Tag Archives: Sectors & Industries

Texas authorities have made multiple arrests in an NVIDIA GPU smuggling operation

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The Southern District of Texas announced the seizure of more than $50 million in NVIDIA GPUs bound for China in violation of US export laws. Authorities arrested two businessmen, one of them the owner of a Houston company, accused of smuggling the chips used to train and run AI models.

“Operation Gatekeeper has exposed a sophisticated smuggling network that threatens our Nation’s security by funneling cutting-edge AI technology to those who would use it against American interests,” said US Attorney Nicholas J. Ganjei. The investigation had been ongoing since at least last year and centers on the illicit export or attempted export of at least $160 million worth of NVIDIA H100 and H200 GPUs. The H200 chips are the very same that the Trump administration announced a revenue-sharing agreement for today, allowing NVIDIA to sell them to “approved customers” in China.

The smuggling operation used a combination of falsified paperwork, purposefully misclassified goods, straw purchasers and even removing the NVIDIA labels on GPUs to ship them to both mainland China and Hong Kong. The conspirators face between 10 and 20 years in prison if convicted.

The H200 chips in question are more powerful than the H20 chip specifically designed to comply with US export restrictions. Production of the H20, however, was reportedly halted shortly after the Trump administration struck a revenue-sharing deal with NVIDIA, after which China began heavily discouraging local companies from buying them.

Illicit sales to China are nothing new and occur against the backdrop of an AI technology race and tight export controls. NVIDIA is still prevented from selling its highest-end Blackwell chips to China, with the US hoping to keep an edge over foreign competition.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/texas-authorities-have-made-multiple-arrests-in-an-nvidia-gpu-smuggling-operation-144749526.html?src=rss

Meta and Google delay undersea cables over security concerns

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Meta and Google are facing delays with long-promised undersea cable projects, according to a report by Bloomberg. A Meta spokesperson blames the delays on a "range of operational factors, regulatory concerns and geopolitical risk."

Meta's 2Africa subsea cable system is supposed to wrap around the African continent to deliver fiber internet to the region. It's also intended to connect Europe with Asia and Africa. The 28,000-mile project was first announced all the way back in 2020.

However, the company has experienced issues when running cable through the southern portion of the Red Sea. A whole section has yet to be built due to regional conflicts and difficulty obtaining certain permits from local governments.

The Google-backed Blue-Raman intercontinental cable system has also been delayed in the region, after first being announced in 2021. This system was originally supposed to go live in 2024, connecting countries like France, Italy, India, Israel, Jordan, Saudi Arabia and Oman. The company has not provided an updated timetable.

These are just two examples, as plenty of other fiber internet cables have yet to go live in the Red Sea. Builders have experienced repeated missile attacks, allegedly by the Iran-backed Houthis, which forced them on lengthy detours and disrupted work.

"They are not only unable to monetize their investments by sending data over these cables, but they are forced to purchase capacity on alternative cables to meet their near-term requirements," said Alan Mauldin, research director at telecommunications firm Telegeography.

It's worth noting that these delays shouldn't impact two previously announced undersea fiber projects by Google and Meta. Google is building a cable to connect Togo to Europe, which will wrap around the Atlantic side. Meta is building a gigantic cable system that looks to connect five continents, which isn't crossing the Red Sea.

Undersea cables are a great way to give the various regions of the world fiber internet, but there are some downsides. We've already covered geopolitical concerns when it comes to building, but the installed cables can tear and break. This is typically caused by natural disasters, extreme weather and human activities like fishing.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/meta-and-google-delay-undersea-cables-over-security-concerns-163508037.html?src=rss

Tesla shareholders approve Elon Musk’s $1 trillion compensation package

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Tesla’s shareholders have voted in favor of a compensation plan that could see CEO Elon Musk become the world's first trillionaire. The potential incentives were laid out in September, and the company's shareholders have agreed to allow this all-or-nothing package for its chief exec, who spent the first half of this year decimating the US federal government rather than working on any Tesla-adjacent projects. 

