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Bloomberg Audio Studios, Podcasts, radio News.

Good morning, I'm John Tucker.

Good morning, I'm John Tucker.

And I'm Karen Moscow. Here are the stories we're following today and.

And I'm Karen Moscow. Here are the stories we're following today and.

Karen, futures are dropping on heels. A warning from in Vidia, the chip giant says it's going to have to report about five and a half billion dollars in write downs during the current quarter. That's because the Trump administration has barred in video from selling its H twenty chip in China. And Bloomberg's Mike Shepherd says the government is concerned the chip could be used in or diverted to a supercomputer in China.

Karen, futures are dropping on heels. A warning from in Vidia, the chip giant says it's going to have to report about five and a half billion dollars in write downs during the current quarter. That's because the Trump administration has barred in video from selling its H twenty chip in China. And Bloomberg's Mike Shepherd says the government is concerned the chip could be used in or diverted to a supercomputer in China.

And that is one of the concerns that the US government has, is that, in fact, by using a different package or stack of these Age twenty chips. And remember the H twenty chip has already been modified and scaled down for the China market, and that's owing to restrictions going back to twenty twenty two. And Nvidia has been on the cross heres since the Biden administration for the advanced chips produces and sells and have been selling into the China market, and they have been looking to make sure that China doesn't get its hands on the best.

And that is one of the concerns that the US government has, is that, in fact, by using a different package or stack of these Age twenty chips. And remember the H twenty chip has already been modified and scaled down for the China market, and that's owing to restrictions going back to twenty twenty two. And Nvidia has been on the cross heres since the Biden administration for the advanced chips produces and sells and have been selling into the China market, and they have been looking to make sure that China doesn't get its hands on the best.

Stuff, Bloomberg's Mike Shepherd in Washington. Shares of Nvidia right now down more than five percent in early trading.

Stuff, Bloomberg's Mike Shepherd in Washington. Shares of Nvidia right now down more than five percent in early trading.

Well John also adding it to weakness to chip stocks. This morning, a disappointing report from Dutch ship equipment maker ASML Holding. The company reported orders for the first quarter that were more than one point one billion dollars less than expected. ASML is also warning that it doesn't know how to quantify the impact from recent tariff announcements, which are threatening to upend the semiconductor industry, and shares of ASML are down more than five percent in Europe.

Well John also adding it to weakness to chip stocks. This morning, a disappointing report from Dutch ship equipment maker ASML Holding. The company reported orders for the first quarter that were more than one point one billion dollars less than expected. ASML is also warning that it doesn't know how to quantify the impact from recent tariff announcements, which are threatening to upend the semiconductor industry, and shares of ASML are down more than five percent in Europe.

And Karen Tesla reportedly suspending plans to ship components from China with cybercab and semi electric trucks in the US. Reuter says Elon Musk was prepared to absorb the additional costs when President Trump imposed the thirty four percent tariff on Chinese goods, but could not do so when the terraf went beyond that. Shares of Tesla them more than three percent at early trading.

And Karen Tesla reportedly suspending plans to ship components from China with cybercab and semi electric trucks in the US. Reuter says Elon Musk was prepared to absorb the additional costs when President Trump imposed the thirty four percent tariff on Chinese goods, but could not do so when the terraf went beyond that. Shares of Tesla them more than three percent at early trading.

Now, John, let's get the latest on the escalating trade war between the US and China. Bloomberg News has learned China wants to see a number of steps from President Trump's administration before agreeing to trade talks, that include showing more respect by reigning in disparaging remarks by members of his cabinet. Meanwhile, President Trump is calling on China to reach out for trade negotiations. And here's White House Press Secretary Caroline Lovitt.

Now, John, let's get the latest on the escalating trade war between the US and China. Bloomberg News has learned China wants to see a number of steps from President Trump's administration before agreeing to trade talks, that include showing more respect by reigning in disparaging remarks by members of his cabinet. Meanwhile, President Trump is calling on China to reach out for trade negotiations. And here's White House Press Secretary Caroline Lovitt.

The ball is in China's court. China needs to make a deal with us. We don't have to make a deal with them. There's no difference between China and any other country, except they are much larger. And China wants what we have. What every country wants what we have the American consumer, or to put in another way, they need our money.

The ball is in China's court. China needs to make a deal with us. We don't have to make a deal with them. There's no difference between China and any other country, except they are much larger. And China wants what we have. What every country wants what we have the American consumer, or to put in another way, they need our money.

