China Eases Limits on Nvidia H200 Chips as AI Race Escalates

Small batches of Nvidia's H200 chips have been allowed to enter mainland China, as Beijing tries to aid its leading AI companies in the race to catch up with us rivals.

Bytedance and Tencent have each received about 10,000 H200 processors in recent weeks, while a few other Chinese Tech groups could soon obtain approval for shipments of a similar size, according to two people with knowledge of the matter.

The H200 is at least two generations behind Nvidia's most powerful chips, which Chinese customers are not allowed to buy due to us export controls.

While the Chinese groups have been cleared by the US to buy up to 100,000 H200S apiece, Beijing wants them to keep most of these chips outside the mainland to support domestic chipmakers.

In addition to the small number of H200 chips permitted to enter the mainland, Chinese regulators have told companies that they can ship such processors to Hong Kong, which operates as a territory outside its customs border, and use them there.

The us licences permit shipments of Nvidia's H200 chips to mainland China and Hong Kong.

However, allowing the chips into Hong Kong still presents a challenge to Chinese Tech groups as the former British colony lacks enough data centres to house them.

The hope is for the control to loosen up gradually.

Reference Sources

1. ft - China eases limits on Nvidia H200 chips as AI race escalates
2. cnbc - The U.S. banned Nvidia's best chips from going to China. Now it's trying to close a crucial loophole

Samsung Eyes Massive $72 Billion Shareholder Return Program

Samsung Electronics Co. is planning to announce a shareholder return plan topping 100 trillion won ($72 billion), according to unidentified industry officials, a day after rival SK Hynix Inc. announced a record stock buyback.

The company plans to use 50% of free cash flow for shareholder returns, with the measures expected to focus mainly on cash dividends, according to the report. That ratio is similar to the proportion of capital that rival SK Hynix, which this week unveiled its own 40 trillion won stock repurchase program, intends to hand out to shareholders through 2027.

Samsung said in a text message that it had no comment on the report, pointing to remarks made by its CFO during its July earnings call.

SK Hynix announced a 40 trillion won ($28.6 billion) share buyback plan on Wednesday as part of the South Korean memory chip maker's shareholder return program, underscoring the company's confidence in its financial situation after reporting record earnings in the second quarter.

The company said its board approved the plan to buy 24.1 million Treasury shares in the market from Thursday to Nov. 19 and later cancel them in order to improve shareholder value.

Reference Sources

1. bloomberg - Samsung Planning Shareholder Return of $72 Billion, Report Says
2. nikkei - SK Hynix announces $28.6bn buyback plan to boost stock price
3. cnbc - SK Hynix shares surge over 12% in Seoul after announcing massive stock buyback
4. bloomberg - SK Hynix Announces $28.6 Billion Share Buyback on AI Boom
5. thestarmy - SK Hynix to buy back, cancel $29 billion worth of treasury shares

Young US Adults Increasingly Wary of AI Job Losses, Pew Finds

A Pew Research Center survey found that the youngest members of the US workforce are increasingly sceptical about artificial intelligence (AI), fearing that advances in the technology will lead to widespread job losses.

The majority of adults under 30 say they are more concerned than excited about AI for the first time since Pew began its survey in 2021. almost three-quarters of adults in that bracket also think the technology will mean fewer available jobs, up from 61% two years ago, according to the survey.

The findings are further evidence of younger Americans' complex relationship with AI.

They are among the technology's most fluent users, but are entering the workforce just as it threatens to erode the Junior roles that conventionally provide a foothold into the Tech industry.

Reference Sources

1. thestarmy - Young Americans become more hostile to AI, fearing job losses
2. cnbc - Workers can't agree if junior employees should use AI at work: CNBC survey
3. bloomberg - Young Americans Become More Hostile to AI, Fearing Job Losses
4. foxnews - Majority of young adults say they are 'more concerned than excited' about AI: Pew Research
5. pewresearch - Young adults in the U.S. are increasingly wary of AI, concerned it will take jobs

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

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