Just as Intel’s (NASDAQ: INTC) CEO Brian Krzanich opens the regular staff meetings before a dramatically reduced IDF2015 Shenzhen conference, it is a good time to review how government and enterprises don’t see eye to eye when it comes to strategic business.

China’s Tianhe-2 supercomputer is world’s fastest supercomputer, at 33 PFLOPS demonstrated and 55 PFLOPS theoretical performance.

Remember the Tianhe-2 machine at Guangzhou Supercomputer Center, the current World’s number one according to Top 500 Supercomputer list? Unlike some other China supercomputers – Tianhe-2 is fully Intel based machine,  the world’s largest assembly of Intel Xeon CPUs and Xeon Phi accelerators.

Even after Intel ‘opened the kimono’ and gave a nearly 70%  discount on its processors and accelerators, it has given Intel, and therefore US technology sector a major foothold in China and Asian region as such. Over the course of past two years, we were involved in a lot of discussions with Intel staff who were not privy to see the financial impact of the deal — and even argued our undoubtedly solid information. We’re not here to report how things should be, or are in marketing and investor presentations to its numerous staff, but how things really are.

During 2015, the Tianhe-2 supercomputer was supposed to be doubled in its size, up to 110 PFLOPs peak, again using the very same Intel processors and accelerators. Since now these are mature products with lower real manufacturing cost for Intel, they could finally make some real money.

Well, it was not to be: our tweety bird from the window chirped to us that Uncle Sam has put this supercomputer centre, together with National University of Defense Technology in Changsha, the system’s creators, and Tianjin centre, among others, on so a so-called “Denial List”, which prevents any high technology from the USA to be sold to these sites. Our sources used even harsher words.

Knowing that these several sites alone are expected to order some 250+ PFLOPS of compute in the next few years (around 500,000 top-end Broadwell-EP Xeon E5v4 processors, or  approximately $1 billion high margin list price) and they were THE Intel friendly ones, this is quite a loss to Intel, thanks to Uncle Sam.

But, what’s worse strategic loss in time is that, based on this decision as an excuse, indigenous China high end processor architectures can now push the government to gradually remove any dependence on US. This means just one thing: an AMD or Intel x86 processor technology is increasingly becoming errata non grata. Should the Chinese government react in force, it will give the Chinese vendors the blank check support to go all the way a developing their Alpha, POWER and MIPS processors for both the government and the mainstream commercial use.

You may think they are not up to the mark, but remember how fast British ARM architecture became the dominant processing architecture in the world. And this group doesn’t need to worry about the antiquated x86 ISA, worry about satisfying the dumbed down shareholder masses, or overpaying their marketing and sales staff, as well as the fat check, golden parachute-protected CxOs.

They have taken the best that the USA has developed (some of key Alpha, GPGPU and MIPS architects left US over the course of past four years, a lot of them due to non-renewed visas) and discarded due to corporate shenanigans, and the continued developing it much farther than anyone expected both on hardware and software side.

Five years ago, ShenWei showed a CPU that performed faster than the fastest GPUs of the time. Now, fifth generation is approaching, slotting between Tesla and FirePro GPGPUs and next-gen Xeon Phi accelerators. However, this is not an accelerator or a GPGPU – this is a CPU.

So, thanks to Uncle Sam, China might not have a 110 PFLOPS Intel based supercomputer but it definitely will launch a 100 PFLOPS system based on upcoming 64-core, TFLOPS-class ShenWei Alpha, with true blue CPUs possibly faster per socket then even the next generation Xeon Phi or Volta/Pascal-based Teslas.  Next, of course 100 PFLOPS Chinese POWER8 or 9 — (thank you IBM) and then possibly even Loongson MIPS – -it may come back into the high end field with renewed government support because of this Uncle Sam move. All are clean, elegant, scalable high end RISC architectures.

So who are the winners and losers from this?

NUDT and Tianhe may be the losers for now, but only short term. They will simply speed up their HPC ARM plan.

Intel comes out the big loser from this and a lot: who will want to do a phased deployment large x86 machine in China now, and worry about future phases? Then comes Uncle Sam himself: they lost even that little bit of influence on the high end China HPC. How is that for “cutting your nose to spite your face?”.

VR WORLD’s  Analysis: US government moves accelerate the Chinese CPU roadmap while curtailing juiciest sales for Intel and other US vendors.

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Today was a day of good news for all Nvidia Shield Tablet owners and potential owners.  Nvidia announced today that the Lollipop 5.0 update and the new GRID gaming service are coming to the Shield Tablet in an update on November 18th.  Nvidia Also confirmed that the Green Box they teased yesterday is in fact Half-Life 2, Half-Life 2 Episode One, and Portal.

Today via the Nvidia (NASDAQ:NVDA) blog the company let people know about the upcoming capabilities and content they have made for its Shield Tablet.  The news of the Lollipop 5.0 update that we have known for a while was confirmed to be scheduled for release on November 18th.  The update brings Android’s new material design and performance benefits.  The update will also have an update for the popular Nvidia Dabbler application that has updates in the user interface, full support for layers, and interestingly the ability to stream the app via Twitch (which the tablet already supports for games).  The blog also confirmed that Half-Life Episode One is coming to Android, and it has been optimized for the Nvidia Shield Tablet.  This game will be part of the new Green Box bundle that will be included free with the 32GB/LTE version of the Shield Tablet.  Also confirmed were new games that are optimized for the Shield Tablet.  These games are OddWorld: Stranger’s Wrath, Pure Pool, Strike Suit Zero, and Turbo Dismount.

