India‘s finance ministry has issued an advisory urging employees to refrain from using AI tools like ChatGPT and DeepSeek for official tasks, citing concerns over the potential risks to the confidentiality of government data. The directive, dated January 29, highlights the dangers of AI apps on office devices, warning that they could jeopardise the security of sensitive documents and information.
This move comes amid similar actions taken by other countries such as Australia and Italy, which have restricted the use of DeepSeek due to data security concerns. The advisory surfaced just ahead of OpenAI CEO Sam Altman’s visit to India, where he is scheduled to meet with the IT minister.
Representatives from India’s finance ministry, OpenAI, and DeepSeek have yet to comment on the matter. It remains unclear whether other Indian ministries have implemented similar measures.
A former Google software engineer faces additional charges in the US for allegedly stealing AI trade secrets to benefit Chinese companies. Prosecutors announced a 14-count indictment against Linwei Ding, also known as Leon Ding, accusing him of economic espionage and theft of trade secrets. Each charge carries significant prison terms and fines.
Ding, a Chinese national, was initially charged last March and remains free on bond. His case is being handled by a US task force established to prevent the transfer of advanced technology to countries such as China and Russia.
Prosecutors claim Ding stole information on Google’s supercomputing data centres used to train large AI models, including confidential chip blueprints intended to give the company a competitive edge.
Ding allegedly began his thefts in 2022 after being recruited by a Chinese technology firm. By 2023, he had uploaded over 1,000 confidential files and shared a presentation with employees of a startup he founded, citing China’s push for AI development.
Google has cooperated with authorities but has not been charged in the case. Discussions between prosecutors and defence lawyers indicate the case may go to trial.
A federal judge in California has indicated that some aspects of Elon Musk’s lawsuit against OpenAI may proceed to trial. Musk will be required to testify, with a jury ultimately deciding the outcome. The lawsuit challenges OpenAI’s transition from a nonprofit to a for-profit entity, a move Musk argues contradicts its original mission.
Judge Yvonne Gonzalez Rogers is reviewing Musk’s request to block OpenAI’s conversion before the trial. While she has not yet ruled on the injunction, she suggested Musk’s legal team may need to present more evidence. OpenAI’s lawyers argue that the restructuring is necessary to secure investment and continue developing advanced AI models.
The dispute has intensified as OpenAI seeks billions in funding, which is conditional on its corporate restructuring. Experts note that such nonprofit-to-for-profit transitions are rare, typically occurring in healthcare rather than AI startups. OpenAI maintains that Musk should compete in the market rather than pursue legal action.
AMD has announced it will release its next-generation data centre GPUs, the Instinct MI350 series, earlier than originally planned. CEO Lisa Su revealed during the company’s Q4 2024 earnings call that strong demand and smooth development have allowed AMD to move up production to mid-2025, rather than the latter half of the year.
The move comes as AMD looks to gain ground on industry leader Nvidia, whose dominance in the data centre market continues to pose a challenge. Despite this, AMD’s Instinct GPU sales surpassed $5 billion in 2024, and the company expects its data centre division to see double-digit growth in 2025. Major customers such as Meta, Microsoft, and IBM have contributed to AMD’s momentum in the AI computing sector.
Su expressed confidence in the expansion of AMD’s data centre business, forecasting substantial growth in AI-related computing over the coming years. Investors responded positively to the announcement, with AMD’s stock rising by over 4% following the earnings report.
Chinese companies are increasingly backing DeepSeek‘s AI, marking a pivotal moment for the industry. Firms like Moore Threads and Hygon Information Technology are enabling their computing clusters to support DeepSeek’s R1 and V3 models, which use domestically produced graphic processing units (GPUs). Analysts have hailed this as a ‘watershed moment,’ particularly as these models rival those run on global high-end chips.
Huawei has also joined the trend, integrating DeepSeek’s models with its Ascend cloud service and partnering with AI infrastructure start-up SiliconFlow. This integration showcases the growing potential of Chinese-made chips to support competitive large language models, reducing reliance on US hardware. Additionally, major Chinese tech companies such as Alibaba, Baidu, and Tencent have made DeepSeek’s models available through their cloud services.
DeepSeek’s rise has captured significant attention, especially after the launch of its free AI assistant, which surpassed ChatGPT in app downloads within days. The company’s approach, requiring far less computing power than its US counterparts, has further fueled its success. While DeepSeek is gaining traction globally, some countries, including Italy and the Netherlands, have raised privacy concerns, leading to investigations and blocks on its app.
The European Commission has unveiled new guidelines restricting how AI can be used in workplaces and online services. Employers will be prohibited from using AI to monitor workers’ emotions, while websites will be banned from using AI-driven techniques that manipulate users into spending money. These measures are part of the EU’s Artificial Intelligence Act, which takes full effect in 2026, though some rules, including the ban on certain practices, apply from February 2024.
