TechCrunch : Google unveils a next-gen family of AI reasoning models

Google unveils a next-gen family of AI reasoning models

On Tuesday, Google unveiled Gemini 2.5, a new family of AI reasoning models that pauses to “think” before answering a question.

To kick off the new family of models, Google is launching Gemini 2.5 Pro Experimental, a multimodal, reasoning AI model that the company claims is its most intelligent model yet. This model will be available on Tuesday in the company’s developer platform, Google AI Studio, as well as in the Gemini app for subscribers to the company’s $20-a-month AI plan, Gemini Advanced.

Moving forward, Google says all of its new AI models will have reasoning capabilities baked in.

Since OpenAI launched the first AI reasoning model in September 2024, o1, the tech industry has raced to match or exceed that model’s capabilities with their own. Today, Anthropic, DeepSeek, Google, and xAI all have AI reasoning models, which use extra computing power and time to fact-check and reason through problems before delivering an answer.

Reasoning techniques have helped AI models achieve new heights in math and coding tasks. Many in the tech world believe reasoning models will be a key component of AI agents, autonomous systems that can perform tasks largely sans human intervention. However, these models are also more expensive.

Google has experimented with AI reasoning models before, previously releasing a “thinking” version of Gemini in December. But Gemini 2.5 represents the company’s most serious attempt yet at besting OpenAI’s “o” series of models.

Google claims that Gemini 2.5 Pro outperforms its previous frontier AI models, and some of the leading competing AI models, on several benchmarks. Specifically, Google says it designed Gemini 2.5 to excel at creating visually compelling web apps and agentic coding applications.

On an evaluation measuring code editing, called Aider Polyglot, Google says Gemini 2.5 Pro scores 68.6%, outperforming top AI models from OpenAI, Anthropic, and Chinese AI lab DeepSeek.

However, on another test measuring software dev abilities, SWE-bench Verified, Gemini 2.5 Pro scores 63.8%, outperforming OpenAI’s o3-mini and DeepSeek’s R1, but underperforming Anthropic’s Claude 3.7 Sonnet, which scored 70.3%.

On Humanity’s Last Exam, a multimodal test consisting of thousands of crowdsourced questions relating to mathematics, humanities, and the natural sciences, Google says Gemini 2.5 Pro scores 18.8%, performing better than most rival flagship models.

To start, Google says Gemini 2.5 Pro is shipping with a 1 million token context window, which means the AI model can take in roughly 750,000 words in a single go. That’s longer than the entire “Lord of The Rings” book series. And soon, Gemini 2.5 Pro will support double the input length (2 million tokens).

Google didn’t publish API pricing for Gemini 2.5 Pro. The company says it’ll share more in the coming weeks.

TechCrunch : Earth AI’s algorithms found critical minerals in places everyone el

Earth AI’s algorithms found critical minerals in places everyone else ignored

Last summer, mining startup KoBold made a splash when it said it had discovered in Zambia one of the world’s largest copper deposits in more than a decade.

Now, another startup, Earth AI, exclusively told TechCrunch about its own discovery: promising deposits of critical minerals in parts of Australia that other mining outfits had ignored for decades. While it’s still not known whether they are as large as KoBold’s, the news suggests that future supplies of critical minerals are likely to emerge from a combination of field data parsed by artificial intelligence.

“The actual, real frontier [in mining] is not so much geographical as it is technological,” Roman Teslyuk, founder and CEO of Earth AI, told TechCrunch.

Earth AI has identified deposits of copper, cobalt, and gold in the Northern Territory and silver, molybdenum, and tin at another site in New South Wales, 310 miles (500 kilometers) northwest of Sydney.

Earth AI emerged from Teslyuk’s graduate studies. Teslyuk, a native of Ukraine, was working toward a doctorate at the University of Sydney, where he became familiar with the mining industry in Australia. There, the government owns the rights to mineral deposits, and it leases them in six-year terms. Since the 1970s, he said, exploration companies are required to submit their data to a national archive.

“For some reason, nobody’s using them,” he said. “If I could build an algorithm that can absorb all that knowledge and learn from the failures and successes of millions of geologists in the past, I can make much better predictions about where to find minerals in the future.”

Teslyuk started Earth AI as a software company focused on making predictions about potential deposits, then approaching customers who might be interested in exploring sites further. But the customers were hesitant to invest, in part because they didn’t want to bet millions on the predictions of an unproven technology.

