John Schulman, a co-founder of OpenAI, has stepped down from his role at Anthropic, the AI startup confirmed on Wednesday. Schulman had joined Anthropic last year after leaving OpenAI in August, aiming to focus on AI alignment and return to hands-on technical work. Anthropic’s chief science officer, Jared Kaplan, expressed regret over his departure but wished him well in his future endeavours.
Anthropic has grown into a key competitor in the AI foundation model space, with annualised revenue reaching approximately $875 million. The company provides access to its AI models both directly and through third-party cloud services such as Amazon Web Services. Schulman’s departure was first reported by The Information.
The move marks another shift in the AI industry as competition intensifies among leading companies. OpenAI, Anthropic, and other key players continue to race towards advancing AI capabilities while addressing concerns around safety and alignment.
Google has introduced new versions of its Gemini AI models, including the budget-friendly “Flash-Lite,” to compete with lower-cost rivals such as China‘s DeepSeek. The updates include the public release of Gemini 2.0 Flash and the testing of a new ‘Pro’ model. Flash-Lite was developed following positive feedback on the previous Flash 1.5 version, with the goal of making AI more affordable.
Investor scrutiny has increased over the rising costs of AI model development. DeepSeek recently claimed to have spent under $6 million on training a model, significantly less than what US AI firms are believed to invest. The emergence of cheaper alternatives has influenced discussions at Alphabet, Microsoft, and Meta, with all three companies reaffirming their commitment to high AI investment.
Alphabet’s stock declined on Tuesday amid concerns over a planned increase in capital expenditure, which exceeded Wall Street expectations by 29%. Google’s pricing strategy for Gemini Flash-Lite sets its cost at $0.019 per million tokens, placing it between OpenAI’s cost-efficient model at $0.075 and DeepSeek’s current rate of $0.014, which is set to increase soon.
Elizabeth Kelly, the inaugural director of the United States AI Safety Institute, has stepped down from her role after a year overseeing efforts to measure and counter risks from advanced AI systems. During her tenure, the institute reached agreements with OpenAI and Anthropic to test their models before release and collaborated with global AI safety organisations.
The institute, created under former President Joe Biden’s administration, operates within the US Commerce Department‘s National Institute of Standards and Technology. Since taking office, President Donald Trump has revoked Biden’s 2023 executive order on AI, raising questions about the institute’s future direction under the new administration.
Kelly did not comment further on her departure but expressed optimism in a LinkedIn post, stating that the institute’s mission remains crucial to the future of AI innovation. The White House has yet to clarify its plans for AI regulation and safety oversight.
Workday has announced plans to cut around 1,750 jobs, or 8.5% of its workforce, as it shifts focus towards AI and international expansion. CEO Carl Eschenbach said the layoffs would help prioritise investments in AI while also freeing up resources to strengthen the company’s presence in different markets. Shares of the California-based human capital management firm rose over 4% in premarket trading following the announcement.
The industry has faced a slowdown in enterprise spending due to high interest rates affecting tech budgets. Workday expects to incur charges of up to $270 million related to the job cuts, with $60 million to $70 million recognised in the fourth quarter. The company, which had around 18,800 employees as of January last year, also plans to close some of its office spaces as part of its cost-cutting strategy.
Workday faces growing competition in the human capital management sector as rivals consolidate through acquisitions. Recent deals include Paychex’s $4.1 billion purchase of Paycor and ADP‘s $1.2 billion acquisition of WorkForce Software. Despite the job cuts, Workday reaffirmed that its financial performance remains on track, with annual subscription revenue expected to reach $7.70 billion and fourth-quarter revenue forecasted at $2.03 billion.
Thailand plans to draft a strategic plan for its semiconductor sector within 90 days, aiming to attract new investments amid the growing trade tensions between the US and China. The country’s national semiconductor board will engage a consultancy to create an industry roadmap, with Narit Therdsteerasukdi, secretary-general of the Thailand Board of Investment (BOI), leading efforts to promote the sector. As part of these efforts, Narit is also organising roadshows in the US and Japan to draw in semiconductor investments.
The semiconductor industry has faced significant disruption due to the US-China trade war, and further instability is expected as US President Donald Trump’s renewed tariffs on Chinese imports continue. Despite this, Thailand’s semiconductor sector has seen growth, with inbound investment applications reaching a decade-high of 1.14 trillion baht ($33.5 billion) in 2023. The country aims for 500 billion baht in new investments by 2029, focusing on power electronics, including semiconductors for electric vehicles, data centres, and energy storage systems.
Thailand is positioned as a key player in the global semiconductor market, ranking second among emerging economies for semiconductor manufacturing. Companies like Analog Devices, Sony, Toshiba, and Infineon have facilities in Thailand, and investment in printed circuit boards, essential for electronic devices, has also surged. Thailand’s neutral position in the ongoing trade conflict makes it an attractive destination for investors seeking stability.
However, Thailand faces stiff competition from other Southeast Asian countries, particularly Malaysia, which is aiming for over $100 billion in semiconductor investments. Despite this, Thailand’s growth potential remains strong, driven by its growing reputation as a manufacturing hub for electronics.
Amazon is set to unveil its long-awaited generative AI-powered Alexa, with a preview event scheduled for 26 February in New York. The update marks the most significant overhaul since the voice assistant’s launch in 2014, aiming to improve user interactions with advanced AI-driven conversations. A final decision on the product’s readiness is expected at an internal meeting on 14 February.
