GPUs

Nscale, a UK-based AI infrastructure provider, has rapidly emerged as a key player in the AI market. Fueled by nearly $700 million in funding, including strategic investment from Nvidia, it partners with tech giants like Microsoft and OpenAI to develop hyperscale AI infrastructure in Europe. Nscale plans significant GPU deployments, including a $1 billion investment in Norway. The company focuses on overcoming computing capacity scarcity and market fragmentation in Europe, aiming to become a leader in sovereign AI and support the UK’s AI ambitions.

Nvidia is set to release its fiscal Q2 earnings, with analysts anticipating $1.01 EPS and $46.02 billion in revenue. Investors are focused on Nvidia’s data center performance, especially demand for Blackwell chips and developments in the Chinese market. Supply constraints for Blackwell racks and the impact of US export controls on H20 sales in China are key concerns. Analysts expect guidance to exclude China, projecting approximately $53 billion in sales for fiscal Q3, a 51% year-over-year increase.

The U.S. Congress introduced the bipartisan Chip Security Act this week, requiring advanced GPUs and AI chips exported to certain countries to include geolocation tracking tech. Exporters must report unauthorized diversions to China or other restricted destinations, threatening sanctions. The bill mandates enforcement standards within six months but lacks technical specifics, raising concerns over compliance costs and data privacy. As Chinese firms spend $12B annually on indirect chip purchases, critics warn the legislation may disrupt innovation and semiconductor trade dynamics while overstating control over global tech flows. (99 words)