Mon. 08/11 – Nvidia To Pay The Government To Sell In China
· Summarized
Key takeaways
- Nvidia and AMD are paying a percentage of revenue to the U.S. government to sell AI chips to China, a move that raises legal and ethical questions.
- The GPT-5 launch has upset many users due to the removal of favored older models, leading to a public outcry and OpenAI's decision to bring them back.
- AOL's discontinuation of dial-up internet signifies significant changes in internet use, but many still face challenges accessing high-speed connections.
Summary
Nvidia and AMD's Revenue Payment to the U.S. Government
In a groundbreaking arrangement, Nvidia and AMD have agreed to pay the U.S. government 15% of their revenues from AI chip sales to China, seeking export licenses previously granted. This unusual deal has raised eyebrows among trade experts, with many questioning its legality and likening it to an export tax, a practice not permitted under the Constitution. The motivation behind this payment from the companies stems from the need to navigate the complexities of U.S.-China technology relations, especially amid rising concerns over national security.
Backlash Over GPT-5 Launch
The recent launch of GPT-5 by OpenAI has sparked significant backlash among users who lament the disappearance of older models, which many found superior for their specific workflows. This response, including subscription cancellations and online petitions, indicates a strong emotional connection users had with models like GPT-4. In response to the uproar, OpenAI's CEO, Sam Altman, announced the return of older models while committing to increased transparency in model operations.
Decline of AOL Dial-Up Internet
In a nostalgic nod to the early internet days, AOL announced the discontinuation of its dial-up service, marking the end of an era that began in 1991. Despite its dwindling user base, some individuals in rural areas still depended on dial-up due to insufficient broadband access. This highlights the ongoing digital divide in the U.S., with millions still without reliable high-speed internet.
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Show notes
Nvidia and AMD are paying the US government 15% of revenue to sell AI chips to China. Remember how with GPT-5, they took away the old models? Well, the old models are back. Some critical analysis of the whole GPT-5 moment. And you know what is finally never coming back? AOL dialup internet.
Links:
Nvidia and AMD to pay 15% of China chip sale revenues to US government (FT)
Trump Bid for Cut of Chip Revenue Risks ‘Dangerous World’ (Bloomberg)
Intel CEO Singled Out by Trump to Visit White House on Monday (WSJ)
OpenAI Faces Backlash for Retiring Older Models With GPT-5 Launch (PCMag)
GPT-5: Overdue, overhyped and underwhelming. And that’s not the worst of it. (Gary Marcus)
A BEST CASE SCENARIO FOR AI? (David Sacks)
AOL discontinues its dial-up internet, and we're just surprised they even offered it in 2025 (PCGamer)
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