Nvidia’s $5.5B Hit, Apple’s Privacy Gamble, OpenAI’s Shift, and More
Geopolitics, product pivots, and AI-led hiring freezes… it’s been a week.
Hey friends,
It’s been a wild week in AI—from Nvidia taking a $5.5B hit to Apple getting serious about data (while still trying to wear the privacy crown). OpenAI is sunsetting GPT-4, Shopify is pausing human hiring, and Microsoft is bringing back one of its most controversial tools with a new face.
Here’s what stood out—and why it matters.
🔻 Nvidia Just Took a $5.5 Billion Hit
On Monday, Nvidia announced a $5.5 billion charge due to U.S. export restrictions on AI chips, specifically the H20—its semi-compromised offering for the Chinese market. The U.S. government now requires licenses to export high-end AI chips, citing national security concerns.
The H20 was meant to be a clever workaround to earlier bans. It offered reduced performance, but still gave Nvidia access to China’s booming AI sector. That strategy’s officially dead. The U.S.–China tech cold war just got colder, and China’s already responding by pushing local companies to ditch U.S. chips entirely. Think: Huawei’s Ascend chips.
With up to 25% of Nvidia’s revenue tied to China, this isn’t just a speed bump. It’s a possible reroute of the global AI hardware supply chain.
🍏 Apple Wants Your Data—but Says You Can Trust Them
Apple announced it's now analyzing user data across iPhones, iPads, and Macs to improve its AI platform, Apple Intelligence. The catch? They’re using on-device processing and differential privacy to keep data anonymized.
Translation: Apple wants real-world data to train its models, but doesn’t want to look like Meta while doing it.
This is a big pivot. Until now, Apple leaned on synthetic data, lagging behind OpenAI and Google. But with iOS 18 and Siri 2.0 rolling out soon, they’re aiming to close the gap—and fast.
Will this work? Maybe. But if Apple’s privacy promise slips even a little, the backlash will be fierce.
💰 OpenAI Is Moving On from GPT-4
Say goodbye to GPT-4 (and GPT-4.5). OpenAI is phasing them out from the API and ChatGPT in favor of its newer o1 and o1-mini models.
This coincides with reports that OpenAI is seeking up to $40 billion in funding at a $300 billion valuation. If successful, that puts it among the most valuable startups ever.
The newer models are faster, cheaper, and more reasoning-focused. GPT-4? Still great—but it’s old news now. As for the funding, it’s meant to power more infrastructure and expand OpenAI’s reach. But Elon Musk’s ongoing lawsuit—accusing OpenAI of straying from its nonprofit mission—is heating up and could force some uncomfortable conversations in court.
🧠 Microsoft Relaunches Copilot Recall—With “Fixes”
Remember Microsoft’s Recall tool? The one that took periodic screenshots of your desktop and freaked everyone out? It’s back.
Now, it’s opt-in, encrypted, and data stays local. Microsoft promises it won’t train any models with your screenshots. The feature is currently in testing with Windows Insider users.
It’s part of Microsoft’s larger Copilot push inside Windows and Office. If users embrace this, it could genuinely change productivity workflows. But even with the privacy patchwork, some are still calling it “spyware.”
This is going to be one of those “depends on the user” moments—and we’ll see whether the enterprise crowd bites.
🛒 Shopify Says “No More Hiring” (If AI Can Do It)
Tobi Lütke, Shopify’s CEO, made a strong statement this week: the company is stopping new hires for any role AI can handle.
Shopify’s been deep in AI integration since 2023—automating customer support, inventory, and marketing. Their AI systems helped push revenue up 25% last year. Now, they’re doubling down by letting automation take the wheel.
It’s efficient, sure. But it also fuels the ongoing debate: are we seeing the start of a massive reskilling challenge, or the early signs of long-term job erosion? Either way, Shopify’s not waiting to find out.
💭 My Take This Week
The common thread? AI isn’t experimental anymore. It’s embedded. In chips, in policy, in hiring decisions, and in how you’ll interact with your operating system.
As these shifts unfold, the question isn’t whether AI will change your industry—it’s whether you’ll lead that change or be caught reacting to it.
If any of these stories caught your eye, I’d love to hear your thoughts. Just reply or drop a comment. I read every one.
Until next time,
Omer