Cambricon explosion

China, the US, Israel, Palestine, Iran, Greenland and Argentina.

The primitive world, Adolphe-François Pannemaker, 1857, coloured engraving, private collection.

Hello,

Here are the five things you need to know today:

• CHINA. UNITED STATES. The AI bubble faces an extinction-level event.

• ISRAEL. PALESTINE. Attempts at peacemaking grow desperate.

• IRAN. What the IAEA can’t see, the US won’t see.

• GREENLAND. Alleged US influence operations shock Denmark.

• ARGENTINA. Milei’s campaign hits the rocks.

And don’t forget to connect with me on LinkedIn.

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CHINA. UNITED STATES. The chips are down

The AI bubble faces an extinction-level event.

Nvidia shares in Frankfurt fell almost 3% at Thursday's open after the chipmaker flagged uncertainty in the Chinese market and decelerating growth overall. Chinese rival Cambricon Technologies announced revenue growth of 4,000%.

INTELLIGENCE. Cambricon has a $78 billion market cap to Nvidia's $4.4 trillion, but like AI firm DeepSeek, it could have a similar impact on its larger competitor. Briefly overtaking Kweichow Moutai as China's most expensive stock Wednesday, Cambricon has benefited from the US's effective ban on Nvidia sales, which the Trump administration has recently sought to overturn. As with Nvidia, Cambricon is likely overvalued, but that should be of little relief.

FOR BUSINESS. The rise of Cambricon, DeepSeek and others in China's tech ecosystem suggests Silicon Valley's economic moat is shallower than once thought. Adding to recent concerns, spurred by an MIT report, that most AI innovations are unprofitable, this could not only wipe out the US's technological lead but also the foundations of its post-Covid bull market. Any negative wealth effect in turn could have major implications for next year’s midterm elections.

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ISRAEL. PALESTINE. The Blair necessities

Attempts at peacemaking grow desperate.

Donald Trump held a meeting on the Gaza crisis Wednesday, joined by former British prime minister Tony Blair and ex-adviser Jared Kushner. US envoy Tom Barrack caused outrage in Lebanon after suggesting the locals were "animalistic".

INTELLIGENCE. Barrack, who is of Lebanese descent, was airing views many officials