Trump Administration Weighs Stricter Curbs on Nvidia’s China Sales

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The Trump administration is reportedly considering tightening restrictions on Nvidia’s sales of its H20 chips to China, according to sources familiar with the matter. These chips, designed to run artificial intelligence (AI) software, were developed to comply with existing U.S. restrictions on shipments to China, which were initially put in place during the Biden administration. The discussions, still in their early stages, have been ongoing for more than six months, with some elements of the conversation stemming from the previous administration’s stance on technology exports to China.

The potential move to limit Nvidia’s sales of these chips comes amid growing concerns about China’s progress in AI development. China’s recent launch of DeepSeek, an AI assistant that reportedly uses less data and costs significantly less than existing models, has raised alarms that China may be closing the gap on the U.S. in AI technology.

Nvidia has stated that it is “ready to work with the administration as it pursues its own approach to AI.” Following the news, Nvidia’s stock, which was already in decline, saw slight additional losses. The White House has not yet commented on the matter.

While the Biden administration previously enacted a broad set of restrictions barring AI chip exports to China and limiting shipments to other countries, certain AI chips like Nvidia’s H20 remain permissible for export. The potential tightening of these regulations underscores growing tensions over the global AI race and the strategic importance of controlling the flow of advanced technology.

 

NEC Considers Bid for Software Provider CSG Systems, Sources Reveal

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Japanese technology giant NEC Corp is exploring the possibility of acquiring CSG Systems, a U.S.-based software provider specializing in customer care and billing solutions for telecommunications companies. NEC has been in discussions with its advisers, including investment bankers at Morgan Stanley, about a potential offer for CSG, according to sources familiar with the matter. These sources, who requested anonymity due to the confidential nature of the talks, noted that the discussions are still in the early stages and there is no certainty a deal will proceed. Additionally, another bidder could emerge, or NEC might ultimately decide not to pursue the acquisition.

CSG, which is based in Englewood, Colorado, offers software and business services to telecom providers globally, focusing on areas like revenue management, customer experience, and payments. Its clientele includes major companies such as Comcast, Charter Communications, and Dish TV. News of the potential acquisition discussions led to a 14% jump in CSG’s stock price, bringing it to a 52-week high before some of those gains were pared back.

NEC and CSG both declined to comment on the reports, and Morgan Stanley did not respond to requests for comment. Despite facing challenges in maintaining market share, CSG reported a 3% increase in revenue for its most recent quarter, which reached $295.1 million, largely driven by strong performance in its customer experience and payments segments. CSG’s largest customer, Comcast, which accounts for 20% of its revenue, extended its contract with the company recently.

CSG has been under pressure as telecom giants aim to cut costs while focusing heavily on infrastructure investments for 5G deployment. Additionally, CSG’s chairman, Ron Cooper, announced that he will step down in May, with Marwan Fawaz, a seasoned technology executive, set to succeed him.

Founded in 1899, NEC has transitioned its focus from being the world’s largest semiconductor manufacturer to concentrating on IT services, cloud computing, artificial intelligence, and telecommunications equipment. The company currently has a market value of 3.67 trillion yen ($23.62 billion).

 

DeepSeek’s Chatbot Scores Low in NewsGuard Audit, Trails Western Rivals

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DeepSeek, a Chinese AI startup, saw its chatbot underperform in a recent NewsGuard audit, achieving just 17% accuracy in delivering accurate news and information. The audit compared DeepSeek’s chatbot with Western AI models, including OpenAI’s ChatGPT and Google’s Gemini, ranking it tenth out of eleven. DeepSeek’s chatbot was found to repeat false claims 30% of the time and provide vague or unhelpful answers 53% of the time in response to news-related queries, leading to an overall fail rate of 83%. In contrast, Western competitors had an average fail rate of 62%.

This performance raises questions about the quality of DeepSeek’s AI technology, which the company has touted as being on par with or superior to OpenAI’s models, at a fraction of the cost. Despite its low accuracy score, DeepSeek’s chatbot quickly became the most downloaded app on Apple’s App Store, igniting concerns about the United States’ dominance in AI and contributing to a market downturn that resulted in a $1 trillion loss in U.S. tech stocks.

NewsGuard used 300 identical prompts to assess DeepSeek and its Western counterparts, including 30 based on false claims circulating online. The topics of these prompts included incidents like the killing of UnitedHealthcare executive Brian Thompson and the downing of Azerbaijan Airlines flight 8243. DeepSeek’s chatbot also reiterated the Chinese government’s stance on certain issues, even when those topics were unrelated to China, such as in the case of the Azerbaijan Airlines crash.

Despite its poor accuracy, some analysts suggest the significance of DeepSeek’s breakthrough lies in its affordability, with D.A. Davidson’s Gil Luria pointing out that it can answer questions at 1/30th the cost of comparable models. However, as with other AI models, DeepSeek was found to be particularly susceptible to repeating false claims, especially when used to create or spread misinformation.