The U.S. government is negotiating with Nvidia over the sale of its advanced H200 AI chips to China's ByteDance, the owner of TikTok. The Trump administration is willing to allow the sale but insists on strict conditions, including a Know-Your-Customer rule to prevent military access, a 25 percent fee, and third-party lab testing before shipment. Nvidia has not yet agreed to these terms, emphasizing that any conditions must be practical for sales to proceed without pushing customers to foreign competitors. Other Chinese firms like Tencent and Alibaba are also reportedly seeking these chips.
Meanwhile, major tech companies are fueling a fierce hardware battle, with over $600 billion expected to be spent on AI infrastructure. Alphabet plans to invest up to $185 billion in 2026, and Meta intends to spend up to $135 billion this year to secure computing power and chips. This massive spending is boosting AI chip stocks, including Nvidia, Broadcom, and Micron, as demand for advanced processors, custom AI chips, and high-bandwidth memory surges.
In the rapidly evolving AI landscape, OpenAI's GPT-5.3-Codex recently surpassed Anthropic's Claude Opus 4.6 on the Terminal Bench 2.0 benchmark, scoring 77.3 percent just 27 minutes after Claude Opus set a new high of 65.8 percent. Google is also pushing its AI tool, Gemini, with new ads launching before the "Big Game" on February 5, 2026. Gemini can connect to apps like Photos and Gmail, and its image editing feature, available with Nano Banana Pro, was used over 5 billion times last year.
However, AI also presents challenges. Security researchers found hundreds of harmful add-ons on ClawHub for the OpenClaw AI agent, which pose as cryptocurrency trading tools but steal sensitive data like API keys and browser passwords. On the job front, IBM CEO Arvind Krishna stated on February 5, 2026, that AI will eliminate some jobs, such as call center and internal helpdesk roles, potentially up to 50 percent, while creating new ones. He stressed the need for workers to acquire new skills.
Beyond corporate developments, AI is making its way into education and public discourse. West Ottawa High School now offers an AI Foundations course, teaching students responsible AI use and critical thinking, especially regarding misinformation. On February 5, 2026, President Trump also weighed in, calling AI "the biggest thing" with both significant benefits and problems, though he noted he has not personally used it. AVI-SPL announced a partnership with AI expert Sol Rashidi to guide its AI strategy, focusing on practical applications and long-term innovation.
Key Takeaways
- The U.S. government is setting conditions for Nvidia to sell H200 AI chips to ByteDance, including a Know-Your-Customer rule, a 25 percent fee, and third-party lab testing.
- Nvidia has not yet agreed to the U.S. government's conditions for chip sales to ByteDance, stating they must be practical for business.
- Tech companies are projected to spend over $600 billion on AI infrastructure, with Alphabet planning up to $185 billion in 2026 and Meta up to $135 billion this year.
- This massive AI spending is driving up demand for AI chip stocks, including Nvidia, Broadcom, and Micron.
- OpenAI's GPT-5.3-Codex achieved a 77.3 percent score on Terminal Bench 2.0, surpassing Anthropic's Claude Opus 4.6, which scored 65.8 percent, highlighting rapid AI advancement.
- Google is launching new ads for its Gemini AI tool, which connects to apps like Photos and Gmail, and its image editing feature was used over 5 billion times last year.
- OpenClaw AI agent's "skill" extensions have security vulnerabilities, with hundreds of malicious add-ons found stealing sensitive information like API keys and browser passwords.
- IBM CEO Arvind Krishna predicts AI will replace up to 50 percent of jobs in areas like call centers and internal helpdesks, while also creating new roles.
- West Ottawa High School now offers an AI Foundations course to teach students responsible AI use and critical thinking.
- On February 5, 2026, President Trump described AI as "the biggest thing," acknowledging both its benefits and potential problems.