“Mining is a very conservative industry,” Teslyuk said. “Everything outside of the approved dogma is considered heresy.”

So Earth AI decided to develop its own drilling equipment to prove that the sites it identified were as promising as its software suggested. The company was accepted to Y Combinator’s spring 2019 cohort, and it spent the next few years refining its hardware and software. In January, Earth AI raised a $20 million Series B.

Though the company uses AI to search for minerals like KoBold, Teslyuk says it takes a different tack. Earth AI’s algorithms, he said, are trained to scan wide areas quickly and efficiently to find deposits that might otherwise have been overlooked.

“The way we used to explore for metals in the past, the 20th century, it just takes very, very long. It takes decades to find something,” Teslyuk said. “With the modern pace of the world, you just can’t wait for that long.”

FT : Italy’s Pirelli pushes Chinese owner to cut stake amid fears of Trump freez

Italy’s Pirelli pushes Chinese owner to cut stake amid fears of Trump freeze-out
Management will demand Sinochem reduce its stake in tyremaker at board meeting on Wednesday

Pirelli’s board is pressing China’s Sinochem, its largest investor, to cut its stake over fears that the Trump administration’s hawkish position on Beijing ownership of American assets will thwart the Italian tyremaker’s US expansion.

At a board meeting on Wednesday, Pirelli’s management will demand the Chinese investor immediately cut its 37 per cent stake to less than Italian shareholder Camfin’s 26.4 per cent holding, according to several people with knowledge of the plans.

The move demonstrates the drastic steps being taken by companies as they adapt to the policies of US President Donald Trump’s administration.

Korean car group Hyundai on Monday was the latest international business to announce large investments in the US, unveiling a $21bn package that Trump said was evidence that his trade policies “very strongly work” as he seeks to boost domestic manufacturing.

One of the options Pirelli proposed is for Sinochem to reduce its stake below 25 per cent through a share buyback with some stock being resold on the market immediately, people with knowledge of the plans said.

It is unclear whether Sinochem, which will be represented at the meeting by its president Jiao Jian — also Pirelli’s chair — will agree to the proposal. The parties failed to reach an agreement in preparatory talks ahead of the board meeting, the people added.

Pirelli declined to comment. Sinochem could not immediately be reached for comment.

Pirelli owns a factory in the US state of Georgia but produces most of its tyres for the North American market in Mexico and South America. In response to Trump’s trade policies and the looming threat of tariffs on imported cars, it has sought to expand its operations in the US, where it makes a quarter of its global revenues.

But the tyremaker has met resistance in recent conversations in the US about its expansion plans, according to people with knowledge of the matter. The company believed that this stemmed from the fact its largest shareholder was a Chinese state-owned company, the people added.

Pirelli, which supplies the tyres used by Formula 1 cars, also owns proprietary technology that can link information picked up by tyre sensors to vehicles’ driving commands. The technology is in high demand in the US but Pirelli also fears it will be cut out of a potentially lucrative market because of Sinochem’s stake in the group, according to the people.

The US in January finalised a ban on Chinese automated driving systems as well as hardware and software that interact with cars, such as Bluetooth, WiFi and satellite.

State-owned ChemChina, which later merged with Sinochem, first bought a majority stake in Pirelli in a $7.7bn deal in 2015. Under the initial deal, the Chinese investor agreed it would not interfere with the Italian group’s day-to-day management, strategy or appointments.


This week’s showdown comes less than two years after Italian Prime Minister Giorgia Meloni’s government imposed limitations on state-owned Sinochem’s shareholder rights in Pirelli.

The rare state intervention, under Italy’s “golden power” foreign investment screening mechanism, followed repeated clashes between Pirelli’s Italian management, including its former chief executive Marco Tronchetti Provera, and Sinochem as Beijing sought to tighten its grip over one of Italy’s historic industrial groups.

Sinochem’s attempts to exert control at a time of heightened geopolitical tensions led to disputes with Pirelli’s management. The disagreements culminated with Sinochem’s attempt in 2023 to revise a shareholder pact and strip Camfin — where Tronchetti Provera is the controlling shareholder — of the indefinite right to appoint Pirelli’s chief executive.

