NVIDIA and AMD will resume sales of modified, lower-performance AI chips to China after U.S. government assurances, balancing national security with economic competitiveness amid broader trade negotiations. Meanwhile, regulatory clarity in crypto, Nextdoor’s app redesign for local engagement, and Cognition’s acquisition of Windsurf highlight ongoing shifts in technology markets and innovation strategies.
NVIDIA and AMD are set to resume sales of certain AI chips to China following assurances from the U.S. government that licenses and approvals will be secured. This development comes shortly after NVIDIA CEO Jensen Huang met privately with the White House, advocating that current U.S. export controls have hindered competitiveness and risk ceding the Chinese market to rivals like Huawei. The chips to be sold are modified, lower-performance versions designed to comply with national security restrictions, aiming to prevent Huawei from dominating the Chinese AI market and potentially exporting its technology globally. This move is part of broader trade negotiations between the U.S. and China, where chip export controls have been used as bargaining chips to secure other trade concessions, including rare earth exports.
The Biden administration maintains a nuanced policy that restricts the sale of state-of-the-art semiconductors to China but allows sales of older, heavily deprecated chips like NVIDIA’s H20. This approach is intended to balance national security concerns with economic competitiveness, ensuring American companies can compete globally without handing over market share to Chinese firms. White House AI and crypto advisor David Sachs emphasized the importance of maintaining American technology as the global standard, likening it to the U.S. dollar’s role as the world reserve currency. The administration is also focused on enabling energy production to support the surging demand from AI data centers, with Pennsylvania playing a key role due to its abundant natural gas resources.
In the crypto space, investigations into Poly Market for allegedly accepting trades from U.S.-based users have been dismissed, signaling a shift toward regulatory clarity and stability. Industry experts see this as part of a broader tectonic shift where bipartisan legislative momentum is building to regulate stablecoins and provide clearer frameworks for crypto businesses. This regulatory progress is expected to encourage institutional capital to enter the crypto market, which has been held back by uncertainty and complex investigations. The upcoming House vote on stablecoin regulation is anticipated to pass, marking a significant step toward formal oversight of centralized crypto intermediaries.
Nextdoor, the neighborhood networking service, has launched a redesigned app aimed at increasing user engagement by focusing on safety alerts, local news, and trusted recommendations. CEO Nirav Tolia highlighted the company’s ambition to become a daily habit for users, integrating local news as a critical component to strengthen community ties. Unlike other social platforms pulling back from news, Nextdoor is inviting local publishers to distribute content on its platform, aiming to become an indispensable neighborhood network. The company plans to grow organically and through potential acquisitions but remains focused on operating as an independent entity.
Finally, in AI startup news, Cognition has agreed to acquire the remainder of Windsurf, combining Windsurf’s leading integrated development environment (IDE) with Cognition’s software agent technology. Both companies share an enterprise focus and complementary products that accelerate software engineering productivity. The deal, completed swiftly after Google’s licensing changes, aims to create a stronger combined team and product offering, with major financial institutions already adopting Cognition’s technology. The acquisition reflects a new model in the AI market where strategic fits and rapid integration are prioritized to maintain competitive advantage and innovation momentum.