🤖 China’s ByteDance Exploits AI Chip Loophole in U.S. Restrictions

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In today’s Daily Report:

• 🇨🇳China’s ByteDance Exploits AI Chip Loophole in U.S. Restrictions

• 🗣️AI-Powered Digital Avatars Create Natural Gestures

• ✋Non-Profit Group Is Blocking OpenAI’s For-Profit Transition?

• 🛠Trending Tools

• 💰Funding Frontlines

• 💼Who’s Hiring?

Read Time: 3 minutes

🗞RECENT NEWS

BYTEDANCE

🇨🇳China’s ByteDance Exploits AI Chip Loophole in U.S. Restrictions

China’s Internet Giant ByteDance is storing GPUs in data centers located in other regions like Southeast Asia to exploit a loophole in U.S. restrictions.

Key Details:

• Due to national security concerns, the U.S. prohibits AI chip firms like Nvidia from directly selling GPUs to Chinese companies.

• However, these U.S. restrictions don’t prevent Chinese companies from storing GPUs in data centers located in other regions like Southeast Asia.

• Graphics Processing Units (GPUs) can perform Parallel Processing or mathematical calculations simultaneously, making them essential for AI projects.

Why It’s Important:

• ByteDance plans to spend over $7 billion on Nvidia’s GPUs in 2025 by exploiting this loophole in U.S. restrictions.

• China doesn’t possess the correct knowledge or infrastructure to create AI chips. So, without Nvidia’s GPUs, ByteDance must halt AI projects.

AI RESEARCH

🗣️AI-Powered Digital Avatars Create Natural Gestures

Researchers at the University of Stanford (“Stanford”) developed an AI model that enables digital avatars to create gestures that match spoken words.

Key Details:

• As humans talk, we gesture to help convey our meaning. However, when digital avatars attempt to replicate this behavior, they make generic movements regardless of what they’re saying.

• To make digital avatars gesture more realistically, an AI model was trained on a massive dataset of:

  1. Audiobooks: 1,000 hours of spoken language.

  2. Motion Capture: 60 hours of human gestures with corresponding speech patterns.

• When given a text or audio input, the AI model generates a set of instructions for the digital avatar’s gestures.

• These instructions control the digital avatar’s hand movements, arm swings, and head nods.

Why It’s Important:

• This AI model allows digital avatars to generate a sequence of gestures that align with speech patterns.

• Zoom CEO Eric Yuan says we’ll be able to send a digital avatar of ourselves to meetings within the next five years. Having digital avatars with realistic gestures that match spoken words is critical for this to happen.

AI DRAMA

✋Non-Profit Group Is Blocking OpenAI’s For-Profit Transition?

Encode, a non-profit group that advocates for AI safety, has joined Tech billionaire Elon Musk’s legal effort to prevent OpenAI’s For-Profit transition.

OpenAI recently raised $6.6 billion at a $157 billion valuation. Now, the company is officially in the process of restructuring from a Non-Profit Initiative into a For-Profit Framework.

In response, Musk filed a lawsuit against OpenAI CEO Sam Altman, alleging that Altman breached OpenAI’s “founding agreement” by transforming the Research Lab into a closed-source, maximum-profit company effectively controlled by Microsoft. The lawsuit explains that a Research Lab has never “gone from a tax-exempt charity to a $157 billion for-profit, market-paralyzing gorgon in just eight years.”

Encode supported Musk by submitting a proposed brief to the U.S. District Court for the Northern District of California that states: “OpenAI and its CEO, Sam Altman, claim to be developing society-transforming technology, and those claims should be taken seriously. If the world truly is at the cusp of a new age of Artificial General Intelligence (AGI), then the public has a profound interest in having the technology controlled by a public charity legally bound to prioritize safety and the public benefit rather than financial returns for a few privileged investors.”

🩺 PULSE CHECK

🛠TRENDING TOOLS

👷ReactAI builds react components using AI in seconds.

🔍Hikafyi is an AI-powered Search Engine for deep insights.

🥑Aicado is the easiest way to embed AI into your business.

⚙️Scourhead is a virtual employee that organizes data in spreadsheets.

🐝AppBuzz turns your e-commerce website into an AI-powered mobile app in seconds.

🔮Browse our always Up-To-Date AI Tools Database.

💰FUNDING FRONTLINES

• Coplay raises a $1.2M Pre-Seed Round to build an AI Copilot for game development.

• Simulation Theory secures a $2M Pre-Seed Round to maximize your compute performance.

• Mantis Robotics lands a $5M Funding Round to build human-centric robots that work safely with people.

💼WHO’S HIRING?

• Salesforce (Palo Alto, CA): AI Research Intern, Summer 2025

• TikTok (Los Angeles, CA): Data Scientist Intern, Summer 2025

• Blockhouse (Remote): Quant Research Intern, Feature Analysis, Summer 2025

• Riot Games (Remote): Sound Design Intern, League of Legends (LoL), Summer 2025

• NVIDIA (Santa Clara, CA): Developer Technology Intern, High-Performance Databases, Summer 2025

🤖PROMPT OF THE DAY

NEGOTIATIONS

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📒FINAL NOTE

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