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.
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.
The new OpenBusiness information system launched on Monday, replacing the previous NotifyBusiness system, which is now accessible only in a read-only format. The Greek Ministry of Development highlighted that OpenBusiness streamlines business procedures, significantly cutting costs, installation time, and startup delays for both private and public sector enterprises.
Minister Takis Theodorikakos praised the system, stating that it simplifies processes, reduces costs and time for starting economic activities, and enhances public administration efficiency.
OpenBusiness supports the licensing of 57 key economic activities and covers around 2,500 codes, offering businesses a more modern and accessible platform for their operations. It is designed to reduce bureaucracy, improve transparency, and foster a better business environment.
Mitsubishi Heavy Industries expects continued strong demand for gas turbines, even as concerns rise over AI-driven energy efficiency. Chief financial officer Hisato Kozawa dismissed fears that Chinese AI model DeepSeek could reduce power consumption, reaffirming that global electricity demand remains on an upward trend.
Kozawa noted that MHI was unexpectedly viewed as an AI-related stock during last week’s market turbulence. The company reported record third-quarter earnings, with robust sales of gas turbines helping to lift full-year profit forecasts. The financial outlook for the year ending in March was raised to 240 billion yen (£1.55 billion), over 8% higher than previous estimates.
MHI’s strong performance extends beyond energy, with rising orders for jets, naval vessels, and missiles amid Japan’s expanding defence programme. The company’s stock has more than doubled in the past year, though it dipped 0.6% on Tuesday, closing at 2,218 yen per share, while the Nikkei 225 gained 0.7%.
OpenAI has announced a new partnership with Kakao to develop AI products for South Korea. This marks OpenAI’s second major alliance in Asia this week, following a similar deal with SoftBank for AI services in Japan. OpenAI CEO Sam Altman, who is on a tour of Asia, also met with leaders from Samsung Electronics, SoftBank, and Arm Holdings. The partnership with Kakao is seen as part of OpenAI’s broader strategy to expand its AI presence in the region, with a focus on messaging and AI applications.
Kakao, which operates South Korea’s dominant messaging app KakaoTalk, plans to integrate OpenAI’s technology into its services as part of its push to grow its AI capabilities. Although Kakao has lagged behind rival Naver in the AI race, the company is positioning AI as a key growth engine. Altman highlighted the importance of South Korea’s energy, semiconductor, and internet sectors in driving demand for AI products, noting that many local companies will play a role in OpenAI’s Stargate data centre project in the US.
In addition to his work with Kakao, Altman met with executives from SK Group and Samsung to discuss AI chips and potential cooperation. SK Hynix, a key player in the production of AI processors, has been in discussions with OpenAI regarding collaboration in the AI ecosystem. Altman also indicated that OpenAI is actively considering involvement in South Korea’s national AI computing centre project, which is expected to attract up to $1.4 billion in investment.
Following the announcement, Kakao’s stock fell by 2%, after a 9% surge the previous day.
US telecom giant AT&T and Finnish network equipment maker Nokia have signed a multi-year agreement to upgrade AT&T’s voice services and 5G network automation. This deal comes after Nokia lost a significant contract to Swedish rival Ericsson in 2023, which led to Ericsson securing a $14 billion deal to build a network for AT&T covering 70% of its US wireless traffic by 2026. Nokia, however, remains involved with AT&T through a smaller agreement for fibre network development and a new contract focused on cloud-based voice applications and network automation.
The deal will enhance AT&T’s core network, enabling new voice services, including the integration of AI and machine learning. Although the financial details of the agreement were not disclosed, Nokia’s involvement is seen as crucial in bolstering its long-standing relationship with AT&T. Nokia’s president of Cloud and Network Services, Raghav Sahgal, emphasised that this agreement will allow for the deployment of new 5G functionalities.
Nokia recently reported stronger-than-expected earnings, driven by higher demand for telecoms equipment, particularly in North America and India. The company remains optimistic about its prospects in 2025, especially with plans to capitalise on the AI boom. Last year, Nokia also agreed to acquire Infinera for $2.3 billion to strengthen its position in the growing data centre and AI markets.
