OpenAI has raised concerns about Chinese companies attempting to access US AI technologies to enhance their models. In a statement released on Tuesday, OpenAI highlighted the critical need to protect its intellectual property and the most advanced capabilities in its AI systems. The company emphasised that it has put in place countermeasures to safeguard its innovations and is working closely with the US government to protect the technology from being exploited by competitors and adversaries.
These comments come in response to the White House’s ongoing review of national security risks posed by Chinese AI companies, particularly the rapidly growing startup DeepSeek. The US government has been looking into potential threats as China increasingly seeks to advance its AI capabilities. David Sacks, the White House’s AI and crypto czar, explained that Chinese firms are using an AI technique called “distillation,” which allows them to extract knowledge from leading US AI models, further raising concerns about intellectual property theft.
OpenAI’s statement underscores the challenges and security risks that arise as AI becomes a critical technology with broad applications, from national defence to economic competitiveness. The company’s efforts to protect its proprietary AI models are part of a broader push by the US to ensure that its technological edge is not compromised by foreign competitors who might attempt to bypass intellectual property protections. The situation highlights the increasing geopolitical tension surrounding AI development, especially as China continues to make significant strides in the field.
Metaplanet, a Tokyo-listed company, has unveiled a bold corporate treasury plan aiming to accumulate 10,000 Bitcoins by the end of 2025 and 21,000 by 2026. The initiative is designed to position the company as one of the world’s largest corporate holders of Bitcoin, with over $180 million worth of assets already in place.
The strategy dubbed the ’21 Million Plan’, involves issuing 21 million shares through moving strike warrants to raise nearly $740 million. This capital raise is set to be one of Asia’s largest bitcoin-focused equity raises. The plan aims to protect shareholder value by setting an exercise price at 100% of the previous day’s closing price, thus avoiding dilution.
Metaplanet has achieved impressive BTC yields, including a 309.82% return for Q4 2024, reinforcing the success of its strategy. The company’s Director of Bitcoin Strategy, Dylan LeClair, emphasised that the firm measures success by bitcoin yield, not fiat currencies. The company’s ultimate goal is to maximise Bitcoin per share for its shareholders, positioning Bitcoin not only as an asset but as an exit strategy.
Microsoft’s ambitious push into artificial intelligence is facing growing investor doubts as the company prepares to release its latest earnings report. Despite heavy investment in OpenAI and plans to spend $80 billion on AI infrastructure this fiscal year, its Azure cloud business has shown slowing growth for two consecutive quarters. Analysts now question whether AI-driven demand will be enough to reignite momentum.
The tech giant’s stock has underperformed many of its peers, with further pressure mounting after Chinese startup DeepSeek introduced a cost-effective AI model, sparking concerns about US dominance in the sector. Meanwhile, Microsoft’s AI-powered Copilot assistant has struggled to gain widespread traction beyond pilot programmes, forcing the company to adjust pricing strategies in an attempt to drive adoption.
While Microsoft still handles most of OpenAI’s cloud traffic, competition in AI infrastructure is intensifying. With investor sentiment turning cautious, the upcoming earnings report will be a key test of whether AI investments can translate into sustainable revenue growth.
Global technology stocks experienced a sharp decline on Tuesday, with a second day of losses triggered by the emergence of a low-cost Chinese AI model. This new AI assistant, launched by China’s DeepSeek, has raised doubts about the dominance of established AI leaders like Nvidia and OpenAI. Nvidia’s shares plummeted 17% on Monday, erasing $593 billion from its market value. Other major tech companies such as Broadcom, Microsoft, and Alphabet also saw significant declines, fueling broader market concerns.
The unexpected launch of DeepSeek’s AI, which claims to use fewer data and lower costs than existing models, has disrupted the market, causing scepticism among investors. While OpenAI CEO Sam Altman praised the model, calling it ‘impressive,’ the sudden rise of a competitor from China has surprised many and highlighted the rapid pace of advancements in AI technology. This development has led to a global sell-off in tech stocks, with significant drops in companies across the US, Europe, and Japan.
The sell-off has raised concerns about the high valuations of AI and tech stocks, which have seen inflated prices due to the AI boom. Nvidia, for example, had been trading at nearly 60 times its earnings, far above the broader market’s 22 times. The market downturn underscores the risks tied to the heavy concentration of tech stocks in investor portfolios, with many fearing that the industry’s rapid expansion has created an unsustainable bubble.
This market shakeup also reflects the broader issue of leverage in the system, with investors increasingly borrowing to buy high-priced tech stocks. As a result, the unwinding of these positions, combined with algorithmic trading, has intensified the sell-off. With key earnings reports from companies like Apple and Microsoft expected this week, investors are closely watching how tech executives address concerns about capital spending and the future of AI investments.
Taiwan described its semiconductor business with the US as a mutually beneficial partnership in response to tariff threats by Donald Trump. The economy ministry highlighted the complementary relationship between US-designed and Taiwan-produced chips, which has bolstered industries in both nations.
