China

UAE Energy Minister downplays impact of DeepSeek on nuclear demand

The United Arab Emirates‘ Energy Minister, Suhail Mohamed Al Mazrouei, stated on Wednesday that he does not believe the Chinese AI app DeepSeek will impact the demand for nuclear energy. DeepSeek, a Chinese startup, has developed AI models that deliver comparable results with much lower computing power, resulting in significant energy savings.

However, Al Mazrouei expressed confidence that this advancement will not reduce the growing need for nuclear energy in the UAE. He highlighted that nuclear power remains a critical component of the country’s strategy for diversifying energy sources and ensuring energy security in the long term.

The UAE has been investing heavily in nuclear energy as part of its efforts to reduce dependence on fossil fuels and to meet its climate goals. The Barakah nuclear power plant, which is set to become one of the largest nuclear power stations in the Middle East, is a key part of this initiative.

Al Mazrouei also noted that nuclear energy offers a reliable and scalable solution that can complement renewable energy sources, especially as the UAE looks to meet rising energy demands. While AI advancements like DeepSeek may contribute to energy efficiency, the UAE remains focused on expanding its nuclear energy infrastructure to support its future growth and sustainability objectives.

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China tops global data breach rankings in 2024, experts warn

In 2024, three countries entered the top 10 for the highest number of breached accounts. China topped the list, rising from 12th place in 2023, Germany moved up to fifth from 16th, and Poland secured the tenth spot, up from 17th, according to Surfshark, a cybersecurity firm. Despite these changes, Russia, the US, France, India, Brazil, Italy, and the UK remained in the top 10 for both years.

Brazil and Italy saw significant increases, climbing two spots each in 2024. Brazil experienced a 24-fold rise in breached accounts, while Italy saw a 21-fold surge. Russia and France maintained their positions in second and fourth place, though both saw dramatic increases, with Russia’s breaches rising 11 times and France’s nearly 14 times.

In 2024, regional data breach statistics show that Europe had the highest share, accounting for 29% of all breached accounts, totalling over 1.6 billion, with Russia leading the region. Asia followed as the second-most affected region, contributing 23% to the global total, or nearly 1.3 billion breached accounts, with China at the forefront. North America ranked third, representing 14% of all breaches, or about 770 million compromised accounts, primarily from the US.

The US, India, and the UK dropped in rankings in 2024, but the number of breached accounts in these regions still rose. The US saw a 39% increase, ranking third globally, while India recorded five times more breaches than in 2023, and the UK experienced a 14-fold surge. China had the most dramatic increase, with breached accounts jumping nearly 340 times compared to the previous year.

In 2024, Australian users also faced a cyber attack every second, marking a twelvefold increase compared to the previous year. This contributed to a global rise in data breaches, with 5.6 billion accounts compromised worldwide, averaging 176 breaches per second. This global figure represents an eightfold increase from 2023, when 23 accounts were breached per second.

Baidu’s Robin Li highlights ongoing need for cloud infrastructure investment

Baidu CEO Robin Li stated on Tuesday that investment in data centres and cloud infrastructure remains crucial despite the challenge posed by Chinese AI startup DeepSeek. Speaking at the World Government Summit in Dubai, Li emphasised that smarter AI models require increased computing power, or “compute,” to function effectively. His comments come as DeepSeek has gained attention for creating language models that perform similarly to OpenAI’s GPT while using much less computing power, prompting debate over the need for large-scale AI infrastructure.

Baidu, a key player in China’s AI development, was quick to launch its own AI products after the release of OpenAI’s ChatGPT in late 2022. However, its own language model, Ernie, has seen limited public adoption, despite claims that it rivals GPT-4 in capability. Li, who previously argued that no OpenAI-like company would emerge from China, admitted at the summit that innovation in AI is unpredictable, as shown by DeepSeek’s rapid rise.

In a shift from his earlier stance on AI development, Li acknowledged that open-source models could play a significant role in accelerating AI adoption. While he had previously advocated for closed-source approaches, he now recognises that allowing greater access could foster wider experimentation and faster technological spread. This marks a notable change in Baidu’s approach to the evolving AI landscape.

