The US–China chip wars just entered a dangerous new phase.

China announced rare earth export controls on materials critical for AI chip manufacturing the same week Trump imposed 100% tariffs on Chinese imports.

This isn’t just geopolitical theater—your AI infrastructure costs and availability are about to change dramatically.

In this week’s AI roundup, Malcolm Werchota breaks down what’s actually happening in the global AI supply chain and why European businesses can’t afford to sit on the sidelines.

We’re covering OpenAI’s DevDay announcements (App SDK, Agent Kit, Chat Kit), Google’s Gemini Enterprise launch as a Copilot alternative, and Europe’s €1.1 billion AI sovereignty plan.

But the headline story is geopolitical: rare earth materials, chip manufacturing bottlenecks, and the real possibility of supply chain disruptions that could impact your AI deployment plans.

When 90% of rare earth processing happens in China and they just put export controls in place, every business using AI infrastructure needs to pay attention.

We also explore a troubling trend of fake AI experts appearing in major media outlets like the BBC and Guardian, Microsoft’s strategic talent acquisitions (including Kubernetes creator Brendan Burns and Python inventor Guido van Rossum), and why the future of AI competition isn’t about model quality anymore—it’s about trust, governance, and human amplification.

Who Should Listen:

Business leaders, technology professionals, and anyone making decisions about AI infrastructure investments who needs to understand how geopolitical tensions affect AI deployment costs, availability, and strategic planning.

Malcolm’s Take:

“We’re shifting from a world where AI competition was about model quality to one where it’s about trust, governance, and supply chain resilience.”

“When 90% of rare earth processing happens in China and they just put export controls in place, every business using AI infrastructure needs to pay attention.”

“Europe’s €1.1 billion AI sovereignty plan isn’t just about independence—it’s about recognizing that relying on US and Chinese infrastructure carries real geopolitical risk.”

“The fake AI experts in mainstream media aren’t just a credibility problem—they’re actively misleading businesses about what’s actually possible with AI.”

Resources Mentioned

• OpenAI DevDay 2025 announcements
• Google Gemini Enterprise launch details
• European Commission AI sovereignty plan
• Analysis of China’s rare earth export controls
• Microsoft Copilot vs. Google Gemini comparisons
• AI chip shortage forecasts from Bain & Company

Where to find Malcolm Werchota

LinkedIn: linkedin.com/in/malcolmwerchota

Website: werchota.ai

YouTube: youtube.com/@werchota

X: x.com/malcolmwerchota

Facebook: AI Cookbook by Malcolm Werchota

Instagram: @malcolmwerchotaai

TikTok: tiktok.com/malcolmwerchota

Get in touch

Have questions about AI implementation or want to share your transformation story?

Reach Malcolm at malcolm@werchota.ai

Email the Show

Send feedback, episode requests, or story ideas to social@werchota.ai

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