Nvidia's AI Chips Smuggled to China, Oracle & Digital Realty Drive AI Innovation, Visa Opens African Data Center - Silicon Brief #28

Hi there,

In this edition of the Silicon Brief, we're diving into the latest developments in AI chips and data centers. Nvidia has been in the spotlight as their AI chips have reportedly been smuggled into China despite a US ban, highlighting ongoing tensions in the tech trade landscape. Meanwhile, Oracle is making strides by partnering with Digital Realty to drive AI and cloud innovation, showcasing the growing importance of robust data center infrastructure in supporting AI advancements.

Additionally, SoftBank and OpenAI are collaborating to build a new data center in Ohio, further emphasizing the expansion of AI capabilities across the globe. In another significant move, Visa has opened its first African data center in Johannesburg, marking a pivotal step in enhancing digital infrastructure on the continent. Stay tuned as we explore these stories and more in this edition.

French startup Mistral AI reports that training its large language model resulted in approximately 2,200 tons of CO2 emissions. Bloom Energy will deploy fuel cell technology at select Oracle data centers in the U.S. to support AI workloads with clean energy. TriMagnetix is developing a nanomagnetic chip to reduce energy consumption in AI operations. OpenAI plans to install gas turbines at its Texas data center to address power supply issues. Enbridge invests in a solar project to supply renewable energy to Meta's data centers. NREL and Google hosted a hackathon to tackle energy challenges in data centers. Amrize and Meta have created an AI-optimized concrete mix to reduce emissions. Soluna Holdings secures $20M for a green data center in Texas. Anthropic predicts the US will need 50 gigawatts of electric capacity for AI by 2028.

Dell'Oro Group forecasts that the Optical Transport market will reach $19 billion by 2029, driven by increased investments from cloud providers in data center interconnect technologies.
CPC has launched the Everis UQD06 Series connectors to address the growing liquid cooling needs in AI computing. These connectors are designed to improve cooling efficiency in high-performance computing and data centers.

The United Arab Emirates' agreement to acquire AI chips from Nvidia is reportedly paused due to concerns from the U.S. about potential smuggling to China. The UK government plans to expand its AI-capable data center capacity to 6 gigawatts by 2030, tripling current levels. This effort involves public investment and the creation of AI Growth Zones to support AI infrastructure. Malaysia plans to introduce a data centre framework in October to streamline policies and development, driven by the growing demand for artificial intelligence. The initiative will be overseen by the Malaysian Investment Development Authority.

Itana has launched Africa's first full-stack AI infrastructure, while Digital Realty and Oracle are collaborating to enhance AI adoption globally. Crusoe and Tallgrass plan a 1.8 gigawatt AI data center in Wyoming, and Visa Inc. has opened its first African data center in Johannesburg. Google and QTS have initiated data center projects in Iowa, and the U.S. Department of Energy has selected the Savannah River Site for AI data center development. Meanwhile, KKR is in talks to acquire ST Telemedia Global Data Centres, and Blaize Holdings, Inc. has secured a $120 million AI infrastructure deal in Asia.

Diode Computers has secured $11.4 million in Series A funding from Andreessen Horowitz to enhance PCB design and manufacturing. Efficient Computer launched its Electron E1 processor, targeting energy efficiency in edge computing and AI. Aligned collaborates with AMD and USC ISI on the MEGALODON AI model using AMD's Instinct™ MI300 GPUs. SK hynix reported record revenues of 22.232 trillion won for Q2 2025, driven by AI memory demand. Q.ANT delivered a photonic AI server to the Leibniz Supercomputing Centre, advancing photonic AI processing in high-performance computing.