A day of reckoning is unfolding for two of the world’s most influential tech titans, sending starkly conflicting signals through a nervous European market.

While a blockbuster earnings report from the AI kingpin Nvidia is providing a much-needed dose of optimism, a catastrophic collapse in Tesla’s European sales is painting a grim picture of a one-time market darling in the throes of a brutal unraveling.

European markets are heading for a higher open on Thursday, a fragile relief rally driven almost entirely by Nvidia.

The chip giant reported quarterly results that came in just above expectations and, crucially, confirmed that its blistering sales growth will remain above 50 percent this quarter.

The news, a testament to the resilience of the AI boom, has helped calm a market that was desperate for a positive catalyst.

The great unraveling: a 40% collapse

But beneath this surface-level calm, a far more dramatic and troubling story is taking shape. New sales figures released by the European Automobile Manufacturers Association (ACEA) have revealed a stunning 40 percent collapse in Tesla’s European sales last month.

The company sold just 8,837 vehicles across the continent in July, a dramatic drop from 14,769 in the same month last year.
This is not a one-off blip; it is the continuation of a deep and worrying slump that began at the start of the year.

The collapse continued despite a recent revamp of Tesla’s signature Model Y, a clear sign that the brand is facing a severe crisis, potentially fueled by a backlash against CEO Elon Musk’s political views.

A changing of the guard on Europe’s roads

As Tesla falters, a new challenger is aggressively seizing its crown. The same sales data shows that the Chinese EV-maker BYD is in the midst of an explosive expansion.

The Shenzhen-based company more than tripled its sales year-on-year in July, a staggering rise of 225 percent. This surge gave BYD a 1.2 percent market share in Europe, now decisively ahead of Tesla’s 0.8 percent.

The data confirms a trend that began in April, when BYD first overtook Tesla in European sales.

The Chinese giant, which is now competing with Tesla to be the world’s biggest EV maker, has launched an aggressive sales push in key markets like the UK, often undercutting its rivals on price.

In Britain, where Tesla’s sales slumped 59 percent, BYD’s sales quadrupled.

A cloud over corporate Europe

The day’s corporate news is not all about tech and cars. In France, the spirits giant Pernod Ricard reported a 3 percent decline in full-year sales, a performance dragged down by weak consumer sentiment in China and ongoing tariff uncertainty in the United States.

And in the UK, the share price of the power giant Drax is tumbling in early trading after the news that the country’s financial regulator is probing whether its recent annual reports complied with listing rules, adding another layer of uncertainty to a complex and volatile market.

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The UK government is weighing up a controversial new tax measure that would see landlords pay National Insurance contributions (NICs) on rental income, as Chancellor Rachel Reeves searches for ways to plug a £40 billion shortfall in the public finances.

Reeves, who will deliver her first autumn budget in the coming months, has been presented with proposals from Treasury officials to extend the National Insurance system to cover property earnings, currently exempt from the levy.

The plan, first reported by The Times, could generate an estimated £2 billion annually and has already reignited the political debate over how to make the tax system more equitable.

How the policy would work

At present, landlords pay income tax on rental profits but do not contribute National Insurance, which workers and the self‑employed are obliged to pay on wages and earnings.

Under the proposal, an 8% NIC rate would be applied to rental income up to £50,270, with a reduced 2% rate applicable to income above that threshold.

That approach would mirror how employees’ earnings are treated, while maintaining the reductions at higher income levels.

The measure builds directly on work by the Resolution Foundation think tank, which first suggested the reform as a way of closing loopholes in the current tax framework.

Adam Corlett, the think tank’s principal economist, argued landlords should not enjoy “lower tax rates than their tenants”. The group estimates that, if the employer component of NICs were also levied on rental income, annual revenues could rise closer to £3 billion.

A move to target “unearned” income

Government insiders describe the potential policy as part of a wider attempt to align taxation between earned and unearned income.

While wages and salaries are subject to National Insurance, property, pensions and savings income are largely exempt.

Advocates of the measure within Labour suggest that taxing rental profits in this way would improve fairness and send a political message that “those with unearned income should contribute more”.