FT : Fidelity plans to launch stablecoin in digital assets push

Fidelity plans to launch stablecoin in digital assets push
Asset manager is in advanced stages of testing token as the Trump administration prepares to overhaul crypto oversight

Fidelity Investments is planning to launch its own stablecoin, deepening the $5tn asset manager’s push into digital assets as the US prepares its first regulatory framework for cryptocurrencies.

The Boston-based fund firm is in the advanced stages of testing its token, which is designed to act as cash in cryptocurrency markets and will be managed through its digital assets arm, according to two people with knowledge of the plans.

Fidelity’s launch is part of its expansion into the nascent market for tokenised versions of US Treasuries. Late last week it filed to launch a digital version of a US money market fund at the end of May, in direct competition with traditional asset manager rivals BlackRock and Franklin Templeton.

Its move comes as Washington begins sweeping changes in the oversight of cryptocurrencies following the election of President Donald Trump.

His crypto-friendly approach marks a sharp break with the Biden administration, which had taken a far more sceptical view.

Trump has pledged to promote the growth of “lawful and legitimate” dollar-backed stablecoins to support the US currency and called for supporting legislation to be ready to be signed into law by August.

Politicians in Washington are debating rival bills to begin regulation of stablecoins, which are designed to hold a constant value per coin and serve as a ready cash reserve outside the regulated banking system.

Most are pegged to the US dollar and are backed one to one by reserves held in US Treasuries, with operators managing the risks and keeping for themselves the interest paid out on the bond. There are about $234bn of stablecoins in circulation globally, with most issued offshore by El Salvador-based Tether.

Critics have warned they pose potential risks to financial stability and can serve as new avenues for consumer fraud.

Fund groups — as well as cryptocurrency companies Ondo Finance and Hashnote, owned by stablecoin operator Circle — have been experimenting with security-like tokens that pay out interest and serve as instant collateral for trading. These tokenised money market funds have attracted more than $5bn, according to data provider RWA.xyz.

Advocates see tokenised money market funds, in contrast to stablecoins, as regulated, onshore deposits. However, critics have argued that existing tokenised funds lack the deep, liquid secondary markets that stablecoins typically have.

Tokenisation could transform the financial services industry, according to Cynthia Lo Bessette, head of digital asset management at Fidelity Investments.

One use case to improve the efficiency of capital markets was using tokenised assets as collateral to meet margin requirements in trading, she added.

In a separate move on Tuesday, World Liberty Financial, the crypto project promoted by Trump and his sons, said it planned to launch its own stablecoin. The coin’s reserves will be backed by short-term US Treasuries and other cash equivalents. World Liberty was co-founded by the son of Trump’s Middle East envoy Steve Witkoff.

>>> What to look at today - 26th of March 2025

Asian stocks traded in a tight range Wednesday as investors searched for a clear direction amid weaker US consumer confidence and uncertainty about President Donald Trump’s upcoming tariffs. The MSCI Asia Pacific Index snapped a three-day decline, eking out a 0.3% gain after it lost early momentum. US copper surged to a record high as traders price in the possibility of hefty import tariffs. US and European equity-index futures were steady while the 10-year US Treasury yield edged up. The dollar was little changed after ending a four-day rally Tuesday.  The Trump administration indicated earlier this month that the coming wave of US tariffs may be less expansive and more targeted than originally feared, as countries raced to secure reprieves from the coming levies. On Tuesday, Trump said he didn’t want have too many exceptions but he will “probably be more lenient than reciprocal, because if I was reciprocal, that would be that would be very tough for people.” While markets have taken some comfort from Trump’s recent comments about the “reciprocal” tariffs he is due to announce April 2, Tuesday’s US economic data adds to concerns investors have about growth in the world’s largest economy. One positive news amid the uncertainty was Morgan Stanley and Goldman Sachs Inc. strategists boosting their optimism for Chinese stocks, citing factors including improving earnings outlook. Trump is preparing a “Liberation Day” tariff announcement on April 2, unveiling so-called reciprocal tariffs he sees as retribution for levies and barriers from other countries, including longtime US allies. While the announcement would remain a very significant expansion of US tariffs, it’s shaping up as more focused than the sprawling, fully global effort Trump has otherwise mused about, officials familiar with the matter say. US tariffs on copper imports could be coming within several weeks, months earlier than the deadline for a decision, according to people familiar with the matter. The Hang Seng Tech Index of big Chinese stocks in the sector rallied as much as 1.6% on Wednesday, after falling to the brink of a correction the day before. Morgan Stanley strategists raised their 2025 year-end index targets for Chinese stocks. Similarly, strategists at Goldman Sachs expect more fundamental upside to the recent rally as more positive earnings revisions should be coming. Chinese stocks are “taking a breather, I don’t think it’s the end,” said Vey-Sern Ling, a managing director at Union Bancaire Privee. “Valuations are still cheap, government is supportive of technology and consumption. And innovation is alive and kicking.” On the geopolitical front, the US said Russia and Ukraine agreed to a ceasefire in the Black Sea, even as the Kremlin said its involvement would depend on a series of preconditions including sanctions relief. The US also “will help restore Russia’s access to the world market for agricultural and fertilizer exports, lower maritime insurance costs, and enhance access to ports and payment systems for such transactions,” according to the White House.  Consumer sentiment surveys have been dismal of late as households fear a resurgence in inflation from Trump’s tariffs. Companies have warned of higher prices and less demand, coinciding with economists’ forecasts that suggest a risk of stagflation and rising odds of recession. In commodities, oil rose on Wednesday after an industry report indicated a drawdown in US inventories. Gold held near a record. US After Hours GME +5.5% higher on earnings; CMP +4% on cost structure reductions; HUMA -19.7% on stock offering.

