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  • Trump Says Apple and Intel Will Partner on U.S. Chip Design and Manufacturing

    Trump Says Apple and Intel Will Partner on U.S. Chip Design and Manufacturing

    President Donald Trump has announced that Apple will partner with Intel to design and manufacture chips in the United States, a move that could significantly strengthen domestic semiconductor production and reduce reliance on overseas suppliers.

    In a post on Truth Social, Trump said Apple had agreed to work with Intel on future chip development and manufacturing operations within the United States. The announcement marks a major milestone in Washington’s efforts to expand domestic technology production and secure critical supply chains.

    The partnership would provide Apple with additional manufacturing capacity as demand for advanced semiconductors continues to surge. The technology giant currently relies heavily on Taiwan Semiconductor Manufacturing Company (TSMC), whose cutting-edge facilities are increasingly occupied by artificial intelligence chip orders from companies such as Nvidia and AMD.

    Investors reacted positively to the news, sending Intel shares up approximately 6.5% in premarket trading. The company’s stock has already surged roughly threefold this year amid growing optimism about its manufacturing business and government-backed expansion plans.

    Reports earlier this year indicated that Apple and Intel had been engaged in discussions for more than a year regarding a potential manufacturing agreement. According to previous reports, Intel reached a preliminary understanding to produce certain chips for Apple, laying the groundwork for a broader strategic partnership.

    Neither Apple nor Intel immediately commented on the announcement outside normal business hours.

    For Intel, securing Apple as a customer would represent a significant boost to its contract manufacturing ambitions. The company has spent years attempting to regain competitiveness against TSMC, which dominates the global market for advanced semiconductor production.

    A long-term agreement with Apple would not only provide Intel with a steady stream of demand from one of the world’s largest consumer electronics companies but could also enhance confidence in Intel’s foundry business as it seeks to attract additional customers.

    The development comes shortly after Intel announced that its next-generation 18A manufacturing technology has entered initial production. The company has stated that demand for its processors and manufacturing services remains strong as the semiconductor industry experiences unprecedented growth driven by artificial intelligence applications.

    The potential Apple-Intel collaboration also aligns with broader U.S. government efforts to strengthen domestic semiconductor manufacturing. Last year, the Trump administration acquired a 10% stake in Intel and announced plans to invest approximately $10 billion in the company to support the construction and expansion of American chip manufacturing facilities.

    Trump has repeatedly emphasized the importance of rebuilding U.S. technology production capabilities and reducing dependence on foreign suppliers, particularly in sectors considered critical to national security and economic competitiveness.

    The administration has also expanded initiatives aimed at securing supply chains for semiconductors and critical minerals, including direct investments and equity stakes in strategic companies.

    If finalized, the Apple-Intel partnership could become one of the most significant semiconductor agreements in recent years, helping reshape the U.S. technology manufacturing landscape while supporting Apple’s efforts to diversify its chip production network.

  • AI’s Elite Celebrate in Washington as Public Skepticism Over Data Centers and Chatbots Grows

    AI’s Elite Celebrate in Washington as Public Skepticism Over Data Centers and Chatbots Grows

    The growing divide between the artificial intelligence industry and public opinion was on full display in Washington, D.C., as political leaders, tech executives, military officials, and investors gathered for the second annual AI Honors gala to celebrate advancements in AI while acknowledging increasing public concerns about the technology’s impact.

    Held at the Waldorf Astoria, just steps from the White House, the black-tie event featured a blend of glamour and technology, including a humanoid robot, drone demonstrations, and appearances by influential figures from government, business, and academia. Organized by the Washington AI Network and backed by major technology companies such as Anthropic, Microsoft, and Meta, the gala highlighted AI’s growing influence across sectors ranging from healthcare and education to defense and energy.

    Among the attendees were Energy Secretary Chris Wright, National Cyber Director Sean Cairncross, and Centers for Medicare & Medicaid Services Administrator Mehmet Oz. Many participants expressed confidence that artificial intelligence would deliver transformative benefits despite mounting public skepticism.

    “AI is a transformative technology that’s going to enable so many advancements, from healthcare to engineering to energy production to security,” Wright said, arguing that the technology’s positive impact on society would ultimately outweigh current concerns.

    The optimism inside the ballroom contrasted sharply with broader public sentiment. Recent polling cited during the event showed that a majority of Americans believe the risks associated with AI outweigh its benefits. Concerns range from job displacement and privacy issues to the rapid expansion of data centers and the use of AI-generated deepfakes in politics.