However, critics have warned the approach could add to rents, dissuade investment in the private rented sector, and increase financial pressure on smaller landlords who already face a series of tax reforms introduced in recent years.

Mounting fiscal challenges

The debate comes at a pivotal moment for Chancellor Reeves.

The National Institute of Economic and Social Research (NIESR) has warned she faces a £41 billion gap between the government’s current trajectory and her target of balancing day‑to‑day spending with tax receipts by 2029‑30. Including the need to restore fiscal buffers, the effective hole could exceed £51 billion.

With Labour having pledged during the general election campaign not to increase VAT, income tax or NIC rates, Reeves is constrained in her options.

Her allies argue that expanding the scope of National Insurance to cover rental income does not technically represent a rate hike, and therefore would not breach manifesto commitments.

Nonetheless, the political risk is real. Any move to tax landlords more heavily could face backlash from property owners—many of whom argue they already shoulder significant tax burdens—as well as industry bodies warning of knock‑on effects for tenants.

Preparing for the autumn budget

The Treasury has not confirmed whether the policy will appear in Reeves’ budget, but officials are understood to be running costings and impact assessments.

The Chancellor is expected to unveil a package of measures aimed at stabilising public finances, investing in priority services, and maintaining credibility with markets.

For now, the prospect of National Insurance on rental income adds a new dimension to the politically charged question of who pays for Britain’s fiscal recovery—and how Reeves can reconcile Labour’s fiscal rules with voter expectations.

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Bloomberg reports, Sotheby’s will stage its first-ever auction series in Abu Dhabi this December, a move that reflects the emirate’s growing ambition to become a hub for art, culture, and luxury investments.

Running from 2 to 5 December, the series will be part of Abu Dhabi Collectors’ Week and include rare cars, fine jewellery, timepieces, and real estate.

The event comes after Abu Dhabi sovereign wealth fund ADQ acquired a minority stake in Sotheby’s last year, signalling deeper integration of the auction house into the region’s wealth and cultural strategy, and expanding its global outreach.

Abu Dhabi’s cultural and wealth expansion

The auction launch aligns with Abu Dhabi’s investment in cultural assets, particularly through the Saadiyat Cultural District. This area already hosts the Louvre Abu Dhabi and is preparing to welcome the Guggenheim Abu Dhabi.

These projects are designed to strengthen the emirate’s reputation as a global arts destination and highlight its strategy to merge cultural heritage with modern financial growth.

At the same time, Abu Dhabi is rapidly positioning itself as a magnet for global wealth. According to projections, the country’s richest families will control around $1 trillion by the end of next year.

Dubai, meanwhile, already hosts family offices managing more than $1 trillion in assets. Sotheby’s has reported a 25% rise in United Arab Emirates-based buyers over the last five years, underlining the appetite for luxury acquisitions in the region.

Luxury cars, diamonds, and rare collectibles

Among the headline items in the Abu Dhabi auctions is a 2010 Aston Martin One-77, estimated at between $1.3 million and $1.6 million. Also up for bidding is a 2017 Pagani Zonda 760 Riviera, which could fetch as much as $10.5 million.

A future McLaren Formula 1 Team car chassis is also expected to draw international attention from collectors.

The jewellery and diamond collection on offer is valued at more than $20 million, with additional auctions of rare timepieces and prime real estate further broadening the event’s appeal to buyers and investors seeking exclusive opportunities.

Auction timing with Abu Dhabi’s major events

Sotheby’s has scheduled the auctions to coincide with some of Abu Dhabi’s largest events, including the Formula 1 Grand Prix and Abu Dhabi Finance Week.

This timing is intended to attract wealthy international visitors who will already be in the city for these high-profile gatherings and combine leisure with investment opportunities.

The auctions will mark a new chapter for Sotheby’s in the Middle East, with the company leveraging strong regional demand for luxury goods.

Its decision to host the auctions in Abu Dhabi reflects a strategic push to bring global collectors to the emirate while giving local buyers access to some of the most exclusive assets in the world.