The compensation plan lists several targets that the company must reach for Musk to reap the vast rewards. Tesla must reach a market value of $8.5 trillion, compared with its current worth of about $1.4 billion. Other requirements are metrics-based, such as selling a million robots with humanoid qualities, while others are strategic, such as establishing a succession plan for future Tesla leadership. Musk also has a lot of other irons in the fire across SpaceX and xAI, so the incentives may be an effort to keep the CEO focused on generating more money for this specific group of supporters.

Presently, most times the Tesla name makes headlines, it's not for good press. The company coupled record-high revenue with tumbling profits in its Q3 2025 financial results. Just during October, it was the subject of multiple investigations by the National Highway Traffic Safety Administration and incurred the wrath of the California Department of Insurance.

This article originally appeared on Engadget at https://www.engadget.com/tesla-shareholders-approve-elon-musks-1-trillion-compensation-package-233217531.html?src=rss

TSMC has reportedly cut off a company that sent its chips to Huawei

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Chipmaking giant Taiwan Semiconductor Manufacturing Co. (TSMC) halted semiconductor shipments to a client that may have illegally sent the chips on to Huawei, according to Bloomberg. That follows reports that TSMC had informed the US government that its chips appeared in one of Huawei's AI accelerators. There's no confirmation on whether the company was acting on Huawei's behalf or where it's based. 

TSMC cut off shipments to the entity in mid-October after it noticed that the same chips had appeared in Huawei products. It notified the US and Taiwanese governments of this latest development and is further probing the matter, Bloomberg's sources said. They asked not to be identified given the sensitive nature of the matter. 

Yesterday, Bloomberg and The Financial Times reported that Canadian research firm TechInsights had spotted TSMC chips in a Huawei AI accelerator, a clear violation of US sanctions. That brought into question how Huawei had obtained those chips, with a third-party company being a strong possibility. 

In 2020, the US Commerce Department implemented trade restrictions against Huawei that barred the company from obtaining chips made by foreign firms. Earlier this year, the US government further tightened restrictions by revoking its licenses with Intel and Qualcomm to produce chips for its devices.

In a previous statement provided to the Commerce Department, TSMC denied any working relationship with Huawei since mid-September of 2020. TSMC also told Bloomberg that it hasn’t produced any chips for Huawei due to the amended restrictions. For its part, Huawei said in a statement yesterday that it hasn't used any chips sourced from TSMC since the 2020 restrictions were enacted. 

Rather than using TSMC, Huawei was supposedly obtaining chips from a local partner, China's Semiconductor Manufacturing International Corp. (SMIC) — including a 7-nanometer processor for Huawei smartphones. However, US officials doubted that SMIC could build such chips at sufficient scale to meet market demand. 

This article originally appeared on Engadget at https://www.engadget.com/mobile/smartphones/tsmc-has-reportedly-cut-off-a-company-that-sent-its-chips-to-huawei-124900342.html?src=rss

GM and Hyundai plan to work together on cars and clean-energy tech

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It's not totally uncommon for major automakers to buddy up on projects, share their knowledge and try to find ideas that benefit all parties. The latest to snuggle up are GM and Hyundai. Through their collaboration, they hope to improve their competitiveness while trying to reduce the costs and risks involved with developing new tech.

The two companies have signed a non-binding agreement and they'll immediately start assessing joint opportunities and working toward binding agreements. According to GM CEO Mary Barra, the aim "is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently."

Projects that the two sides are looking at working on together include co-development and production of passenger and commercial vehicles, internal combustion engines and electric and hydrogen clean energy tech. They'll also explore supply chain efficiency — combined sourcing for the likes of battery raw materials and steel could save them both a bundle. GM and Hyundai will look into ways that they can harness their scale and knowhow to do all of this while reducing costs.

It might be a while before we see any fruits of these labors, but it's smart for automakers to team up and try to reduce costs, especially with the EV market being somewhat dicey. Ford's EV division, for instance, is on track to lose around $5 billion this year.

There are other types of partnerships between automakers, of course. In June, Volkswagen and Rivian teamed up, with the former expected to invest $3 billion into the EV company and a further $2 billion on a joint venture between the two sides.

