China is still years behind the U.S. despite Huawei’s breakthrough chips, Raimondo tells ’60 Minutes’
WASHINGTON, DC – JULY 25: U.S. Secretary of Commerce Gina Raimondo listens as U.S. President Joe Biden participates virtually in a meeting on the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, in the South Court Auditorium at the White House on July 25, 2022 in Washington, DC.
Anna Moneymaker | Getty Images News | Getty Images
Commerce Secretary Gina Raimondo on Sunday downplayed Huawei Technologies’ latest microchip breakthrough, arguing the U.S. remains far ahead of China in the critical technology.
The comments, made on CBS News’ “60 Minutes,” are in line with the Commerce secretary’s stance that the Biden administration’s restrictions on chip sales to China are working, despite an advanced made-in-China chip surfacing in a Huawei phone last year.
“It’s years behind what we have in the United States. We have the most sophisticated semiconductors in the world. China doesn’t. We’ve out-innovated China,” Raimondo said in the interview which aired Sunday evening in the U.S.
U.S.-blacklisted Huawei released the Mate 60 Pro smartphone in August, which sported a 5G-capable chip — a feat thought to have been made difficult by a series of U.S. export controls in late 2022. The phone launched while Raimondo was on a visit to China.
Prior to the trip, it was reported that Raimondo’s email had been accessed by Chinese-linked hackers.
“I have their attention, clearly,” she said, adding the U.S. would continue to pursue actions to protect U.S. national security and businesses.
According to a senior Commerce Department official, Huawei’s chipmaking partner SMIC “potentially” violated U.S. law by providing an advanced chip to the Chinese phone maker.
Since the release of the Mate 60 Pro, the U.S. has further tightened restrictions on sales of advanced semiconductor tech to China.
Chinese officials have repeatedly denounced the policies, which require licenses for any company worldwide to sell products with advanced U.S.-designed chip technology to countries seen as adversaries.
Many U.S. chip companies, which rely on China for a large amount of business, have also expressed concerns about losing market access.
“We want to trade with China on the vast majority of goods and services,” Raimondo said. “But on those technologies that affect our national security, no.”
The global chip race ramped up after Moscow’s invasion of Ukraine in 2022, triggering the U.S. and allies such as the Netherlands and Japan to tighten advanced tech export controls. CNBC previously reported that Russia acquired advanced Western technology through intermediary countries like China.
“It’s absolutely the case that our export controls have hurt [Russia’s] ability to conduct the war, made it harder,” Raimondo said, though she admitted that Russia has found some alternative sources of chips.
The Commerce Department has also overseen the allocation of the Biden administration’s almost $53 billion CHIPS Act, aimed at building the U.S. domestic semiconductor industry and undercutting rivals like China.
In recent weeks, billions in grants and loans have been earmarked for chipmakers Taiwan Semiconductor Manufacturing Co., Samsung Electronics and Micron Technology, which are all increasing production capacity in the U.S.
Raimondo told CNBC earlier this month that all of the grant money allocated for the CHIPS Act will be sent out by year-end.
The X logo appears on a phone, and the xAI logo is displayed on a laptop in Krakow, Poland, on April 1, 2025. (Photo by Klaudia Radecka/NurPhoto via Getty Images)
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Elon Musk‘s xAI Holdings is in discussions with investors to raise about $20 billion, Bloomberg News reported Friday, citing people familiar with the matter.
The funding would value the company at over $120 billion, according to the report.
Musk was looking to assign “proper value” to xAI, sources told CNBC’s David Faber earlier this month. The remarks were made during a call with xAI investors, sources familiar with the matter told Faber. The Tesla CEO at that time didn’t explicitly mention any upcoming funding round, but the sources suggested xAI was preparing for a substantial capital raise in the near future.
The funding amount could be more than $20 billion as the exact figure had not been decided, the Bloomberg report added.
Artificial intelligence startup xAI didn’t immediately respond to a CNBC request for comment outside of U.S. business hours.
The AI firm last month acquired X in an all-stock deal that valued xAI at $80 billion and the social media platform at $33 billion.
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,” Musk said on X, announcing the deal. “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
Read the full Bloomberg story here.
— CNBC’s Samantha Subin contributed to this report.
Alphabet CEO Sundar Pichai during the Google I/O developers conference in Mountain View, California, on May 10, 2023.
David Paul Morris | Bloomberg | Getty Images
Alphabet‘s stock gained 3% Friday after signaling strong growth in its search and advertising businesses amid a competitive artificial intelligence environment and uncertain macro backdrop.
“GOOGL‘s pace of GenAI product roll-out is accelerating with multiple encouraging signals,” wrote Morgan Stanley‘s Brian Nowak. “Macro uncertainty still exists but we remain [overweight] given GOOGL’s still strong relative position and improving pace of GenAI enabled product roll-out.”
The search giant posted earnings of $2.81 per share on $90.23 billion in revenues. That topped the $89.12 billion in sales and $2.01 in EPS expected by LSEG analysts. Revenues grew 12% year-over-year and ahead of the 10% anticipated by Wall Street.
Net income rose 46% to $34.54 billion, or $2.81 per share. That’s up from $23.66 billion, or $1.89 per share, in the year-ago period. Alphabet said the figure included $8 billion in unrealized gains on its nonmarketable equity securities connected to its investment in a private company.
Adjusted earnings, excluding that gain, were $2.27 per share, according to LSEG, and topped analyst expectations.
Alphabet shares have pulled back about 16% this year as it battles volatility spurred by mounting trade war fears and worries that President Donald Trump‘s tariffs could crush the global economy. That would make it more difficult for Alphabet to potentially acquire infrastructure for data centers powering AI models as it faces off against competitors such as OpenAI and Anthropic to develop largely language models.
During Thursday’s call with investors, Alphabet suggested that it’s too soon to tally the total impact of tariffs. However, Google’s business chief Philipp Schindler said that ending the de minimis trade exemption in May, which created a loophole benefitting many Chinese e-commerce retailers, could create a “slight headwind” for the company’s ads business, specifically in the Asia-Pacific region. The loophole allows shipments under $800 to come into the U.S. duty-free.
Despite this backdrop, Alphabet showed steady growth in its advertising and search business, reporting $66.89 billion in revenues for its advertising unit. That reflected 8.5% growth from the year-ago period. The company reported $8.93 billion in advertising revenue for its YouTube business, shy of an $8.97 billion estimate from StreetAccount.
Alphabet’s “Search and other” unit rose 9.8% to $50.7 billion, up from $46.16 billion last year. The company said that its AI Overviews tool used in its Google search results page has accumulated 1.5 billion monthly users from a billion in October.
Bank of America analyst Justin Post said that Wall Street is underestimating the upside potential and “monetization ramp” from this tool and cloud demand fueled by AI.
“The strong 1Q search performance, along with constructive comments on Gemini [large language model] performance and [AI Overviews] adoption could help alleviate some investor concerns on AI competition,” Post wrote in a note.
WATCH: Gemini delivering well for Google, says Check Capital’s Chris Ballard
CNBC’s Jennifer Elias contributed to this report.
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