    Investor and entrepreneur Kevin O’Leary, who received the AI Global Ambassador Award, criticized what he described as misconceptions surrounding AI. He argued that fears about the technology often overshadow its potential to advance medical research, improve education, boost economic productivity, and strengthen national defense.

    O’Leary also addressed resistance to large-scale data center projects, including opposition to his own efforts to develop one of the largest data center facilities in Utah. He suggested that communities’ concerns stem partly from outdated information and emphasized the need for sufficient energy generation to prevent electricity rate increases.

    The event also featured voices urging caution and inclusivity. Michele Jawando, CEO of the nonprofit Omidyar Network, warned that many Americans fear being left behind by rapid technological change. She challenged technology leaders and policymakers to consider who is excluded from conversations about AI development and to ensure broader participation in shaping its future.

    Diplomatic and ethical concerns were also raised. Archbishop Gabriele Caccia, the Vatican’s incoming ambassador to Washington, emphasized that AI development should be guided by human dignity and the common good. His remarks underscored growing international calls for ethical oversight as AI systems become more powerful and widespread.

    Military applications of AI were another prominent theme. Army Secretary Daniel Driscoll highlighted how artificial intelligence is helping the U.S. military accelerate decision-making and operational capabilities. He emphasized collaboration between the military and private-sector AI developers to enhance battlefield effectiveness and maintain strategic advantages over potential adversaries.

    Polling released during the gala painted a more cautious picture of public attitudes. According to research presented by the Washington AI Network and Morning Consult, AI ranked poorly in trust comparisons with other American institutions. The survey also found that 70% of Americans are concerned about AI’s influence on upcoming elections, particularly regarding deepfakes and highly targeted political advertising.

    Despite these concerns, the AI Honors gala maintained a celebratory tone, recognizing influential figures in the industry, including O’Leary, Jawando, Senators Mark Warner and Mike Rounds, Nvidia co-founder Chris Malachowsky, University of California, Berkeley research leader Katherine Yelick, and Major General Patrick Ellis.

    The event highlighted a growing challenge for the AI industry: while leaders continue to champion the technology’s transformative potential, public skepticism remains widespread. As AI becomes increasingly integrated into daily life, bridging that trust gap may prove just as important as the technological breakthroughs themselves.

  • Xi Jinping Warns Trump Taiwan Conflict Could Threaten U.S.-China Relations During Beijing Summit

    Xi Jinping Warns Trump Taiwan Conflict Could Threaten U.S.-China Relations During Beijing Summit

    Chinese President Xi Jinping warned President Donald Trump that tensions over Taiwan could trigger “clashes and even conflicts” between China and the United States as both leaders held high-stakes talks in Beijing focused on trade, global security and the ongoing Iran war.

    The warning came during the opening day of a major two-day summit at Beijing’s Great Hall of the People, where Xi and Trump met face-to-face amid rising geopolitical tensions and efforts to stabilize relations between the world’s two largest economies.

    According to China’s foreign ministry, Xi told Trump that Taiwan remains the most sensitive issue in U.S.-China relations and warned that mishandling the matter could seriously damage ties between both nations.

    “If the issue is handled properly, the relationship can remain generally stable,” Xi reportedly said. “Otherwise, the two countries will have clashes and even conflicts, putting the entire relationship in great jeopardy.”

    Taiwan has remained a major source of friction between Washington and Beijing, with China continuing to claim the self-governing island as part of its territory and refusing to rule out the use of force to take control. The Trump administration has repeatedly stated that America’s Taiwan policy remains unchanged despite concerns from lawmakers about possible concessions during the summit.

    While China’s official summary of the meeting highlighted Taiwan extensively, the White House focused more on economic cooperation and the Iran conflict in its own account of the talks. U.S. officials described the meeting as productive and aimed at strengthening bilateral ties following months of trade tensions.

    Secretary of State Marco Rubio said Trump did not request assistance from China regarding Iran, despite Beijing’s close ties with Tehran. However, Trump later revealed that Xi expressed interest in helping resolve tensions in the Middle East and maintaining stability in the Strait of Hormuz, a critical global oil shipping route.

    The summit also featured discussions on trade relations, with Xi reiterating that “trade wars have no winner” while welcoming progress made during recent economic negotiations between both countries.

