Capacity development

US investigates DeepSeek for potential AI chip violations

The US Commerce Department is investigating whether DeepSeek, the Chinese AI company that recently launched a high-performing assistant, has been using US chips in violation of export restrictions. These chips are prohibited from being shipped to China, raising concerns about DeepSeek’s rapid rise in the AI sector. Within days of launching, its app became the most downloaded on Apple’s App Store, contributing to a significant drop in US tech stocks, which lost around $1 trillion in value.

The US has imposed strict limits on the export of advanced AI chips to China, particularly those made by Nvidia. These restrictions aim to prevent China from accessing the most sophisticated AI processors. However, reports suggest that AI chip smuggling from countries like Malaysia, Singapore, and the UAE may be circumventing these measures. DeepSeek has admitted to using Nvidia’s H800 chips, which were legally purchased in 2023, but it is unclear whether it has used other restricted components.

The controversy deepened when Anthropic’s CEO Dario Amodei commented that DeepSeek’s AI chip fleet likely includes both legal and smuggled chips, some of which were shipped before restrictions were fully enforced. While DeepSeek has claimed to use only the less powerful H20 chips, which are still permitted to be sold to China, the investigation continues whether these practices undermine US efforts to limit China’s access to cutting-edge AI technologies.

SAP optimistic about Green Ledger amid US climate shift

Germany’s SAP is seeing increasing global demand for software that helps companies manage and document sustainability efforts, despite weakening climate protection targets in the US. SAP’s CFO, Dominik Asam, stated that the need for reliable sustainability data and analysis tools will remain strong, especially with growing investor focus on the issue. This comes as the US formally announced its intention to withdraw from the Paris climate agreement, a decision set to take effect in January 2026.

Despite the shifting political landscape, Asam remains optimistic about the future of sustainability initiatives. At the World Economic Forum in Davos, he spoke with many investors who continue to show strong interest in sustainability efforts. SAP is focusing on its Green Ledger software, which aims to make sustainability reporting as verifiable as financial reporting. This will become a requirement under the European Corporate Sustainability Reporting Directive (CSRD) in 2028.

While currently used mainly by SAP and chemical company Covestro, the software is expected to see broader adoption. Asam anticipates a surge in contracts in the latter half of this year, highlighting the growing importance of sustainability reporting for businesses worldwide.

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.

Ericsson and Batelco to boost Bahrain’s 4G/5G Network

Ericsson and Bahrain Telecommunications Company (Batelco) have partnered to expand and modernise Batelco’s mobile broadband network in Bahrain, enhancing 4G and 5G capabilities, coverage, and capacity. Batelco has deployed Ericsson’s latest Radio Access Network (RAN) products, including massive MIMO antennas.

It has upgraded its Core network infrastructure to the latest Network Function Virtualisation Infrastructure (NFVI) release to handle increased voice and data traffic. Energy-efficient solutions like dual-mode triple band radios and Interleaved AIR 3218 have been integrated, reducing space requirements and energy consumption by up to 20% while improving network performance.

Additionally, Batelco has modernised its Ericsson Mediation system to a cloud-native platform, improving operational efficiency and supporting applications such as IoT and 5G standalone use cases. The new platform ensures scalability, flexibility, and faster time-to-market for future-ready network services.

These advancements collectively strengthen Batelco’s network, making it more efficient, sustainable, and capable of meeting the growing demands of consumers and businesses in Bahrain. The collaboration with Ericsson ensures that Batelco’s infrastructure is future-proof, optimised for resource utilisation, and ready to support emerging technologies.

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.

SoftBank explores $25 billion deal with OpenAI

SoftBank is reportedly in talks to invest up to $25 billion in OpenAI, the owner of ChatGPT, as part of its broader push into the AI sector. The investment, which could range from $15 billion to $25 billion, would go towards supporting OpenAI’s commitment to Stargate, a joint venture between SoftBank, Oracle, and OpenAI aimed at securing the US’s lead in the global AI race. This deal would be in addition to the $15 billion SoftBank has already committed to the Stargate initiative, although the talks are still in the early stages.

