Think AI is replacing workers? The reality is more ironic: humans labor behind the scenes to build AI meant to replace them. The gap between hype and reality reveals uncomfortable truths about innovation, investment bubbles, and the actual human cost of chasing artificial intelligence dreams.
Salesforce CEO Marc Benioff learned that $1 billion in local donations doesn't buy permission to call federal troops into San Francisco—not when 25-year friendships end and fellow billionaires publish op-eds on moral laundering.
Good Morning from San Francisco, Salesforce answered an RFP you didn't know existed. The pitch: use AI to
Huawei plans to ship its new AI chip to Chinese customers next month, right when US export controls are pushing Nvidia out of the market. The timing works perfectly for Chinese tech firms hunting for alternatives to Nvidia's processors.
The new 910C chip matches the performance of Nvidia's H100 through a clever workaround. Huawei combined two 910B processors into one package and added improvements for handling AI tasks. Some customers already have their hands on early shipments.
This development comes as Washington tightens its grip on China's access to advanced AI technology. The US just blacklisted 16 Chinese companies, including Sophgo Technologies, over concerns about chip diversions. Officials also told chip makers like TSMC and Samsung to watch their Chinese customers more closely.
The restrictions hit Nvidia hard. The company now needs export licenses for its H20 chip – previously its main product for Chinese buyers. This created a gap in China's AI market that Huawei rushed to fill.
But questions linger about how Huawei makes these chips. Sources say China's SMIC produces some components, though with low success rates. More interesting: some 910C chips allegedly use parts that TSMC made for Sophgo, a detail that caught Washington's attention.
The Commerce Department started investigating TSMC's work with Sophgo after finding one of their chips in an earlier Huawei processor. TSMC made about three million chips matching Sophgo's designs recently. When asked, Huawei denied using TSMC-made Sophgo chips, and TSMC said they follow all rules and haven't supplied Huawei since 2020.
This shuffle marks a turning point in the AI chip world. Chinese companies like Moore Threads and Iluvatar CoreX now see their chance to grab market share from Nvidia. Paul Triolo from Albright Stonebridge Group puts it simply: Huawei's 910C will become Chinese AI developers' go-to chip.
The story shows how export controls can backfire. By pushing Nvidia out, Washington may have accidentally helped China build its own AI chip industry faster than anyone expected.
Why this matters:
Wikipedia discovered an 8% decline in human visitors after improving bot detection—while the AI platforms trained on its content now answer questions without sending anyone to the source. The sustainability model breaks when citations don't include clicks.
Microsoft wants Windows 11 users to talk to their PCs and let AI agents manipulate files. Cortana failed at exactly this a decade ago, and corporate IT won't enable experimental agents that create new attack surfaces. Third time's the charm?
Oracle booked $65B in AI cloud deals—including Meta—in 30 days, but the stock slipped after-hours despite raised 2030 targets. Investors want proof on 30–40% margins, not bookings. Demand's real. Execution's unproven. The scoreboard moves there.
Anthropic wired Claude into Microsoft 365, chasing institutional memory while Microsoft hedges with model choice inside Copilot. The fight isn't about chat features—it's about who mediates your company's knowledge day after day.
Get the 5-minute Silicon Valley AI briefing, every weekday morning — free.