White House Press Secretary Caroline Levitt, speaking yesterday, sources now Bloomberg that Beijing also wants the US to appoint a point person for talks who has the President's support and can help prepare a deal that Trump and Chinese leader Shieshin Pin can sign when they meet.

White House Press Secretary Caroline Levitt, speaking yesterday, sources now Bloomberg that Beijing also wants the US to appoint a point person for talks who has the President's support and can help prepare a deal that Trump and Chinese leader Shieshin Pin can sign when they meet.

And we have fresh economic data out of China. The economy there grew via faster than expected five to four zero point four percent in the first three months of the year. The surprising strength in the world's second largest economy comes as concerns mount over the potential impact of one hundred and forty five percent US tariffs on Chinese goods.

And we have fresh economic data out of China. The economy there grew via faster than expected five to four zero point four percent in the first three months of the year. The surprising strength in the world's second largest economy comes as concerns mount over the potential impact of one hundred and forty five percent US tariffs on Chinese goods.

Well, John is investors await the latest tariff developments. They will have a key speech by j Powell to digest, and we get a preview with the Bloomberg's Michael McKee.

Well, John is investors await the latest tariff developments. They will have a key speech by j Powell to digest, and we get a preview with the Bloomberg's Michael McKee.

Corporate leaders, economists, investors, and FED officials all have the same problem. Nobody knows what Donald Trump is actually going to do on tariffs. FED Governor Chris Waller said Monday, it's impossible now to forecast how the economy will develop, which makes FED Chairman Jay Powell's job much harder. Today, in his Chicago speech, the chair will attempt to reassure jiterary markets that no matter what happens, the Central Bank will be on the job, able to raise rates if Trump's new taxes increase inflation, or cut rates if they lead the economy just slow significantly. He said all that before. Of course, it's not clear what he could add to that message today. Michael McKee, Bloomberg Radio.

Corporate leaders, economists, investors, and FED officials all have the same problem. Nobody knows what Donald Trump is actually going to do on tariffs. FED Governor Chris Waller said Monday, it's impossible now to forecast how the economy will develop, which makes FED Chairman Jay Powell's job much harder. Today, in his Chicago speech, the chair will attempt to reassure jiterary markets that no matter what happens, the Central Bank will be on the job, able to raise rates if Trump's new taxes increase inflation, or cut rates if they lead the economy just slow significantly. He said all that before. Of course, it's not clear what he could add to that message today. Michael McKee, Bloomberg Radio.

All right, Michael, thank you, Well, Bloomberg will bring you Jay Powell's full remarks from the Economic Club of Chicago. Coverage begins at one thirty Wall Street time on Bloomberg Radio, Bloomberg Television, and the Bloomberg Podcast page on YouTube.

All right, Michael, thank you, Well, Bloomberg will bring you Jay Powell's full remarks from the Economic Club of Chicago. Coverage begins at one thirty Wall Street time on Bloomberg Radio, Bloomberg Television, and the Bloomberg Podcast page on YouTube.

And looking over in Europe now, UK inflation slipped for a second straight month. A consumer prices rose just two point six percent of the twelve months to March. This was driven by cheaper computer games, falling fuel prices, and unchanged food costs.

And looking over in Europe now, UK inflation slipped for a second straight month. A consumer prices rose just two point six percent of the twelve months to March. This was driven by cheaper computer games, falling fuel prices, and unchanged food costs.

Well back here in the US, John it appears the move to increase taxes for the ultra wealthy as gaining traction among lawmakers, including Republicans, and Bloomberg's Amy Morris has more from Washington.

Well back here in the US, John it appears the move to increase taxes for the ultra wealthy as gaining traction among lawmakers, including Republicans, and Bloomberg's Amy Morris has more from Washington.

Republicans in the White House, the Senate and the House are considering a new tax bracket for the wealthiest Americans, with the House proposal setting a forty percent rate for those earning one million dollars or more per year. These talks are part of the effort to pay for a sweeping tax bill by the end of this year, with options including offsetting the cost of an expanded state and local tax deduction with a millionaire's bracket. A White House official tells Bloomberg President Trump is open to the idea of a new top tax bracket, but for an income greater than a million dollars. In Washington, Amy Moore as Bloomberg Radio Right.

