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An Nvidia chip is seen through a magnifying glass in Beijing, China, on August 1, 2025.

Vcg | Visual China Group | Getty Images

Nvidia has asked some of its component suppliers to stop production related to its made-for-China H20 general processing units, as Beijing cracks down on the American chip darling, The Information reported Friday. 

The directive comes weeks after the Chinese government told local tech companies to stop buying the chips due to alleged security concerns, the report said, citing people with knowledge of the matter.

Nvidia reportedly has asked Arizona-based Amkor Technology, which handles the advanced packaging of the company’s H20 chips, and South Korea’s Samsung Electronics, which supplies memory for them, to halt production. Samsung and Amkor did not immediately respond to CNBC’s request for comment. 

A separate report from Reuters, citing sources, said that Nvidia had asked Foxconn to suspend work related to the H20s. Foxconn did not immediately respond to a request for comment.

In response to an inquiry from CNBC, an Nvidia spokesperson said “We constantly manage our supply chain to address market conditions.”

The news further throws the return of the H20s to the China market in doubt, after Washington said it would issue export licenses, allowing the chip’s exports to China — whose shipment had effectively been banned in April.  

Last month, the Cyberspace Administration of China had summoned Nvidia regarding national security concerns with the H20s and had asked the company to provide information on the chips. 

Beijing has raised concerns that the chips could be have certain tracking technology or “backdoors,” allowing them to be operated remotely. U.S. lawmakers have proposed legislation that would require AI chips under export regulations to be equipped with location-tracking systems to avoid their illegal shipments.

Speaking to reporters in Taiwan on Friday, Nvidia CEO Jensen Huang acknowledged that China had asked questions about security “backdoors,” and that the company had made it clear they do not exist.

“Hopefully the response that we’ve given to the Chinese government will be sufficient. We’re in discussions with them,” he said, adding that Nvidia had been “surprised” by the queries.

“As you know, [Beijing] requested and urged us to secure licenses for the H20s, for some time and I’ve worked quite hard to help them secure the licenses, and so hopefully this will be resolved,” he said.

Nvidia in a statement on Friday said “The market can use the H20 with confidence.”

It added: “As both governments recognize, the H20 is not a military product or for government infrastructure. China won’t rely on American chips for government operations, just like the U.S. government would not rely on chips from China. However, allowing U.S. chips for beneficial commercial business use is good for everyone.”

Last month, Nvidia had reportedly sent notices to major tech companies and AI developers urging them against the use of the H20s, in what first had appeared as a soft mandate. The Information later reported that Beijing had told some firms, including ByteDance, Alibaba and Tencent,  to halt orders of the chips altogether, until the completion of a national security review. 

It had been seen as a major win for Nvidia when Huang announced last month that the U.S. government would allow sales of the company’s H20 chips to China.

However, the national security scrutiny the H20s are now facing from the Chinese side, highlights the difficulties of navigating Nvidia’s business through increasing tensions and shifting trade policy between Washington and Beijing. 

Chip industry analysts have also said Beijing’s actions appear to reinforce its commitment to its own chip self-sufficiency campaigns and its intention to resist the Trump administration’s plan to keep American AI hardware dominant in China.

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NASA Marshall Space Flight Center director Joseph Pelfrey resigns

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NASA Marshall Space Flight Center director Joseph Pelfrey resigns

A crane towers above the mobile launcher 2 adjacent the Vehicle Assembly Building at Kennedy Space Center on Tuesday, July 22, 2025.

Richard Tribou | Tribune News Service | Getty Images

The director of NASA’s Marshall Space Flight Center, Joseph Pelfrey, announced his resignation from the role on Thursday, CNBC confirmed.

Pelfrey said in an email to employees at the space agency that as NASA focuses on its mission to return humans to the moon, it will be “important for agency leadership to move forward with a team they choose to execute the tasks at hand.”

The email also said Pelfrey would work with NASA leaders to “pursue new ways” to “serve our space program and our great nation.” Pelfrey wasn’t immediately available to comment.

NASA confirmed Pelfrey’s resignation and said in an email to CNBC that the agency is proceeding “with a public, open competition to find the next permanent director at one of the agency’s most important centers for human spaceflight.”

At Marshall Space Flight Center, in Huntsville, Alabama, Pelfrey oversaw “7,000 onsite and near-site civil service and contractor employees,” and “an annual budget of approximately $5 billion,” according to a NASA web page describing his responsibilities. The space center now employs over 6,000 people, according to the center’s official government website.

Pelfrey had planned an all-hands conference with Marshall employees this week that was canceled, said agency staffers, who asked not to be named to discuss sensitive matters. They said Pelfrey’s resignation came as a surprise.

The White House’s 2026 budget request, which has not yet been enacted into law, includes funding for the space agency. However, NASA’s resources have declined amid Trump administration budget cuts.

About 4,000 NASA employees left through a deferred resignation program offered by the agency, and others were let go through cuts initiated by the Department of Government Efficiency (DOGE), an effort that was led by Elon Musk during his days with the Trump administration.

