Taiwan Seeks Strategic AI Partnership With U.S. After Tariff Deal

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Taiwan aims to position itself as a close strategic partner of the United States in artificial intelligence following a trade deal that cuts tariffs and encourages large-scale Taiwanese investment in the U.S., Vice Premier Cheng Li-chiun said on Friday.

Speaking at a press conference in Washington, Cheng said the negotiations promoted two-way high-tech investment and laid the groundwork for deeper cooperation in AI. The talks come as the administration of U.S. President Donald Trump presses major semiconductor producers to expand manufacturing in the United States, particularly for chips that power AI systems.

Cheng led the negotiations that resulted in Thursday’s agreement, which reduces tariffs on many Taiwanese exports and channels new investment into the U.S. technology sector. While the deal strengthens Taiwan–U.S. ties, it risks angering China, which claims democratically governed Taiwan as its territory—claims Taipei firmly rejects.

U.S. Commerce Secretary Howard Lutnick said Taiwanese companies would invest about $250 billion in the United States across semiconductors, energy and AI. That figure includes $100 billion already committed in 2025 by TSMC, the world’s leading producer of advanced AI chips, with additional investment expected. Taiwan will also guarantee another $250 billion in credit to support further projects, according to the Trump administration.

Cheng described the agreement as “win-win,” saying it would also attract more U.S. investment into Taiwan. She stressed that the expansion is company-led rather than government-directed and does not mean abandoning domestic production. “This is not about ‘moving’ but about ‘building,’” she said, calling the U.S. expansion an extension of Taiwan’s technology ecosystem.

Taiwan Economy Minister Kung Ming-hsin said investments would also cover AI servers and energy infrastructure, though companies would disclose chip-related figures themselves. Taiwan’s benchmark stock index closed at a record high on Friday, buoyed by strong TSMC earnings and investor optimism over the deal.

Chang Chien-yi, president of the Taiwan Institute of Economic Research, said the agreement underscores Washington’s view of Taiwan as a key strategic partner in semiconductors, noting it was the first country to receive preferential treatment for chips and related products.

In a statement, TSMC welcomed the prospect of robust U.S.–Taiwan trade ties, reiterating that its investment decisions are driven by market demand. The deal must still be ratified by Taiwan’s parliament, where opposition lawmakers have raised concerns about the risk of hollowing out the island’s critical chip industry.

Lutnick said the objective was to bring 40% of Taiwan’s chip supply chain to the United States, warning that production not built on U.S. soil could face tariffs of up to 100%. Kung said Taiwan estimates that by 2036 the production split for advanced chips would be closer to 80% in Taiwan and 20% in the United States.

Taiwan Vice President Hsiao Bi-khim said the agreement demonstrated Taiwan’s importance in global trade. “Taiwan may not be large in area, but we are agile and innovative—and an indispensable force in the global supply chain,” she said.

California AG Orders Musk’s xAI to Stop Generating Sexual Deepfake Images

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California Attorney General Rob Bonta has sent a cease-and-desist letter to xAI, demanding the immediate halt of the creation and distribution of non-consensual sexual images generated by its AI chatbot Grok.

“I fully expect xAI to immediately comply,” Bonta said in a statement on Friday.

The action follows a growing global backlash against Grok, which has allowed users to create and share sexualized images of women and minors. Authorities in multiple countries have moved to investigate or restrict the tool over concerns about illegal and harmful content.

Bonta’s office said it opened a formal investigation on Wednesday into the creation and spread of non-consensual, sexually explicit material produced using Grok. The probe adds regulatory pressure on xAI, which is owned by billionaire entrepreneur Elon Musk.

xAI said late on Wednesday that it had introduced new restrictions limiting image-editing capabilities for all Grok users, though regulators say concerns remain. The company did not respond to a Reuters request for comment on the cease-and-desist letter.

International scrutiny has intensified in parallel. Authorities in Japan, Canada and Britain have opened probes into Grok, while Malaysia and Indonesia have temporarily blocked access to the chatbot over the generation of explicit images.

California’s move underscores a broader shift by regulators toward holding AI developers accountable for how generative tools are used—and misused—particularly when it comes to non-consensual and sexualized content. The case could set an important precedent for how aggressively governments intervene as generative AI systems become more powerful and widely deployed.

Nothing Confirms Bengaluru for India’s First Flagship Store, Its Second Globally

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Nothing to Soon Open its First Global Flagship Store in India | Beebom Gadgets

Nothing has officially confirmed plans to open its first flagship store in India, choosing Bengaluru, Karnataka, as the location. The announcement follows earlier teasers from the company hinting at an upcoming retail expansion in the country. While the exact opening date has not yet been disclosed, the confirmation signals a significant step in strengthening Nothing’s presence in one of its key markets.

According to the company, the upcoming flagship store will serve as a dedicated experiential space where customers can interact with Nothing’s product lineup. Visitors will be able to explore smartphones, true wireless stereo (TWS) earbuds, and other devices up close, with a focus on the brand’s distinctive design philosophy. The hands-on environment is intended to help customers better understand the products before making a purchase decision.

The announcement was shared via an Instagram post by the Carl Pei-led company, highlighting that the Bengaluru store will allow users to engage more deeply with the brand’s ecosystem. Nothing emphasized that the store will showcase its design-driven approach, giving customers the chance to evaluate aspects such as build quality, comfort, and overall usability. Notably, this will be Nothing’s second flagship store globally, following its only existing brand-owned outlet located on Peter Street in Soho, London.

India has become an increasingly important market for Nothing, reflected in its frequent product launches and exclusive events held in the country. The company’s growing focus is further underscored by developments around its sub-brand, CMF, which became a legally incorporated independent entity in India in December 2025. The upcoming Bengaluru flagship store appears to be another strategic move to deepen Nothing’s footprint in the region.