In today’s newsletter:

• News - 🎯 Nvidia Hit by China Probe, Stock Tumbles 📉

• Culture - 🔍 Reddit’s AI Search Tool: Powered by its Posts? 📜

🎯 Nvidia Hit by China Probe, Stock Tumbles 📉

In a dramatic twist in the U.S.-China tech rivalry, Chinese regulators have opened an antitrust investigation into Nvidia, a key player in the AI and chip industry. The probe, announced by the State Administration for Market Regulation (SAMR), cites suspected violations of anti-monopoly laws, though the specifics remain under wraps. This comes hot on the heels of the Biden administration’s recent export restrictions on semiconductor tech to China. With Nvidia’s chips fueling AI, autonomous vehicles, and smart infrastructure—industries vital to Beijing’s ambitions—this move underscores the growing challenges for foreign firms navigating China’s complex regulatory environment.

The investigation has rattled investors, with Nvidia’s stock dropping 2.5% in premarket trading. Speculation is rife that the inquiry could delve into Nvidia’s $7 billion acquisition of Mellanox, a deal approved by China in 2020 under conditions that Nvidia allegedly may have breached. As geopolitical tensions escalate, this development is a stark reminder of China’s dual circulation strategy—reducing reliance on foreign tech while bolstering domestic capabilities. Nvidia’s meteoric rise, with its stock up nearly 190% year-to-date, makes it a symbolic target in the race for AI supremacy, and experts warn this could be just the beginning of more aggressive measures from Beijing.

🗞️ In Other News…

• Google CEO Sundar Pichai predicts slower, incremental AI advancements in 2025 as the industry moves beyond initial breakthroughs, focusing on refining technology for broader accessibility and profitability.

• HubSpot has acquired AI-powered conversation intelligence platform Frame AI to enhance its customer platform with real-time conversational insights, unifying structured and unstructured data for smarter business growth.

• Itch.io was temporarily taken offline by its domain registrar after an automated phishing report from Funko's AI-powered BrandShield system, sparking concerns over false positives and lack of human oversight in such takedowns.

• The FBI advises creating a secret phrase with family to counter AI voice cloning scams, as the technology's rise enables convincing impersonations for fraudulent purposes.

• Blackstone’s QTS data center project in Fayetteville, Georgia, has ignited local opposition over power line plans, eminent domain threats, and environmental impact, underscoring the challenges of balancing tech-driven expansion with community concerns.

🔍 Reddit’s AI Search Tool: Powered by its Posts? 📜

Reddit is taking search to the next level with its new AI feature, Reddit Answers, designed to deliver quick, conversational answers sourced entirely from Reddit posts. Think ChatGPT, but with a Reddit twist—answers come straight from the platform’s rich discussions. Currently in test mode for a small group of U.S. users, the feature aims to reduce reliance on Google by keeping users on Reddit for their queries. Users can ask questions and get AI-generated summaries, complete with links to dive deeper into relevant threads and communities.

Built on OpenAI and Google Cloud models, Reddit Answers is part of a broader strategy to grow its user base and monetize more effectively. With logged-out users surpassing logged-in ones, Reddit hopes this tool will encourage account creation by showcasing personalized and interactive content. Accessible via a button on the homepage, Reddit Answers is currently available in English on iOS and desktop, with plans to expand to Android and other languages. The company’s stock has soared over 250% since going public in March, reflecting its ambitious push into AI and user engagement.

VC Fundraising Rounds

• Tractian, an Atlanta-based company modernizing manufacturing maintenance with integrated hardware, software, and AI solutions, has secured $120 million in Series C funding. (12/5/24)

• AMP Robotics, a leader in AI-powered sorting solutions for the waste and recycling industry, has raised $91 million in Series D financing. (12/5/24)

• Lawhive, a platform connecting consumers and SMEs with affordable lawyers through fixed fees, has raised $40 million in Series A funding. (12/5/24)

• Cleerly, specializing in advanced cardiovascular imaging, has raised $106 million through its Series C extension funding round. (12/4/24)

• Yurts, a leader in secure and trusted generative AI integration at scale for defense, government, and enterprise customers, announced a $40 million Series B funding round. (12/3/24)

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