    Trump praised his relationship with Xi during opening remarks, calling the Chinese leader “a great leader” and emphasizing the importance of cooperation between Washington and Beijing.

    “We’ve gotten along when there were difficulties, we worked it out,” Trump said.

    Xi also stressed the global importance of U.S.-China relations, saying both nations must avoid falling into the “Thucydides Trap,” a theory describing conflict between rising and existing global powers.

    The Beijing summit included elaborate ceremonies, a visit to the historic Temple of Heaven and a lavish state banquet attended by top American business leaders, including Tesla CEO Elon Musk, Apple CEO Tim Cook and Nvidia CEO Jensen Huang.

    Trump formally invited Xi to visit the United States in September as both leaders pledged continued dialogue despite growing strategic competition over Taiwan, trade and global security issues.

  • OpenAI Valued at $157 Billion After Securing $6.6 Billion in Latest Funding Round

    OpenAI Valued at $157 Billion After Securing $6.6 Billion in Latest Funding Round

    OpenAI has reached a staggering post-money valuation of $157 billion following its latest funding round, which secured $6.6 billion. The funding round was led by Thrive Capital and included contributions from prominent investors such as Microsoft, Nvidia, and SoftBank.

    Major Boost to AI Research and Development

    OpenAI plans to utilize this significant capital infusion to strengthen its position as a leader in artificial intelligence research. The company aims to expand its computing infrastructure and enhance its tools for solving complex global challenges. In a statement, OpenAI expressed, “The new funding will allow us to double down on our leadership in frontier AI research, increase compute capacity, and continue building tools that help people solve hard problems.”

    Backed by Industry Giants

    Thrive Capital spearheaded the round, with key investors like Microsoft and Nvidia playing pivotal roles in OpenAI’s rapid growth. These partnerships underscore the industry’s belief in OpenAI’s future potential, as AI continues to transform various sectors.

    Skyrocketing Valuation and User Growth

    OpenAI’s valuation has seen exponential growth, from $29 billion in 2023 to $80 billion in early 2024, reflecting the company’s stronghold in AI development. The surge has been driven by the widespread adoption of its flagship product, ChatGPT, which boasts 250 million weekly active users, including 11 million ChatGPT Plus subscribers and 1 million business users.

    OpenAI anticipates revenues of $11.6 billion by 2025, up from $3.7 billion projected for 2024. Despite this, the company faces operational challenges, with projected losses of $5 billion this year due to high research and development costs.

    Challenges on the Horizon

    Despite its rapid growth, OpenAI faces significant financial hurdles. The high operational costs of running its AI models, particularly the reliance on Nvidia’s cutting-edge GPUs, contribute to the projected $5 billion loss in 2024. These GPUs are essential for training and running AI systems but come with steep costs, challenging OpenAI’s long-term financial sustainability.

    The company also faces internal changes, with the recent departure of key executives, including CTO Mira Murati and research chief Bob McGrew.

    OpenAI’s ability to balance its soaring growth with mounting financial challenges will be crucial as it navigates the competitive AI landscape.

    Source: Reuters

  • Wall St Week Ahead: Expected US Rate Cuts Have Investors Looking Beyond Big Tech

     

    NEW YORK, July 12 (Reuters) – Looming U.S. interest rate cuts are presenting investors with a tough choice: stick with the Big Tech stocks that have driven returns for more than a year, or turn to less-loved areas of the market that could benefit from easing monetary policy.

    Owning massive tech and growth companies such as Nvidia (NVDA.O), Microsoft (MSFT.O), and Amazon (AMZN.O) has been a hugely profitable strategy for investors since early 2023, even as the stocks’ market dominance has drawn comparisons to the dot-com bubble of the late 1990s.

    That calculus may start to change following Thursday’s surprisingly cool inflation report, which solidified expectations for a near-term rate cut by the Federal Reserve. Lower rates are seen as beneficial to many corners of the market whose performance has lagged this year, including small-caps, real estate, and economically sensitive areas such as industrials.

    Market action at the end of the week showed a nascent shift may have already begun. The tech-heavy Nasdaq 100 (.NDX) suffered its biggest drop of the year on Thursday, while the small-cap Russell 2000 (.RUT) had its best day of 2024. The Nasdaq 100 has gained about 21% this year, while the Russell 2000 is up just 6%.

