Artificial intelligence

Taiwan restricts DeepSeek AI over security risks

Taiwan’s digital ministry has instructed government departments not to use DeepSeek’s artificial intelligence service due to security concerns. The warning highlights ongoing fears about Chinese technology, given Beijing’s claims over Taiwan and its political and military threats.

Authorities cited potential risks from cross-border data transmission and information leaks, describing DeepSeek as a threat to national security. The ministry pledged to monitor technological developments and adjust security policies accordingly.

South Korea’s privacy watchdog is also investigating DeepSeek’s handling of personal data. European regulators in France, Italy, and Ireland have launched similar inquiries into its data practices.

DeepSeek’s AI assistant recently surpassed ChatGPT in downloads from Apple’s App Store. Global investors responded by selling US tech stocks, causing Nvidia’s market value to drop by $593 billion in a historic single-day loss.

Trump and Nvidia CEO met to discuss DeepSeek and AI chip export

In a meeting at the White House on Friday, US President Donald Trump and Nvidia CEO Jensen Huang discussed the emerging challenges posed by China’s AI advancements, particularly the rapid rise of DeepSeek, a Chinese AI company that has disrupted the global tech industry. The conversation focused on strengthening US leadership in AI technology and tightening restrictions on exporting advanced AI chips to China. While President Trump did not disclose specific details, he described the meeting as ‘good’ and praised Huang as a ‘gentleman.’

DeepSeek has recently sent shockwaves through the tech world by introducing an AI model that matches the performance of leading US technologies but at a fraction of the cost. Its launch has raised concerns about China’s ability to close the gap in AI development with the US. Within days of its debut, DeepSeek became the most downloaded app in Apple’s App Store, and its emergence wiped approximately $1 trillion off the market value of US tech stocks, including a 17% plunge in Nvidia shares. The development has reignited fears that China could challenge the United States’ dominance in AI.

As part of the US response, Trump’s administration is considering further restrictions on Nvidia’s H20 chips, designed for the Chinese market. These chips, capable of powering AI software, were specifically developed to comply with previous export limits imposed by the Biden administration. However, the Trump administration aims to tighten the rules further to ensure advanced computing power stays within US borders and allied nations. Discussions among Trump officials about restricting the shipments of these chips are in the early stages, but they reflect a growing bipartisan concern about maintaining technological supremacy over China.

The president’s meeting with Nvidia’s CEO highlighted a potential opportunity for US tech companies. According to a source familiar with the discussions, Trump views DeepSeek’s ability to produce low-cost AI models as a wake-up call, suggesting that American firms could adopt more cost-efficient strategies to compete without massive spending. The administration sees this as a chance to recalibrate the US AI innovation and leadership approach.

Lawmakers on both sides of the aisle have echoed calls for tighter controls. Republican John Moolenaar and Democrat Raja Krishnamoorthi, co-leads of the House Select Committee on China, urged the Commerce and State Departments to review US export controls in light of China’s advancements. Their concerns are amplified by reports suggesting that DeepSeek may have used restricted US chips in its operations, prompting an investigation by the Commerce Department.

The US government has long relied on export controls to maintain its technological edge, but DeepSeek’s rise has exposed vulnerabilities in this strategy. As the US grapples with its response, the battle for AI dominance will be a defining feature of US-China relations in the years ahead. The outcome will impact the global technology landscape and influence geopolitical dynamics in an increasingly interconnected world.

DeepSeek’s use of Nvidia chips raises security concerns in Washington

Pressure is mounting on the Trump administration to impose stricter export controls on Nvidia’s AI chips following concerns over China’s DeepSeek. A bipartisan call from lawmakers John Moolenaar and Raja Krishnamoorthi urges officials to assess the national security risks linked to the firm’s reliance on advanced US technology.

A letter addressed to National Security Advisor Michael Waltz highlights that DeepSeek’s latest AI model has extensively used Nvidia’s H20 chips, which remain outside current export restrictions. The request forms part of a wider review into US export policies in response to strategic threats.

Concerns in Washington are growing over China’s rapid AI advancements, with the US House of Representatives warning against using DeepSeek’s technology. Officials fear AI could bolster cyber threats or facilitate bioweapons development, leading to increasing efforts to limit China’s access to cutting-edge chips.

Nvidia has stated that its products fully comply with US regulations and expressed willingness to work with authorities. Reports indicate that Trump’s administration is already considering new restrictions on H20 chip exports to China as part of its evolving AI security strategy.

Avride partners with Grubhub to expand robot deliveries on US campuses

Autonomous technology startup Avride has partnered with food delivery service Grubhub to roll out its delivery robots across college campuses in the United States. The company’s first fleet of 100 robots is already operating at Ohio State University, which now exclusively relies on robot deliveries. Avride plans to introduce its next-generation models at the university as demand for automated food delivery continues to grow.

