AI Daily: China reducing reliance on Nvidia chips

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

NVIDIA CHIPS: In 2025, ByteDance purchased more Nvidia (NVDA) chips than any other Chinese company to meet AI demand but now faces a regulatory ban from using them in new data centers, as China pushes local firms toward domestic AI chips, The Information’s Qianer Liu reports. U.S. export restrictions and stalled sales of scaled-down Nvidia chips have sharply cut Nvidia’s China revenue, though potential approval of the more powerful H200 chips could partially restore sales. A spokesperson for Nvidia said the company has no plans to resume production of H20, adding that “the regulatory landscape does not allow us to offer a competitive data center in China, leaving that massive market to our rapidly growing foreign competitors.”

LIABILITY: OpenAI has denied liability in a suit alleging ChatGPT gave information about suicide methods to a 16-year-old who died by suicide, arguing he misused the chatbot, Angela Yang of NBC News reports. OpenAI filed its first legal response to a California lawsuit, which claims the system discouraged him from seeking help, assisted with a suicide note, and gave instructions related to self-harm, raising broader concerns about chatbot safety and mental-health risk. “To the extent that any ’cause’ can be attributed to this tragic event,” OpenAI argued in its court filing, “Plaintiffs’ alleged injuries and harm were caused or contributed to, directly and proximately, in whole or in part, by Adam Raine’s misuse, unauthorized use, unintended use, unforeseeable use, and/or improper use of ChatGPT.”

COMPETITION: Wedbush views Nvidia as “the foundation for the AI Revolution,” with “the Godfather of AI Jensen having the best perch and vantage point to discuss overall enterprise AI demand and appetite for Nvidia’s AI chips looking forward.” Google’s (GOOGL) TPU chips along with its key partner Broadcom (AVGO) are gaining some clear momentum in the AI market, the firm notes. That said, the AI Revolution “starts and ends with Nvidia today,” Wedbush argues, and that is not changing for another few years, in the firm’s opinion. With the trillions set to be spent over the coming years, many Big Tech players will benefit besides Nvidia on the chip front, but that should not be mistaken for Nvidia being the indisputable “Rocky Balboa champion of the AI Revolution,” Wedbush adds.

ANTITRUST PROBE: The Italian Competition Authority has broadened the scope of the investigation proceedings launched into Meta Platforms (META), Meta Platforms Ireland Limited, WhatsApp Ireland Limited and Facebook Italy S.r.l. – referred to as Meta – with respect to the WhatsApp Business Solution Terms. These terms exclude from the WhatsApp platform, as of 15 October 2025, Meta AI’s competitors in the AI Chatbot services market. Alongside broadening the scope of its ongoing investigation, the Authority has also opened a procedure for the possible adoption of interim measures under Section 14-bis of Law 287/1990, with respect to the new WhatsApp Business Solution Terms and the integration of new Meta AI interaction tools or features into WhatsApp. According to the Authority, this change to the contractual terms could limit production, market access or technical developments in the AI Chatbot services market, to the detriment of consumers, and may amount to a possible violation of Article 102 TFEU. Furthermore, the Authority deems Meta’s violation of competition rules capable of severely and irreparably undermining the contestability of the market, due to consumers’ limited propensity to change their habits, which hampers switching to competing services.

AI CODING TOOL KIRO: Amazon (AMZN) has asked its engineers to use its in-house AI coding assistant Kiro over third-party tools like Cursor, aiming to gather feedback for improvement, Reuters’ Greg Bensinger reports. In the memo, posted to Amazon’s internal news site, the company said, “While we continue to support existing tools in use today, we do not plan to support additional third party, AI development tools.”

PARTNERSHIP: At the U.S.- Saudi Investment Forum held in Washington, D.C., HUMAIN, a PIF company delivering full-stack artificial intelligence solutions, announced the signing of a landmark framework agreement with xAI, the U.S.-based frontier AI company known for its rapid advancement in cutting-edge AI systems and founded by Elon Musk. This strategic agreement lays the foundation for a long-term collaboration aimed at designing, building, and operating a new generation of low-cost, hyperscale GPU data centers in the Kingdom of Saudi Arabia as well as the deployment of xAI’s Grok models across the country, the company says. Under the scope of the agreement, HUMAIN and xAI will jointly develop a network of world-class GPU data centers, anchored by a flagship 500 MW+ facility, which is set to become one of the most advanced AI compute hubs globally. This will be in addition to xAI’s existing superclusters and represents the first large-scale compute deployment for xAI outside of the United States. As part of HUMAIN’s mission to build world-class AI infrastructure, this partnership advances its capability to deliver scalable AI compute and digital services. The facility will provide a critical platform for training, deploying, and scaling frontier AI models, HUMAIN explains. In addition to building the required infrastructure, HUMAIN and xAI will collaborate to deploy xAI’s Grok models throughout the nation. This includes the integration of Grok into HUMAIN’s agent platform, HUMAIN ONE, unlocking real-time intelligence, autonomous workflows, and next-generation AI copilots across government, enterprise, and society.