TSMC, the world’s main producer of advanced AI chips, posted record, forecast-beating quarterly profit on Thursday but warned that future income might be hit by U.S. tariffs, though perhaps not until the fourth quarter.

At the Beijing Expo, Jensen Huang also announced plans for a new chip for Chinese clients that is designed for robotics and smart factories.

Amid rising doubts over China's AI trajectory, two setbacks have rattled its startup ecosystem: Manus, the buzzed-about AI agent startup, is reportedly exiting the Chinese market, while DeepSeek R2 — a trillion-parameter large language model — is facing a critical GPU shortfall.