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Shares in French spirits group Pernod Ricard rose by more than 5.7% on Thursday after the company reported a smaller-than-expected fall in annual sales and profit, while offering guidance that pointed to improving trends in the latter half of fiscal 2026.

The performance was received positively by investors, who had braced for a deeper slowdown amid weak demand in key markets.

Tariff impact revised lower to €80 million annually

The company said it now expects tariffs imposed by the United States and China to cost around 80 million euros ($93.7 million) each year, down from an earlier estimate of 200 million euros.

Chief Executive Alexandre Ricard told Reuters that the group, nonetheless, expects fiscal 2026 to deliver an improvement over 2025, although it is too early to quantify the extent of the recovery.

“We will do better for the year than this year,” Ricard said.

The outlook emerges as the French distiller continues to navigate trade disputes, particularly between China and the European Union, while also adapting to new tariff announcements from the United States.

Full-year results slightly ahead of expectations

For the year ended June 30, Pernod Ricard reported sales of 10.96 billion euros, a 3% organic decline.

The figure was marginally better than the 3.2% drop analysts had forecast in company-compiled consensus and in line with its guidance for a low single-digit decline.

Profit from recurring operations fell 5.3% to 2.95 billion euros, reflecting weaker volumes and tariff pressures, while net profit rose 11% to 1.67 billion euros on reduced costs.

The board proposed an unchanged dividend of 4.70 euros per share.

Transition year ahead with a weak start expected

The group, maker of Absolut vodka, Jameson whiskey, Martell cognac and Havana Club rum, warned that fiscal 2026 would be a transition year.

Management forecasts a soft first quarter, driven by continued destocking in the United States and subdued consumer demand in China, but expects momentum to pick up in the second half.

Like its peers, Pernod Ricard has been hit by a downturn in spirits consumption following a post-pandemic surge.

Analysts note that the operating environment remains tough, particularly in the US and China, the company’s two largest markets.

Will the share price rally sustain? Analysts weigh in

Citi analysts described the outlook for organic sales growth in fiscal 2026 as slightly better than market expectations, noting that investors should take comfort from the earnings beat and strong free cash flow.

“We expect the shares to trade higher,” Citi’s Simon Hales wrote in a research note.

JP Morgan analysts said the results offered a mixed picture, combining a welcome earnings beat with a much weaker set-up into the first half of fiscal 2026.

They, however, cautioned that Thursday’s rally may be difficult to sustain after a strong run since late June.

“The share price is already discounting a muted pace of recovery in F26, as confidence in recovery increases, we expect the shares to re-rate,” Jefferies analyst Edward Mundy and associate Sebastian Hickman wrote in a research note. 

They added that the company is doubling down on cost-cutting efforts, which helped it beat earnings expectations, noting this should support the share price.

RBC Capital Markets offered a more guarded assessment, highlighting management’s ambiguous pledge to defend operating margins “to the fullest extent possible.”

The brokerage suggested that this could imply a decline in profitability in the near term.

Shares rally, but challenges remain

The Paris-listed stock has risen about 23% since late June and is up roughly 5% for the year to date.

Thursday’s jump reflected investor relief that full-year results were slightly ahead of forecasts, and that the tariff hit was smaller than initially feared.

Still, analysts warned that headwinds from weak US and Chinese demand, along with ongoing trade disputes, could weigh on performance in the near term.

Management maintained that the company is positioned for a gradual recovery, with improving sales momentum expected to emerge in the second half of the fiscal year.

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Warren Buffett’s Berkshire Hathaway has increased its stake in Japan’s Mitsubishi Corp to 10.23%, crossing a symbolic ownership threshold and deepening the conglomerate’s presence in the Japanese trading house sector.

This latest move, executed through Berkshire’s wholly-owned subsidiary National Indemnity Company, raised stakes from 9.74% previously and reaffirms Buffett’s bullish stance on Japan’s multifaceted trading corporations.

Berkshire’s strategic expansion in Japanese markets

Berkshire Hathaway’s incremental purchases in Mitsubishi and Japan’s other sogo shosha (trading houses) date back to July 2019.