Trump proposed tariffs on imports of chips, pharmaceuticals, and steel, aiming to bring production to US soil. Taiwan stressed its commitment to close cooperation with Washington to address global challenges while supporting shared national interests. The presidential office reinforced this sentiment, emphasising trust and collaboration in high-tech fields.
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, remains central to the global tech supply chain. Despite tariff concerns, TSMC’s ongoing $65 billion investment in US facilities demonstrates a commitment to bilateral cooperation. Taiwan’s economy minister noted minimal expected impact from tariffs due to the island’s technological leadership.
Taiwan’s trade surplus with the US surged 83% last year, fuelled by semiconductor demand. While Taiwan remains cautious about evolving US trade policies, it remains optimistic about maintaining robust economic ties.
The launch of DeepSeek’s cost-efficient AI model has sent shockwaves through Australian tech markets, with shares in AI-related companies experiencing steep declines. Investors are increasingly worried that the Chinese startup’s affordable technology could undermine the dominance of established players in the sector.
Among the biggest losers were AI software firm Appen, which saw its stock drop by 3.3%, and chipmaker Brainchip, which lost 10.3%. The technology sub-index fell by 1%, with major data centre operators also taking a hit. Analysts expressed concerns that DeepSeek’s success might reduce demand for AI infrastructure, which had driven heavy investments in Australian data centres.
DeepSeek’s AI assistant, launched last week, has already outpaced US competitor ChatGPT in downloads on Apple’s App Store. This rapid rise has sent ripples through the global tech sector, contributing to Nvidia’s record $592.7 billion market loss.
As Australian investors reassess their exposure to AI stocks, market strategists predict a shift towards safer sectors such as healthcare and consumer staples, after DeepSeek’s disruptive impact.
Retail investors made a record purchase of Nvidia shares on Monday, buying a net $562.2 million worth of stock, following a sharp 17% drop in its market value. The decline came after concerns arose over a low-cost AI model from Chinese startup DeepSeek, which contributed to Nvidia losing $593 billion in market value. According to Vanda Research, this marked the largest retail investment in Nvidia since data tracking began in 2014.
Nvidia has seen steady retail investment over the past few years, with approximately $7.3 billion in shares purchased last quarter. However, this was nearly half the amount recorded in the peak quarter of September 2024.
While global tech stocks showed some recovery on Tuesday, the sector remains under pressure as investors grapple with concerns over the high valuations and dominance of AI leaders like Nvidia, amid rising competition from new players like DeepSeek.
SAP anticipates growing demand for its AI services as energy-efficient models become more accessible. The company’s CEO, Christian Klein, stated that advancements like China’s DeepSeek model signal a shift toward scalable AI infrastructure, which is crucial for running general AI systems effectively.
Klein emphasised the increasing competition in the AI landscape, suggesting that the market will feature multiple large language models rather than dominance by a single player. He noted these developments as positive for SAP’s position in the industry.
Despite recent volatility in technology stocks triggered by concerns over the profitability of AI investments, SAP remains optimistic. The potential of cheaper and more efficient AI systems could reinvigorate confidence in the sector, benefiting companies with robust AI offerings.
Google has appealed to the EU’s top court to overturn a record 4.3-billion-euro antitrust fine imposed seven years ago, arguing that the penalty punished the company for its innovation. The fine was originally levied by the European Commission, which accused Google of using its Android operating system to suppress competition by forcing manufacturers to pre-install Google Search, Chrome, and the Google Play store on devices. While the fine was later reduced to 4.1 billion euros by a lower court, Google maintains that its actions fostered competition, not hindered it.
During Tuesday’s hearing, Google lawyer Alfonso Lamadrid stated that the Commission failed to meet its legal obligations and relied on errors in law. Lamadrid defended Google’s agreements with phone manufacturers, insisting they were not anti-competitive, but rather beneficial to the market. The case centres on whether the European Commission acted appropriately in its investigation and decision to reshape markets through such penalties.
The judges of the Luxembourg-based Court of Justice of the European Union will make a final ruling in the coming months, with no further opportunity for appeal. In addition to this case, Google remains under scrutiny by EU regulators for its advertising business, with another major decision expected later this year.
US President Donald Trump revealed on Monday that Microsoft is in discussions to acquire TikTok, expressing a desire for a bidding war over the popular app. While Microsoft declined to comment, TikTok and its Chinese parent company, ByteDance, did not immediately respond to media inquiries. TikTok, which has around 170 million US users, faced a brief shutdown just before a law that could force ByteDance to sell the app or face a ban took effect in January.
Trump mentioned last week that he was in talks with various parties regarding TikTok’s future, promising a decision within 30 days. The president also indicated that he would be open to Elon Musk acquiring TikTok, although the Tesla CEO has yet to comment. In addition to Microsoft, AI startup Perplexity AI proposed merging with TikTok, suggesting a potential deal where the US government could hold up to half of the new company.
This marks the second time Microsoft has been involved in potential talks to acquire TikTok. Back in 2020, Microsoft emerged as a frontrunner in buying the app, but those discussions eventually collapsed. Microsoft CEO Satya Nadella later described the situation as “the strangest thing” he had ever worked on, noting how the deal abruptly disappeared after the Trump administration pushed for a divestment.
