opportunities for investment and partnerships with the tech giants. A pact to skill two million youngsters in AI was signed with Google under the 'Naan Mudhalvan' scheme. The Chief Minister expressed his determination to strengthen these partnerships and make Tamil Nadu a key growth engine in Asia. Tamil Nadu aims to become a hub for technology and manufacturing and a leader in AI.

Oracle Layoffs 2025: US & India OCI Teams Cut Amid AI Push

StartupTalky

StartupTalky · 14d ago

Oracle Layoffs 2025: US & India OCI Teams Cut Amid AI Push

Oracle has laid off about 10% of its Indian workforce as part of a global restructuring effort, reportedly influenced by US policy changes under President Trump to reduce outsourcing. The layoffs primarily affect Oracle Cloud Infrastructure teams in India and the US, with notable cuts in Canada and Mexico as well. Despite job losses, Oracle is heavily investing in AI operations and aggressively hiring in other regions, aligning with a broader tech industry trend prioritizing AI infrastructure.

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