Alibaba is accused of helping the Chinese military target the U.S., according to a White House memo reported by the Financial Times. The claims were denied by Alibaba and questioned by experts, raising concerns about potential new sanctions affecting China’s AI industry.

U.S. President Donald Trump and Chinese President Xi Jinping reached a trade deal during their recent meeting, easing tensions between the two countries. The lack of details in the FT report has led to speculation about ulterior motives behind the allegations against Alibaba.

Alibaba’s stock price dropped after the FT report but rebounded in Hong Kong. The company’s open-source Qwen AI model is gaining popularity, posing a threat to U.S. AI companies. Investors are wary of a possible AI bubble as Alibaba prepares to release quarterly results later this month.

The U.S. has been restricting China’s access to advanced semiconductors, impacting the AI industry. The situation underscores the strategic importance of AI technology and the potential implications of escalating tensions between the U.S. and China.

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1. Tesla announced plans to build a new Gigafactory in Texas, increasing production capacity for their electric vehicles. The factory is expected to create thousands of jobs and boost the local economy.

2. Apple unveiled the latest iPhone model, featuring 5G technology and improved camera capabilities. Analysts predict strong sales for the new device, which is set to launch in the coming months.

3. The Federal Reserve announced plans to keep interest rates near zero for the foreseeable future, citing ongoing economic uncertainty. The decision is aimed at supporting the recovery from the impact of the pandemic.

4. Amazon reported a significant increase in quarterly revenue, driven by growth in online shopping and cloud computing services. The e-commerce giant continues to benefit from changing consumer behavior amid the pandemic.: Alibaba is helping Chinese military to target U.S., White House memo claims: FT