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Farage Resigns As MP To Force 'People Vs. The Establishment' By-Election
Nigel Farage, leader of Britain's Reform UK party, said Tuesday he is resigning as the member of Parliament for Clacton to trigger a by-election in the Essex constituency, which he intends to contest as the party's candidate.
Farage, who won the seat in the 2024 general election, cast the upcoming vote as a direct challenge to political and media elites. "This will be a people vs. the establishment by-election," he said in a statement. "A chance to stick two fingers up to the entire establishment."
I will make a statement on my future in public life at 2pm.
— Nigel Farage MP (@Nigel_Farage) July 7, 2026The announcement came during a statement on his "future in public life" after days of intense scrutiny over his personal finances and political donations. Farage has been under investigation by Parliament's standards commissioner since May over a £5 million gift he received in early 2024 from cryptocurrency billionaire Christopher Harborne, a major Reform UK donor. Critics say the gift should have been declared because it was received in the 12 months before Farage became an MP.
Additional questions have arisen over undeclared support Farage allegedly received from longtime associate George Cottrell, who was convicted of wire fraud in the United States in 2017. Reports also detailed media coverage of Farage's family home, prompting the politician to accuse outlets of harassing his daughter and other relatives.
This is an outright lie from @SkyNews. They hounded my daughter at home, just days after The Times published where my family live. Despicable behaviour from the media. pic.twitter.com/cNfZ6Rmzb4
— Nigel Farage MP (@Nigel_Farage) July 6, 2026Farage has repeatedly denied wrongdoing, describing the gifts and support as personal matters and calling the investigations an "establishment hit job." He said he has "done nothing wrong" and has not broken any laws.
The move allows Farage to bypass a potential parliamentary suspension and recall petition process and instead put his future directly before voters in Clacton. He has long portrayed himself as an outsider battling entrenched interests, a message that has resonated with a significant portion of the British public.
Latest polling shows Reform UK competitive nationally. A YouGov survey conducted July 5-6 and published Tuesday put the party at 25%, ahead of the Conservatives on 21% and Labour on 20%. Farage's personal favorability ratings remain lower, however, reflecting deep polarization around his leadership.
Clacton has been a stronghold for Farage's brand of politics. He captured the seat in 2024 with 46% of the vote and a majority of more than 8,400. A by-election there is widely expected to be winnable for Reform UK, though it will draw intense national attention as a test of whether recent controversies have damaged the party's momentum.
The date of the by-election has not yet been set. Preparations for the contest are already under way following earlier speculation about a possible recall petition.
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DeepSeek Developing In-House AI Chip In Bid To Cut Nvidia Reliance
DeepSeek is developing its own artificial intelligence chip, a move that could reduce its reliance on both US-based Nvidia and China-based Huawei.
Leading model developers are increasingly seeking to control more of their compute stacks, particularly for inference, as AI models move from training labs into the mass market.
DeepSeek is the latest company to pursue this strategy by developing a new in-house inference chip, Reuters reports.
If successful, this effort would mark a major shift for the Chinese AI chatbot company and add new pressure on Nvidia's long-term dominance across the AI compute market. It would also add pressure on Huawei, which has benefited from US export controls that blocked Chinese firms from buying Nvidia's most advanced AI chips.
US companies such as Meta Platforms, Microsoft, OpenAI, and Anthropic are also increasingly turning to in-house chips to reduce AI infrastructure costs.
According to the report, DeepSeek's effort to design a new inference chip is in the "early stages," suggesting that developing a competitive AI chip could take a few years.
A new Bloomberg Intelligence survey found that an increasing number of Chinese companies are shifting away from Nvidia's advanced AI chips.
Chinese executives expect to allocate 46% of their AI accelerator budgets to domestic AI infrastructure over the next 12 months, up from 30% today, according to the survey.
The findings point to growing momentum behind Beijing's push to replace Nvidia in domestic chip stacks.
"China's drive to substitute locally made AI semiconductors for foreign ones is making progress, which is likely to benefit domestic markers such as Huawei and Hygon," said the report, which surveyed dozens of executives at Chinese software, finance, manufacturing and retail companies.
For Nvidia, the risk is not an immediate loss of market share, but a longer-term shift in which Chinese companies and AI chatbot startups increasingly seek in-house or domestically produced chips, suggesting mounting headwinds for Nvidia.
Meanwhile, the token-maxxing fiasco appears to have accelerated a global shift toward low-cost models, a trend that may favor Chinese AI chatbots.
Bloomberg cited OpenRouter data showing that Chinese models are capturing a growing share of developer usage, suggesting that China's AI firms are becoming more competitive in global model adoption.
Magnificent Seven stocks were mixed Tuesday morning, with Nvidia down about 2%.
Nvidia remains up roughly 5% year-to-date, but the stock is still about 17% below its May peak, as investors reassess the longer-term risk of AI model developers building more of their own compute stacks and China seeking to source domestic AI chips.
Tyler Durden Tue, 07/07/2026 - 09:55