The company, under Warren Buffett’s guidance, now holds significant stakes in five major firms: Mitsubishi Corp, Mitsui & Co, Itochu Corp, Marubeni Corp, and Sumitomo Corp.

This strategy is underpinned by a yen-denominated debt funding approach, allowing Berkshire to borrow at low Japanese interest rates while benefiting from robust dividend yields and limiting currency risk exposure.

The conglomerate’s Japanese holdings have swelled in value—from an initial outlay of approximately $6 billion to a market value topping $23.5 billion as of late 2024.

This steadily growing share is a testament to Berkshire’s confidence in Japan’s trading houses, which manage vast portfolios covering materials, energy, logistics, and emergent tech investments.

Market reaction and impact on Japanese industry

News of Berkshire’s stake increase triggered an immediate 2.5% surge in Mitsubishi Corp’s stock price, outpacing the broader Nikkei 225 index and reinforcing market optimism for the sector.

Buffett’s investments have proven to be catalysts for Japanese trading house shares in 2025, driving fresh interest from both foreign and domestic investors.

Analysts continue to highlight the value opportunity in Japanese trading houses, noting their single-digit price-earnings ratios compared to stretched valuations in the US.

These companies, often described as the backbone of Japan’s supply chain and resource flows, are now being recognised globally for their capital discipline and consistent shareholder returns.

Governance reforms and long-term outlook

Berkshire’s crossing of the 10% ownership threshold marks more than just a statistical milestone.

It sends a strong signal about the direction of Japanese corporate governance, with Buffett’s approach advocating for increased transparency, board diversity, and capital efficiency.

Berkshire has pledged not to surpass 20% ownership nor to seek hands-on control, yet its influence is already visible in boardrooms and shareholder policies.

Looking forward, Berkshire Hathaway’s strategy appears to be built for patience—Buffett has described these Japanese positions as likely to be held for decades, with successor Greg Abel maintaining frequent contact with company executives.

By leveraging cheap financing, disciplined capital allocation, and a collaborative approach to governance, Berkshire is set to benefit from the long-term stability and innovation within Japan’s diversified trading houses.

Warren Buffett’s latest purchase not only elevates Berkshire Hathaway’s stake in Mitsubishi Corp above 10%, but also signals a broader commitment to Japan’s market and a model for shareholder engagement.

This move continues to shape industry sentiment, drive competitive valuations, and foster structural reform within one of Asia’s largest economies.

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Iran’s embattled currency, the rial, slumped below the psychological barrier of one million to the dollar on Thursday, reaching a new record low as traders and ordinary Iranians brace for the reimposition of United Nations sanctions by European powers.

The precipitous decline comes amid fears that diplomatic negotiations over Iran’s nuclear program have reached a critical impasse, unleashing a fresh wave of economic uncertainty across the nation.

Snapback sanctions push rial to unprecedented depths

Currency dealers in Tehran reported the dollar trading at over 1,020,000 rials, a dramatic devaluation from 32,000 rials at the time of the 2015 nuclear agreement.

The historic plunge—amounting to a decrease of over 3,000 per cent in a decade—reflects mounting anxiety as France, Germany, and the UK prepare to trigger the “snapback” sanctions mechanism at the UN Security Council.

The snapback process, designed to be automatic and immune to Security Council veto, would reinstate major restrictions on Iran’s oil exports, foreign asset access, ballistic missile development, and arms deals.

European officials cite Tehran’s refusal to allow full nuclear inspections and the lack of progress on uranium stockpile transparency as the main drivers of this decision.

Market turmoil grips Tehran’s currency exchanges

The market response in Tehran has been swift and severe. Some exchange shops reportedly turned off electronic rate displays, intensifying reliance on informal street trading as the rial’s value nose-dived.

As panic spread, many Iranians sought safety in gold, dollars, and cryptocurrencies, wary of an inflation rate hovering near 40 per cent.

This latest crisis follows a pattern—since 2018, when the US exited the nuclear deal and reimposed sanctions, Iran’s rial has lost over 90 per cent of its value.