Republicans in the White House, the Senate and the House are considering a new tax bracket for the wealthiest Americans, with the House proposal setting a forty percent rate for those earning one million dollars or more per year. These talks are part of the effort to pay for a sweeping tax bill by the end of this year, with options including offsetting the cost of an expanded state and local tax deduction with a millionaire's bracket. A White House official tells Bloomberg President Trump is open to the idea of a new top tax bracket, but for an income greater than a million dollars. In Washington, Amy Moore as Bloomberg Radio Right.

Thanks Amy. The government's anti trust trial seeking to break up Meta Platforms that continues today. In testimony yesterday was revealed seven years ago, Mark Zuckerberg considered spinning off Instagram from Facebook, fearing the company might be broken up in the next five to ten years. With the Federal Trade Commission is now suing Meta to break it up. Alludging its acquisitions of Instagram at WhatsApp created a social media monopoly, while Meta argues it faces many competitors.

Thanks Amy. The government's anti trust trial seeking to break up Meta Platforms that continues today. In testimony yesterday was revealed seven years ago, Mark Zuckerberg considered spinning off Instagram from Facebook, fearing the company might be broken up in the next five to ten years. With the Federal Trade Commission is now suing Meta to break it up. Alludging its acquisitions of Instagram at WhatsApp created a social media monopoly, while Meta argues it faces many competitors.

And John the White House is starting a new media policy that restricts wire services access to the president. That move blocks a traditional press pools that served billions of readers. It comes after a judge ruled the White House and violated the Associated Press's free speech by banning it because it disagreed with the outlet's decision not to rename the Gulf of Mexico. The White House says it will ultimately give Press Secretary Caroline Lovett the final say over who gets to question her boss. Time now for a look at some of the other stories making news in New York and around the world. And for that we're joined by Bloomberg's Michael Barr Michael, Good Morning.

And John the White House is starting a new media policy that restricts wire services access to the president. That move blocks a traditional press pools that served billions of readers. It comes after a judge ruled the White House and violated the Associated Press's free speech by banning it because it disagreed with the outlet's decision not to rename the Gulf of Mexico. The White House says it will ultimately give Press Secretary Caroline Lovett the final say over who gets to question her boss. Time now for a look at some of the other stories making news in New York and around the world. And for that we're joined by Bloomberg's Michael Barr Michael, Good Morning.

Good Morning Karen. A federal judge says she will order sworn testimony by Trump administration officials to determine if they complied with their orders to facilitate the return of Kilmar Abrego Garcia, the Maryland man was mistakenly deported to a notorious L. Salvador prison last month. The US Supreme Court ordered the Trump administration to return him, but the administration has so far refused, claiming he's in the MS thirteen gang. White House spokesperson Caroline Lovett, there.

Good Morning Karen. A federal judge says she will order sworn testimony by Trump administration officials to determine if they complied with their orders to facilitate the return of Kilmar Abrego Garcia, the Maryland man was mistakenly deported to a notorious L. Salvador prison last month. The US Supreme Court ordered the Trump administration to return him, but the administration has so far refused, claiming he's in the MS thirteen gang. White House spokesperson Caroline Lovett, there.

Is never going to be a world in which this is an individual who's going to live peaceful life in Maryland because he is a foreign terrorist and MS thirteen gang member.

Is never going to be a world in which this is an individual who's going to live peaceful life in Maryland because he is a foreign terrorist and MS thirteen gang member.

Abrego Garcia's attorneys deny the gang allegations and say he was never charged with a crime. Abrego Garcia's wife, Jennifer Pasquez, sura, as we continue.

Abrego Garcia's attorneys deny the gang allegations and say he was never charged with a crime. Abrego Garcia's wife, Jennifer Pasquez, sura, as we continue.

Through Holy Week, my heart aches for my husband, Whosha had been here leading our Easter prayers. Instead, I find myself pleading with the Trump administration and the Buchel administration to stop playing political games with the life of Kilmar.

Through Holy Week, my heart aches for my husband, Whosha had been here leading our Easter prayers. Instead, I find myself pleading with the Trump administration and the Buchel administration to stop playing political games with the life of Kilmar.

Harvey Weinstein is back in the New York court as jury's selection begins for his retrial on sexual assault charges. The legal representative for one of his accusers spoke outside court Tuesday, attorney Lindsay Goldbrum.

Harvey Weinstein is back in the New York court as jury's selection begins for his retrial on sexual assault charges. The legal representative for one of his accusers spoke outside court Tuesday, attorney Lindsay Goldbrum.

