⚛️🦾 Will Europe Survive New American AI Chips Export Rules?

A Newsletter for Entrepreneurs, Investors, and Computing Geeks

Author

Benjamin Wolba
March 03, 2025

Nvidia keeps pulling ahead—not because its hardware is better, but thanks to its unmatched software ecosystem—leaving AMD struggling to catch up. China is advancing its own chip manufacturing but still buys Nvidia GPUs wherever possible. Meanwhile, quantum computing companies are doubling down on scaling strategies to make quantum useful finally.

On the funding side, we see fewer but more focused rounds, with many deals getting teased in the media long before they actually close.

And we’re still busy preparing for the Future of Computing Conference 2025 in London on March 26 this year – looking forward to seeing some of you there!

Spotlights

🤖🦾 AI Promise and Chip Precariousness (Stratechery)

“AMD promises to do better, but, frankly, great chips limited by poor software has been the story of AMD for its entire five decades of existence. Some companies, like Meta or Microsoft, might put in the work to write better software, but leading labs don’t have the time nor expertise.”

“Most companies have long acknowledged that modularity is key to scaling, says Xanadu CEO Christian Weedbrook, but so far, they have prioritized developing the core qubit technology, which was widely seen as the bigger technical challenge. Now that chips with practical use are in sight and the largest processors feature more than 1,000 qubits, he believes the focus is shifting.”

“American quantum computing startup PsiQuantum announced yesterday that it has cracked a significant puzzle on the road to making the technology useful: manufacturing quantum chips in useful quantities.”

Headlines

🦾 Nvidia sales grow 78% on AI demand, company gives strong guidance (CNBC)

🦾 China Tech Giants Lift Nvidia Chip Orders Amid Trump Curbs Talk (Asia Financial)

🦾 Huawei improves AI chip production in boost for China’s tech goals (FT)

🦾 Data centres (2025): Plug, baby, plug (Sifted)

🦾 Reinventing the Finnish ecosystem to support the Chips Act targets (Innovation News Network)

🌚 Is it Lunacy to Put a Data Center on the Moon? Lonestar Data Holdings is sending a test mission, aiming to safeguard valuable data (IEEE Spectrum)

🧱 Thin Chips and Robust Substrates - Key Technologies for Cost-Efficient Silicon Carbide Power Electronics (IDW)

🧠 More brainlike computers could change AI for the better: These 4 neuromorphic technologies hold promise for more efficient, more capable forms of AI (Science News)

🧠 Google DeepMind hires Rain AI engineer for growing "AI hardware design" team (DCD)

⚛️ Amazon debuts Ocelot, its first quantum computing chip (TechCrunch)

⚛️ PsiQuantum Unveils Omega Chipset for Scalable Photonic Quantum Computing (Quantum Computing Report)

⚛️ Rigetti Computing Announces Collaboration with Quanta Computer to Accelerate Superconducting Quantum Computing (Quantum Insider)

⚛️ A Path to Scalable Quantum Computers (Physics APS)

⚛️ Chinese Scientists Overcome Key Barrier to Scalable Photonic Quantum Computing (Quantum Insider)

Funding News

⚛️ $170M Series C – Quantum Machines: hybrid control and operation systems for all types of quantum computers (DCD)

🤖🦾 $305M Series B – Together AI: AI acceleration cloud (DCD)

Bonus:

⚛️ Singapore's Horizon Quantum plans $500M SPAC merger with US's dMY (Technode)

Deep Dive: Will Europe Survive New American AI Chips Export Rules?

Back in January, still under the Biden administration, the U.S. imposed export restrictions on advanced AI chips, which grant access only to select allied nations and leave parts of Europe uncertain.

This presents an opportunity for Europe to build its own resilient semiconductor ecosystem. This is not just about reducing dependency on American or Asian technologies but fostering innovation within Europe itself.

One concrete example mentioned in the article is Black Semiconductor, a German startup co-founded by Daniel Schall. Black Semiconductor is developing cutting-edge graphene-based chip interconnects, which could revolutionize the speed and efficiency of European chips. Companies like this demonstrate that Europe has both the talent and technical expertise to become a leader in next-generation semiconductors—if supported by appropriate policy and investment.

With the U.S. prioritizing its own internal AI infrastructure, such as the massive Stargate project, Europe can no longer rely on easy access to top-tier American chips. This moment could define whether Europe remains a tech consumer or steps up to become a key player in the global AI and semiconductor race.

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