Stargate, which plans to invest up to $500 billion, has garnered attention as a major player in the competition between the US and China over AI dominance. However, the recent rise of DeepSeek, a Chinese startup that has shaken up the market with its low-cost AI model, has put pressure on SoftBank’s plans. Despite a surge in SoftBank’s share price following the Stargate announcement, the company has seen its stock drop more than 12% due to the market response to DeepSeek’s success.

SoftBank CEO Masayoshi Son’s strategy to secure a significant stake in OpenAI and fulfil Stargate’s goals has reportedly been reviewed and approved by OpenAI’s board. SoftBank had previously acquired a $1.5 billion stake in OpenAI, which was valued at $157 billion in its latest funding round. Despite the ongoing discussions, both SoftBank and OpenAI have declined to comment on the latest investment talks.

DeepSeek: Speeding up the planet or levelling with ChatGPT?

Although the company’s name somewhat overlaps with Google DeepMind, which was launched earlier, the new player in the market has sparked a leap in attention and public interest, becoming one of the biggest AI surprises on the planet upon its launch.

DeepSeek, a company headquartered in China, enjoys significant popularity primarily because its most sought-after features keep pace with giants like OpenAI and Google, as well as due to notable stock market changes that are far from negligible.

In the following points, we will explore these factors and what the future holds for this young company, particularly in the context of the dynamics between China and the US.

How did it start? Origins of DeepSeek

DeepSeek is an AI company from China based in Hangzhou, Zhejiang, founded by entrepreneur and businessman Liang Wenfeng. The company develops open-source LLMs and is owned by a Chinese hedge fund, High-Flyer.

It all started back in 2015 when Liang Wenfeng cofounded High-Flyer. At first, it was a startup, but in 2019, it grew into a hedge fund focused on developing and using AI trading algorithms. For the first two years, they used AI only for trading.

In 2023, High-Flyer founded a startup called DeepSeek, and Liang Wenfeng was appointed CEO. Two years later, on 10 January 2025, DeepSeek announced the release of its first free-to-use chatbot app. The app surpassed its main competitor, ChatGPT, as the most downloaded free app in the US in just 17 days, causing an unprecedented stir on the market.

Unprecedented impact on the market

Few missed the launch of the DeepSeek model, which is why the stock market felt the impact, and so did some of the biggest giants.

For instance, the value of Nvidia shares dropped by as much as 18%. Similar declines were experienced by giants like OpenAI, Google, and other AI companies focused on small and medium-sized enterprises.

On top of this, there is justified concern among investors, who could quickly shift their focus and redirect their investments. However, this could lead to an even more significant drop in the shares of the largest companies.

Open-source approach

DeepSeek embraces an open-source philosophy, making its AI algorithms, models, and training details freely accessible to the public. The company stated that it is committed to transparency and fosters collaboration among developers and researchers worldwide. They also advocate for a more inclusive and innovative AI ecosystem.

Their strategy has the potential to reshape the AI landscape, as it empowers individuals and organisations to contribute to the evolution of AI technology. DeepSeek’s initiative highlights the importance of open collaboration in driving progress and solving complex challenges in the tech industry.

DeepSeek quickly secured the information after being alerted.

With the growing demand for ethical and transparent AI development, DeepSeek’s open-source model sets a precedent for the industry. The company paves the way for a future where AI breakthroughs are driven by collective effort rather than proprietary control.

Cheaper AI model that shook the market

By being cheaper than the competition, DeepSeek has opened the doors of the AI market to many other companies that do not have as much financial power. As dr Jovan Kurbalija, executive director of Diplo, says in his blog post titled ‘How David outwits Goliath in the age of AI?‘, ‘the age of David challenging Goliath has arrived in AI’.

For individuals, this means monthly costs are reduced by 30% to 50%, which can be, and often is, the biggest incentive for users looking to save.

The privileges once enjoyed by those with greater financial resources are now available to those who want to advance their small and medium-sized businesses.

Cyber threats and challenges faced by DeepSeek

Shortly after its launch, DeepSeek faced a significant setback when it was revealed that an error had exposed sensitive information to the public.