Over the next several weeks, these women will testify about these heinous acts that have been committed against them, and intimate details of their lives will come out.

Over the next several weeks, these women will testify about these heinous acts that have been committed against them, and intimate details of their lives will come out.

New York's highest court over turned Weinstein's conviction in his twenty twenty trial. Finally, we've lost a game show legend, and now.

New York's highest court over turned Weinstein's conviction in his twenty twenty trial. Finally, we've lost a game show legend, and now.

From Television City in Hollywood, here's your host, Don Gambit, Wink Martin Dale.

From Television City in Hollywood, here's your host, Don Gambit, Wink Martin Dale.

Thank you very much.

Thank you very much.

Weak Martindale, host of such hit game shows as Gambit, which debut in nineteen seventy two and Tiktak Dooe, has died. Martin Dale began his career in radio. This publicist says Martindale died after battling lampoma for a year. Wink Martindale was ninety one Global News, twenty four hours a day and whatever you wanted with Bloomberg News. Now, I'm Michael Barr, this is Bloomberg.

Weak Martindale, host of such hit game shows as Gambit, which debut in nineteen seventy two and Tiktak Dooe, has died. Martin Dale began his career in radio. This publicist says Martindale died after battling lampoma for a year. Wink Martindale was ninety one Global News, twenty four hours a day and whatever you wanted with Bloomberg News. Now, I'm Michael Barr, this is Bloomberg.

Karen All right, Michael Barr, thank you time now for the Bloomberg Sports Update. Here's John Stashaur John, Good morning morning here.

Karen All right, Michael Barr, thank you time now for the Bloomberg Sports Update. Here's John Stashaur John, Good morning morning here.

Max Freed was the Yankees big free agent signing so far as good as advertised. He's three and I was era is under two at the stadium, the Yanks field to support him against Kansas City into wilda sixth inning infield single, three straight walks and they had a run in and three on for Jason Domingo.

Max Freed was the Yankees big free agent signing so far as good as advertised. He's three and I was era is under two at the stadium, the Yanks field to support him against Kansas City into wilda sixth inning infield single, three straight walks and they had a run in and three on for Jason Domingo.

So one to two, blind Dragons pas down the lu field Live Chisham scores, ful, Py scores, they're a leaving home wells who well scores. That's up faces clearing double for Dominguez and the Yankees have taken a four two leads.

So one to two, blind Dragons pas down the lu field Live Chisham scores, ful, Py scores, they're a leaving home wells who well scores. That's up faces clearing double for Dominguez and the Yankees have taken a four two leads.

Yeah, that was the final over the Royals. Yes Network to call in Minnesota, Metsica that home runs from both the Alonzo and Juan Soto. Alonzo's fifth of the season came first inning. Soto now homers and back to back games, but the Twins scored in five straight innings and they won six to three. The Red Sox won seven to four at Tampa Bay. Alex Bregman two home runs, five hits, four RBIs Nationals behind Jake Irvin won three nothing at Pittsburgh. The NBA postseason is underway pair of wins by home teams or Orlando by twenty five over Atlanta, so the Magic advance to play the Celtics. The Hawks now head home to play Friday against the winner of tonight's Miami Chicago game. The Warriors got to combine seventy five points from Jimmy Butler and Steph Curry one twenty one to one sixteen over Memphis. It'll be Golden State now against Houston. Dallas. Tonight plays Sacramento the Winter Place Friday in Memphis. Devil's won five to four in overtime at Boston. Devil's finished third place of the division. They'll have a first round playoff series with Carolina. The Islanders last home game of three to one loss to the Capitals. The Giants at the third pick of next week's draft. They are heading to Boulder to watch a private workout by Colorado quarterback Shadorah Sanders, Johns Stashankler, Bloomberg.

Yeah, that was the final over the Royals. Yes Network to call in Minnesota, Metsica that home runs from both the Alonzo and Juan Soto. Alonzo's fifth of the season came first inning. Soto now homers and back to back games, but the Twins scored in five straight innings and they won six to three. The Red Sox won seven to four at Tampa Bay. Alex Bregman two home runs, five hits, four RBIs Nationals behind Jake Irvin won three nothing at Pittsburgh. The NBA postseason is underway pair of wins by home teams or Orlando by twenty five over Atlanta, so the Magic advance to play the Celtics. The Hawks now head home to play Friday against the winner of tonight's Miami Chicago game. The Warriors got to combine seventy five points from Jimmy Butler and Steph Curry one twenty one to one sixteen over Memphis. It'll be Golden State now against Houston. Dallas. Tonight plays Sacramento the Winter Place Friday in Memphis. Devil's won five to four in overtime at Boston. Devil's finished third place of the division. They'll have a first round playoff series with Carolina. The Islanders last home game of three to one loss to the Capitals. The Giants at the third pick of next week's draft. They are heading to Boulder to watch a private workout by Colorado quarterback Shadorah Sanders, Johns Stashankler, Bloomberg.