This article originally appeared on Engadget at https://www.engadget.com/transportation/evs/gm-and-hyundai-plan-to-work-together-on-cars-and-clean-energy-tech-162625133.html?src=rss

Tesla says ‘Full Self-Driving’ will be ready for Europe and China in early 2025

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Tesla has tweeted its roadmap for the remaining months of 2024 and early 2025, revealing that Full Self-Driving could be available in Europe and China in the first quarter of next year, if it gets the proper approval from each region's respective regulators. Company chief Elon Musk previously said that he expects to receive regulator clearance from the regions by the end of the year. The Wall Street Journal reported in April that authorities in China had already tentatively approved the launch of Tesla's Full Self-Driving software in their country. It's not quite clear where the company stands with European Union regulators at the moment. 

In a response to the original post, Musk added that he's hoping for FSD to be approved in Right-Hand Drive markets by the end of the first quarter or by early second quarter next year. Since he's presumably talking about RHD markets in Europe and China, then he's pertaining to the UK, Hong Kong and Macau. 

The automaker has also revealed that Full Self-Driving will be available for Cybertrucks sometime this month, along with the Autopark capability. In October, Tesla is adding unpark, park and reverse functions to FSD, as well. The FSD software isn't free, and buyers will have to pay to be able to unlock its semi-autonomous driver assistance capabilities. In the US, Tesla owners can buy the software outright for $8,000, though they can also pay a $99-per-month subscription fee for the supervised version of the feature. 

This article originally appeared on Engadget at https://www.engadget.com/transportation/evs/tesla-says-full-self-driving-will-be-ready-for-europe-and-china-in-early-2025-033012374.html?src=rss

Verizon is reportedly near a deal to buy broadband provider Frontier Communications

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Verizon is reportedly near a deal to buy fiber provider Frontier Communications. On Wednesday, The Wall Street Journal said that an announcement could come as early as this week, provided discussions don’t “hit any last-minute snags.”

Frontier has a market value of over $7 billion and provides broadband to around three million locations in 25 states. The company would help Verizon boost its Fios fiber network and better compete with AT&T. The carrier has seen slowing wireless revenue and views fiber investment as a growth area. Acquiring companies with existing infrastructure, like Frontier, is potentially less expensive and time-consuming than rolling out its own network.

Based in Dallas, Frontier is currently upgrading its copper landline system to fiber — enabling it to offer a 5Gbps symmetrical plan. The company filed for Chapter 11 bankruptcy in 2020. It pivoted to a “leaner business,” as the WSJ describes, before running into concerns that it would run out of money before it finishes its current upgrades.

The FTC sued the company in 2021 for misrepresenting its speeds. Under a 2022 settlement, Frontier was required to stop lying about its internet performance, dole out over $8.5 million and install fiber service in 60,000 California homes over four years.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/verizon-is-reportedly-near-a-deal-to-buy-broadband-provider-frontier-communications-210317747.html?src=rss

Canada follows the US by slapping a 100 percent tariff on Chinese EVs

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Canadians who have been mulling whether to snap up a Chinese EV may want to make a firm decision on that quickly. Prime Minister Justin Trudeau announced that, starting on October 1, the country will impose a 100 percent tariff on electric vehicles built in China. The White House established an identical levy in the US earlier this year.

The surtax will apply to electric cars, trucks, buses and delivery vans, as well as some hybrid models. Canada will also charge a 25 percent tariff on Chinese steel and aluminum starting on October 15.

According to the CBC, industry players had been pressuring the Canadian government to match the US tariff on Chinese EVs. Trudeau said that Canada is following suit to "level the playing field for Canadian workers" and help the domestic EV industry be more competitive.

"Because of our government's choices and the hard work of hundreds of thousands of Canadian auto workers, we are transforming Canada's automotive sector to be a global leader in building the vehicles of tomorrow," Trudeau said at a press conference. "But actors like China have chosen to give themselves an unfair advantage in the global marketplace, compromising the security of our critical industries and displacing dedicated Canadian auto and metal workers. So, we're taking action to address that."

This article originally appeared on Engadget at https://www.engadget.com/transportation/evs/canada-follows-the-us-by-slapping-a-100-percent-tariff-on-chinese-evs-140158558.html?src=rss

Amazon takes a new brick-and-mortar approach with a stake in Neiman Marcus

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Amazon changed the face of retail over the last 20 years but has failed miserably to make inroads in the luxury goods market. Now, it's trying something new. The online retailer has purchased a small stake in retailer Neiman Marcus and will reportedly provide data and logistics to Neiman and its new owner, Saks Fifth Avenue.

