Trump’s shock AI pivot

⚔️ OpenAI hits back at Musk

Wednesday’s AI Report

• 1. 😳 Trump’s shock AI pivot
• 2. 📸 Get professional headshots with Aragon.ai
• 3. ⚔️ OpenAI hits back at Musk
• 4. 🔍 Google powering Reddit’s AI search?
• 5. 🔢 Get your taxes sorted with Kick
• 6. ⚙️ Trending AI Tools
• 7. 🏗️ Practical AI Applications
• 8. 📑 Recommended Resources

Read Time: 5 minutes

‼️This week’s AI Report podcast episode launches tomorrow: Liam chats with HubSpot’s Head of Brand, Adam Biddlecombe, about embracing AI to stay employable.

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Trump’s shock AI pivot

🚨 Our Report 

NVIDIA CEO, Jensen Huang, has managed to secure a deal with President Trump, to allow NVIDIA to continue to export its H20 AI chips to China, when many expected Trump—who increased Chinese import tariffs to at least 125% this week—to impose heavy export restrictions on NVIDIA’s most advanced AI chips.

🔓 Key Points

  • Reportedly, the deal was struck last week, when Huang attended a dinner at Trump’s Mar-a-Lago resort: In return for continued exports to China, Huang agreed to significantly invest in US AI data centers.

  • The H20 chip that NVIDIA exports to China has been modified to have lower performance than NVIDIA’s other chips, but many feared Trump would restrict exports because it was used to train DeepSeek’s R1 model. 

  • The concerns around upcoming H20 export restrictions were so strong that Chinese firms have frantically stockpiled $16B worth of H20s and the entire Trump administration has been preparing for tighter controls.

🔐 Relevance 

While it’s possibly understandable why Trump would agree to shelve export restrictions in return for NVIDIA’s commitment to build AI infrastructure in the US, the move does seem to counteract America’s goal of securing US dominance in AI, as does Trump’s decision to keep former president Biden’s AI chip export rules, which slap export restrictions on nearly every country outside the US (with particularly tight restrictions for Russia and China) which, at the time, NVIDIA slammed as “unprecedented and misguided” and likely to stifle global innovation.

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🚨 Our Report

OpenAI has filed a countersuit against Elon Musk, accusing him of harassment and disruptive tactics—asking a federal judge to block any further “unlawful and unfair” initiatives, that are designed to harm the company—marking the latest plot twist in the ongoing Musk vs OpenAI legal battle.

🔓 Key Points

  • OpenAI is transitioning into a for-profit company—a critical pre-requisite to securing $40B in funding this year—but Musk filed a lawsuit to stop the restructuring, believing it contradicted the start-up's original mission.

  • OpenAI’s lawyers claim that through press attacks, malicious campaigns broadcast to over 200M X followers, harassing legal statements, and a sham bid for OpenAI’s assets, “Musk has tried every tool to harm OpenAI.”

  • They argue that “Musk’s continued attacks on OpenAI—culminating in the fake takeover bid—are bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his own benefit.”

🔐 Relevance

As the two sides prepare to face each other in court next year, Musk’s lawyers have defended his $97.4B “fake” takeover bid, saying that had OpenAI’s Board genuinely considered it, “they would have seen how serious it was,” and can’t understand why “having to pay fair market value for OpenAI’s assets ‘interferes’ with their business plans.”

  • Google has revealed that Reddit uses Gemini to power ‘Reddit Answers,’ its AI-powered search feature that helps users find information, recommendations, and insights from conversations across Reddit.

  • This builds on the existing partnership between Reddit and Google—which was formed last year—which gave Reddit access to Google’s ‘Vertex AI’ platform to enable them to build AI agents. 

  • Some have likened the newly upgraded feature to a “knock-off version of Grok AI” (Musk’s AI chatbot, notorious for spewing misinformation) while others have praised it for concise, insightful overviews.

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