Wall Street’s Worried About an AI Bubble. Nvidia Just Delivered an Answer

President Trump has imposed limited tariffs on foreign semiconductors, allowing him to take a cut of Nvidia's chip sales to China while delaying a decision on higher taxes for the chip industry, which heavily relies on overseas materials.

Software startup Temporal Technologies Inc. is reportedly in advanced discussions to raise new capital, aiming for a valuation of $5 billion, which would mark a doubling of its worth from just three months prior. This surge in valuation is attributed to the ongoing boom in artificial intelligence (AI) technologies.

The U.S. Commerce Department has eased restrictions, allowing Nvidia to sell its H200 AI chips to approved customers in China, following a significant policy shift initiated by the Trump administration that lifted a previous export ban due to national security concerns. This decision marks a pivotal moment for Nvidia as it re-enters a crucial market after extensive lobbying efforts.

The rise of AI-generated videos, particularly deepfakes, has prompted concerns about their increasing realism and potential for misuse. CNET has provided guidance on how to identify these manipulated videos, emphasizing the importance of discernment in an era where misinformation can spread rapidly.

Linus Torvalds, the creator of Linux, has recently engaged in 'vibe coding' for a personal project, highlighting his cautious approach to integrating artificial intelligence (AI) in software development. While he acknowledges the potential of AI, he emphasizes the importance of maintaining quality and oversight in critical coding tasks.

In 2026, significant initial public offerings (IPOs) are anticipated from major tech companies, including SpaceX, OpenAI, and Anthropic, potentially transforming the financial landscape of Silicon Valley and Wall Street. SpaceX is reportedly aiming to raise over $30 billion, with a valuation target of approximately $1.5 trillion, which could make it the largest IPO in history.

Elon Musk is facing backlash over the misuse of Grok, an AI tool that has been implicated in generating sexualized images, prompting investigations by California's attorney general and a firm stance from the UK government against inappropriate content on social media platforms.

AI models are increasingly proficient at identifying software vulnerabilities, prompting experts to suggest that the tech industry must reconsider its software development practices. This advancement indicates a significant shift in the capabilities of AI technologies, particularly in cybersecurity.