SMIC Rises to Become World's Third-Largest Chip Foundry by Revenue
China’s largest chipmaker, SMIC, has become the world’s third-largest foundry by revenue, holding a 6% market share in Q1 2024. SMIC follows Taiwan’s TSMC and South Korea’s Samsung, which hold 62% and 13% market shares respectively. SMIC’s Q1 revenue was $1.75 billion, driven by strong demand, particularly in China. Despite U.S. sanctions and the inability to acquire advanced EUV machines, SMIC’s technological strides, such as producing 7 nanometer chips for Huawei, highlight its critical role in China’s semiconductor ambitions.
Moonshot AI Seeks Funding at $3 Billion Valuation Amid Kimi Chatbot Success
Chinese AI start-up Moonshot AI is negotiating new funding that could value it over $3 billion, surpassing its February valuation by $500 million. Tencent has joined the latest funding round, initially led by Alibaba. Moonshot’s Kimi chatbot, launched in October, has driven this valuation surge. The chatbot’s ability to process extensive text queries, up to 2 million Chinese characters, has made it highly popular. In April, Kimi was the second most visited Chinese AI chatbot, surpassing Baidu’s Ernie Bot.
Nvidia’s AI Chip Struggles in China Amid Competition and U.S. Sanctions
Nvidia’s advanced AI chip, the H20, developed for China, had a weak start, selling at a discount to Huawei’s Ascend 910B due to abundant supply and weak demand. Despite efforts to capture market share, Nvidia faces uncertain prospects. Analysts highlight Nvidia’s struggle to balance U.S. tensions and Chinese market needs. The H20’s future in China hinges on its performance against Huawei’s offerings, with significant competition expected as Huawei increases shipments of its superior Ascend 910B chip.
Nvidia Shares Rise Due to Strong Q1 Earnings and AI Demand
Nvidia’s shares surged past $1,000 in extended trading after the company reported impressive first-quarter earnings. For the quarter ending in 2024, Nvidia posted $26.04 billion in revenue, surpassing Wall Street’s expectations and marking a 262% year-over-year increase. Nvidia’s market cap has risen to $2.55 trillion, positioning it close to surpassing Apple’s $2.87 trillion. Nvidia also announced a ten-for-one stock split effective June 7 to make shares more accessible. CEO Jensen Huang highlighted the shift towards AI-driven data centers as a catalyst for growth.
Colendi Raises $65 Million in Series B Round, Aiming for Unicorn Status
Turkish fintech startup Colendi raised $65 million in a Series B funding round, boosting its valuation to $700 million and aiming for unicorn status by year-end. The company, which received regulatory approval to operate as a digital bank, plans to expand from its 17 million Turkish users to 1 billion globally, targeting markets in Asia. Investors include Migros and Citi Ventures. CEO Bülent Tekmen said the funds will support Colendi’s mission to become a major digital banking institution across EMEA, GCC, and Turkic republics, with plans for a Series C round and an IPO by 2026.
Google Faces Criticism Over AI Overview Errors in Search Results
Google’s new “AI Overview” in Search has been criticized for providing inaccurate and controversial responses without an opt-out option. Launched less than two weeks ago, the feature displays summarized answers at the top of search results. Examples of errors include misinformation about U.S. presidents, dangerous health advice, and nonsensical suggestions like adding glue to pizza. The controversy follows similar issues with Google’s Gemini image-generation tool, which was paused after producing historically inaccurate images.
