Trump Slaps 84% More on China—AI Hardware in the Crosshairs

Here’s what is in today’s letter:

• Andreessen Horowitz wants to raise $20B for AI

• Trump Slaps 84% More on China—AI Hardware in the Crosshairs

• OpenAI may buy Jony Ive’s AI hardware startup

• AI Prompt of the Day

• Quick AI Lesson: What’s an Agent?

• Other AI News Bytes

Andreessen Horowitz Aims to Raise $20B AI Megafund

What’s Going On: Venture capital firm Andreessen Horowitz (a16z) is launching efforts to raise a record-setting $20 billion fund focused on growth-stage artificial intelligence (AI) investments in U.S. companies. This initiative seeks to tap into strong global investor demand for American AI startups.

Why It Matters: This would be the biggest money pool a16z has ever made, even bigger than their $5 billion fund from 2022. It shows that AI companies need lots of money to grow, and that people really want to put their money into AI right now. This money can help AI companies buy important tools like Nvidia's special computer chips that help AI work better.

Trump Slaps 84% More on China—AI Hardware in the Crosshairs

What’s Going On: On April 7, President Trump said China had to stop its 34% tax on U.S. stuff, or he’d add more taxes on their things coming here—and now he’s added a huge 84% tax, making it 104% total. AI chip leaders like NVIDIA, tied to Asian supply chains, face looming price spikes and delays, while China’s Huawei is showing off chips that don’t care about these rules.

Why It Matters: Skyrocketing hardware costs could choke AI innovation—startups and researchers might get hit hardest. China’s push for self-reliant AI tech could speed up, tilting the global balance as trade tensions boil over.

OpenAI Considers Acquiring Jony Ive's AI Device Startup

What’s Going On: OpenAI, led by Sam Altman, is reportedly considering acquiring io Products, a startup founded by former Apple design chief Jony Ive, for at least $500 million. Ive, renowned for designing iconic Apple products like the iPhone, has been collaborating with Altman since 2023 on creating an AI-powered hardware device.

Why It Matters: The acquisition would potentially include io Products’ design team and could position OpenAI in direct competition with Apple, underscoring OpenAI's broader ambitions in integrating AI into consumer hardware.​

AI Prompt of the Day

Make Your Own AI Helper Guide

Want your AI to give better answers? Try this simple trick:

• Ask: "Help me make a guide for [what you want to do]."

• Tell the AI these parts to include:

  • "What facts you need to know"

  • "What I want to get done"

  • "Any rules to follow"

  • "How the answer should look"

  • "How to check if it's good"

• Then say: "Show me how this works for [something I need help with]."

Save your guide and use it again when you need similar help. This makes the AI understand exactly what you want every time!

Works great with: Claude, ChatGPT, Gemini, Copilot, and most other AI chatbots that can follow multi-step instructions. Claude and GPT-4 tend to handle these structured prompts especially well.

Quick AI Lesson: What’s an Agent?

You may have heard terms like “chatbot” or “virtual assistant,” but a newer and more advanced concept is starting to gain attention: the AI agent.

What It Is:

An AI agent is software that doesn’t just answer questions—it takes actions toward a goal. Think of it like a digital assistant that plans, acts, and adjusts without you needing to guide every step.

Chatbot vs Agent:

Real-World Examples:

• Microsoft Copilot remembers your work and suggests tasks.

• OpenAI’s upcoming assistant may browse, book, and schedule for you.

• UiPath agents are already replacing repetitive office tasks.

This is the next step in AI—less typing, more doing.