Nikkei +0.73% Hang Seng +0.25% CSI -0.04% Shanghai +0.18% Shenzen +0.72%

Eur$ CNH CNY JPY GBP CHF RUB TRY WTI$ Gold BTC ETH

S&P -0.02% Nasdaq -0.05% EuroStoxx +0.33% FTSE +0.10% Dax +0.38% SMI +0.02%

Macro :
- Merz’s Next Big Test Is to Win Over German Conservative Skeptics
- China’s Energy Rules for Advanced Chips May Hit Nvidia Sales: FT
- Trump on April 2 Tariffs: I Have Them Set, They Will Be Fair
- Millennium Commits Capital to Hedge Fund Pleasant Lake Partners
- Erdogan Treads Carefully to Quell Protests and Calm Markets
- Quebec Sees Deeper Deficit, Slower Growth as Trade War Bites (1)
- Copper Soars on Tariff Fear, Stocks Stay Resilient: Macro Squawk

Keep an eye on :
- 1U1 GY : 1&1 Sees 2025 EBITDA About -3.4%
- ALV GY : Allianz Global Investors Says It Is Cutting Some Roles
- AT1 GY : Aroundtown Sees 2025 FFO I EU280M to EU310M, Est. EU285.4M
- ASTOR SS :Scandinavian Astor Group Offers SEK125 million Shares, Scandinavian Astor Group Offering Prices at SEK23/Share
- T US : AT&T Said In Talks to Buy Lumen’s Consumer Fiber Unit
- BMW GY : BMW to Integrate Alibaba’s AI in China Cars From 2026
- ATD CN : Couche-Tard Sees Strong Interest in US Stores for Seven & i Deal
- ELI BB : Elia to Raise Up to €1.35b in 1-for-4 Rights Offer at €61.88/Shr
- EQT SS : EQT’s New Private Capital Chiefs See More Take-Private Deals
- GMAB DC : Genmab Starts Buyback Program of Up to 2.2 Million Shares
- BAKKA NO : Greencore Is Said to Increase Bid for Tesco Supplier Bakkavor
- ERICB SS : Ericsson, SoftBank Enter MoU for Strategic Tech Partnership
- GLEN LN : Glencore Halts Chilean Smelter in Setback for US Copper Rush (1)
- GNC LN : Greencore Is Said to Increase Bid for Tesco Supplier Bakkavor
- GSK LN : GSK Wins US FDA Approval for UTI Antibiotic Blujepa
- HUMA US : Humacyte Offering of 25m Shares Prices at $2/Share
- Kraken IPO : Crypto exchange Kraken in no rush for IPO, CEO says
- LSEG LN : LSE Challenges Perceived Benefits of US Listings: ECM Watch
- MRK US : Merck Sinks as Much as 5.5%, Worst Performer in DJIA Today
- MSFT US : Microsoft, KT to Tie up to Make S. Korea Most AI-Savvy Nation
- NTGY SM : Taqa in Talks for Up to ~30% Stake in Naturgy: Expansion
- NVDA US : China’s Energy Rules for Advanced Chips May Hit Nvidia Sales: FT
- PAH3 GY : Porsche SE Sees 2025 Adjusted Profit After Tax EU2.4B to EU4.4B
- PRS SM : Prisa Announces Capital Increase in Debt Refinancing Plan
- PRY IM : Prysmian Agrees to Buy Channell to Broaden US Market Push
- PRY IM : Prysmian Targets 2028 Adj. Ebitda €2.95B-3.15B (1)
- R3NK GY : Defense Supplier Renk Sees 2025 Adjusted Ebit €210M to €235M
- SGO FP : Saint-Gobain Prices EUR1.2 Billion Double Tranche Bonds
- SAN SM : Santander Hits €100 Billion Valuation on Historic EU Bank Rally
- SU FP : Schneider Plans to Invest More Than $700M in US Through 2027
- SUNN SW : Syngenta Group Reports $28.8 Billion Sales in 2024, -10% Y/y
- TRN IM : Terna 2025 Revenue Forecast Beats Estimates
- UBSG SW : UBS Mulls Floating Investment Bank Cap of ~30% of Total Ops:Rtrs
- UTDI GY : United Internet Sees 2025 Sales About EU6.4B, Est. EU6.61B
- WAC GY : Wacker Neuson Sees 2025 Ebit Margin 6.5% to 7.5%, Est. 6.98%