The currency’s free fall has made daily life increasingly difficult for millions of Iranians, with the cost of imported goods and necessities surging in tandem.

Diplomatic deadlock fuels uncertainty

Recent efforts by European negotiators to extend diplomacy have foundered, with Iran holding firm to its stance that its nuclear activities are peaceful and declining to fully cooperate with inspectors.

The snapback deadline looms large for Tehran, as failure to re-engage could cement Iran’s isolation on the global stage.

Meanwhile, Iranian leaders warn of “severe consequences” if Western pressure escalates further, suggesting that ongoing tensions may undermine the chances for renewed nuclear talks.

The International Atomic Energy Agency’s inspectors recently returned to Iran’s Bushehr nuclear site, but their activity remains strictly limited—another indication that trust between Tehran and the West is at a low ebb.

Economic pressure mounts as uncertainty persists

With the rial’s decline now front and centre, Iranians face mounting economic pressure in every aspect of daily life.

The currency crisis—driven by global diplomacy and local policy paralysis—has become a key peg in the ongoing standoff over Iran’s nuclear future.

As Europe’s snapback deadline approaches, the outlook for both the economy and regional stability remains deeply uncertain.

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On August 29, Germany will launch its second liquefied natural gas (LNG) import terminal at Wilhelmshaven port. 

This move by state operator Deutsche Energy Terminal (DET) is part of the country’s efforts to diversify its energy supply, according to a Reuters report. 

The unprovoked invasion of Ukraine by Russia in 2022 triggered a significant shift in Germany’s energy policy. 

Historically reliant on Russian pipeline gas, Germany was compelled to seek alternative energy sources to ensure its national security and economic stability.

This pivotal moment led to a strategic pivot towards global, seaborne liquefied natural gas (LNG) imports.

Shifting preferences

To mitigate its dependence on Russian supplies, Germany rapidly developed and deployed new LNG import terminals along its coast. 

These facilities, some of which were fast-tracked as floating storage and regasification units (FSRUs), allowed for the direct import of LNG from various international suppliers, thereby diversifying Germany’s energy portfolio. 

Countries such as the US, Qatar, and other producers of natural gas became increasingly important partners in Germany’s energy supply chain.

In parallel with the increased reliance on LNG, Germany also substantially ramped up its imports of pipeline gas from Norway. 

Norway, a long-standing and reliable energy partner, became an even more crucial source of natural gas for Germany. 

This dual approach of increasing both LNG imports and pipeline gas from Norway served to replace the substantial volumes previously supplied by Russia, which had accounted for a significant portion of Germany’s gas consumption. 

DET markets and operates floating terminals. These terminals convert liquefied natural gas back into gas, which is then fed into Germany’s gas network.

Boosting LNG capacity

DET announced that the commissioning and tests for Wilhelmshaven 2’s equipment have been completed.

These operations, which began in May, enable subsea gas transfer to an onshore head station, thereby minimising environmental impact, among other benefits.

DET managing director Peter Roettgen was quoted in the Reuters report:

Regular operations of the Wilhelmshaven 2 terminal with the floating storage and regasification unit “Excelsior” can now make their contribution to security of supply and to filling gas storage facilities before the next heating season.

In a significant development for the energy market, a recent sales round conducted by DET in July successfully allocated all available regasification slots for both 2025 and 2026. 

These crucial slots, which enable the conversion of LNG back into its gaseous state for distribution, were secured by various key players within the gas market. 

Future supply

This outcome underscores the robust demand for regasification capacity and signals active planning by market participants to ensure their future gas supply. 

US-based LNG company Excelerate Energy owns and operates the ship Excelsior. Additionally, DET has commissioned two other major partner firms.

Additionally, local management processes will be coordinated by German Gasfin Services, while Lithuanian KN Energies will be responsible for commercial and technical maintenance services.

This year, the vessel is projected to supply the onshore grid with up to 1.9 billion cubic meters of natural gas. 

This volume is sufficient to meet the heating demands of approximately 1.5 million households, each comprising four people residing in apartment buildings.