College campuses have become prime locations for autonomous delivery technology, offering compact areas with high order volumes. Avride CEO Dmitry Polishchuk highlighted the efficiency of robots in these environments, noting strong interest from universities. The company joins other firms like Cartken and Serve Robotics in integrating robotic deliveries with major ride-hailing and food delivery platforms.

Founded in 2017 and based in Austin, Texas, Avride has completed 200,000 deliveries across five countries. The company was previously part of Russian tech giant Yandex‘s self-driving division before separating last year. In addition to its Grubhub partnership, Avride has also teamed up with Uber for food delivery and robotaxi services, solidifying its position in the expanding autonomous delivery industry.

DeepSeek AI shake-up affects Bitcoin and tech stocks

Bitcoin experienced a 6% drop on 27 January, as stock markets reacted to the debut of China’s open-source AI model, DeepSeek, which some have dubbed ‘AI’s Sputnik moment.’ The new model developed on a modest budget of just under $6 million, raised concerns in US markets as it posed a competitive threat to American AI giants like OpenAI. The surprise launch led to significant losses across tech stocks, including Nvidia, Apple, and Tesla, with Nvidia seeing a record-breaking 17% drop. Energy stocks, which had relied on revenue from power-intensive US AI models like ChatGPT, also suffered.

While the impact on Bitcoin and other cryptocurrencies may seem directly linked to DeepSeek, experts suggest the broader market sentiment played a bigger role. Cryptocurrency, often seen as a “risk-on” asset, typically mirrors the movements in stock markets. As investor fears triggered sell-offs, major coins like Bitcoin and Ether saw their values fall alongside tech stocks. Despite the dip, some analysts remain optimistic, noting that Bitcoin’s quick recovery amidst a broader market decline signals positive prospects.

DeepSeek’s impact on Bitcoin, however, seems minimal in the long run. The open-source nature of the AI model allows others to incorporate its innovations into their own developments, potentially accelerating AI progress worldwide. While concerns about DeepSeek’s political and privacy implications linger, particularly in the US and EU, the model is expected to drive advancements in AI at a lower cost. Yet, its influence on crypto markets is likely to remain limited, with institutional investors continuing to view cryptocurrencies as a risk-heavy asset class.

SoftBank targets $40 billion investment in OpenAI

SoftBank Group is in talks to lead a funding round of up to $40 billion for OpenAI, aiming to value the AI developer at $300 billion, including the new investment. This potential round, which would set a record for a private company, comes amid the growing competition in the AI sector, notably from Chinese startup DeepSeek. Despite this, SoftBank has valued OpenAI at $260 billion, up from $150 billion just a few months ago. The funding is expected to come via convertible notes and is contingent on OpenAI restructuring its business to limit the control of its non-profit arm.

The move would be a bold bet for SoftBank and its CEO Masayoshi Son, who has about $30 billion in cash available for investment. SoftBank’s commitment to OpenAI could be as much as $25 billion, with some funds potentially directed towards OpenAI’s joint venture Stargate, which aims to secure the US position in the global AI race against China. This would add to SoftBank’s previous $15 billion commitment to Stargate.

The funding talks come as OpenAI’s valuation has surged due to its influential AI model, ChatGPT, while competing companies, such as Microsoft and Meta Platforms, continue to ramp up their own AI investments, with Microsoft alone earmarking $80 billion for AI development. Meanwhile, DeepSeek has made waves by claiming that its latest AI model was developed with significantly lower costs than its competitors, further intensifying the race in AI innovation.

Samsung faces slowdown in AI chip sales

Samsung Electronics has warned of weak sales for its AI chips in the first quarter, citing US export restrictions on high-bandwidth memory (HBM) chips to China. These restrictions, combined with the company’s struggle to meet Nvidia’s HBM chip requirements, are expected to impact demand. Samsung’s reliance on Chinese customers for about 20% of its HBM sales makes it particularly vulnerable. Despite this, the company plans to release upgraded HBM3E products in March to address shifting market demands.

The company also reported a 29% drop in operating profit for the fourth quarter, totalling 6.5 trillion won ($4.48 billion). Samsung expects limited earnings growth in the first quarter, driven by sluggish demand in the memory chip market, particularly for smartphones and personal computers. In addition, delays in GPU production, mainly due to strong demand and engineering challenges, have affected memory chip requirements for servers in data centres.