>>> Europe : Brokers Upgrades & Downgrades - 26th of March 2025

>>> Up
* Exor Raised to Outperform at BNPP Exane
* Grand City Properties Raised to Buy at Goldman; PT 13.20 euros
* Hammerson Raised to Neutral at Goldman; PT 255 pence
* Rheinmetall Raised to Add at AlphaValue/Baader
* TotalEnergies Raised to Buy at Citi; PT 70 euros
* Xvivo Perfusion Raised to Buy at Pareto Securities

>>> Down
* Ageas Cut to Hold at HSBC; PT 58 euros
* Allegro Cut to Sell at Goldman; PT 31 zloty
* ArcelorMittal Cut to Hold at Jefferies; PT 33 euros
* ArcelorMittal ADRs Cut to Hold at Jefferies; PT $36.20
* Bollore Cut to Reduce at AlphaValue/Baader
* Cemex ADRs Cut to Equal-Weight at Morgan Stanley; PT $8
* HIAG Immobilien Cut to Add at Baader Helvea; PT 108 Swiss francs
* Inmobiliaria Colonial Cut to Sell at Goldman; PT 4.80 euros
* Luminar PT Reduced to $7 from $15 at Deutsche Bank
* Micron Cut to Hold at China Renaissance; PT $84
* Orange Cut to Neutral at Citi; PT 12 euros
* Sodexo Cut to Neutral at Goldman; PT 73 euros
* Supermarket Income Cut to Neutral at Goldman; PT 89 pence
* Tesla Cut to Hold at Mirae Asset Securities; PT $310
* TietoEVRY Cut to Equal-Weight at Morgan Stanley; PT 21.50 euros

>>> Initiation
* Addtech Rated New Hold at Kepler Cheuvreux; PT 330 kronor
* Cipher Mining Rated New Buy at Clear Street; PT $6
* Delivery Hero Reinstated Buy at Goldman; PT 39 euros
* Ferrari Group Rated New Buy at Jefferies; PT 10.50 euros
* Ferrari Group Rated New Buy at Goldman; PT 13.40 euros
* Ferrari Group Rated New Outperform at Oddo BHF; PT 11 euros
* Schaeffler Rated New Buy at Quirin Privatbank AG; PT 7.60 euros
* Schibsted Reinstated Sell at Goldman; PT 272.60 kroner
* Schott Pharma Rated New Buy at Hauck & Aufhaeuser; PT 36 euros
* Vivendi Reinstated Neutral at Goldman; PT 3.20 euros
* Wolters Kluwer Reinstated Buy at Goldman; PT 178 euros

>>> Call
* ArcelorMittal Cut at Jefferies, Shares Expected to Consolidate
* Meet the Citigroup Strategist Who Called Europe’s Stock Rally
* TietoEVRY Cut at Morgan Stanley, Discount Now Less Compelling

