The U.S. government gets a slice of the AI pie

U.S. markets continue to ride the artificial intelligence wave, with the tech-heavy Nasdaq Composite closing at fresh all-time highs Friday and other major indexes also rising.  

The seismic shifts from the AI wave can be felt everywhere — from fueling the rise of new billionaires at a record pace to drastically changing the cybersecurity and defense landscape and how governments are looking to gain from the boom.  

No wonder semiconductors powering AI have become an important piece on the trade chess board. In fact, the U.S. government is trying to profit from allowing chip companies access to the large Chinese market. On Wednesday, reportedly Nvidia CEO Jensen Huang met with U.S. President Donald Trump at the White House and agreed to give the federal government a 15% cut of its sales in China. Another chipmaker, AMD, agreed to the same deal. 

Nvidia, meanwhile, has been fending off allegations from Chinese state media that its H20 AI chips pose a national security risk for China as it looks to resume sales to the country.

While investors appear to be cheering on AI stocks — Nvidia gained over 1% Friday — they are also bracing for a data-heavy week ahead. The consumer price index, out Tuesday, will be particularly in focus as it could offer clarity on the Federal Reserve's rate path. 

— Nur Hikmah Md Ali

Nvidia refutes security risk allegations. The chip giant pushed back Sunday after an account affiliated with the Chinese state broadcaster CCTV said its chips were not safe and had a "remote shutdown" function.

U.S. stocks post a winning week. On Friday, the Nasdaq Composite jumped 0.98% to a fresh record high. The S&P 500 also gained to close just a few points shy from a new record. Asia-Pacific markets traded subdued Monday as the U.S.-China tariff truce deadline loomed.

Nvidia and AMD agree to pay 15% of China chip sales to the U.S. The chipmakers will receive export licenses in exchange, in an unprecedented arrangement with the White House, according to the Financial Times.

Loud luxury makes a comeback. High-end brands are pivoting to visible opulence in a bid to woo shoppers as they grapple with multiple headwinds, including trade tariffs and soft consumer sentiment.

[PRO] Data-heavy week for Wall Street. The latest consumer price index is set to release Tuesday, and the producer price index is due out Thursday. Investors also await other economic data such as retail sales, as they assess whether the Federal Reserve will cut rates in September.

SoftBank founder Son makes his biggest bet by staking the Japanese giant's future on AI

Masayoshi Son is betting that his brainchild, SoftBank, will be the center of a revolution driven by artificial intelligence. Son says artificial superintelligence — AI that is 10,000 times smarter than humans — will be here in 10 years.

He's made a career out of big plays; notably, one was a $20 million investment into Chinese e-commerce company Alibaba in 2000 that has made billions for SoftBank.

Now, the billionaire is hoping to replicate that success with a series of investments and acquisitions in AI firms that will put SoftBank at the center of a fundamental technological shift.

— Arjun Kharpal