CNBC’s Kristina Partsinevelos joins 'Money Movers' to discuss Nvidia's revenue decline from China as the company is squeezed by the U.S. and China.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Nvidia is under pressure as US government restrictions and China's push for technological self-reliance reshape the global AI chip market. The company recently asked suppliers to halt production of its H20 chips made for China after Chinese regulators discouraged local firms from purchasing them. As a result, a significant number of chips are reportedly sitting idle, and Nvidia's revenue from China has dropped from 26 percent to 13 percent over three years.

Meanwhile, Chinese companies are rapidly advancing in AI, now holding most of the top spots in open source AI rankings and developing models to run on Chinese hardware. This shift is seen as a strategic move to reduce reliance on US suppliers like Nvidia. The company's upcoming earnings report is expected to reveal the near-term impact, but the broader concern is China's progress toward an independent AI ecosystem.

Nvidia squeezed by U.S. and China

Love that. Super excited about rate cuts. As the market rallies on the back of those Powell comments, investors are now looking for the next big market catalyst. Could that be NVIDIA results? Out of earnings next week, reports saying that NVIDIA asked suppliers to halt production of its made-for-China chip. Christina Partsenevelis has the latest in today's tech check. On just what's expected, Christina, and how much China factors in? China still factors in. I'll get to that percentage. You talked about the halting production. It's specifically the H20 chips designed for China. And this is after Chinese regulators really discouraged local firms from buying them. And this is according to the information. There was more from Reuters. Seven hundred thousand chips are now supposedly sitting idle at packaging plants. And that comes just weeks after President Trump reversed his own ban on these exact same AI chips. NVIDIA's China revenue, to your point, Sarah, has already fallen from 26 percent to 13 percent of total revenues in just three years. But while Wall Street sees this as a China problem for NVIDIA, it's actually accelerating China's move away from NVIDIA and all American suppliers. Chinese companies, for example, now hold 16 of the top 20 spots in open source AI rankings, 80 percent, according to artificial analysis. The U.S. just has three in the open source models and they're building these models to run on Chinese hardware. Take DeepSeek's delayed R2 model. Markets saw the Huawei chip issues as bullish for NVIDIA because it couldn't work on Huawei. But sources tell me that's the wrong read. DeepSeek had to train R2 on NVIDIA chips because Huawei's software issues. But they're still planning to run the finished model on Huawei chips. The key insight. Training happens periodically, but inference happens millions of times. And if developers build apps on these Chinese AI models, they'll be running on Chinese hardware. And that's what worries NVIDIA. It's not just DeepSeek. Tech giant Baidu built its Ernie model specifically for Huawei chips. Z.AI is doing the same. China is systematically building out an AI ecosystem that doesn't need NVIDIA. So while NVIDIA gets squeezed between Washington's restrictions and Beijing's security concerns, China is solving its chip dependency problem. NVIDIA's earnings next week will show the near term impact. But the real threat is China building an entire AI ecosystem that doesn't need NVIDIA at all. So what a week for your beat on semis. The other thing we didn't get to kind of got lost today in all the Powell news was this report about TSM considering returning some government subsidies if the government were to ask for an Intel like equity stake. I thought that was an interesting wrinkle as we continue to watch sort of that changing that evolving picture of government involvement in the space. Yeah, that's because TSMC is the largest contractor chip contractor in the world. Do they really need a government handout? They are building in America, especially in Arizona. They did get a lot of funding. But of course, just a few weeks ago, when all of this started, they probably this is according to sources in the report that they did indeed have conversations about giving it back. But President Trump said just within the last 24 hours that he doesn't plan to take equity stakes in Micron and TSMC. And it kind of makes sense. Both of those companies are doing quite well and don't need as much help like Intel did. Not not as reliant on the funding. Christina, thanks so much, KP, watching NVIDIA and Intel and TSM for us.

The FBI raided former Trump national security adviser John Bolton's house in Bethesda, Maryland, CBS News has confirmed. Jake Rosen has more.

