DeepSeek, a Chinese AI company, is shaking up the ΑΙ landscape by offering technology at a significantly lower cost compared to US competitors like OpenAI. Hemanth Mandapati, CEO of German startup Novo AI, recently switched to DeepSeek’s chatbot services, noting that the transition was quick and easy, and the cost savings were substantial. Mandapati reported that DeepSeek’s pricing was five times lower than what he was paying, with no noticeable difference in user performance. Analysts estimate that DeepSeek’s prices are 20 to 40 times cheaper than OpenAI’s, making it an attractive option for many startups.
The rise of DeepSeek is seen as a potential game-changer, particularly in Europe, where tech startups have struggled to compete with their US counterparts due to limited funding. Some believe DeepSeek’s low-cost offerings could democratise AI and help level the playing field with major tech companies. However, concerns about DeepSeek’s data practices, particularly regarding the potential copying of OpenAI’s data or censorship of Chinese content, have raised regulatory questions across Europe.
Despite scepticism around the actual cost of DeepSeek’s training and data usage, the company has garnered significant attention, especially after its model topped the productivity app rankings on the Apple App Store. Industry leaders argue that this shift in pricing could spark a broader movement in AI, with smaller companies gaining more access to advanced technologies without needing large budgets. This could foster innovation across the sector, although major corporations remain cautious due to security and integration concerns.
As the cost of AI continues to fall, competition is intensifying. For example, Microsoft recently made OpenAI’s reasoning model available for free to users of its Copilot platform. While price is becoming a dominant factor in AI adoption, industry experts suggest that trust and security certifications will still play a critical role for larger businesses when choosing their AI partners.
India is re-evaluating its cryptocurrency stance as global attitudes towards digital assets shift. Economic Affairs Secretary Ajay Seth stated that the government is reviewing its discussion paper on cryptocurrency, originally set for release in September 2024, to reflect changing international regulations. The move follows recent policy adjustments in multiple jurisdictions, prompting India to reassess its approach.
Despite strict regulations, including a 30% capital gains tax and a 1% transaction levy, crypto adoption in India continues to grow. Authorities maintain strong regulatory control, with the Financial Intelligence Unit taking action against non-compliant exchanges. Meanwhile, the Reserve Bank of India remains cautious, while market regulators propose a multi-agency approach to oversight, signalling a possible shift in policy.
India’s complex relationship with cryptocurrency dates back to 2013, when the RBI first issued warnings. In 2018, a banking ban crippled the industry, only to be overturned by the Supreme Court in 2020. While the government supports blockchain and central bank digital currencies, the fate of private cryptocurrencies remains uncertain. As global regulations evolve, India’s next steps could have far-reaching consequences for the crypto sector.
Australia’s government recently passed laws banning social media access for children under 16, targeting platforms like TikTok, Snapchat, Instagram, Facebook, and X. However, YouTube was granted an exemption, with the government arguing that it serves as a valuable educational tool and is not a ‘core social media application.’ That decision followed input from company executives and educational content creators, who argued that YouTube is essential for learning and information-sharing. While the government claims broad community support for the exemption, some experts believe this undermines the goal of protecting children from harmful online content.
Mental health and extremism experts have raised concerns that YouTube exposes young users to dangerous material, including violent, extremist, and addictive content. Despite being exempted from the ban, YouTube has been criticised for its algorithm, which researchers say can promote far-right ideologies, misogyny, and conspiracy theories to minors. Studies conducted by academics have shown that the platform delivers problematic content within minutes of search queries, including harmful videos on topics like sex, COVID-19, and European history.
To test these claims, Reuters created child accounts and found that searches led to content promoting extremism and hate speech. Although YouTube removed some flagged videos, others remain on the platform. YouTube stated that it is actively working to improve its content moderation systems and that it has removed content violating its policies. However, critics argue that the platform’s algorithm still allows harmful content to thrive, especially among younger users.
Blackstone has reaffirmed its confidence in its $80 billion data centre investments, stating that the rise of low-cost AI models from China‘s DeepSeek will not diminish the need for physical infrastructure. The asset manager stressed that data centres remain essential for training and running AI models, highlighting its partnerships with leading global companies as a sign of continued demand.
The emergence of DeepSeek has raised questions about whether more efficient AI models could reduce the need for large-scale data centres. However, Blackstone’s President and Chief Operating Officer Jonathan Gray believes lower costs could instead drive wider AI adoption, ultimately increasing demand for infrastructure. Analysts at Jefferies echoed this view, suggesting that hyperscalers are unlikely to slow their capital expenditure plans despite the industry’s rapid evolution.
AI investments by major tech firms remain strong, with Microsoft and Meta recently defending their heavy spending on AI to maintain a competitive edge. Blackstone’s shares were down nearly 4% in afternoon trading as investors closely monitored developments in AI infrastructure demand.
Voice cloning startup ElevenLabs has raised $180 million in a Series C funding round, tripling its valuation to $3.3 billion. Co-led by Andreessen Horowitz and Iconiq Growth, the funding round also saw participation from new investors like NEA and World Innovation Lab, alongside increased support from existing backers such as Sequoia Capital and Salesforce Ventures. The company aims to leverage the new funding to enhance its research into expressive voice AI, develop new products, and expand its tools for developers and businesses.
