The Information

Analysts suggest that China's home-grown immersion deep-ultraviolet (DUV) lithography machines are not the primary threat to ASML. The Dutch firm's shares dropped significantly after a report claimed China had begun manufacturing these state-backed machines in Shanghai.

South Korea’s Kospi index fell nearly 11% due to heavy selling of chipmakers like Samsung Electronics and SK Hynix, driven by fears of an AI industry slowdown and Chinese competition. Global markets showed mixed results, with European indices rising slightly and U.S. futures fluctuating, while oil prices dropped over 2%.

South Korea's Kospi index fell nearly 11% due to heavy selling in chipmakers amid fears of an AI market bubble and competition from Chinese startups. Other Asian markets declined, and oil prices dropped over 2% as U.S.-Iran tensions eased temporarily.

South Korea’s Kospi index fell 11% due to heavy selling of chipmaking stocks like Samsung Electronics and SK Hynix, driven by fears of an AI market bubble and competition from Chinese firms. Asian markets broadly declined, with concerns over China’s progress in chipmaking tools and CXMT’s record IPO amplifying investor anxiety.

US stocks were mixed as falling oil prices due to a US-Iran pause in strikes were overshadowed by concerns over AI-driven semiconductor market turmoil. Nvidia's large deals fueled worries about AI's financial sustainability, while ASML's stock dropped amid reports of Chinese state firms advancing in lithography technology.

Tensions between China and the US over AI and technology development intensified ahead of Chinese leader Xi Jinping's planned visit to Washington. The US is investigating Chinese AI firms' access to restricted chips and considering sanctions, while China may impose tech restrictions and acquisition curbs. The US secretary of state acknowledged persistent 'great differences' between the two nations.

Qualcomm is reportedly in talks to acquire AI chip company Tenstorrent, a RISC-V-based firm, in a deal valued at $8 billion to $10 billion. The potential acquisition aligns with Qualcomm's datacenter ambitions and efforts to expand its RISC-V ecosystem, following its earlier purchase of Ventana Micro Systems. Tenstorrent's CEO, Jim Keller, is known for his work at AMD, Apple, and DEC.

Microsoft is considering restructuring its Xbox division, including potential layoffs, reevaluating the next-generation Project Helix console, and exploring options to spin off the business into a separate entity. The company has not ruled out turning Xbox into a subsidiary, joint venture, or selling it entirely to improve sustainability.

A German regional court ruled that Google is liable for its AI-generated search overviews, which falsely linked two publishing companies to scams. The court argued that these summaries constitute Google's own content, making the company potentially vulnerable to defamation lawsuits, despite typical protections for search engines linking to external sites.

Meta is developing an AI pendant and smart glasses, aiming to sell 10 million wearables by the second half of 2026, as reported by The Information.

Google has signed a classified agreement with the US Department of Defense allowing its AI models to be used for 'any lawful government purpose.' The deal follows employee concerns about potential misuse, and places Google alongside OpenAI and xAI in similar Pentagon contracts. Anthropic was previously blacklisted for refusing Pentagon demands.

Kalshi, a U.S. options exchange, is entering the crypto derivatives market by offering perpetual futures contracts to compete with platforms like Coinbase and Robinhood. The move aims to expand Kalshi's reach in the cryptocurrency trading space by introducing products that mimic traditional futures markets.