This raised alarms for many, especially as the immense popularity led to the AI Assistant being removed from the AppStore more times than OpenAI’s offering, and a large amount of data became accessible.

Experts have expressed concerns that others may have accessed the leaked data. The company has not yet commented on the incident, while the system’s vulnerability provides a foundation for hacking groups to exploit.

DeepSeek for the top spot, ChatGPT defends the throne

The AI race is heating up as DeepSeek challenges industry leader ChatGPT, aiming to claim the top spot in AI. With its open-source approach, DeepSeek is rapidly gaining attention by publicly making its models and training methods available, fostering innovation and collaboration across the AI community.

The race was further spiced up by DeepSeek’s claim that it built an AI model on par with OpenAI’s ChatGPT for under $6 million (£4.8 million). In comparison, Microsoft, OpenAI’s main partner, plans to invest around $80 billion in AI infrastructure this year.

OpenAI’s ChatGPT search tool faces risks of manipulation via hidden content, leading to biased or harmful outputs.

As DeepSeek pushes forward with its transparent and accessible model, the battle for AI supremacy intensifies. Whether openness will outmatch ChatGPT’s established presence remains to be seen, but one thing is sure—the AI landscape is evolving faster than ever.

Why is DeepSeek gaining popularity in 2025?

DeepSeek has emerged as a major player in AI by embracing an open-source philosophy, making its models and training data freely available to developers. This transparency has fueled rapid innovation, allowing researchers and businesses to build upon its technology and contribute to advancements in AI.

Unlike closed systems controlled by major tech giants, DeepSeek’s approach promotes accessibility and collaboration, attracting a growing community of AI enthusiasts. Its cost-effective development, reportedly achieving results comparable to top-tier models with significantly lower investment, has also drawn attention.

As the demand for more open and adaptable AI solutions rises, DeepSeek’s commitment to shared knowledge positions it as a strong contender in the industry. Whether this strategy will redefine the AI landscape remains to be seen, but its growing influence in 2025 is undeniable.

DeepSeek in the future: Development, features, and strategies

Now that it has experienced ‘overnight success,’ the Chinese company aims to push DeepSeek to the top and position it among the most powerful AI firms in the world.

Users can definitely expect many advanced features that will fuel a fierce battle with giants like DeepMind and ChatGPT.

Strategically, DeepSeek will attempt to break into the American market and offer more financially accessible solutions, forcing the key players to make significant cuts.

DeepSeek is undoubtedly a real hit in the market, but it remains to be seen whether price is the only measure of its success.

Whether it will make a leap in its own technology and completely outpace the competition or remain shoulder to shoulder with the giants—or even falter—will be revealed in the near future.

One thing is sure: the Chinese company has seriously shaken up the market, which will need considerable time to recover.

Vodafone achieves world first satellite video call

Vodafone has achieved a world first by making a video call via satellite using a standard smartphone, marking a significant breakthrough in mobile technology. The call, made from the remote Welsh mountains where there was no network signal, was received by CEO Margherita Della Valle. Vodafone used AST SpaceMobile’s BlueBird satellites, which provide speeds of up to 120 megabits per second, to enable the video call, which included voice, text, and data transmission.

This satellite technology is part of Vodafone’s broader plan to expand satellite connectivity across Europe by 2026. The company aims to offer users a full mobile experience, including video calls, even in areas where traditional network coverage is unavailable. Vodafone is also an investor in AST SpaceMobile, alongside major companies like AT&T, Verizon, and Google.

The race to deploy satellite services is heating up, with competitors like Apple, T-Mobile, and SpaceX already working on satellite-based connectivity. Apple’s iPhones, starting from the iPhone 14, offer satellite texting for emergency services and location sharing. Other companies are testing similar services, with plans for voice and data connectivity in the future.

British astronaut Tim Peake, who attended the launch of Vodafone’s space-to-land gateway, hailed the ability to connect via satellite as an ‘incredible breakthrough.’ Peake, who spent six months aboard the International Space Station, highlighted the importance of staying connected while in remote environments and expressed interest in future space missions.