SAP anticipates growing demand for its AI services as energy-efficient models become more accessible. The company’s CEO, Christian Klein, stated that advancements like China’s DeepSeek model signal a shift toward scalable AI infrastructure, which is crucial for running general AI systems effectively.
Klein emphasised the increasing competition in the AI landscape, suggesting that the market will feature multiple large language models rather than dominance by a single player. He noted these developments as positive for SAP’s position in the industry.
Despite recent volatility in technology stocks triggered by concerns over the profitability of AI investments, SAP remains optimistic. The potential of cheaper and more efficient AI systems could reinvigorate confidence in the sector, benefiting companies with robust AI offerings.
US officials are evaluating the potential national security risks posed by the Chinese AI app DeepSeek. White House press secretary Karoline Leavitt confirmed the National Security Council is leading the review, highlighting concerns about American AI dominance. White House AI and crypto adviser David Sacks suggested intellectual property theft might have played a role in DeepSeek’s development.
Global technology stocks faced a sell-off over fears that DeepSeek’s low-cost AI model could challenge major US firms like OpenAI and Google. Sacks explained that DeepSeek may have used a technique called distillation, allowing one AI model to learn from another. He warned that American AI companies would likely implement measures to block such practices.
Donald Trump argued that DeepSeek’s rise should push US firms to intensify their AI efforts. While acknowledging China’s progress, he maintained that American companies remain leaders in innovation. He suggested that more affordable AI solutions could benefit the industry without sacrificing technological advances.
Washington continues to restrict AI chip exports to China, aiming to slow its technological advancements. The Commerce Department, under Trump’s nominee Howard Lutnick, is set to play a key role in enforcing these limitations.
Microsoft and OpenAI are investigating whether a group linked to Chinese AI startup DeepSeek accessed OpenAI data without authorisation. Bloomberg News reported that Microsoft’s security team detected large-scale data transfers last autumn using OpenAI’s application programming interface (API).
Microsoft, OpenAI’s largest investor, flagged the suspicious activity to the AI firm. DeepSeek, a low-cost Chinese AI startup, gained attention after its AI assistant surpassed OpenAI’s ChatGPT on Apple’s App Store in the US, causing a selloff in tech stocks.
White House AI and crypto adviser David Sacks suggested DeepSeek may have stolen US intellectual property by extracting knowledge from OpenAI’s models. An OpenAI spokesperson acknowledged that foreign firms frequently attempt to replicate its technology and stressed the importance of government collaboration to protect advanced AI models.
Microsoft declined to comment on the matter, while DeepSeek was unavailable for a response. OpenAI stated it actively counters unauthorised attempts to replicate its technology but did not specifically name DeepSeek.
The Chinese AI app DeepSeek was removed from Apple and Google app stores in Italy on Wednesday, following a request by the country’s data protection authority for information on its handling of personal data. Italy’s Garante regulator gave DeepSeek 20 days to clarify what data it collects, its sources, purposes, and whether it is stored in China. Concerns over safeguarding underage users, potential bias, and risks of electoral interference were also highlighted by Garante chief Pasquale Stanzione.
The app, which recently surpassed ChatGPT in downloads from Apple’s App Store, remains functional for Italian users who had already installed it. It is also still available in other European Union countries and the UK. Ireland‘s Data Protection Commission has also sought details about DeepSeek’s data processing practices for Irish users, while Germany‘s government has voiced concerns about potential AI-driven election interference ahead of its February vote.
Italy’s Garante is known for its proactive stance on AI regulations, having temporarily banned ChatGPT in 2023 over alleged breaches of EU privacy laws. DeepSeek, which touts itself as a cost-efficient alternative to U.S. AI services, has faced mounting scrutiny as it gains popularity. Meanwhile, Irish regulators noted that DeepSeek has not designated Ireland as its EU headquarters, complicating oversight under EU data protection rules.
Chinese AI startup DeepSeek has shaken the global AI industry with its low-cost, high-performance models, sparking mixed reactions among leading US developers. Its flagship AI assistant recently surpassed OpenAI’s ChatGPT as the most downloaded app on Apple’s US App Store. DeepSeek achieved this using Nvidia’s H800 chips, training its model for under $6 million—an astonishing contrast to the billions spent annually by US tech giants.
While some American AI experts acknowledged DeepSeek’s achievements, many remain unconvinced. OpenAI’s CEO, Sam Altman, praised the R1 model for its cost-effectiveness, but analysts noted that the $6 million figure only reflects the final training phase, with total development costs likely exceeding $1 billion. Nvidia viewed DeepSeek’s success as evidence of growing demand for its AI chips, despite US export controls aimed at slowing China’s progress.
US-based firms like Snowflake have already added DeepSeek models to their AI offerings, citing overwhelming customer interest. However, concerns about China‘s involvement in AI technology persist. DeepSeek’s decision to release its models as open source has drawn applause from industry leaders, highlighting a shift toward more accessible AI development.
With China’s advancements narrowing the gap in AI innovation, competition between US and Chinese firms intensifies. DeepSeek’s rapid rise is forcing industry players to rethink their strategies, while questions about scalability and long-term sustainability remain unanswered.
AI-powered study rooms are revolutionising online education in China by offering personalised, tech-driven learning experiences. These spaces cater to students aged 8 to 18, using advanced software to provide interactive lessons and real-time feedback. The AI systems analyse mistakes, adjust course materials, and generate detailed progress reports for parents, who can track their child’s improvement remotely. By leveraging technology, these study rooms aim to make education more engaging and tailored to individual learning needs.