The AI Act also prohibits social scoring based on unrelated personal data, AI-enabled exploitation of vulnerable users, and predictive policing based solely on biometric data. AI-powered facial recognition CCTV for law enforcement will be heavily restricted, except under strict conditions. The EU has given member states until August to designate authorities responsible for enforcing these rules, with breaches potentially leading to fines of up to 7% of a company’s global revenue.
Europe’s approach to AI regulation is significantly stricter than that of the United States, where compliance is voluntary, and contrasts with China‘s model, which prioritises state control. The guidelines aim to provide clarity for businesses and enforcement agencies while ensuring AI is used ethically and responsibly across the region.
Next week, Paris will host the AI Action Summit, where representatives from nearly 100 nations, including the US and China, will gather to discuss the future of AI. With the backing of both France and India, the summit aims to address AI development’s safe deployment, focusing on areas where France has a competitive edge, such as open-source systems and clean energy for powering data centres. The summit will also look at AI’s impact on labour markets and the promotion of national sovereignty in the increasingly global AI landscape.
Key industry figures, including top executives from Alphabet and Microsoft, are expected to attend. Discussions will involve a range of topics, including a potential non-binding communiqué that could reflect a global consensus on AI principles. However, it remains uncertain whether the US will align fully with other countries, given the Trump administration’s policies and tensions over issues like AI chip exports to China.
Unlike previous AI summits, which focused on safety regulations, the Paris event will not be creating new rules. Instead, the emphasis will be on how to ensure the benefits of AI reach developing nations, particularly through affordable AI models. In addition, France plans to showcase its clean energy capabilities, leveraging its nuclear power sector to address the growing energy demands of AI technologies, with some commitments expected from businesses and philanthropies to support public-interest AI projects globally.
Belgium‘s data protection authority has received a complaint about Chinese AI firm DeepSeek, potentially leading to an investigation. A spokesperson confirmed the complaint but declined to provide further details while the case is being handled.
Regulators in Luxembourg have not received any complaints but are monitoring DeepSeek’s latest AI model, citing potential risks for users. The country’s data protection agency is considering a broader review in collaboration with European regulators.
Authorities across Europe may examine how DeepSeek processes user data. The European Data Protection Board could play a role in assessing the AI company’s compliance with privacy laws.
The emergence of China’s DeepSeek, a low-cost AI model that requires less advanced chips, initially sparked a global selloff in tech stocks. Investors raised concerns about the future of Western investments in chipmakers and data centres. Nvidia, a leader in the sector, saw its market value plummet by nearly $600 billion, marking the largest one-day loss in company history. However, since then, tech stocks, particularly in Europe, have rebounded, with some investors turning to a 160-year-old economic theory to explain the market’s recovery: the Jevons Paradox.
The Jevons Paradox, proposed by economist William Stanley Jevons, suggests that as a resource becomes more efficient, its demand can actually increase. In the context of AI, the paradox argues that as AI technology becomes cheaper and more accessible, its use will likely expand. This idea is gaining traction among European investors, with some believing that lower AI costs could drive a new wave of investment in software and AI technologies, particularly in areas like data and inference.
Despite some scepticism, several fund managers have embraced the paradox as a reason for optimism in AI markets. The potential need for data centres and infrastructure to support AI growth remains a key focus, though the rise of more efficient software like DeepSeek has led some to question whether the sector will require as many resources as previously expected. While the long-term outlook remains uncertain, many see the reduction in AI costs as a catalyst for further investment and growth, especially in European companies that rely on AI technologies.
Not everyone is convinced, however, with some analysts pointing to Nvidia’s rapid stock rise as a sign that market dynamics may be more complex than the Jevons Paradox suggests. Nonetheless, for many, the falling costs of AI technology have reinforced the belief that demand for AI-related investments will continue to thrive.
German semiconductor materials supplier Siltronic has forecast stagnant sales for 2025 after a 7% decline last year, citing high inventory levels and weak demand in key sectors. The company’s shares fell more than 15% following the announcement, continuing a downward trend from 2024. While AI is driving some growth, it has not yet offset lower demand for automotive, PC, and memory chips.
CEO Michael Heckmeier stated that wafer demand is unlikely to recover soon, with the first half of 2025 expected to be weaker than late 2024. Siltronic plans to halt production of smaller silicon wafers at its Burghausen facility by the end of July, which will slightly impact sales but have little effect on earnings. The company also acknowledged that its mid-term targets set for 2028 will not be met, though it did not provide a new timeline.
Analysts reacted negatively to the outlook, with Stifel’s Juergen Wagner warning of possible downward revisions to 2025 earnings forecasts. Last week, STMicroelectronics also reported continued weakness in the automotive and industrial chip markets. Siltronic’s preliminary 2024 revenue stood at €1.41 billion, slightly above expectations, but the company has cut its dividend. A more detailed financial outlook will be presented in its annual report on 6 March.
