Weekly AI Update: July 17th, 2025

U.S. SECURITY CONCERNS DELAY UAE‑NVIDIA AI CHIP DEAL

A major AI chip agreement between the U.S. and UAE—backed by former President Trump and centered around billions in NVIDIA chips—is on hold. The U.S. Commerce Department has delayed export licenses for Abu Dhabi-based G42, set to receive around 20% of the chips, due to fears that China could indirectly access sensitive AI technology. The stalemate reflects growing national security tensions and is frustrating American firms eager to expand their AI footprint in the Gulf.

TSMC PROFITS SURGE ON AI DEMAND, WARNS ON TARIFF IMPACT

TSMC reported a record second-quarter net profit of $13.5 billion, up 60.7% year-over-year, driven by soaring AI chip demand and robust Nvidia sales, especially to China. The chipmaker raised its 2025 revenue forecast to approximately 30% growth, citing continued strength in AI and high-performance computing. However, TSMC warned that U.S. tariffs and a strengthening Taiwan dollar could pressure its profit margins in the fourth quarter.

OPENAI ADDS GOOGLE CLOUD TO MEET SURGING AI DEMAND

OpenAI has officially added Google Cloud to its roster of infrastructure partners, joining Microsoft Azure, Oracle, and CoreWeave. The expanded partnership is designed to support rising compute demands and reduce over-reliance on Microsoft. The move also ties into the broader $500 billion Stargate initiative, which includes collaborations with Oracle and SoftBank—highlighting the rapidly intensifying competition among cloud providers in the AI arms race.