The administration also defunded and compelled the closure of the NASA Goddard Institute for Space Studies, which was housed in a building owned by Columbia University in New York.

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Tesla’s continuing sales slump in Europe weighs on stock price

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Tesla's continuing sales slump in Europe weighs on stock price

Elon Musk, CEO of SpaceX and Tesla, attends the Viva Technology conference at the Porte de Versailles exhibition center in Paris on June 16, 2023.

Gonzalo Fuentes | Reuters

Tesla shares fell more than 4% on Thursday after data out of Europe showed a continuing sales slump for the automaker, despite strong demand for fully electric vehicles in the region. 

Tesla EV registrations in Europe, a proxy for sales, fell by about 23% year-over-year in August, according to data from the European Automobile Manufacturers’ Association (ACEA) on Thursday.

There were 14,831 Tesla EV registrations in Europe last month, down from 19,136 in August 2024. In the first eight months of this year, Tesla EV registrations in Europe declined 32.6%, the ACEA said.

Meanwhile, total EV registrations throughout the region rose by around 26% through August compared to the same period in 2024. By contrast, registrations for petrol and diesel-powered vehicles declined by more than 20% over that stretch.

Still, RBC analysts wrote in a note on Thursday that they expect Tesla’s total deliveries for the third quarter could amount to 456,000, above a FactSet-compiled consensus of 448,000 deliveries and a Visible Alpha consensus of 440,000 deliveries.

The analysts expect a bump for Tesla as consumers rush to buy EVs in the U.S. before a $7,500 federal tax credit expires at the end of September.

Even with Thursday’s slide, Tesla’s stock has bounced back following a brutal start to the year. It’s now up 5% in 2025 after plunging 36% in the first quarter.

Musk’s political activism in the U.S. and beyond has hurt the Tesla brand and dampened its appeal to many prospective EV buyers.

Earlier this year, Musk endorsed Germany’s far-right AfD party, and this month he appeared by video at an anti-immigrant rally in the U.K. that turned violent. The rally was led by activist Tommy Robinson, a convicted fraudster with a violent criminal record.

British Prime Minister Keir Starmer rebuked Musk for “dangerous” comments that he made at the rally, where 26 police officers were injured. Musk told attendees, “violence is coming to you” and “you either fight back or you die.”

To revitalize interest in the brand, Tesla has said an affordable new model is in the works, which could help it fend off increased competition from the likes of Volkswagen, BYD and other EV makers that have been picking up market share.

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CFRA downgrades Tesla to sell. The analyst Garrett Nelson behind the call breaks it down

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Judge in Anthropic copyright case preliminarily approves $1.5 billion settlement with authors

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Judge in Anthropic copyright case preliminarily approves .5 billion settlement with authors

Dario Amodei, co-founder and chief executive officer of Anthropic, at the World Economic Forum in 2025.

Stefan Wermuth | Bloomberg | Getty Images

A federal judge on Thursday preliminarily approved Anthropic’s offer to pay $1.5 billion to settle a class action lawsuit with a group of authors, in what will be the largest publicly reported copyright recovery in history.

The lawsuit, filed in the U.S. District Court for the Northern District of California, was brought last year by authors Andrea Bartz, Charles Graeber and Kirk Wallace Johnson. It alleged that Anthropic illegally downloaded books from pirated databases like Library Genesis and Pirate Library Mirror.

“We are grateful for the Court’s action today, which brings us one step closer to real accountability for Anthropic and puts all AI companies on notice they can’t shortcut the law or override creators’ rights,” the authors said in a joint statement Thursday.

Anthropic didn’t immediately respond to CNBC’s request for comment.

The startup was founded by former OpenAI research executives, including Anthropic CEO Dario Amodei, in 2021. Anthropic, which is valued at $183 billion, is best known for its AI assistant Claude.

AI startups and media companies have been closely following this lawsuit against Anthropic as they work to outline what copyright infringement means in the AI era. 

Anthropic initially proposed the $1.5 billion settlement earlier this month. The company said it would pay roughly $3,000 per book plus interest, and it agreed to destroy the datasets containing the allegedly pirated material.

U.S. District Judge William Alsup initially expressed some reservations about Anthropic’s offer, including concerns over how to ensure authors would be properly informed. Alsup ultimately approved the settlement after “several weeks of rigorous assessment and review,” according to a release.

Alsup will consider final approval of the settlement once the notice and claims processes are complete, the release said.

Aparna Sridhar, Anthropic’s deputy general counsel, said in a statement that the company is pleased with the determination, and that the settlement “simply resolves narrow claims about how certain materials were obtained.”

“The decision will allow us to focus on developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems,” Sridhar said.

WATCH: Anthropic agrees to pay $1.5 billion to settle author’s class action lawsuit over AI training

Anthropic agrees to pay $1.5 billion to settle author's class action lawsuit over AI training

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