Bethesda

FBI raids John Bolton's home, office

Attorneys general in 14 states and Washington, D.C., accuse TikTok of designing its app to keep users hooked. Court-released edited video shows some company staff discussing the toll it can take on children and teens.

Washington

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Jerusalem

Middle East Conflict

U.N.-backed group declares famine in Gaza City

A parole board rejected Erik Menendez's request for release, saying he has not shown proper remorse for killing his parents 36 years ago. His brother, Lyle Menendez, faces his own hearing today (August 22).

Los Angeles

Erik Menendez denied parole after California hearing

Russia carried out one of its largest aerial attacks of the year on Ukraine. The strikes killed at least one person and injured 15, marking Russia’s third-largest drone attack and eighth-largest missile assault this year.

Kyiv

Ukraine Invasion

Russia launches largest strike in weeks on Ukraine

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U.S. warships head to Venezuela to combat drug cartel threats

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Tel Aviv-Yafo

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California

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New York

Trump civil fraud case $527 million penalty thrown out

The U.S. and the European Union have locked in a framework trade deal that includes a 15% U.S. tariff on most EU imports, including autos, pharmaceuticals, semiconductors and lumber.

Global Tariffs

U.S. and EU lock in trade deal

Israel says it began its military operation to take control of Gaza City. This comes after an apparent Hamas attack in Khan Younis targeting Israeli soldiers.

Israel says it began Gaza City expansion

After weeks of pushback from Democrats, House Republicans in Texas have passed controversial legislation to redraw the state's congressional map, giving the GOP an advantage in multiple seats.

Austin

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Moscow

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The Texas House on Wednesday night passed a controversial, Republican-backed proposal to redraw the state's congressional maps. The bill now moves onto the Texas Senate. CBS News reporter Erica Brown has more.

Texas

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Israel's military has called up tens of thousands of reservists in preparation for an expected assault on Gaza City, as the Israeli government considered a new proposal for a ceasefire after nearly two years of war.

Israel calls up 60,000 reservists ahead of Gaza City operation

The Trump administration says it is adding 407 items to the list of "derivative" steel and aluminum products subject to higher tariffs. The list includes products like car parts, household appliances, baby strollers, fire extinguishers and spray deodorants.

Trump expanding steel and aluminum tariffs

NATO military chiefs met virtually Wednesday for what was described as a candid discussion about security guarantees the alliance would be willing to provide to Ukraine in an effort to end Russia's war in the region.

Brussels

NATO chiefs meet virtually about potential Ukraine security guarantees

Israel's military leaders approved the next phase of their ongoing offensive in the territory. The operation will shift focus to Gaza City, targeting areas where Hamas is believed to still be active and where Israeli forces have not yet operated.

Israel approves next phase of Gaza offensive, focus on Gaza City

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North Carolina

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Indian Prime Minister Narendra Modi met China’s top diplomat on Tuesday and hailed the “steady progress” made in improving the bilateral relationship after a yearslong standoff between the nuclear-armed Asian powers.

New Delhi

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Air Canada has reached a tentative agreement with the Canada Industrial Relations Board (CIRB), ending the strike that began over the weekend involving 10,000 members and disrupted travel for more than 100,000 travelers per day.

Toronto

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Exiled former Hong Kong lawmaker Ted Hui hailed Australia's grant of asylum status as a key acknowledgement of the territory's human rights infringements since its authorities quelled massive pro-democracy protests in 2019.

Hong Kong Island

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East Coast of the United States

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Jasveen Sangha, a Los Angeles woman known as the "Ketamine Queen," has agreed to plead guilty to federal charges in connection with the death of actor Matthew Perry. Sangha could face up to 45 years in prison.

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As Hamas reportedly agreed to some ceasefire terms that would include the return of more hostages, Israeli Prime Minister Benjamin Netanyahu ordered troops to take more of Gaza.

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President Donald Trump said that the United States would help Europe in providing security for Ukraine as part of any deal to end Russia's war in Ukraine.

Nvidia squeezed by U.S. and China

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Rise of AI