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.
AMD is set to report strong fourth-quarter results, with revenue expected to rise over 22% to $7.53 billion. However, competition in the AI chip market is intensifying, as Nvidia maintains its dominance and major tech firms such as Microsoft, Amazon, and Meta develop custom silicon. Analysts warn that the shift towards in-house AI processors could limit AMD’s growth in the long term.
The rise of Chinese AI startup DeepSeek has also raised concerns, as its models reportedly rival Western alternatives at a lower cost. Demand for AI chips remains high, but supply constraints continue to pose challenges. While contract manufacturer TSMC is working to expand capacity, Nvidia’s ramp-up of its latest Blackwell AI chips may restrict AMD’s access to manufacturing resources.
Despite these pressures, AMD’s AI chip sales could reach $10 billion in 2024, double the company’s initial forecast. The data centre chip segment is expected to see significant growth, contributing over half of total revenue. Meanwhile, AMD’s personal computer unit is expanding, with sales set to rise nearly 33% as the company gains market share from Intel.
German semiconductor materials supplier Siltronic has forecast stagnant sales for 2025 after a 7% decline last year, citing high inventory levels and weak demand in key sectors. The company’s shares fell more than 15% following the announcement, continuing a downward trend from 2024. While AI is driving some growth, it has not yet offset lower demand for automotive, PC, and memory chips.
CEO Michael Heckmeier stated that wafer demand is unlikely to recover soon, with the first half of 2025 expected to be weaker than late 2024. Siltronic plans to halt production of smaller silicon wafers at its Burghausen facility by the end of July, which will slightly impact sales but have little effect on earnings. The company also acknowledged that its mid-term targets set for 2028 will not be met, though it did not provide a new timeline.
Analysts reacted negatively to the outlook, with Stifel’s Juergen Wagner warning of possible downward revisions to 2025 earnings forecasts. Last week, STMicroelectronics also reported continued weakness in the automotive and industrial chip markets. Siltronic’s preliminary 2024 revenue stood at €1.41 billion, slightly above expectations, but the company has cut its dividend. A more detailed financial outlook will be presented in its annual report on 6 March.
Salesforce is cutting more than 1,000 jobs while simultaneously hiring employees to support its growing AI business, according to a Bloomberg report. Affected workers will have the opportunity to apply for other positions within the company, but it remains unclear which divisions will see the largest reductions. Salesforce has not yet commented on the job cuts.
The customer relationship management software giant had over 72,000 employees as of early 2024. CEO Marc Benioff previously announced that Salesforce had secured more than 1,000 paid deals for its AI-driven platform, Agentforce. The latest layoffs follow previous reductions, including 700 jobs cut in early 2024 and another 300 later in the year.
The job cuts highlight the company’s shift towards artificial intelligence, as it seeks to capitalise on growing demand for AI-powered tools. Despite the reductions, Salesforce continues to invest in AI products and expand its workforce in areas aligned with its future growth strategy.
President Donald Trump has temporarily halted a 25% tariff on Mexican imports following an agreement with President Claudia Sheinbaum. The deal, which grants a one-month pause, comes after Mexico pledged to deploy 10,000 National Guard troops to curb drug trafficking and illegal migration at the US border.
The agreement follows Trump’s decision to impose tariffs on Mexico, Canada, and China as part of a broader strategy to pressure foreign governments on trade and security. While the pause provides temporary relief, negotiations will continue, led by senior US officials including Secretary of State Marco Rubio. Trump remains optimistic that a long-term solution can be reached.
Financial markets responded positively to the news, with US stocks recovering from early losses and the Mexican peso stabilising. Bitcoin, which had slumped to $91,178, rebounded to nearly $98,000 as investors adjusted to the easing tensions. However, concerns remain over impending tariffs on Canada and China, which could still trigger economic uncertainty.
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.
Apple has criticised the availability of a pornography app on iPhones in the European Union, blaming the Digital Markets Act (DMA) for undermining consumer trust. The regulation, which took effect in 2022, forced Apple to permit alternative app stores, leading to the distribution of an adult content app called Hot Tub via AltStore.
Apple expressed concern about the safety risks posed by such apps, particularly for younger users. AltStore, which received financial backing from Epic Games, stated that Apple’s notarisation process approved Hot Tub. Apple, however, dismissed this claim, insisting that EU rules compelled it to allow the app but that it would never have accepted it in its own store.
Epic Games’ CEO defended laws like the DMA, arguing that Apple had previously abused its control over competing apps. Despite its support for AltStore’s expansion, Epic Games clarified that its own app store in the EU does not carry the Hot Tub app and has never hosted pornographic content.
Alphabet is set to face investor scrutiny over its heavy spending on AI as it prepares to report earnings. Slower revenue growth in advertising and cloud services has raised concerns, especially as competition in AI intensifies. Chinese startup DeepSeek’s launch of low-cost AI models has fuelled worries about an industry price war. Alphabet’s capital expenditure, estimated at $50 billion for last year, is expected to rise further in 2025 to support AI-driven search features and cloud expansion.
Google Cloud’s growth is forecast to slow in the fourth quarter despite high expectations. Analysts suggest that while heavy investment continues, efficiency gains have helped maintain profits. The company’s search and advertising business remains strong, with an expected 11.2% increase in revenue, though this marks a slight slowdown from the previous quarter. Competition from Amazon and TikTok continues to challenge Alphabet’s dominance in search advertising.
Political advertising linked to the US presidential election may have boosted Google’s revenue, following a similar trend at Meta. However, Meta’s cautious outlook for the first quarter has raised concerns about broader ad market trends amid economic uncertainty. Alphabet’s shares have climbed 7% this year after a strong rally in 2023, largely driven by confidence in its AI strategy.
Investors will closely watch whether Alphabet faces the same cloud business challenges as Microsoft, whose Azure growth slowed due to a shift in AI priorities. Google Cloud revenue is expected to rise by 32% in the fourth quarter, slightly down from the 35% growth seen previously but still outpacing Microsoft and Amazon. Maintaining momentum in AI while balancing cloud growth remains a key challenge for Alphabet.
Google and Epic Games presented arguments before a US appeals court as Google attempted to overturn a jury verdict and a judge’s order requiring changes to its app store. Google’s lawyer argued that the trial judge made errors that unfairly benefited Epic, which had accused the company of monopolising access to apps on Android devices. A San Francisco jury previously ruled that Google had stifled competition.
The judge ordered Google to allow users to download rival app stores within its Play Store and to make its app catalogue available to competitors. Google’s appeal has put the ruling on hold, with its lawyer contending that the company faces strong competition from Apple’s App Store and was unfairly restricted from making that argument. Epic’s lawyer rejected Google’s claims, insisting that its dominance had harmed competition for years.
A judge on the appeals panel challenged Google’s position, highlighting key differences between Apple’s and Android’s business models. Google also argued that Epic’s case should not have gone before a jury, as it did not seek damages. Epic countered that the Play Store changes were necessary and disputed Google’s concerns about privacy and security.
The US Justice Department, Federal Trade Commission, and Microsoft have backed Epic in the case. A decision from the appeals court is expected later in the year, with the possibility of further escalation to the US Supreme Court.