Samsung’s mobile phone division also faced challenges, with a 22% drop in operating profit in the fourth quarter. The company’s decision to use Qualcomm’s application processors instead of its own Exynos chips for the Galaxy S25 lineup has weakened its position in the mobile chip market. Despite these hurdles, Samsung anticipates a recovery in the memory market by the second quarter, depending on its ability to supply Nvidia with advanced HBM3E chips.

While competitors SK Hynix and TSMC have benefitted from the AI boom, with record profits, Samsung’s performance in the AI chip market has fallen behind. The company’s future performance will heavily depend on its ability to secure a stronger foothold in the rapidly growing AI sector.

US tech giants defend AI spending amid Chinese competition

DeepSeek, a Chinese tech company, has made waves in the AI sector with a breakthrough that challenges the dominance of US tech giants. The company claims it can develop AI models that rival or surpass Western counterparts at a fraction of the cost, sparking concerns about America’s lead in the industry. In response, the CEOs of Microsoft and Meta have defended their substantial investments in AI infrastructure, emphasising that such spending is necessary to meet growing demand and stay competitive.

Microsoft and Meta have committed billions to AI, with Microsoft earmarking $80 billion for the current fiscal year and Meta pledging up to $65 billion. Both companies argue that expanding their computing networks is critical to addressing the increasing demands of AI applications. Microsoft’s CEO Satya Nadella highlighted the need to overcome capacity constraints, while Meta’s Mark Zuckerberg stressed that heavy investment would give them a strategic advantage over time.

Despite these bold investments, there are signs of investor frustration. Microsoft’s shares recently fell 5% following disappointing growth forecasts for its cloud business, and Wall Street analysts are calling for clearer plans on how these investments will translate into profits. Meta also sent mixed signals, reporting a strong fourth quarter but offering a weak sales outlook, leaving some to question the long-term payoff of their AI ventures.

There are indications that both companies may adjust their approach. Microsoft’s CFO, Amy Hood, noted that while they will continue investing in AI, the pace of spending will slow in the coming years, signalling a shift towards more sustainable growth. As the AI race heats up, it remains to be seen whether these large investments will eventually lead to the anticipated returns.

India minister highlights DeepSeek’s impact on AI industry

India’s IT minister, Ashwini Vaishnaw, has praised the Chinese startup DeepSeek for its breakthrough in affordable AI, which has disrupted the sector with a powerful model costing just $5.5 million. He likened DeepSeek’s efficient approach to his government’s efforts to develop a local AI model through the IndiaAI mission, a $1.25 billion initiative to support AI startups and infrastructure development in India.

DeepSeek’s rapid success, claiming it took just two months to build its model using Nvidia’s H800 chips, has challenged the belief that China lags behind the US in AI. The startup’s app recently surpassed OpenAI’s ChatGPT in downloads on the Apple App Store, further highlighting its impact. Vaishnaw’s comments were seen as a response to remarks made by OpenAI’s CEO Sam Altman, who had previously expressed doubts about India’s ability to compete in the AI space with a $10 million budget.

Vaishnaw pointed out that while some questioned the government’s large AI investment, DeepSeek’s achievements prove that significant results can be achieved with more modest spending. As Altman prepares to revisit India in early February, his comments from last year continue to stir debate online, especially following DeepSeek’s unexpected success in the AI race.

Altman’s visit coincides with ongoing legal issues for OpenAI in India, as the company is engaged in a copyright dispute with local digital news and book publishers. The growing attention on AI developments in India underscores the shifting dynamics in the global AI race.

White House expresses alarm over DeepSeek’s AI techniques

Top White House advisers have raised concerns over China’s DeepSeek using a technique known as “distillation” to potentially replicate US AI models, a method where one AI system learns from another. This could allow DeepSeek to benefit from the extensive investments made by US rivals, such as OpenAI, without incurring the same costs. DeepSeek recently made waves by releasing an AI model that rivals those of US giants, at a fraction of the cost, and giving away the code for free. US tech companies, including OpenAI, are now investigating whether DeepSeek’s model may have improperly used this distillation method.

Distillation, while common in the AI industry, may violate the terms of service of models like OpenAI’s. The technique allows a newer, smaller model to benefit from the learnings of a larger, more advanced one, often without detection, especially when using open-source models. Industry experts have pointed out that blocking such practices is difficult, particularly with freely available models like Meta’s Llama and French startup Mistral’s offerings. Some US tech executives, however, are advocating for stricter export controls and customer identification measures to limit such activities.

Despite the concerns, DeepSeek has not responded to the allegations, and OpenAI has stated it will work with the US government to protect its intellectual property. However, as AI technology continues to evolve, finding a way to prevent distillation may prove to be a complex challenge. The ongoing debate highlights the growing tensions between the US and China over the use of AI and other advanced technologies.