>>> Stoxx 600 Pre-Market Indications

  • Rolls-Royce (RRU TH) +2.5%
  • Delivery Hero (DHER TH) +1.7%
  • Lufthansa (LHA TH) +1.5%
  • Glencore (8GC TH) +1.3%
    • Copper hits record as Trump tariffs wrong-foot traders
  • HSBC (HBC1 TH) +1.2%
  • Wolters Kluwer (WOSB TH) +0.8%
  • Thales (CSF TH) +0.8%
    • Thales’ Rising Production Is Key to Meet Margin Expectations
  • Rio Tinto (RIO1 TH) +0.7%
  • Redcare Pharmacy NV (RDC TH) +0.7%
  • Merck KGaA (MRK TH) -0.4%
  • Bechtle (BC8 TH) -0.4%
  • Siemens Healthineers (SHL TH) -0.5%
  • Thyssenkrupp (TKA TH) -0.5%
  • Porsche (P911 TH) -0.6%
  • Siemens Energy (ENR TH) -0.6%
  • Sartorius (SRT3 TH) -0.6%
  • Ageas (FO4N TH) -1.1%
    • Ageas Cut to Hold at HSBC; PT 58 euros
  • Vestas (VWSB TH) -1.4%
  • Santander (BSD2 TH) -1.6%

>>> TradeGate Pre-Market Indications

DAX:
  • No major mover
MDAX:
  • Aroundtown (AT1 TH) +3.2%
    • Aroundtown Sees 2025 FFO I EU280M to EU310M, Est. EU285.4M
  • Delivery Hero (DHER TH) +1.7%
    • Delivery Hero Reinstated Buy at Goldman; PT 39 euros
  • Lufthansa (LHA TH) +1.5%
  • United Internet (UTDI TH) -0.8%
    • United Internet Sees 2025 Sales About EU6.4B, Est. EU6.61B
  • RTL (RRTL TH) -1.4%
SDAX:
  • ProSieben (PSM TH) +2.7%
    • ProSieben Reinstated Sell at Goldman; PT 5.90 euros
  • Deutz (DEZ TH) +2.6%
  • Grand City Properties (GYC TH) +2.5%
    • Grand City Properties Raised to Buy at Goldman; PT 13.20 euros
  • Douglas AG (DOU TH) -2%
  • Wacker Neuson (WAC TH) -6.4%
    • Wacker Neuson Sees 2025 Ebit Margin 6.5% to 7.5%, Est. 6.98%

WSJ : The U.S. Missile Launcher That Is Enraging China

The U.S. Missile Launcher That Is Enraging China
Land-based Typhon Weapons System is capable of targeting major military-command and industrial centers in mainland China

A new U.S. missile system deployed in the Philippines puts key Chinese military and commercial hubs within striking distance and hands President Trump an early test of his commitment to deterring Chinese aggression against American allies in Asia.

Last year, the U.S. Army moved the Typhon Missile System, which can fire missiles as far as 1,200 miles, to a base on Luzon Island in the northern Philippines. It is the first time since the Cold War that the U.S. military has deployed a land-based launching system with such a long range outside its borders.

The Typhon, military experts say, is part of a broader strategic repositioning by the American military as it seeks to counter Beijing’s huge buildup of intermediate- and long-range missiles in the Pacific.

In the event of a conflict with China, land-based missile systems such as the Typhon could be central to defending key U.S. allies such as the Philippines, which has clashed with China over Beijing’s claims to nearly all of the South China Sea, and Taiwan, which Beijing has threatened to take, by force if necessary.

The Chinese government has responded to the Typhon’s deployment with alarm, rebuking the U.S. and the Philippines for fueling what it called an arms race.

Now, the Typhon, which was moved to the Philippines during the Biden administration, has emerged as an important litmus test amid concerns among American allies over the Trump administration’s willingness to come to their defense in a conflict with China. A visit to the Philippines and Japan by Defense Secretary Pete Hegseth this week could provide more clarity on the administration’s Indo-Pacific strategy.

The Typhon can fire two types of missiles. Tomahawk missiles bearing conventional warheads have a range of around 1,200 miles, putting into reach much of southeastern China along with the South China Sea and the Taiwan Strait. In the case of a Chinese invasion of Taiwan, such missiles could target air-defense and radar systems on the Chinese coast as well as the Chinese military’s control-and-command centers in Guangzhou and Nanjing.