The biggest surprise was the announcement of the long in-beta GRID gaming service.  This will harnesses state-of-the-art Nvidia GPU servers to deliver a GeForce GTX gaming experience on SHIELD devices.  The lineup already includes 20 AAA game titles including Batman: Arkham City, Borderlands 2, and Psychonauts.  The service will be adding new titles every week.  Essentially this will be like Netflix for games that users can stream right to the Shield devices to play.  But the best part is that the GRID service will be free on Shield devices (both the tablet and the portable) through June 30, 2015.  This is great that Nvidia is giving users more than 7 months of the gaming service free for owners who have already bought devices. This will help make up for the fact that the Green Box is only available with new purchases of the 32GB/LTE tablet and will possibly encourage people to buy SHIELD devices if they weren’t already planning to.

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Nvidia (NASDAQ:NVDA) reported fairly mixed numbers across the board for its fiscal Q3 2015 quarter, which is represented mostly by the calendar third quarter of the year.

In the third quarter, Nvidia reported a record $1.23 billion in revenues and profit of $173 million, which translates to an EPS of $0.31. This is compared to the previous quarter, where Nvidia saw $1.103 billion in revenue and $128 million in profit or an EPS of $0.22. Nvidia also improved over the same quarter a year ago even more significantly where that quarter only had $1.054 billion in revenue and $119 million in revenue  or an EPS of $0.20. Nvidia saw both revenue and profitability increase double digits for both quarter over quarter and year over year, which should make any investor in Nvidia very happy. The margins did slip almost a whole percentage point, but they also significantly improved revenue and profitability.

Nvidia’s revenue increase to $1.23 billion can be attributed to growth across the board for the company in multiple business segments. Revenue for its GPU business grew 13% from the previous quarter and notebooks grew 36%, fueled by the release of its new Maxwell GTX GeForce consumer cards and mobile gaming GPUs. Nvidia states that mobile gaming notebooks more than doubled from a year ago, indicating much stronger PC gaming growth than analysts had been dooming and glooming.

Tesla GPU sales increased strongly, representing another record quarter for revenue driven mostly by large project wins in GPU compute with cloud providers and government customers. The company also saw Quadro revenue continue to be strong, also helped along by its launch of the new Quadro line, including the K5200, which is squarely aimed at Adobe users. As a result, the whole business unit saw a 13% increase in revenue due to the Maxwell release and seasonal increase in consumer PCs, which is going to only continue into the next quarter.

Tegra processors grew 51 percent from a year ago, mostly led by automotive infotainment systems, mobile devices, embedded systems and SHIELD tablet sales. Automotive infotainment revenue alone nearly doubled year over year, which can strongly be attributed to Tegra’s renewed strength compared to last year. As a whole the business unit saw revenue go up 11% sequentially. Nvidia has won some seriously significant automotive design wins, including Honda and will create a very good baseline of sales for Nvidia in the Tegra business unit regardless of mobile device seasonality.

Nvidia also saw a $66 million license payment from Intel from their settlement and licensing agreement.

Nvidia guided its revenue to be about $1.2 billion, essentially flat with the last quarter. They also expect margins to stay about the same if not increase a bit from the last quarter and operating expenditures to increase slightly. Overall, next quarter should really be a fantastic one for Nvidia as it is traditionally the strongest quarter for most of their consumer products and they are currently putting the hurting on AMD in consumer GPU sales, they are also in the newly announced HTC Nexus 9, which means that Tegra shipments should be very good in the fourth quarter and should drive up its profitability in the business segment. Overall, Nvidia’s expectations for Q4 are very conservative and there’s a very good chance they will outperform significantly.

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It looks like Nvidia (NASDAQ:NVDA) has continued to gain momentum with its automotive division with today’s announcement that Honda’s newest Android-powered Honda Connect will be powered by Nvidia’s Tegra SoC. Today’s announcement marks yet another major design win for Nvidia’s Tegra SoC, even though Nvidia isn’t quite saying which Tegra chips are going to be used in Honda’s 2015 model year vehicles, starting in Europe.

2015 Honda Civic with Honda Connect

What we do know is that Honda’s new Honda Connect infotainment system will be using Nvidia’s Tegra mobile SoC chips and those new Honda Connect systems will be in Honda’s new 2015 Civic, Civic Tourer and CRV. Nvidia states that with Honda, Nvidia has marked down its 19th design win with Nvidia technology, but do not say exactly how many are using Nvidia Tegra SoCs (and not combining Intel + GeForce). According to Nvidia there are 6 million cars on the road today with Nvidia Tegra inside of them and they expect that number to balloon to 25 million within the next five years, a very confident and solid growth figure.

Honda Connect with Nvidia Tegra inside

The Tegra-powered Honda Connect is comprised of a 7-inch capacitive touchscreen display for satellite navigation and backup camera as well as AM/FM/DAB and vehicle information. Honda will have its own application store, as seen above, called Honda App Center where developers and Honda can work together to bring their Android apps to the car. This may solve the problem that most automotive systems have right now, which is a complete and utter lack of relevant automotive applications.

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