The new AI capabilities will allow Alexa to handle multiple requests in sequence and act on behalf of users without direct input. While initially free for a limited number of users, Amazon is considering a monthly subscription fee of $5 to $10. The company will continue offering the existing version, known as Classic Alexa, though it has reportedly stopped adding new features to it.
Despite Alexa’s early success, usage has remained limited due to a lack of major updates in recent years. The generative AI revamp is designed to make Alexa more useful for tasks like shopping, scheduling, and entertainment. Analysts suggest that even a fraction of users subscribing to the service could generate significant revenue for Amazon.
The update will rely on AI software from Anthropic, a startup backed by Amazon’s $8 billion investment. Previous attempts to launch an improved Alexa were delayed due to concerns over accuracy and performance. With the upcoming release, Amazon hopes to re-establish Alexa as a key part of everyday digital interactions.
Chinese investors are flocking to AI-related stocks, betting that the success of home-grown startup DeepSeek will propel China to the forefront of the AI race amid the escalating Sino-US technology conflict. DeepSeek’s breakthrough in developing a competitive large language model, cheaper to produce than those of US giants like OpenAI, has ignited a surge in investments, particularly in Chinese chipmakers, software companies, and data centre operators. This patriotic investment surge follows US President Donald Trump’s fresh tariffs and trade war tactics.
Shares in AI, semiconductor, and robotics firms in China and Hong Kong have seen notable increases, with the Hang Seng AI Index rising by more than 5% and related sectors climbing over 11%. Investors are optimistic about the rapid adoption of AI technologies, with industry experts predicting significant growth in AI applications by 2025. Companies such as Nancal Technology and Suzhou MedicalSystem Technology are seen as likely beneficiaries of the AI boom.
The rise of DeepSeek has also sparked discussions about the undervaluation of Chinese tech stocks compared to their US counterparts. Chinese stocks are trading at much lower price-to-earnings ratios, and analysts believe AI breakthroughs could help close this gap. While US export restrictions on Chinese tech could intensify, this may prompt further government support, driving faster growth in the AI sector.
However, not all investors are entirely convinced. Some remain cautious about the long-term profitability of AI-focused companies, with concerns that many are still far from turning a profit. Despite the optimism, the future of AI investments in China remains a delicate balancing act between technological innovation and market realities.
Greece is taking steps to address the impact of AI on the labour market by strengthening its Labour Market Needs Assessment Mechanism and implementing retraining programs. Speaking at a conference in Brussels, Labour Minister Niki Kerameus highlighted the rapid pace of AI development and its transformative effects on the workforce. She emphasised the need for protective measures to ensure workers benefit fully from AI’s potential.
Kerameus outlined two key initiatives Greece is focusing on. The first involves mapping current and future labour market needs, especially for new skills and specialities driven by AI. The Ministry of Labour is enhancing its market needs with a diagnostic mechanism to track real-time employee skills and labour market demands.
The second initiative involves retraining programs to help workers adapt to the evolving job landscape. Kerameus reassured that while AI will continue to change how people work, it should not be feared. Greece is prioritising skills programs, particularly in digital and green sectors, and aims to involve 10% of the active workforce in these initiatives by 2026.
The European Central Bank (ECB) is keen to accelerate the creation of the digital euro, particularly following US President Donald Trump’s endorsement of stablecoins linked to the US dollar. ECB board member Piero Cipollone highlighted that Trump’s backing could push European lawmakers to fast-track the legislation for the digital euro. The ECB envisions the digital euro as a central bank-backed online wallet, offering an alternative to major US payment providers like Visa and PayPal.
Despite the European Commission’s proposal for digital euro legislation in June 2023, progress has been slow due to some scepticism in the political and banking sectors. Cipollone remains optimistic that recent developments, including the rise of US stablecoins, will prompt greater urgency from EU lawmakers. He expressed hope that the digital euro legislation could be finalised by summer, allowing for negotiations with the Commission to be wrapped up before November.
Cipollone also raised concerns over the growing use of US stablecoins in Europe, warning that it could lead to a shift of deposits from European banks to the US. He acknowledged bankers’ fears that a digital euro could have a similar effect. Still, he reassured that the ECB would likely limit the amount of digital euros users can hold to prevent destabilisation. Several countries, including Nigeria and China, have already launched central bank digital currencies, while many others, such as Russia and Brazil, are in the testing phase.
Australia has banned Chinese AI startup DeepSeek from all government devices, citing security risks. The directive, issued by the Department of Home Affairs, requires all government entities to prevent the installation of DeepSeek’s applications and remove any existing instances from official systems. Home Affairs Minister Tony Burke stated that the immediate ban was necessary to safeguard Australia’s national security.
The move follows similar action taken by Italy and Taiwan, with other countries also reviewing potential risks posed by the AI firm. DeepSeek has drawn global attention for its cost-effective AI models, which have disrupted the industry by operating with lower hardware requirements than competitors. The rapid rise of the company has raised concerns over data security, particularly regarding its Chinese origins.
This is not the first time Australia has taken such action against a Chinese technology firm. Two years ago, the government imposed a nationwide ban on TikTok for similar security reasons. As scrutiny over AI intensifies, more governments may follow Australia’s lead in limiting DeepSeek’s reach within public sector networks.