    Also on Thursday, the equal-weight S&P 500 (.SPXEW) – a proxy for the average stock in the benchmark index – had its biggest relative gain since 2020 over the S&P 500, which is more heavily influenced by the largest tech and growth stocks. That chipped away at the huge advantage for the S&P 500, which remains up about 18% in 2024 against a 6.7% gain for the equal-weight index.

    “The trade got too one-sided and we’re seeing some reversal of this,” said Walter Todd, chief investment officer at Greenwood Capital.

    Small caps and the equal-weight S&P 500 extended their gains on Friday even as tech stocks rebounded. Investors cautioned that the moves could be a snap-back after the disparity in performance between tech and other market sectors reached extremes. Further, recent periods of market broadening have been short-lived: for example, small caps surged at the end of 2023, when investors believed rate cuts were imminent, only to lag in the following months.

    Source: APNews

  • Asian Stock Markets Mixed Following Wall Street’s New Record Highs – The Associated Press

    Asian Stock Markets Mixed Following Wall Street’s New Record Highs – The Associated Press

    Currency traders pass by a screen displaying the Korea Composite Stock Price Index (KOSPI) and the exchange rate between the U.S. dollar and South Korean won at the KEB Hana Bank headquarters’ foreign exchange dealing room in Seoul, South Korea, on Wednesday, June 19, 2024. (AP Photo/Ahn Young-joon)

    Currency traders monitor screens near a display showing the KOSPI and the exchange rate between the U.S. dollar and South Korean won at the KEB Hana Bank headquarters’ foreign exchange dealing room in Seoul, South Korea, on Wednesday, June 19, 2024. (AP Photo/Ahn Young-joon)

    The New York Stock Exchange is seen on Tuesday, June 18, 2024, in New York. Shares mostly rose in Europe and Asia after U.S. stocks hit new records, driven by gains in technology companies. (AP Photo/Peter Morgan)

    Asian markets were mixed on Wednesday following U.S. benchmarks setting more records amid signs of a slowing U.S. economy that hasn’t yet fallen into recession. U.S. futures were mixed, and oil prices remained steady.

    In Tokyo, the Nikkei 225 index increased by 0.2% to 38,575.54, as Japan’s May trade data showed a 13.5% rise in exports and a 9.5% increase in imports compared to the previous year, driven by higher prices and a weaker yen. Minutes from the Bank of Japan’s latest policy meeting revealed discussions about whether the yen’s weakness could drive inflation higher, with Governor Kazuo Ueda hinting at a potential rate hike depending on economic data.

    The Hang Seng in Hong Kong rose 2% to 18,264.51, while the Shanghai Composite index fell 0.3% to 3,020.03 after China’s securities regulator announced plans to enhance oversight of financial activities to mitigate risks. In Sydney, the S&P/ASX 200 dipped 0.2% to 7,764.30. South Korea’s Kospi surged 1% to 2,792.14. Taiwan’s Taiex climbed 1.8%, while Bangkok’s SET decreased by 0.1%.

    On Tuesday, the S&P 500 gained 0.3% to 5,487.03, marking its 31st record high this year. The Nasdaq composite rose by less than 0.1% to 17,862.23, and the Dow Jones Industrial Average increased by 0.2% to 38,834.86.

    Nvidia continued to be a standout performer, with its shares rising 3.5%, contributing significantly to the S&P 500’s gains. Nvidia’s chips are key in AI development, with demand skyrocketing, leading to tripling revenues each quarter and soaring profits. Its stock has surged nearly 174% this year, accounting for almost a third of the S&P 500’s gains through May. However, the heavy reliance on a few top performers could indicate a fragile market.

    Retail sales in May rose by 0.1%, below expectations, with April sales revised downward by 0.2%. March and February saw rises of 0.6% and 0.9%, respectively, while January sales fell by 1.1% due to adverse weather. The weaker data might suggest cracks in household spending, the main driver of the U.S. economy, as inflation remains high, particularly affecting lower-income households.

    Despite this, a Bank of America survey showed global fund managers’ optimism at its highest since autumn 2021, with significant stock allocations and less cash hoarding, and fewer predictions of a severe recession.

    In early Wednesday trading, U.S. benchmark crude oil remained steady at $80.71 per barrel, while Brent crude rose slightly to $85.35 per barrel. The dollar strengthened to 157.87 Japanese yen from 156.87 yen, and the euro slightly declined to $1.0737 from $1.0740.

    AP Business Writer Stan Choe contributed to this report.

    source: apnews.com