AI Daily: DeepSeek said to use forbidden Nvidia chips to build model

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:

FORBIDDEN NVIDIA CHIPS: Chinese AI startup DeepSeek has been developing its next major model using several thousand Nvidia’s (NVDA) state-of-the-art Blackwell chips which the U.S. has forbidden from being exported to China, according to six people with knowledge of the matter, The Information reports.

UNUSUAL SECURITY REVIEW: The AI chips that Nvidia is allowed to ship to China will undergo a special security review in the U.S. before they are exported, according to administration officials, The Wall Street Journal’s Amrith Ramkumar, and Alexander Ward, Robbie Whelan report. The unorthodox step highlights the national-security pressure on the Trump administration following its decision to allow the controversial sales. Nvidia’s H200 AI chips that are part of the deal would mainly be manufactured in Taiwan. From there, they would travel to the U.S. for a national-security review, people familiar with the matter said. The chips would then be sent on to China, the authors note.

CHINA AI COMPANIES: Some Biden-era officials say access to Nvidia chips could help China’s AI companies buy time while China’s chipmakers improve their chip supply and performance, The New York Times’ Meaghan Tobin reports. The comments follow President Trump’s announcement that Nvidia would be able to sell semiconductors to China, a decision that comes at a time when Chinese tech companies like Alibaba (BABA) and Tencent (TCEHY) are pouring money into AI efforts and data centers.

LOCATION VERIFICATION: Nvidia has built location verification technology to indicate what country its chips are operating in, a move that could help prevent the chips from being smuggled into countries where the export is banned, Stephen Nellis and Michael Martina of Reuters report, citing sources familiar with the matter. The feature would be offered a software option that customers could install and would tap into the confidential computing capabilities of its GPUs, the sources added. The feature has not yet been released.

AI-POWERED SEARCH: Alphabet’s (GOOGL) Google intends to update its AI-powered search feature, known as AI Mode, to include more in-line links to sources from which it gathers information, The Verge’s Emma Roth reports. The company included the update as part of bigger changes to how it presents sources, saying it will also present the links embedded inside AI Mode with an AI-generated explanation of why they are useful, the author notes.

JOINING OPENAI: Slack CEO Denise Dresser is leaving the company to join OpenAI as the company’s chief revenue officer, Wired’s Zoe Schiffer and Lauren Goode report.

ENTERPRISE PUSH: Jefferies is “bullish” on OpenAI’s hire of Denise Dresser, the CEO of Slack, as “an ideal CRO” with the experience needed to scale its enterprise business. While still early, the firm expects OpenAI to make a significant enterprise push in 2026, which the firm sees unlocking “a major tactical opportunity” for Microsoft (MSFT) and benefiting Oracle (ORCL) and CoreWeave (CRWV), which the firm notes have high OpenAI backlog exposure.

AI-POWERED INNOVATION: Colliers (CIGI) announced its partnership to innovate with Google Cloud. As a pillar of Colliers’ multi-year technology transformation strategy, the migration to Google Cloud will “unlock advanced analytics and AI for new product development and integrated systems,” Colliers said. “Colliers is leading the way with bold, purposeful investments in technology that transform how we deliver value across the built environment. These investments align seamlessly with Google Cloud’s reliability, scalability, and world-leading AI and analytics,” says Stuart McDonald, Global Chief Information Officer at Colliers. “By working alongside one of the most innovative companies in the world and combining that with Colliers’ unique market insights and services, we’re equipping our professionals with the best tools and data to accelerate success for our clients.” As Colliers’ primary cloud solution, Google Cloud will provide services and advice on best practices in AI adoption, data architecture, and workplace transformation, with the shared goal of innovating and opening new possibilities for the industry.

AI GLASSES: Citizens upgraded Warby Parker (WRBY) to Outperform from Market Perform with a $30 price target. The firm views the upcoming launch of Google’s artificial intelligence glasses on Warby’s platform as a “significant catalyst” for the shares. The glasses are important for Google’s ongoing distribution of search and other products, which explains why the company is willing to commit $75M to cover Warby’s expenses for the launch, Citizens tells investors in a research note. The firm believes the glasses can drive Warby Parker’s estimates significantly higher.