The shorter-range Standard Missile 6, or SM-6, could target Chinese or other enemy ships and aircraft, and intercept cruise missiles and ballistic missiles fired at U.S. interests. Army officials have said that it is the only missile in the U.S. arsenal capable of intercepting, at least in late flight, the hypersonic missiles that both China and Russia have been testing.

Flashpoint with China
The U.S. Army first moved two Typhon launchers, an operations center and support vehicles to Luzon Island for joint military exercises between the two countries a year ago. The Army, which first took delivery of the system in late 2022, said it wanted to test it in the hot and humid climate of the Indo-Pacific region.

The Army later agreed to extend the deployment indefinitely. Since then, Philippine commanders have said they would like to buy the Typhon for their own military and the country’s troops are now being trained on using the system.

Despite the limited immediate military value of the deployment—a full Typhon battery has four launchers and it didn’t come with any missiles—Beijing’s reaction was forceful.

China’s Foreign Ministry demanded the Typhon’s removal and threatened retaliatory action. “China will not sit idly by when its security interests are harmed or threatened,” the ministry said in February.

Russia, a close ally of China, also denounced the move. Russian President Vladimir Putin likened the deployment to that of Pershing II missile launchers in West Germany in 1983, a step that Soviet leaders at the time interpreted as a preparation for a pre-emptive strike on the Soviet Union by the West.

The Pershing II deployment prompted large protests in Europe and the U.S. and eventually led to the 1987 Intermediate-Range Nuclear Forces Treaty with the Soviet Union. That treaty banned the possession, production and flight testing of ground-launched ballistic and cruise missiles with ranges between 300 miles and 3,400 miles.

But the INF treaty didn’t include China, allowing Beijing to assemble an enormous arsenal of such missiles. In 2019, during Trump’s first term, the U.S. pulled out of the treaty and the Army began preparations for a new intermediate-range missile system.

Mounted in trailers on the back of trucks, the Typhon is relatively easy to move, including on military transport planes. Compared with ship-based missile launchers, land-based missile systems are harder to spot and take out early on in a conflict. In the future, the U.S. could deploy the Typhon in locations across the Indo-Pacific region or sell it to allies there. That would leave adversaries guessing from where they could be hit.

“The U.S. is shifting away from a reliance on big centralized bases, towards a more dispersed resilient force posture,” said Shawn Rostker, a research analyst with the Center for Arms Control and Non-Proliferation.


A potential bargaining chip
The Typhon’s deployment in the Philippines was a recognition of the increasingly strategic importance of the Philippines under the Biden administration. The country’s president, Ferdinand Marcos Jr., has expanded access to military bases for U.S. forces, and Philippine vessels and airplanes have pushed back against Chinese forces in the South China Sea, a thoroughfare for nearly one-third of global maritime trade.

Other American allies in Asia, including Japan, have so far balked at hosting U.S. missiles capable of striking China, but are developing their own comparable capabilities.

There have been some signs that the Trump administration also sees the Typhon as key to its strategy in the Indo-Pacific.

“We proved the MRC’s deterrent effect via a dynamic deployment in the Philippines and look forward to all future power projection opportunities!” Dan Driscoll, the new Army secretary, said in a post on X earlier this month, using the abbreviation for the army’s technical name for the Typhon, Mid-Range Capability.

Others, however, have warned that moving such powerful U.S. missile systems close to China risks a spiral of escalation and, perhaps by accident, a war between two nuclear superpowers.

“Just the presence of the system causes those escalation risks, and that’s before you even consider what happens if you use the system in a conflict,” said Jennifer Kavanagh, director of military analysis at Defense Priorities, a libertarian-leaning Washington-based think tank that backs a more restrained U.S. foreign policy.

Similar views have been espoused by some senior Trump appointees, including Andrew Byers, the deputy assistant secretary of defense for South and Southeast Asia, who has favored a less contentious relationship with Beijing. Before taking office, Byers suggested pulling U.S. assets out of the Philippines in return for China’s coast guard running fewer patrols in disputed areas of the South China Sea.

Marcos himself has said he would remove the Typhon system if China ceased its aggressions in the South China Sea.