Yesterday, Saks Fifth Avenue and parent HBC announced the $2.65 billion acquisition of Neiman Marcus (which also owns Bergdorf Goodman), putting the largest US luxury retailers under the same roof, The Wall Street Journal reported. Amazon is a minority investor in the deal, which is still subject to regulatory approval.

"How do you future-proof a brand like Saks or Neimans or Bergdorf? You do that through technology," Saks CEO Marc Metrick told Bloomberg. To that end, Amazon will gather high-quality customer data, analyze it to offer more personalized options and improve logistics. 

Amazon has attempted to access the luxury retail market over the years, but the major brands want nothing to do with it. "We believe the business of Amazon does not fit with LVMH, full stop, and it does not fit with our brands," LVMH said back in 2016. The only place that LVMC (which owns Louis Vuitton, Dior, Givency and other labels) does business is in its own retail stores, at retailers like Neiman Marcus or on its own website.

In Europe, luxury brands won the right to block third-party sales of products online if they felt it damaged their image. In addition, the EU ruled in 2010 that brands with less than a 30 percent market share could prevent online retailers from selling their wares.

Amazon has tried to break into bricks-and-motor retail with varying degrees of success. Its ownership of Whole Foods is one positive example, but its cashierless Go stores have largely failed to take off.

With the acquisition of Neiman Marcus by Saks' parent HBC, Amazon is getting involved in an organization expected to do a combined $10 billion worth of annual sales. There's no word on the size of Amazon's investment, but it seems a relatively safe bet compared to the more radical brick-and-mortar experiments it's tried in the past.

This article originally appeared on Engadget at https://www.engadget.com/amazon-takes-a-new-brick-and-mortar-approach-with-a-stake-in-neiman-marcus-133019628.html?src=rss

Amazon takes a new brick-and-mortar approach with a stake in Neiman Marcus

Posted on by

Amazon changed the face of retail over the last 20 years but has failed miserably to make inroads in the luxury goods market. Now, it's trying something new. The online retailer has purchased a small stake in retailer Neiman Marcus and will reportedly provide data and logistics to Neiman and its new owner, Saks Fifth Avenue.

Yesterday, Saks Fifth Avenue and parent HBC announced the $2.65 billion acquisition of Neiman Marcus (which also owns Bergdorf Goodman), putting the largest US luxury retailers under the same roof, The Wall Street Journal reported. Amazon is a minority investor in the deal, which is still subject to regulatory approval.

"How do you future-proof a brand like Saks or Neimans or Bergdorf? You do that through technology," Saks CEO Marc Metrick told Bloomberg. To that end, Amazon will gather high-quality customer data, analyze it to offer more personalized options and improve logistics. 

Amazon has attempted to access the luxury retail market over the years, but the major brands want nothing to do with it. "We believe the business of Amazon does not fit with LVMH, full stop, and it does not fit with our brands," LVMH said back in 2016. The only place that LVMC (which owns Louis Vuitton, Dior, Givency and other labels) does business is in its own retail stores, at retailers like Neiman Marcus or on its own website.

In Europe, luxury brands won the right to block third-party sales of products online if they felt it damaged their image. In addition, the EU ruled in 2010 that brands with less than a 30 percent market share could prevent online retailers from selling their wares.

Amazon has tried to break into bricks-and-motor retail with varying degrees of success. Its ownership of Whole Foods is one positive example, but its cashierless Go stores have largely failed to take off.

With the acquisition of Neiman Marcus by Saks' parent HBC, Amazon is getting involved in an organization expected to do a combined $10 billion worth of annual sales. There's no word on the size of Amazon's investment, but it seems a relatively safe bet compared to the more radical brick-and-mortar experiments it's tried in the past.

This article originally appeared on Engadget at https://www.engadget.com/amazon-takes-a-new-brick-and-mortar-approach-with-a-stake-in-neiman-marcus-133019628.html?src=rss