Nvidia is encountering significant challenges in resuming sales of its H20 AI chips to China due to United States export restrictions and a reduction in production capacity at TSMC. The company has faced delays as existing orders were canceled following the initial ban, and it now anticipates that the resetting of production could take up to nine months. Despite CEO Jensen Huang expressing optimism about increasing supply and potentially faster licensing, conflicting reports suggest immediate production recovery is uncertain.
New AI Investment Fund Launched by Kris Fredrickson
In a notable development in the tech investment landscape, Kris Fredrickson, a former investor at Instacart and Coatue, has established Verified Capital, a new fund dedicated to artificial intelligence (AI) startups. With an initial capital of $175 million, the fund aims to support eight to ten high-potential companies, emphasizing a focused investment strategy backed by prominent leaders from the tech and finance sectors. Early investments include companies such as Harvey AI, Atlas, and Perplexity, showcasing Fredrickson’s intent to back innovators that are reshaping the AI industry.
Fredrickson is known for his founder-friendly approach and a disciplined investment methodology, both of which will be vital as the sector faces increasing competition. He aims to identify startups that could drive significant change and lead to new advancements in AI technology.
LTIMindtree Expands Workforce Amid Economic Uncertainty
In a parallel development, Indian IT services company LTIMindtree has announced plans to resume hiring, targeting the recruitment of 5,000 fresh graduates this fiscal year. Following a strong start in the first quarter, during which 1,600 graduates were onboarded, the company is focusing on AI-driven transformations to tackle challenges posed by the current macroeconomic landscape.
CEO Venu Lambu highlighted the firm’s utilization rate, currently at 88.1%, as a sign of ongoing demand. With a 17% increase in its order book, now valued at $1.6 billion, LTIMindtree is emphasizing structured onboarding and continuous skill development to maintain momentum and adapt to evolving industry needs.
In another significant development, the Indian cryptocurrency exchange CoinDCX recently reported a security breach that resulted in a loss of $44.2 million due to a server hack affecting its internal operational wallet. The company assured users that no customer funds were compromised, as losses would be managed through treasury reserves. CoinDCX has informed CERT-In about the incident and is collaborating with global security firms to investigate the breach. The exchange has restored its infrastructure and is committed to maintaining transparency with its users.
With these developments, the technology sector continues to navigate both opportunities and challenges, reflecting the dynamic nature of the global market.