But in the wake of Trump’s talks with Putin over Ukraine, there are also concerns in the Philippines that Typhon could become part of a deal between Trump and Chinese leader Xi Jinping. Such a deal might sacrifice the interests of the smaller American ally, said Richard Heydarian, a lecturer in international studies at the University of the Philippines’s Asian Center.

“What the Philippines does with [the Typhon] and what the Trump administration will do about it,” he said, “determines how the game of deterrence will play out in the coming months and years.”

FT : Nvidia’s China sales face threat from Beijing’s environmental curbs

Nvidia’s China sales face threat from Beijing’s environmental curbs
US chipmaker could suffer $17bn-a-year hit to business if energy efficiency rules are enforced more strictly

Beijing has introduced energy efficiency rules for the use of advanced chips that would prevent Chinese companies from buying Nvidia’s best-selling processors in the country if implemented strictly.

The National Development and Reform Commission, China’s top economic planner, is advising Chinese groups to use chips that meet stringent requirements in new data centres and expansion of existing facilities, according to documents reviewed and analysed by Financial Times.

Nvidia’s H20 chip — less powerful than its top-range graphics processing units but tailored to meet Washington’s export controls — currently fails to satisfy the commission’s new rules, according to the documents.

For several months, the Chinese regulator has quietly discouraged the country’s tech giants such as Alibaba, ByteDance and Tencent from purchasing H20 chips, said two people with knowledge of the matter.

However, the rules have not been enforced strictly and are yet to dent China sales of H20 chips, which remain in strong demand, the people added.

But the implications are stark if the commission decides to enforce the ban more tightly, creating a threat to Nvidia’s $17bn-a-year business in the country.

As China rushes to build more data centres, the US chipmaker risks losing orders to domestic rivals such as Huawei, whose offerings better align with Beijing’s green agenda.

In a bid to smooth tensions, Nvidia is seeking to arrange a sit-down meeting in the coming months between its senior executives and commission chair Zheng Shanjie, according to one person briefed on the plans.

The NDRC’s restrictions, which were introduced last year but not previously reported, came amid growing US-China trade tensions as the nations seek to race each other in the development of advanced artificial intelligence.

Beijing has pushed local companies to be less reliant on the products of foreign groups such as Nvidia, which makes the graphics processing units crucial to developing AI models.

Since such curbs apply only to data centres being built, some companies work around them by swapping out old chips for H20s in their existing data centres, said people familiar with the matter.

Non-compliance could trigger on-site inspections and subsequent fines, an issue most Chinese companies are keen to avoid, said one of the people. 

To deal with the threat, Nvidia has prepared a solution to make adjustments to H20 chips to meet the NDRC requirements, said one of the people. But such technical changes would reduce the chip’s efficiency and hurt its competitiveness in the Chinese market.

The commission’s stance sends a jittery signal about Beijing’s posture towards Nvidia, the US chip titan navigating a high-stakes technological rivalry between Washington and Beijing.

The H20 chip is Nvidia’s flagship offering in China and was approved for sale after the US tightened export controls in October 2023.

Those curbs bar Nvidia from shipping its most advanced chips to China over fears they could bolster the country’s military prowess.

Tech powerhouses from Alibaba to Tencent increased their orders for H20 chips aggressively this year after DeepSeek’s launch of its efficient reasoning model led to an AI boom in the country, said one of the people with knowledge of the matter.

The surge in orders also comes amid expectations of further curbs on Nvidia’s chip sales to China. Bloomberg reported in January that Washington was exploring additional restrictions that might cover the H20 chip.

Nvidia has increasingly been caught in the crosshairs of Chinese regulators. The State Administration for Market Regulation launched an antitrust probe in December, digging into whether Nvidia pulled back from chip sales to Chinese clients even before the US export ban kicked in late 2022, said a person with knowledge of the probe.

China is Nvidia’s fourth-largest market, with a revenue base of $17.1bn, making up 13 per cent of its total sales, according to its annual report for fiscal year 2025.

“Our products provide superb energy efficiency and value in every market we serve,” Nvidia said in a statement. “As technology moves rapidly, export control policy should be adjusted to allow US firms to offer the most energy efficient products possible, while still achieving the Administration’s national security goals.”

Intel’s HL328 and HL388 chips also fail to comply with the NDRC’s environmental requirements, though the potential impact is likely to be small owing to their limited sales in China, according to people with knowledge of the measures.

The NDRC did not respond to a request for comment.