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.
Donald Trump has said there is significant interest in purchasing TikTok, as his administration looks to broker a sale of the Chinese-owned app. The former president posted on Truth Social, stating that such a deal would benefit China and all involved parties.
The fate of TikTok remains uncertain following a US law that requires ByteDance, its Chinese parent company, to sell the app or face a nationwide ban. The law came into effect on 19 January, raising concerns over national security and data privacy.
After taking office, Trump signed an executive order delaying the enforcement of the law by 75 days, allowing more time for negotiations. The move has reignited debate over foreign ownership of technology platforms and their impact on US security.
Belgium‘s new government, led by Prime Minister Bart De Wever, has announced plans to utilise AI tools in law enforcement, including facial recognition technology for detecting criminals. The initiative will be overseen by Vanessa Matz, the country’s first federal minister for digitalisation, AI, and privacy. The AI policy is set to comply with the EU’s AI Act, which bans high-risk systems like facial recognition but allows exceptions for law enforcement under strict regulations.
Alongside AI applications, the Belgian government also aims to combat disinformation by promoting transparency in online platforms and increasing collaboration with tech companies and media. The government’s approach to digitalisation also includes a long-term strategy to improve telecom infrastructure, focusing on providing ultra-fast internet access to all companies by 2030 and preparing for potential 6G rollouts.
The government has outlined a significant digital strategy that seeks to balance technological advancements with strong privacy and legal protections. As part of this, they are working on expanding camera legislation for smarter surveillance applications. These moves are part of broader efforts to strengthen the country’s digital capabilities in the coming years.
The US Treasury is facing a lawsuit over claims it unlawfully granted Elon Musk’s Department of Government Efficiency (DOGE) access to millions of Americans’ financial and personal data. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) filed the lawsuit in Washington, DC, accusing the Treasury and Secretary Scott Bessent of illegally sharing sensitive information.
The lawsuit follows concerns raised by US Senator Ron Wyden, who alleged that DOGE had full access to the Treasury’s payments system, which includes names, Social Security numbers, bank account details, and other private data. Prominent Democrats, including Senate leader Chuck Schumer and Senator Elizabeth Warren, have condemned the move, arguing that DOGE lacks any legal authority over federal spending or data access.
Schumer has pledged to introduce legislation to prevent further interference, stating that DOGE is not a legitimate government agency. Warren warned that the system is now “at the mercy of Elon Musk,” raising fears over potential misuse of financial records. The Treasury and DOGE have yet to respond to the allegations.
Swedish authorities have ruled out sabotage in the recent Baltic Sea fibre optic cable break, attributing the damage to adverse weather, faulty equipment, and poor seamanship.
Senior prosecutor Mats Ljungqvist of Sweden’s National Security Unit stated Monday that the vessel responsible for the 26 January incident, which severed an undersea cable between Latvia and Sweden, did not act with malicious intent.
Swedish officials, including the coast guard, police, and military, participated in the probe. While the vessel had been seized during the investigation, authorities have now lifted that restriction.
Google identified more than 57 cyber threat actors linked to China, Iran, North Korea, and Russia leveraging the company’s AI technology to enhance their cyber and information warfare efforts. According to a new report by Google’s Threat Intelligence Group (GTIG), the state-sponsored hacking groups, known as Advanced Persistent Threats (APTs), primarily use AI for tasks such as researching vulnerabilities, writing malicious code, and creating targeted phishing campaigns.
The company says that Iranian APT actors, particularly APT42, were identified as the most frequent users of Google’s AI tool, Gemini. They used it for reconnaissance on cybersecurity experts and organizations, and phishing operations.
Beyond APT groups, underground cybercriminal forums have begun advertising illicit AI models, such as WormGPT, WolfGPT, FraudGPT, and GhostGPT—AI systems designed to bypass ethical safeguards and facilitate phishing, fraud, and cyberattacks.
In the report, Google stated that the company has implemented countermeasures to prevent abuse of its AI system and has called for stronger collaboration between government and private industry to bolster cybersecurity defenses.
ENGlobal Corporation, a major contractor in the energy sector and federal government, was locked out of its financial systems for six weeks following a ransomware attack that began on 25 November 2024, the company disclosed in a filing with the US Securities and Exchange Commission (SEC).
The attack disrupted access to key business applications, affecting operational and corporate functions, including financial and reporting systems. However, ENGlobal stated that its systems have been fully restored, and the attackers no longer have access.
The Oklahoma-based company also confirmed that the breach involved unauthorised access to sensitive personal information stored on its IT systems. The company stated that affected individuals will be notified accordingly.
In an earlier SEC filing in December, ENGlobal revealed that the attackers had encrypted data files after gaining access, forcing the company to restrict IT system access and limit operations to essential functions. Despite the disruption, the company does not expect a material financial impact from the incident.
Founded in 1985, ENGlobal specialises in designing and constructing automation and instrumentation systems for commercial and government clients, including the US defence industry. The company reported $6 million in 2024 third-quarter revenue last quarter.
No ransomware group has claimed responsibility for the attack, which caused a longer-than-average outage.
OpenAI has introduced a new AI tool called deep research, designed to conduct multi-step research on the internet for complex tasks. The tool is powered by an optimised version of the upcoming OpenAI o3 model, enabling it to browse and analyse online content, including text, images, and PDFs, to generate detailed reports.
Deep research significantly reduces the time required for research, with OpenAI stating that it accomplishes tasks in minutes that would take a human several hours.
Despite its capabilities, the tool remains in its early stages and has limitations, such as difficulties in distinguishing credible sources from rumours and challenges in conveying uncertainty accurately.
The feature is already accessible via the web version of ChatGPT and will be extended to mobile and desktop applications later in February.
Deep research is the second AI agent introduced by OpenAI this year, following the January preview of Operator, which assists users with tasks like to-do lists and travel planning.
Taiwan has officially banned government agencies from using DeepSeek AI, citing security risks and concerns over potential data exposure to China. The move strengthens previous guidance, which only advised against its use.
Premier Cho Jung-tai announced the decision after a cabinet meeting, stressing the importance of safeguarding national information security. Officials raised fears over possible censorship on DeepSeek and the risk of sensitive data being transferred to China.
The digital ministry had initially stated on Friday that government departments should avoid the AI service but did not explicitly prohibit it. The latest announcement formalises the ban, aligning with Taiwan’s broader approach to restricting Chinese technology.
Authorities in several other countries, including South Korea, France, Italy, and Ireland, have also scrutinised DeepSeek’s handling of personal data.
Australia has imposed sanctions on the extremist online network ‘Terrorgram’ in an effort to combat rising antisemitism and online radicalisation. Foreign Minister Penny Wong stated that engaging with the group would now be a criminal offence, helping to prevent young people from being drawn into far-right extremism. The move follows similar actions by Britain and the US.
Wong described ‘Terrorgram’ as a network that promotes white supremacy and racially motivated violence, making it the first entirely online entity to face Australian counterterrorism financing sanctions. Offenders could face up to 10 years in prison and substantial fines. Sanctions were also renewed against four other right-wing groups, including the Russian Imperial Movement and The Base.
The network primarily operates on the Telegram platform, which stated that it has long banned such content and removed related channels. The US designated ‘Terrorgram’ as a violent extremist group in January, while Britain criminalised affiliation with it in April.
Australia has seen a rise in antisemitic incidents, including attacks on synagogues and vehicles since the Israel-Gaza conflict began in October 2023. Police recently arrested neo-Nazi group members in Adelaide and charged a man for displaying a Nazi symbol on National Day.