Sports Karen Jones.

Sports Karen Jones.

Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.

Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.

And among our lead stories this morning, it involves the tech sector, the Trump administration of posing new restrictions on Nvidia chip exports to China. Let's get more on this story this morning with Pretty Gupta, host of Bloomberg Radio TV, but joining us from our London studios. Pretty good morning to you, Thanks for being with us. In video shares that should say, among the most actively traded this morning, down about five point three percent now in Vidia and even TSMC. We're pledging closer relationships with the Trump administration.

And among our lead stories this morning, it involves the tech sector, the Trump administration of posing new restrictions on Nvidia chip exports to China. Let's get more on this story this morning with Pretty Gupta, host of Bloomberg Radio TV, but joining us from our London studios. Pretty good morning to you, Thanks for being with us. In video shares that should say, among the most actively traded this morning, down about five point three percent now in Vidia and even TSMC. We're pledging closer relationships with the Trump administration.

When happened, well, they're still kind of there. I mean, look, this is coming twenty four hours after a big investment that Nvidia had announced in the United States and specifically in some of the southern states like Texas and Arizona, to the tune of five hundred billion dollars. But John, to your point, the sentiment has completely taken a different tone now to reporting a five and a half billion dollar hit because the US is clamping down when it comes to the exports of some of Nvidia's chips, specifically the Age twenty chip, which in Vidia, by the way, has created as kind of a watered down version of the traditional AI chip that is specifically catered to kind of circumvent and address some of the concerns from the US government, first under Biden, now under Trump, and still being able to serve their Chinese clientele. But it looks like even that is coming across some pretty severe restrictions under the Trump administration.

When happened, well, they're still kind of there. I mean, look, this is coming twenty four hours after a big investment that Nvidia had announced in the United States and specifically in some of the southern states like Texas and Arizona, to the tune of five hundred billion dollars. But John, to your point, the sentiment has completely taken a different tone now to reporting a five and a half billion dollar hit because the US is clamping down when it comes to the exports of some of Nvidia's chips, specifically the Age twenty chip, which in Vidia, by the way, has created as kind of a watered down version of the traditional AI chip that is specifically catered to kind of circumvent and address some of the concerns from the US government, first under Biden, now under Trump, and still being able to serve their Chinese clientele. But it looks like even that is coming across some pretty severe restrictions under the Trump administration.

Okay, so this clamping down even predates the Trump administration, Can we say it doesn't really have anything to do with the trade war that's taking place.

Okay, so this clamping down even predates the Trump administration, Can we say it doesn't really have anything to do with the trade war that's taking place.

It's definitely a piece of it, it feels like it. But remember Jensen Wong has spent quite some time at mar Lago before even even Donald Trump was elected, and since then, right ahead of Nvidia this announcement to kind of make sure like a lot of the tech CEOs are there on the winning side of this. So so that domestic investment is very much coming in that same vein. Remember they're also choosing not to spend that five hundred million dollars investment in Asia, so that very much is a reaction function to the trade war. But this is actually one that has been happening again under the Biden administration.

It's definitely a piece of it, it feels like it. But remember Jensen Wong has spent quite some time at mar Lago before even even Donald Trump was elected, and since then, right ahead of Nvidia this announcement to kind of make sure like a lot of the tech CEOs are there on the winning side of this. So so that domestic investment is very much coming in that same vein. Remember they're also choosing not to spend that five hundred million dollars investment in Asia, so that very much is a reaction function to the trade war. But this is actually one that has been happening again under the Biden administration.

This eg.

This eg.

Twenty chip that Nvidia has developed is the third iteration of a chip to circumvent government restrictions. Like I said, not just under the Trump administration, but this entire effort started under the Biden administration and the chip that the Chips Act and the restrictions there.

Twenty chip that Nvidia has developed is the third iteration of a chip to circumvent government restrictions. Like I said, not just under the Trump administration, but this entire effort started under the Biden administration and the chip that the Chips Act and the restrictions there.

