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Nvidia and AMD allowed to resume chip shipments to China

The art of the deal now comes with a 15% tax. The Trump administration has reached an agreement allowing US chipmakers Nvidia and AMD to resume selling certain advanced AI chips to China… but at a price.

Both companies must now fork over 15% of their revenue from these sales to the US government.

How did we get here?

Back in 2022, the Biden Administration banned exports of cutting-edge AI chips to China, citing national security concerns.

In response, Nvidia and AMD developed “China-compliant” versions of their chips—the H20 and the MI308—that are specifically made to sell to Chinese markets, and the ban was lifted. Afterwards:

• The Trump administration imposed export restrictions on advanced chips in April, including the H20 and the MI308.

• Late last month, it was reported that over $1 billion in Nvidia chips had been illegally smuggled into China, despite the sales ban.

• Shortly after, the Trump administration said Nvidia could resume selling its H20 chip to China, but licenses weren’t issued until late last week.

Why is it so bad if China has advanced AI chips? US officials have long warned that powerful AI chips could be used to strengthen China’s military or enhance its surveillance systems. Meanwhile, China is aiming to control over 30% of the global market within the next five years. See an overview here.

So why sell them at all?

The negotiations led by Trump for the federal government to claim a share of revenue from US companies’ exports have quite literally never been done before, but it’s still a win-win for both sides:

• For Nvidia and AMD, China is a huge source of demand, so the deal helps them regain lost business while avoiding outright bans.

• For Washington, it’s a way to keep the most advanced chips out of China while generating revenue from sales that still carry potential risks.

Looking ahead: The unprecedented strategy may mark a new way forward for US trade policy, using similar levy systems to other sensitive tech exports in the future instead of the standard “ban or no ban” approach.

AI data centers are propping up the US economy

I mean, someone’s gotta do it. After a fresh release of federal data, analysts are saying Big Tech’s spending spree in AI data centers is providing key momentum for a somewhat static US economy.

AI is the economy’s engine

While the US economy grew 3% last quarter, investments in AI accounted for nearly 1.3% of that growth, according to economist Paul Kedrosky.

That’s more than what consumer spending—the usual driver of the US economy—contributed to GDP growth last quarter:

• The US’s four largest tech players, Amazon, Microsoft, Alphabet, and Meta, spent around $69 billion in AI tech last quarter alone, according to Barron’s.

The AI spending boom has drastically spiked the market value of US chipmakers like Nvidia and AMD, while also benefiting utility providers responding to higher electricity needs brought on by data centers.

AI investment is only going to increase: Tech companies are expected to spend up to $320 billion on AI technology and data centers this year, up from $230 billion in 2024, according to CNBC.

Astronomers find what could be the largest black hole in the universe

The record-breaking phenomenon is puzzling researchers. Astronomers have unveiled what may be the largest black hole ever detected, a gravitational giant with a mass 36 billion times greater than that of our Sun.

Cosmic giant

The black hole lies at the heart of one of the biggest known galaxies, called the Cosmic Horseshoe, which warps the light of more distant galaxies into a stunning horseshoe-shaped ring (see photo).

• The Cosmic Horseshoe is part of a "fossil group,” or the result of multiple galaxies merging into one massive structure.

Astronomers say the combined mergers of the original black holes from those parent galaxies likely formed the ultramassive black hole we see now:

• The black hole is nearly 10,000 times larger than Sagittarius A*, the black hole at the center of our own Milky Way galaxy.

How did they measure it? Researchers used a dual-method approach, combining gravitational lensing and stellar kinematics (the study of the motion of stars within galaxies) to gain a better understanding than other, more indirect techniques. See a breakdown on how it was done here.

Looking ahead: Using those same methods, scientists were able to deduce that the object is now dormant, giving insight into further study of ultramassive black holes and unlocking new opportunities to uncover hidden giants across the cosmos.

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AOL is officially ending its dial-up internet service

For those under 28, an internet veteran is retiring. After more than 34 years of connecting people to the web, AOL announced on Friday that it will officially discontinue its dial-up internet service on September 30.

“You’ve got mail”

If your initial reaction was “AOL is still operating?” then you certainly are not alone. Yahoo, AOL’s owner, confirmed the shutdown in a brief support update, saying the decision was part of a routine evaluation of services.

It’s the end of an era for the internet provider that was the gateway to the internet for millions:

• At its height, AOL had over 20 million subscribers and brought in more than $40 million in revenue a month.

• Today, only around 160,000 US households still rely on it.

Iconic for its screeching modem tones and the memorable “You’ve got mail!” alert, the service is immortalized in late ’90s pop culture and the hearts of many. Its discontinuation follows in the footsteps of other internet relics like AIM, Internet Explorer, and Skype.

Study finds over half of Americans’ diet is ultraprocessed foods

I think I’m speaking for most of us when I say I’m not surprised. According to a recent report by the CDC, ultra-processed foods made up 55% of total calories for people aged 1 and older in the US.

Putting on the weight

While the agency has examined the diet of Americans since the 1960s, the latest report is the first to take a look at ultra-processed food (UPF) consumption. It doesn’t look great.

While the total number of calories consumed from UPFs has dropped slightly (3% for adults and 4% for children), the study revealed some troubling stats:

• UPFs accounted for 61.9% of total calorie intake among children (ages 18 and under) and 53% among adults from 2021-2023.

• Top offenders include sandwiches (like burgers), sweet baked treats, savory snacks, sugary drinks, and pizza.

What even are UPFs? Ultra-processed foods are engineered to be hyperpalatable, packed with sugar, salt, and fat, yet low in fiber and nutrients (see breakdown with chart). They're linked to a wide array of health issues, including obesity, diabetes, heart disease, cancer, and premature death.

How can you improve your diet? Researchers say people tend to overeat and gain weight on diets high in UPFs, even when nutrient levels are matched. Some experts suggest limiting UPFs to about 10% of daily calories.

Catch up on this week’s weird news

 > Using plant-based compounds, scientists at the University of Wisconsin–Madison have created ice cream that doesn’t melt and can hold its shape for over four hours at room temperature.

 > Astronomers have discovered a planet 4.3 light-years away orbiting Alpha Centauri A, the same planet featured in the popular movie franchise Avatar.

 > A Brooklyn couple who won Hellmann’s Vegas wedding contest had their wedding ceremony officiated by the brand’s giant mayonnaise mascot, Manny Mayo.

 > Alphabet, Google’s parent company, paid $12,500 to an Argentinian man after a Google Street View camera captured him naked in his yard in 2017.

 > A 505-million-year-old cluster of well-preserved fossils in Arizona’s Grand Canyon revealed a bunch of new complex species, including insects, arachnids, and crustaceans.