Tech News
LAST UPDATE: June 5, 2025
Trump administration renegotiating ‘overly generous’ Biden Chips Act grants
The Trump administration is renegotiating semiconductor grants issued under former President Biden’s CHIPS and Science Act to ensure they better serve American taxpayers.
Insight
The review of CHIPS Act grants underscores the administration’s focus on fiscal responsibility and national security. Commerce Secretary Howard Lutnick indicated that some agreements made under the previous administration were “overly generous” and are being reassessed, with the possibility of cancellations. The $52.7 billion CHIPS Act was designed to bolster U.S. semiconductor manufacturing and research, with funds allocated to major global chipmakers. By renegotiating these grants, the administration aims to enhance the value of taxpayer investments and ensure that the benefits align with U.S. strategic interests. This move also signals a broader effort to maintain technological leadership and address concerns over the global semiconductor supply chain.
Microsoft says to step up AI-powered European cybersecurity
Microsoft announced plans to enhance its cybersecurity efforts in Europe by deploying advanced AI technologies to protect against increasing digital threats.
Insight
Microsoft’s initiative to bolster AI-driven cybersecurity in Europe reflects the growing concern over digital threats and the need for robust defense mechanisms. By leveraging AI, Microsoft aims to detect and respond to cyberattacks more efficiently, safeguarding critical infrastructure and data. This move also aligns with broader efforts to strengthen transatlantic cooperation on cybersecurity and underscores the importance of public-private partnerships in addressing complex digital challenges.
Apple Downgraded by Needham Over AI Risks, Limited iPhone Upgrade Cycle
Investment firm Needham downgraded Apple’s stock rating from “Buy” to “Hold,” citing concerns over AI competition and a limited iPhone upgrade cycle.
Insight
The downgrade reflects investor apprehension about Apple’s ability to keep pace with rapid advancements in AI technology, particularly as competitors integrate AI more aggressively into their products. Additionally, the anticipated slowdown in the iPhone upgrade cycle may impact Apple’s revenue growth. These factors contribute to a cautious outlook on Apple’s near-term performance, prompting analysts to reassess the company’s valuation and growth prospects.