Waabi, a self-driving technology company, announced a partnership with Volvo’s driverless systems unit on Tuesday to develop autonomous big rigs. The collaboration aims to integrate Waabi’s virtual driver system, sensors, and computing into Volvo’s VNL Autonomous truck, which will be produced at Volvo’s New River Valley factory in Virginia.
The partnership comes as truck manufacturers and fleets look for ways to address driver shortages and reduce operational costs. Waabi, backed by Nvidia and Uber, uses its digital simulator, Waabi World, for testing and validation, with plans to launch commercial pilots in Texas within four years.
Unlike Tesla, which relies on a vision-only approach for its self-driving technology, Waabi uses a unique system to simulate real-world driving situations. The company also indicated that the deal with Volvo is not exclusive and they aim to integrate their technology with other truck manufacturers.
Volvo’s venture capital arm invested in Waabi in 2023, joining other backers such as Khosla Ventures and Porsche Automobil Holding. Waabi’s CEO Raquel Urtasun said trucking was a natural starting point for their technology, with plans to expand into areas like robotaxis and humanoid robots in the future.
Chinese internet users have been captivated by the DeepSeek AI app, which has gained immense popularity since its launch during the Lunar New Year holiday. Users have explored its predictive and analytical capabilities, with some posing questions on politics, economics, and even personal matters. For example, law professor Wang Jiangyu asked how China should respond to US President Donald Trump’s tariffs, receiving a comprehensive seven-point answer that included potential new tariffs on US industries and other strategic moves. The model’s detailed responses have impressed users, though it censors certain politically sensitive topics, such as questions about Xi Jinping or the Tiananmen Square protests.
DeepSeek’s low-cost yet powerful AI has made waves in the tech sector, surpassing ChatGPT in downloads on the Apple App Store. The Hangzhou-based startup has become a source of national pride, with users sharing personal experiences, such as using the app to predict their fortunes or interpret dreams. This surge in popularity has drawn attention to the company’s rapid growth, and its founder, Liang Wengfeng, has emerged as a pop culture figure.
Despite its success, DeepSeek’s claims about the minimal cost of training its latest AI model—less than $6 million in computing power—have raised scepticism among some experts. Nevertheless, the platform’s effectiveness has prompted comparisons to the billions invested by US tech giants in AI development. The app’s rapid rise has also led to investigations by authorities in several countries, including Japan, South Korea, and several European nations, over concerns about its handling of personal data.
SoftBank Group CEO Masayoshi Son announced on Monday that he has agreed with OpenAI CEO Sam Altman to establish a joint venture in Japan, called SB OpenAI Japan, to offer AI services to corporate clients. This venture will be jointly owned by OpenAI and a company set up by SoftBank and its telecoms arm. In addition, SoftBank will pay $3 billion annually to integrate OpenAI’s technology across its group companies.
Son’s involvement with OpenAI is deepening, with reports indicating that SoftBank plans to invest between $15 billion and $25 billion in the company. SoftBank is also committing $15 billion to Stargate, a joint venture with OpenAI and Oracle to build AI capacity in the US. Son’s support for OpenAI follows a period of retrenchment for the investment giant, but he is reasserting his influence in the tech sector after setbacks in SoftBank’s tech portfolio.
In the context of rising competition, China’s DeepSeek has prompted some investors to question the immense funds being poured into US-based AI companies. However, Altman believes global demand for AI computing power will continue to surge. Son and Altman also met with Japanese Prime Minister Shigeru Ishiba on Monday to discuss further developments.
EssilorLuxottica announced on Monday that it has received approval from the US Food and Drug Administration (FDA) for its Nuance audio glasses, a groundbreaking product that combines hearing solutions with prescription eyewear. Nuance will be available in the US and Italy in the first quarter of this year, with a planned launch in France, Germany, and the UK by mid-2025.
Chairman and CEO Francesco Milleri described the Nuance glasses as more than just a combination of two medical devices, calling them “entirely new smart glasses” that are both innovative and accessible. The company aims to provide this life-changing technology to the 1.25 billion people worldwide who suffer from mild to moderate hearing loss.
This launch marks a significant step for EssilorLuxottica as it expands its offerings beyond traditional eyewear, seeking to improve the lives of those with hearing impairments by making hearing solutions more readily available and convenient.
