The Vatican has urged governments to monitor AI closely, warning of its potential to spread misinformation and destabilise society. A new document, Antica et nova (Ancient and New), written by two Vatican departments and approved by Pope Francis, highlights the ethical concerns surrounding AI, particularly in its ability to fuel political polarisation and social unrest through fake media.
Pope Francis, who has focused on AI ethics in recent years, emphasised its societal risks in messages to global leaders, including at the World Economic Forum in Davos and the G7 summit in Italy. The pope has repeatedly warned against letting algorithms dictate human destiny, calling for AI to be ethically guided to serve humanity.
The document examines AI’s influence across sectors like labour, healthcare, and education, noting the moral responsibility tied to its use. It stresses that careful regulation is essential to prevent the misuse of AI technologies, as they hold both the promise of progress and the potential for harm.
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.
Liang Wenfeng, the 39-year-old founder of DeepSeek, has rapidly become a central figure in China’s AI ambitions. Previously maintaining a low profile, he gained national attention after being invited to a closed-door symposium with Premier Li Qiang. His company has made waves by developing an open-source AI model that rivals the capabilities of industry leaders while operating at a fraction of the cost.
Unlike many Chinese tech firms that focus on commercial applications, DeepSeek has prioritised fundamental AI research. Liang argues that China must shift from imitation to original innovation to bridge the gap with the United States. His decision to open-source DeepSeek’s models aligns with his belief that collaboration and transparency will accelerate AI development, much like Silicon Valley’s early approach.
Liang’s background in finance and engineering has shaped his strategic vision. After co-founding a successful quantitative hedge fund, he pivoted to AI, founding DeepSeek in 2023. His leadership has attracted top talent from China’s elite universities, drawn by the challenge of developing artificial general intelligence. As DeepSeek gains global recognition, it signals China’s intent to play a leading role in the future of AI.
Chinese startup DeepSeek has claimed to build an advanced AI model at a fraction of the cost and time required by US tech giants, raising questions about the industry’s spending. The company stated it developed its V3 AI model in just two months for under $6 million, using Nvidia’s less-advanced H800 chips. An app powered by this model became the most downloaded app on the US iPhone store on Monday.
Founded in 2023, DeepSeek claims its AI models rival or outperform top competitors despite significantly lower costs, challenging the notion that scaling AI demands massive resources. This comes as US tech firms, part of the “Magnificent Seven,” have collectively added $10 trillion in market value since the AI boom sparked by ChatGPT in late 2022.
Industry analysts, however, remain sceptical of DeepSeek’s claims. Bernstein‘s Stacy Rasgon questioned whether the startup’s advancements could outpace those from established global AI labs, suggesting the company’s narrative might be overstated. The developments have drawn attention as investors scrutinise AI spending ahead of earnings reports from key industry players.
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.
SoftBank is set to invest $500 million in SkildAI, a fast-growing AI robotics startup, at a valuation of $4 billion. The company, founded just two years ago, specialises in building AI models that can be adapted for different robotic applications. Previous investors include Jeff Bezos, Lightspeed Venture Partners, and Coatue Management, who contributed to a $300 million round last July.
The investment comes amid surging interest in AI-powered robotics, with major backers like Bezos ramping up funding in the sector. Startups such as Physical Intelligence and Figure AI have also secured hundreds of millions in recent months to develop advanced robotic “brains” and humanoid robots.
SkildAI’s latest funding highlights the growing competition in AI-driven automation, with investors betting on smarter, more adaptable robots. As demand for robotics expands across industries, firms like SkildAI are positioning themselves at the forefront of this technological revolution.
Figure AI has announced the creation of the Centre for the Advancement of Humanoid Safety, a new initiative aimed at ensuring humanoid robots can operate safely in workplaces. Led by former Amazon Robotics safety engineer Rob Gruendel, the centre will focus on testing AI-controlled robots for stability, human detection, and navigation to minimise accidents.
The rise of humanoid robots in warehouses and factories has sparked concerns about their potential risks. Unlike traditional industrial robots, which were confined to cages, these machines move freely among workers, raising safety questions. Existing solutions, such as Amazon’s wearable safety vest and Veo Robotics’ vision-based systems, have helped, but regulation remains largely absent.