The amount is set to increase to 4.6 bcm in both 2026 and 2027.

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Snowflake shares soared 14% during Thursday premarket trading after the cloud data platform beat Q2 earnings estimates and raised its revenue forecast while signalling accelerating demand for its artificial intelligence offerings.

Revenue for the quarter rose 31.8% to $1.14 billion from a year ago against an expected $1.09 billion.

For the full year, Snowflake raised its product revenue guidance to just under $4.4 billion, higher than its previous $4.33 billion outlook and marginally above analyst estimates of $4.34 billion.

The rally, if sustained, would add more than $11 billion to the company’s market capitalization, lifting it well above $78 billion.

The surge underscores investor confidence that Snowflake is firmly positioned to benefit from a corporate wave of data modernization and AI adoption.

As companies invest heavily in integrating large language models and deploying AI applications, Snowflake has emerged as one of the sector’s most sought-after players.

“We have an enormous opportunity ahead as we continue to empower every enterprise to achieve its full potential through data and AI,” Chief Executive Sridhar Ramaswamy told investors.

Quarterly results beat Wall Street expectations

The company reported a narrower loss of $298 million, or 89 cents per share, compared with a loss of $316.9 million, or 95 cents per share, a year earlier.

Adjusted earnings stood at 35 cents per share, beating analysts’ consensus forecast of 27 cents, according to FactSet.

Revenue growth remained resilient, with Snowflake’s remaining performance obligations — a measure of future contracted sales — jumping 33% year-on-year to $6.9 billion.

Executives highlighted the breadth of enterprise engagement, noting that more than 6,100 accounts are now using Snowflake’s AI-driven services on a weekly basis.

“Thousands of customers are betting their business on Snowflake,” Ramaswamy said, adding that demand for its AI products is beginning to drive incremental revenue streams beyond its traditional data warehousing services.

Guidance lifted as AI adoption accelerates

For the full year, Snowflake raised its product revenue guidance to just under $4.4 billion, higher than its previous $4.33 billion outlook and marginally above analyst estimates of $4.34 billion.

Third-quarter product revenue is projected to come in between $1.12 billion and $1.13 billion, also slightly ahead of Wall Street’s forecast of $1.12 billion.

Executives credited the upgrades to a wave of adoption across industries including financial services, retail, and healthcare.

Snowflake’s platform, they said, is increasingly used for building data pipelines, training AI models, and deploying AI-enabled applications at scale.

“That’s a catalyst for next-generation databases, whether that be MongoDB, Snowflake or Databricks,” said Richard Clode, portfolio manager at Janus Henderson Investors, which holds Snowflake stock.

Analysts raise price targets after upbeat results

The stronger-than-expected results and raised guidance triggered a flurry of analyst upgrades.

Barclays lifted its price target to $255 from $219, maintaining an overweight rating and citing robust product uptake alongside strong customer pipelines.

At least seven other brokerages followed with upward revisions.

Piper Sandler raised price target to $285/ share from $215, also maintaining an overweight rating on the stock.

Data compiled by LSEG showed Snowflake is rated “buy” on average by 51 analysts, with a median price target of $255.

The stock has already risen about 30% so far in 2025, but remains among the most expensive names in the cloud software sector.

It trades at 142 times forward earnings estimates, compared with 76 times for MongoDB and 64 times for Datadog.

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Chinese AI chip company Cambricon Technologies delivered some impressive numbers that have everyone talking. The company saw its revenue skyrocket by 4,400% and actually turned a profit for the first time in a six-month period.

This development is a big deal geopolitically. With the US tightening restrictions on chip exports to China and Beijing pushing hard for tech independence, Cambricon is emerging as a real challenger to Nvidia’s dominance.

The timing couldn’t be better for them, especially with the Chinese government actively encouraging its biggest tech companies to buy domestic chips instead of foreign ones.

Cambricon’s financial turnaround sparks market euphoria

Cambricon pulled in 2.88 billion yuan (about $404 million) in just the first six months of 2025, that’s a mind-blowing 4,348% jump from the same period last year.