US Sets Conditions for Nvidia AI Chip Sale to ByteDance
The Trump administration is ready to let China's ByteDance buy Nvidia's H200 AI chips. However, Nvidia has not agreed to the U.S. government's conditions for this sale. These conditions include a Know-Your-Customer rule to ensure China's military cannot access the chips. The U.S. also wants a 25 percent fee and for a third-party lab to test the chips. Nvidia stated that conditions must be practical for sales to happen, as this is part of ongoing U.S.-China tech discussions.
Trump Administration Sets Rules for Nvidia Chip Sale to ByteDance
The Trump administration will allow China's ByteDance to buy Nvidia's H200 AI chips, but only if certain conditions are met. These rules aim to prevent the chips from being used for military purposes or harming U.S. national security. The U.S. government wants assurances that this advanced technology will not fall into the wrong hands or be used in ways that could harm American interests. This highlights the complex trade relationship between the U.S. and China in AI technology.
Nvidia AI Chip Deal for ByteDance Faces US Conditions
The Trump administration is willing to let China's ByteDance buy Nvidia's H200 AI chips. However, Nvidia has not agreed to the U.S. government's proposed conditions for their use. These conditions include a Know-Your-Customer rule to stop China's military from getting the chips. The U.S. also requires a 25 percent fee and third-party lab testing before shipment. Nvidia stated that conditions must be practical for American companies to make sales, showing the ongoing U.S.-China tech disagreements, with other Chinese firms like Tencent and Alibaba also seeking these chips.
Nvidia Negotiates US Rules for AI Chip Sales to ByteDance
Nvidia is currently negotiating with the U.S. government over rules for selling its H200 AI chips to ByteDance, the owner of TikTok. The U.S. wants strict Know-Your-Customer rules to prevent China's military from accessing these advanced chips. Nvidia has not yet agreed to these conditions in their current form, stating they must be practical for business. The company warned that overly strict rules could push customers to foreign competitors. Also, a U.S. lab must test the chips, which many see as a way for the U.S. to collect a 25 percent fee.
President Trump Calls AI a Big Deal
On February 5, 2026, President Trump spoke about artificial intelligence in an interview with Tom Llamas. He called AI "the biggest thing" and believes it will bring both great benefits and some problems. Trump also mentioned that he has not personally used AI.
President Trump Discusses Many Topics in Interview
On February 5, 2026, President Trump gave a broad interview to Tom Llamas. He spoke about several topics, including Minneapolis, Joe Rogan, the Federal Reserve, and artificial intelligence. Trump mentioned learning from Minneapolis that a "softer touch" might be needed, while still being firm. He also addressed FBI raids and his idea to nationalize elections.
AI Spending Fuels Fierce Hardware Battle Among Tech Giants
Ross Gerber, CEO of Gerber Kawasaki, warns of a tough hardware competition as tech companies spend over $600 billion on AI infrastructure. He expects intense battles in hardware over the next three years. Companies that scale well will create strong advantages that rivals cannot easily overcome in five years. Major players like Alphabet plan to spend up to $185 billion in 2026, and Meta plans up to $135 billion this year. These companies are securing computing power, chips, and infrastructure to lead the AI race.
OpenClaw AI Skills Pose Serious Security Risks
OpenClaw, an AI agent that helps with tasks, has serious security problems with its "skill" extensions. Security researchers found hundreds of harmful add-ons on ClawHub. These fake skills pretend to be tools for cryptocurrency trading but actually steal important information. They can take exchange API keys, wallet private keys, SSH credentials, and browser passwords. Some skills are markdown files that trick users and the AI into running malicious code, giving the AI access to an entire device.
Google Debuts New Gemini Ads for Big Game
Google is launching new ads for its AI tool, Gemini, just before football's "Big Game" on February 5, 2026. The ads, including a national TV spot called "New Home," show how Gemini can help users explore ideas and complete tasks. Gemini can connect to apps like Photos and Gmail to help with creative projects. With Nano Banana Pro, users can also edit images using Gemini, a feature used over 5 billion times last year.