This news we got, this came in a regulatory filing. It's not like it was an announcement from the Trump administration.

This news we got, this came in a regulatory filing. It's not like it was an announcement from the Trump administration.

This isn't a yes, you're one hundred percent right. This was a regulatory filing from Nvidia. This did not come unto the Trump administration. But in Vidia going ahead and talking about a five hundred five excuse me, five and a half billion dollar hit to their bottom line, we should just mention there are reports of other from other media that are suggesting about seventeen to eighteen billion worth of Age twenty chips that were already developed from and video. So the key kind of phrase that you need to keep an eye on in this filing is inventory, purchase commitments and related reserves because a lot of these chips have already been produced. So it's a question of if they don't go to China, where did they go? Given that they are kind of this water down version.

This isn't a yes, you're one hundred percent right. This was a regulatory filing from Nvidia. This did not come unto the Trump administration. But in Vidia going ahead and talking about a five hundred five excuse me, five and a half billion dollar hit to their bottom line, we should just mention there are reports of other from other media that are suggesting about seventeen to eighteen billion worth of Age twenty chips that were already developed from and video. So the key kind of phrase that you need to keep an eye on in this filing is inventory, purchase commitments and related reserves because a lot of these chips have already been produced. So it's a question of if they don't go to China, where did they go? Given that they are kind of this water down version.

Okay, the H twenty water down version. Again, this is this is a chip that specifically trains AI models.

Okay, the H twenty water down version. Again, this is this is a chip that specifically trains AI models.

It does it specifically has to do with inference. And so the big concern from the Biden administration and the Trump administration has been that so much of AI is being used not just in things like consumer electronics like iPhones, like washing machines, but ultimately to things like military intelligence and more sophisticated technology. Now, if the US is able to export that critical piece or kind of help to that military technology to the likes of China given the geopolitical tensions, that's where their concern lies. So Nvidia's solution to that was to create this chip that still helps these kind of consumer electronics and helps cater to a clientele in that safe space, but isn't as advanced to the point that you can use them in military technology. And that's the difference here between the AH twenty chip relative to some of the other products Nvidia offers.

It does it specifically has to do with inference. And so the big concern from the Biden administration and the Trump administration has been that so much of AI is being used not just in things like consumer electronics like iPhones, like washing machines, but ultimately to things like military intelligence and more sophisticated technology. Now, if the US is able to export that critical piece or kind of help to that military technology to the likes of China given the geopolitical tensions, that's where their concern lies. So Nvidia's solution to that was to create this chip that still helps these kind of consumer electronics and helps cater to a clientele in that safe space, but isn't as advanced to the point that you can use them in military technology. And that's the difference here between the AH twenty chip relative to some of the other products Nvidia offers.

Remember, like before the trade war, one of the big concerns for investors had been AI investments, whether these were going to pay off in the long term, and the capital expenditures with respect to that. That's sort of faded to the background. Isn't that back with us as a concern for technology?

Remember, like before the trade war, one of the big concerns for investors had been AI investments, whether these were going to pay off in the long term, and the capital expenditures with respect to that. That's sort of faded to the background. Isn't that back with us as a concern for technology?

It is a little bit of a conservative technology because remember, not so long ago, we were also talking about this big Deep Seek kind of crash that had happened when it comes to the cost of innovation around AI as well. And this is where Nvidia's kind of stuck between a rock and a hard place because so much of that technology and that sourcing and that physical manufacturing is happening abroad because it's cheaper to happen abroad. On top of that, China has already proven they're able to come up with technology that is almost eye to eye to what's being developed in Silicon Valley and do it at a fraction of the cost. Now, if that continues that they are able to kind of really pull down those costs, that's a big deal because Nvidia developing those chips in the United States increase increases the cost of those chips.

It is a little bit of a conservative technology because remember, not so long ago, we were also talking about this big Deep Seek kind of crash that had happened when it comes to the cost of innovation around AI as well. And this is where Nvidia's kind of stuck between a rock and a hard place because so much of that technology and that sourcing and that physical manufacturing is happening abroad because it's cheaper to happen abroad. On top of that, China has already proven they're able to come up with technology that is almost eye to eye to what's being developed in Silicon Valley and do it at a fraction of the cost. Now, if that continues that they are able to kind of really pull down those costs, that's a big deal because Nvidia developing those chips in the United States increase increases the cost of those chips.

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