Weekly AI & Tech Recap (July 21–25)｜NVIDIA Halts H20 Production for China, Tesla Privacy Concerns, Intel Layoffs, and China’s AI Boom

This past week, the AI and tech world saw another wave of major developments—from NVIDIA’s China chip supply pause to Tesla privacy concerns, Intel’s massive layoffs, and China’s accelerating AI push. Here are the top 10 stories you need to know:

1. NVIDIA H20 Chip Supply Tightens: China Facing a Shortage
NVIDIA has informed Chinese customers that inventory of its H20 AI chips—customized for the Chinese market—is limited, and there are no plans to restart production for now.
Although the U.S. has approved H20 shipments to China, Jensen Huang said it would take “at least nine months to manufacture a new chip from scratch,” making a restart too costly in time. However, NVIDIA plans to launch a new RTX Pro GPU for China as an alternative.

2. xAI “Baby Grok” Project: A Child-Friendly AI Is Coming
Elon Musk announced on X (formerly Twitter) that xAI is developing “Baby Grok,” a child-friendly AI designed to filter adult and sensitive content and deliver “age-appropriate answers.” After the release of Grok 4, xAI is moving quickly, signaling a stronger commitment to AI safety and responsible development.

3. Amazon’s Starfish AI Revealed: Reshaping E-Commerce?
Amazon has launched its “Starfish” AI project, leveraging generative AI and web crawlers to create the world’s most comprehensive product information database.
The goal: automate product descriptions, fix errors, fill gaps, and streamline seller listings. By 2025, this could add $7.5 billion in extra sales and directly challenge Google Shopping.

4. Intel Q2 Earnings Miss, Announces 24,000 Layoffs
Intel’s Q2 earnings disappointed: GAAP net loss hit $2.9B, PC chip revenue fell 3%, and though AI/data center revenue grew 4%, it wasn’t enough to offset losses.
Intel announced a sweeping restructuring, cutting 24,000 jobs and exiting parts of its operations in Germany, Poland, and Costa Rica—a “do or die” transformation for the chip giant.

5. Tesla Pre-Installs Grok, Raising Privacy Concerns
Tesla’s newest models will come pre-installed with xAI’s chatbot Grok.
Experts warn that multi-sensor data from vehicles could lead to increased privacy risks, with concerns over whether in-car conversations and behaviors could be uploaded and analyzed.

6. China’s AI Push: JD.com Invests Heavily, National Science Campaign Begins
JD.com has gone on an AI investment spree—funding Spirit AI, LimX Dynamics, and ZQ Robotics—and will announce partnerships at WAIC 2025.
Meanwhile, China’s Four Regional Science Museum Alliance launched an AI science education initiative, aiming to boost AI literacy and create fertile ground for sustained AI growth.

7. Apple’s AI Struggles: Stock Down Over 14% This Year
Apple is falling behind in the AI race: Apple Intelligence hasn’t made breakthroughs, Siri’s personalization features have been repeatedly delayed, and its in-house model development is slow, with few acquisitions. Compared to Microsoft and Meta’s aggressive AI investments, Apple’s lag has contributed to a 14% stock drop this year.

8. Neuralink Breakthrough: Two Brain Implant Surgeries in One Day
Elon Musk’s Neuralink announced a milestone: two brain-computer interface (BCI) implant surgeries completed in a single day.
BCI technology is moving from experimental to clinical—and could usher in an era of seamless human-AI interaction.

9. Microsoft SharePoint Vulnerability: Global Servers at Risk
Microsoft disclosed a severe vulnerability in SharePoint software that allows attackers to impersonate users and launch attacks.
Tens of thousands of servers are at risk, and U.S. authorities and allies are investigating breaches, urging organizations to patch systems immediately.

10. ChatGPT Hits 2.5 Billion Daily Prompts: AI Becomes Routine
OpenAI revealed ChatGPT now handles 2.5 billion daily prompts, with 330 million from U.S. users. In just eight months, daily queries doubled from 1 billion to 2.5 billion—marking a major milestone in AI becoming part of everyday life.

Conclusion: A Week of Disruption and Acceleration
From NVIDIA’s chip supply challenges to Intel’s massive layoffs, from xAI’s Baby Grok to China’s sweeping AI initiatives, the tech world is fully entering an “AI-first” transformation era.

In the coming weeks, all eyes will be on the World Artificial Intelligence Conference (WAIC) on July 26–28—what will China and the global AI ecosystem unveil in Shanghai? Stay tuned.

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