These AI rooms are marketed as self-study spaces rather than traditional tutoring centres, allowing them to navigate China’s strict private tutoring regulations by framing their services as facility rentals or membership plans. This creative positioning allows them to operate within a regulatory grey area, avoiding restrictions on off-campus tutoring for students in grades one through nine. Membership fees range from 1,000 to 3,000 yuan monthly, making them a more affordable long-term alternative to expensive one-on-one tutoring sessions.
Despite their growing popularity, education experts remain sceptical of their educational value. Critics argue that many of these systems lack proper AI functionality, relying instead on preloaded prompts and automated responses. Furthermore, there are concerns that their heavy emphasis on drilling questions to improve test scores may neglect critical thinking and deeper comprehension. However, proponents believe these AI-powered study rooms represent an essential step toward integrating technology into education and expanding access to personalised learning.
Several prominent Indian media outlets, including those owned by billionaires Gautam Adani and Mukesh Ambani, are taking legal action against OpenAI. These outlets, such as NDTV and Network18, along with organisations like the Indian Express and Hindustan Times, have filed to join an ongoing lawsuit against OpenAI in a New Delhi court. They allege that OpenAI has been improperly scraping their copyrighted content to train its AI model, ChatGPT, without permission or payment.
The legal claim, which is being led by the Digital News Publishers Association (DNPA), argues that OpenAI’s practices pose a significant threat to the copyrights of its members. The publishers claim that OpenAI’s actions amount to ‘wilful scraping’ and the use of their work for commercial gain, especially as the company generates revenue through ads linked to AI-generated content. This lawsuit highlights broader concerns in the media industry about the influence of large tech companies on content distribution and monetisation.
The legal proceedings are part of a larger global trend, with authors, musicians, and news organisations worldwide suing AI firms for using their works without compensation. In the US, the New York Times has filed a similar lawsuit against OpenAI and its major backer, Microsoft. This new case in India adds significant pressure to OpenAI, which has denied the allegations, arguing that its AI systems rely on publicly available data and that deleting such data could violate US law.
The Indian plaintiffs argue that OpenAI’s failure to strike content-sharing deals with local publishers, while it has done so with international media outlets, undermines the business of Indian news companies. The publishers warn that OpenAI’s practices could weaken the media landscape and negatively impact democracy, calling for greater protection of intellectual property in the age of AI.
Paul McCartney has raised concerns about AI potentially ‘ripping off’ artists, urging the British government to ensure that upcoming copyright reforms protect creative industries. In a recent BBC interview, McCartney warned that without proper protections, only tech giants would benefit from AI’s ability to produce content using works created by artists without compensating the original creators.
The music and film industries are facing legal and ethical challenges around AI, as models can generate content based on existing works without paying for the rights to use the original material. In response, the UK government has proposed a system where artists can license their works for AI training, though it also suggests exceptions for AI developers using unreserved rights materials at scale.
McCartney emphasised that while AI has its merits, it should not be used to exploit artists. He highlighted the risk that young creators could lose control over their works, with profits going to tech companies rather than the artists themselves. ‘It should be the person who created it’ who benefits, he said, urging that artists’ rights be prioritised in the evolving landscape of AI.
Google is ramping up efforts to influence public perception and policy on AI as it faces increasing global regulatory scrutiny. Kent Walker, Alphabet’s president of global affairs, emphasised the importance of educating the workforce on AI, saying that getting more people familiar with the technology would lead to better policy and open new opportunities. Google is keen on shaping the narrative around AI, especially as it competes with rivals like Microsoft and Meta in the fast-growing sector.
The company is also working to address concerns about job displacement and the potential for AI-driven workforce changes. Google has committed $120 million to AI education programs, with initiatives like the “Grow with Google” program, which provides online and in-person training to help workers gain skills in areas such as data analysis and IT. The company has already certified one million people through these programs and is now adding AI-focused courses.
As governments draft regulations on AI’s impact on privacy, copyright, and the economy, Google is pushing for public-private partnerships to help prepare workers for AI-related changes. Walker noted that while AI could displace some jobs, it will likely be integrated into most roles, creating new opportunities. Google is also researching AI’s potential in training programs, aiming to make adult retraining more engaging and effective.
The CEO of Japanese IT giant NTT DATA has called for global standards in AI regulation to mitigate the risks posed by the rapidly advancing technology. Speaking at the World Economic Forum in Davos, Switzerland, Abhijit Dubey emphasised that inconsistent regulations could lead to significant challenges. He argued that standardised global rules are essential for addressing issues like intellectual property protection, energy efficiency, and combating deepfakes.
Dubey pointed out that the key to unlocking AI’s potential lies not in the technology itself, which he believes will continue to improve rapidly, but in ensuring businesses are prepared to adopt it. A company’s ability to leverage AI, he said, depends on the readiness of its workforce and the robustness of its data architecture.
He stressed that companies must align their AI strategies with their broader business objectives to maximise productivity gains. ‘The biggest issue isn’t the technology it’s whether organisations are set up to implement it effectively,’ Dubey noted.
The discussion at Davos highlighted the urgent need for collaboration among governments, businesses, and industry leaders to create cohesive AI regulations that balance innovation with risk management.