AVI-SPL Partners with Sol Rashidi for AI Strategy
On February 5, 2026, AVI-SPL announced a strategic partnership with Sol Rashidi, an expert in AI transformations. AVI-SPL sees AI as a key priority and wants to use it responsibly to improve customer experiences and operations. Rashidi will work closely with AVI-SPL's executive team to guide their AI strategy, focusing on practical applications and long-term innovation. This partnership aims to move AVI-SPL from just experimenting with AI to using it effectively across its global business.
West Ottawa High School Teaches Students AI Skills
West Ottawa High School now offers an AI Foundations course to teach students about artificial intelligence. This semester-long class helps students learn to use AI tools responsibly and to think critically about their outputs. Teachers Josie Cheney and Shanna Meyer cover topics like writing good prompts and checking facts, especially since AI can make mistakes or create misinformation. Students like Lilliana Gitler and Lukas Woudwyk use AI for homework and daily tasks, while Leah Desanctis plans to use it for future lesson plans as a teacher. The school believes AI literacy is a vital skill for students' future success.
GPT-5.3-Codex Quickly Beats Claude Opus AI Benchmark
The AI world is advancing very quickly, as shown by recent benchmark results. Anthropic's Claude Opus 4.6 model first set a new high score of 65.8 percent on Terminal Bench 2.0. However, just 27 minutes later, OpenAI's GPT-5.3-Codex beat that record with a score of 77.3 percent. While Claude Opus is a general AI model and GPT-5.3-Codex is made for coding, this event highlights how fast AI models are improving.
Alphabet Spending Boosts AI Chip Stocks Like Nvidia
AI chip stocks, including Nvidia, Broadcom, and Micron, are rising today. This increase comes after Alphabet announced plans to spend up to $185 billion in 2026 on AI tools and data centers. This large investment means a higher demand for advanced processors and memory chips. Nvidia, a top maker of AI graphics processors, will benefit greatly. Broadcom also gains from designing custom AI chips for major cloud companies like Google. Micron sees increased demand for its high-bandwidth memory and DRAM, which are essential for AI servers.
IBM CEO Says AI Will Change Many Jobs
On February 5, 2026, IBM CEO Arvind Krishna stated that artificial intelligence will replace some jobs but also create new ones. He believes that call center jobs, internal helpdesk roles, and tasks involving repetitive document matching could see up to 50 percent of their positions disappear. Krishna stressed the need for workers to learn new skills to move into these emerging roles. He noted that IBM itself has increased its research and development, hiring 10,000 people in productive areas. AI tools have already taken over work equal to about 200 HR employees at IBM.
Sources
- Exclusive: Nvidia's AI chip sale to ByteDance hinges on conditions set by Trump administration
- Nvidia's AI chip sale to ByteDance hinges on conditions set by Trump administration: report
- Exclusive-Nvidia’s AI chip sale to ByteDance hinges on conditions set by Trump administration By Reuters
- Trump Conditions Cloud Nvidia’s AI Chip Sale to ByteDance
- Trump calls AI 'a big deal' despite not having used it
- President Trump talks Minneapolis, Joe Rogan, the Fed, AI and 2028 in a wide-ranging interview
- Ross Gerber Warns Of Intense Hardware Battle As AI Spending Sparks Competition Among Tech Leaders
- OpenClaw’s AI ‘skill’ extensions are a security nightmare
- Watch our new Gemini ad ahead of football’s biggest weekend
- AVI-SPL Makes Strategic AI Investment with Sol Rashidi
- West Ottawa High School teaches students AI literacy through new foundations course
- Minutes After Claude Opus 4.6 Created A New High Of 65.8% On Terminal Bench 2.0, GPT-5.3-Codex Beat It With 77.3%
- NVDA, AVGO, MU: Why AI Chip Stocks Are Rising Today
- What jobs are at risk of being replaced by AI?
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