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Business Technology News Roundup: Aug 29, 2025
Catch up on the most impactful U.S. tech news from August 25 - 29, 2025: the $7.4B semiconductor grant voided, Nvidia’s earnings surge, Trump’s digital tax threats, AI's rising energy demands, and CoreWeave’s data center growth.
This week, tech headlines navigated seismic shifts across policy, industry, and infrastructure. The Commerce Department’s cancellation of a $7.4 billion semiconductor grant signaled renewed oversight over federal chip initiatives. Meanwhile, Nvidia’s blockbuster earnings reflected both AI’s expansive growth and risk of investor overexuberance. At the same time, international tensions flared as the U.S. and EU clashed over digital tax regulations. Behind the scenes, mounting electricity demand from AI and data centers spotlighted growing strain on the grid. In parallel, CoreWeave’s expansion in New Jersey hinted at how the infrastructure for AI is being built and where. As momentum builds, these stories offer a snapshot of how tech is being shaped not just by innovation, but by scrutiny, resources, and economics.
CoreWeave closed a $322 million acquisition of a 280,000-square-foot lab building in Kenilworth’s NEST campus. The company plans a $1.2 billion conversion to a data center with GPU-powered AI infrastructure, leveraging on-site power assets.
Why it matters:
This expansion cements New Jersey’s role in the AI infrastructure map and offers localized opportunities in compute, training, and innovation ecosystems.
The Energy Information Administration forecasts U.S. electricity consumption rising to 4,193 billion kWh in 2025 and 4,283 billion kWh by 2026, record highs. Much of that spike is attributed to AI-heavy commercial and data-center operations, especially across key energy hubs like Texas.
Why it matters:
AI’s boom may be foundational, but it's also a grid risk. Utility providers and data-center developers must proactively invest in energy capacity, balancing build-outs with demand reliability.
President Trump threatened “substantial additional tariffs” and export restrictions on countries imposing digital services taxes (DSTs). The move aligns with pressure reportedly influenced by Meta’s executive concerns. Europe quickly defended its Digital Services Act as essential regulation, not censorship.
Why it matters:
U.S. tech firms face a tug-of-war between global regulation and politicized trade maneuvers. Navigating these tensions will be key for multinational platform strategies.
Nvidia delivered a staggering $46.7 billion in Q2 FY2026 revenue, a 56% year-over-year surge, with data center sales reaching $41.1 billion (88% of total revenue). However, quarterly growth in that segment slowed to just 5%, hinting at a potential plateau.
Why it matters:
Nvidia remains at the forefront of AI hardware, but slower sequential growth raises questions about how fast the AI infrastructure boom can sustain itself. Investors will be watching for signs of demand fatigue or diversification.
On August 25, the U.S. Commerce Department voided a $7.4 billion grant to Natcast, a nonprofit formed under the CHIPS & Science Act calling it a “semiconductor slush fund” that skirted legal structure requirements. Operational control over the National Semiconductor Technology Center now transitions to NIST, creating uncertainty around R&D continuity and oversight.
Why it matters:
A critical pivot in how the U.S. funds semiconductor research. Foundations and industry players must reassess partnership strategies as new structures come into play.
On August 25, the U.S. Commerce Department voided a $7.4 billion grant to Natcast, a nonprofit formed under the CHIPS & Science Act calling it a “semiconductor slush fund” that skirted legal structure requirements. Operational control over the National Semiconductor Technology Center now transitions to NIST, creating uncertainty around R&D continuity and oversight.
Why it matters:
A critical pivot in how the U.S. funds semiconductor research. Foundations and industry players must reassess partnership strategies as new structures come into play.
Nvidia delivered a staggering $46.7 billion in Q2 FY2026 revenue, a 56% year-over-year surge, with data center sales reaching $41.1 billion (88% of total revenue). However, quarterly growth in that segment slowed to just 5%, hinting at a potential plateau.
Why it matters:
Nvidia remains at the forefront of AI hardware, but slower sequential growth raises questions about how fast the AI infrastructure boom can sustain itself. Investors will be watching for signs of demand fatigue or diversification.
President Trump threatened “substantial additional tariffs” and export restrictions on countries imposing digital services taxes (DSTs). The move aligns with pressure reportedly influenced by Meta’s executive concerns. Europe quickly defended its Digital Services Act as essential regulation, not censorship.
Why it matters:
U.S. tech firms face a tug-of-war between global regulation and politicized trade maneuvers. Navigating these tensions will be key for multinational platform strategies.
The Energy Information Administration forecasts U.S. electricity consumption rising to 4,193 billion kWh in 2025 and 4,283 billion kWh by 2026, record highs. Much of that spike is attributed to AI-heavy commercial and data-center operations, especially across key energy hubs like Texas.
Why it matters:
AI’s boom may be foundational, but it's also a grid risk. Utility providers and data-center developers must proactively invest in energy capacity, balancing build-outs with demand reliability.
CoreWeave closed a $322 million acquisition of a 280,000-square-foot lab building in Kenilworth’s NEST campus. The company plans a $1.2 billion conversion to a data center with GPU-powered AI infrastructure, leveraging on-site power assets.
Why it matters:
This expansion cements New Jersey’s role in the AI infrastructure map and offers localized opportunities in compute, training, and innovation ecosystems.
Stay connected for next week’s highlights as we continue to track the most impactful stories at the intersection of business and technology.
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See you next week for another round of essential IT news!