Founded in 2022 and headquartered in London, ElevenLabs specialises in AI-generated voices that replicate various languages, accents, and emotions. The startup’s technology has already found applications in publishing and gaming, with partnerships including The New Yorker and Cloud Imperium Games. In 2024, ElevenLabs broadened its product offerings to include speech generation, voice design, sound effects, and AI-driven dubbing across 32 languages.
CEO Mati Staniszewski, who co-founded the company with Piotr Dabkowski, described the funding as a significant step towards making voice interactions more natural and effortless. With a total of $281 million raised so far, ElevenLabs is poised to play a leading role in the rapidly growing generative AI sector.
Goldman Sachs has named Daniel Marcu, a former Amazon executive, as its global head of AI engineering and science. Marcu, who previously led Amazon’s AGI division, brings over 30 years of experience in academia, start-ups, and multinational corporations. He joins a team of technology experts at Goldman, including Marco Argenti, the bank’s Chief Information Officer and a fellow Amazon alumnus.
The Wall Street bank has been heavily investing in AI to modernise its technology infrastructure, boost productivity, and enhance its engineering capabilities. CEO David Solomon recently highlighted the use of AI in transforming operations during the company’s quarterly earnings call. As part of its AI initiatives, Goldman has introduced a generative AI assistant, GS AI, to approximately 10,000 employees, with plans to expand access to all knowledge workers by the end of the year.
In his new role, Marcu will oversee the development of AI platforms and products, working alongside Rahul Sharma, head of GS AI platform engineering, and Bing Xiang, head of AI research. Marcu’s extensive background, which includes two decades at the University of Southern California and the Information Sciences Institute, positions him to lead Goldman’s ambitious AI agenda as the bank continues to innovate in the competitive financial technology space.
The US administration under President Donald Trump is weighing stricter controls on Nvidia’s H20 chips, which were specifically designed for the Chinese market. Discussions, still in the early stages, build on previous export restrictions established by former President Joe Biden to limit the shipment of advanced AI chips to China. Nvidia’s H20 chips comply with existing US regulations but could face additional curbs due to concerns about China’s rapid progress in AI technology.
The potential restrictions come amid mounting unease about China‘s competitive edge in AI. Recent developments, such as the launch of DeepSeek‘s cost-efficient AI assistant, have intensified worries that China may be narrowing the gap with the US in AI development. RAND researcher Lennart Heim revealed that the possibility of further controls on AI chip exports had been discussed for over six months, originating during Biden’s tenure.
Nvidia has expressed its willingness to collaborate with the US government as the administration formulates its policy on AI exports. The company’s stock, already trading lower, saw additional losses following the report. Despite previous restrictions, Nvidia’s H20 chips have so far remained compliant with US regulations and available for shipment to China.
Microsoft has introduced Chinese startup DeepSeek’s R1 AI to its Azure cloud platform and GitHub tool for developers. The R1 model is now part of Microsoft’s extensive model catalogue, which includes over 1,800 AI models. The move reflects Microsoft’s efforts to diversify beyond OpenAI’s ChatGPT and integrate third-party AI technologies into its flagship Microsoft 365 Copilot product.
DeepSeek has recently gained attention for its cost-effective AI assistant, which surpassed ChatGPT in downloads on Apple’s App Store shortly after its launch. However, its use of servers in China for storing user data has raised privacy concerns in the United States. To address such issues, Microsoft announced plans to allow customers to run the R1 model locally on Copilot+ PCs, offering enhanced control over data-sharing.
The rise of DeepSeek has triggered a competitive response from AI industry leaders. OpenAI is investigating allegations that its data may have been misused by a group linked to DeepSeek, while releasing a tailored ChatGPT version for US government agencies. China’s Alibaba has also launched an updated version of its Qwen AI model, underscoring the intensifying race in the global AI sector.
Google has quietly launched its latest AI model, Gemini 2.0 Pro Experimental, through a changelog update for its Gemini chatbot app. The new model, now available to Gemini Advanced subscribers, promises improved accuracy and performance, particularly in coding and mathematics-related tasks.
The release comes as competition in the AI space intensifies, with Chinese startup DeepSeek gaining attention for its high-performing models. Unlike previous Gemini versions, Gemini 2.0 Pro Experimental does not support real-time data access and may exhibit unexpected behaviours as it remains in an early preview phase.
Alongside this update, Google has also rolled out its Gemini 2.0 Flash model to all users of the Gemini app. The company continues to iterate rapidly on its AI technology, positioning Gemini as a key player in the evolving AI market.
Intel has received $2.2 billion in federal grants as part of the US CHIPS and Science Act, supporting its efforts to boost domestic semiconductor production. The funding, awarded by the Department of Commerce, is part of a total $7.86 billion grant announced last November, aimed at expanding Intel’s manufacturing and advanced packaging operations across several states.
While an additional $5.66 billion is still to be disbursed, concerns have emerged over the future of the US CHIPS Act under the Trump administration. A proposed federal funding freeze, currently blocked by a judge, could impact the Commerce Department’s work on semiconductor subsidies. Despite this uncertainty, Intel’s leadership remains optimistic, citing ongoing discussions with the new administration.
Intel executives have expressed confidence in continued government support, highlighting shared goals of strengthening US semiconductor production. The company plans to use the funds to enhance its facilities in Arizona, New Mexico, Ohio, and Oregon, reinforcing America’s position in the global chip industry.