Figure AI plans to release regular safety reports detailing its progress, testing methods, and solutions for potential hazards. As companies push to integrate humanoid robots into daily operations, and eventually, into homes, the need for clear safety standards is becoming increasingly urgent.
Hugging Face has introduced Inference Providers, a new feature that allows developers to run AI models on third-party cloud services. Partnering with companies like SambaNova, Fal, Replicate, and Together AI, the platform now offers users the flexibility to deploy models on different infrastructures directly from their project pages.
Previously, Hugging Face primarily focused on its in-house AI hosting solutions, but the company is shifting towards a more collaborative approach. By integrating with external serverless providers, developers can now scale their models without managing hardware, making deployment easier and more cost-efficient. Users will pay standard provider rates, and Hugging Face Pro subscribers will receive additional free credits.
Since its founding in 2016, Hugging Face has grown into a leading AI model hub, backed by major investors like Google, Amazon, and Nvidia. With its latest move, the company continues to expand its ecosystem, making AI more accessible for developers worldwide.
Italy’s data protection authority, the Garante, has ordered the Chinese AI startup DeepSeek to block its chatbot in the country, citing insufficient responses to queries about its privacy policy. The watchdog had requested detailed information on data collection practices, sources, purposes, and storage, particularly concerning whether user data is stored in China. DeepSeek’s failure to adequately address these concerns prompted the Garante to impose an immediate ban and launch an investigation.
DeepSeek had removed its AI assistant from Italian app stores earlier this week but claimed it was not subject to local regulation. Agostino Ghiglia, a member of the Garante’s board, stated that the company’s stance worsened its position. Italian users who had already downloaded the app still reported access to the chatbot, while the web version remains operational. The Garante emphasised that European citizens must have clear consent and data protection guarantees, especially regarding servers located in China.
The Garante’s action highlights growing scrutiny of AI platforms in Europe, with data regulators in Ireland and France also questioning DeepSeek’s privacy practices. Italy‘s proactive approach has drawn attention; the country temporarily banned ChatGPT in 2023 over similar concerns. DeepSeek has positioned its AI as a cost-effective alternative to US models, surpassing ChatGPT as the top-rated app on Apple’s US App Store. However, its refusal to cooperate with European regulators may jeopardise its expansion.
Microsoft’s upcoming quarterly forecast will reveal whether its significant investments in AI, including its partnership with OpenAI, drive growth in its key Azure cloud business. Despite earlier optimism, Azure’s growth has slowed for two consecutive quarters, and investors are anxious about Microsoft’s ability to monetise AI. The company has committed about $80 billion in capital spending this year, but doubts linger over the effectiveness of its strategy, especially after a sharp drop in stock price following the launch of a competitive AI model by Chinese startup DeepSeek.
Azure, which contributes around a third of Microsoft’s revenue, is expected to show 31.8% growth in the second quarter, a slight slowdown from the previous quarter. Microsoft’s relationship with OpenAI remains a key growth driver, with Azure set to handle much of OpenAI’s cloud traffic. However, investor sentiment has soured, with growing concerns about AI monetisation, margins, and capital expenditure. Microsoft also faces the impact of a stronger dollar, which could hurt its international earnings.
In addition to Azure, Microsoft is banking on the success of its Microsoft 365 Copilot AI assistant, but adoption has been slower than anticipated. To stimulate demand, the company has adjusted its pricing, adding AI features to lower-tier Microsoft 365 plans. While the Copilot’s potential remains high, analysts project a modest penetration rate of 10%, suggesting it could add significant revenue in the coming years. Despite these challenges, Microsoft’s productivity division, which includes 365 Copilot and LinkedIn, is expected to see continued growth.
Overall, Microsoft is forecasted to report slower growth for the second quarter, with revenue expected to rise by 10.9% compared to 16% in the first quarter. Net profit is also projected to increase at a slower pace, raising questions about whether the company’s AI investments will pay off as anticipated.