Here’s the kicker: after bleeding money for years, they didn’t just stop the losses, they completely flipped the script.

The company posted a hefty 1.04 billion yuan profit ($144 million), which is pretty remarkable when you consider they were down 533 million yuan just a year ago.

The markets took notice immediately. Cambricon’s stock jumped over 7% to hit an all-time high of 1,484.02 yuan, pushing the company’s value to around $80 billion.

What’s driving this incredible turnaround is basically a collision of politics, technology, and timing that couldn’t have worked out better for Cambricon.

On one side, US export restrictions are making life increasingly complicated for Nvidia. Even their watered-down H20 GPUs that are specifically designed to meet Chinese regulations is getting harder to sell to Chinese companies.

Meanwhile, Beijing isn’t being subtle about nudging its biggest players like Baidu and Alibaba to ditch foreign chips and go local instead.

The result? Chinese companies that used to automatically reach for Nvidia are suddenly shopping for alternatives right when Cambricon has chips ready to sell.

Can Cambricon dethrone Nvidia?

Cambricon’s stock surge isn’t just investors getting excited, it’s actually pointing to something much bigger happening in the tech world. The company is starting to prove it can go toe-to-toe with Nvidia in ways that actually matter.

A huge part of the recent momentum comes from DeepSeek, one of China’s hottest AI startups, announcing that its new V3.1 model works seamlessly with domestic chips.

It means Cambricon’s hardware isn’t just a backup option anymore and it’s good enough that cutting-edge AI companies are choosing it for their most advanced projects.

But let’s be real, Cambricon still has a mountain to climb. Sure, their new Siyuan 690 chip is designed to match Nvidia’s top-tier H100, but analysts aren’t exactly ready to call it game over for Team Green.

Nvidia’s still way ahead when it comes to software and the cutting-edge manufacturing processes that make their chips so powerful.

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The UK government is poised to propose new regulations aimed at shaking up the domination of tech giants like Apple and Google, who have formed an “effective duopoly,” as per the UK’s Competition and Markets Authority (CMA).

The plan involves slapping both tech giants with “strategic market status” designations, which would give regulators much more power to enforce rules designed to level the playing field.

The idea is to create more space for developer innovation and give consumers actual choices beyond the current two-horse race.

The regulators are pointing to murky app store ranking systems that nobody really understands, commission fees that take a hefty bite out of developer revenues, payment restrictions that force everyone through Apple and Google’s systems, and compatibility barriers that make it harder for apps and devices to work together seamlessly.

CMA’s challenge to Apple and Google duopoly

As per the CMA, Apple and Google’s stranglehold on mobile apps is stifling competition and innovation, and that’s bad news for both UK developers and regular consumers.

The numbers tell the story as somewhere between 90% and 100% of mobile devices in the UK run either iOS or Android, which means these two companies essentially control the entire mobile ecosystem.

The CMA has identified several problematic practices that flow from this dominance: app review processes that seem inconsistent and arbitrary, algorithms that appear to favor certain apps over others, and commission rates that can hit 30% on in-app purchases.

What really seems to bug the regulator is how these practices create a ripple effect throughout the mobile economy.

Developers face higher costs and fewer options for getting their apps noticed, while consumers end up with fewer choices and potentially higher prices.

The CMA also points out that developers often can’t even direct their own users toward alternative payment methods or subscription services without running into roadblocks.

Tech giants push back

Apple and Google aren’t exactly rolling over for these new rules.

Both companies are pushing back hard, arguing that the CMA’s proposals could seriously damage user privacy and security while hampering their ability to keep innovating.

Apple is being particularly direct about the potential consequences, pointing to what happened with the EU’s Digital Markets Act as a cautionary tale.

They delayed rolling out Apple Intelligence in Europe because of compliance headaches, and they’re warning the UK could face similar feature delays if these regulations go through.

Google is taking a different tack, emphasizing that Android is open-source and already promotes competition and choice in ways that Apple’s closed system doesn’t.

They’re calling for any new regulations to be grounded in solid evidence and strike a reasonable balance between promoting competition and maintaining innovation.

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