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China’s growing space influence in Africa

A state-of-the-art space lab on the outskirts of Cairo, touted as Africa’s first satellite production facility, has been built with substantial Chinese involvement. While the lab was designed to assemble homegrown Egyptian satellites, much of the technology, equipment, and expertise comes from China. The first satellite produced at the facility was largely assembled in China and launched from there in December 2023. The plant is part of a broader Chinese effort to strengthen its space presence across Africa, as Beijing seeks to enhance its global surveillance capabilities and assert itself as a dominant space power.

Egypt’s satellite facility is just one element of China’s growing influence in Africa’s space sector. Over the past two years, China has gifted Egypt with various space technologies, including advanced telescopes and Earth observation satellites. However, these technologies come with strings attached, as China maintains a long-term presence in the facilities it builds and gains access to data collected by its satellites. This partnership is a part of China’s broader strategy to establish space alliances in Africa, aiming to secure surveillance data and boost its military capabilities.

China’s efforts to expand its space infrastructure on the continent are drawing attention from global powers. While Egypt and other African nations benefit from Chinese investments, there are concerns about Beijing’s increasing influence and its ability to collect sensitive data through these space projects. The US has voiced concerns over the potential military applications of China’s space technology in Africa, as Beijing builds ground stations and enhances its surveillance capabilities. Despite these concerns, African countries, including Egypt, remain neutral, viewing space collaborations as opportunities for scientific and technological advancement.

The US has struggled to match China’s strategic approach in Africa, with many African nations now seeking technology partnerships that suit their immediate needs. This shift underscores the growing importance of space technology in geopolitics, as countries like Egypt, Ethiopia, and Senegal enter into agreements with China that could shape the future of space exploration and military capabilities. As the global space race intensifies, China’s growing influence in Africa may continue to challenge the US and other Western powers in their efforts to maintain dominance in space exploration.

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EU seeks private investment for AI gigafactories

The European Union is looking to the private sector to help fund large-scale AI computing infrastructure, known as ‘AI Gigafactories,’ to support the development of advanced AI models. Speaking at the AI Action Summit in Paris, EU President Ursula von der Leyen emphasised the need for powerful computing resources to enable European startups to compete globally.

To accelerate AI adoption, the EU has pledged €50 billion in funding, adding to a €150 billion commitment from private sector companies under the EU AI Champions initiative. The goal is to mobilise €200 billion in total investment, making it the largest public-private partnership for AI development in the world.

With the US and China heavily investing in AI infrastructure, Europe is under pressure to keep pace. Von der Leyen argued that Europe’s collaborative approach to AI, focused on shared computing resources and federated data, could provide a competitive advantage. She stressed that AI Gigafactories would be accessible to researchers, startups, and industries, ensuring that Europe remains a key player in the AI race.

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JD Vance takes on Europe’s AI regulations in Paris

US Vice President JD Vance is set to speak at the Paris AI summit on Tuesday, where he is expected to address Europe’s regulation of artificial intelligence and the moderation of content on major tech platforms. As AI continues to grow, the global discussion has shifted from safety concerns to intense geopolitical competition, with nations vying to lead the technology’s development. On the first day of the summit, French President Emmanuel Macron emphasised the need for Europe to reduce regulatory barriers to foster AI growth, in contrast to the regulatory divergence between the US, China, and Europe.

Vance, a vocal critic of content moderation on tech platforms, has voiced concerns over Europe’s approach, particularly in relation to Elon Musk’s platform X. Ahead of his trip, he stressed that free speech should be a priority for the US under President Trump, suggesting that European content moderation could harm these values. While Vance’s main focus in Paris is expected to be Russia’s invasion of Ukraine, he will lead the American delegation in discussions with nearly 100 countries, including China and India, to navigate competing national interests in the AI sector.

Macron and European Commission President Ursula von der Leyen are also expected to present a new AI strategy, aimed at simplifying regulations and accelerating Europe’s progress. At the summit, Macron highlighted the region’s shift to carbon-free nuclear energy to meet the growing energy demands of AI. German Chancellor Olaf Scholz called on European companies to unite in strengthening AI efforts within the continent. Meanwhile, OpenAI CEO Sam Altman is scheduled to speak, following a significant bid from a consortium led by Musk to purchase OpenAI.

The summit also anticipates discussions on a draft statement proposing an inclusive, human rights-based approach to AI, with an emphasis on avoiding market concentration and ensuring sustainability for both people and the planet. However, it remains unclear whether nations will support this approach as they align their strategies.

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South Korea accuses DeepSeek of excessive data collection

South Korea’s National Intelligence Service (NIS) has raised concerns about the Chinese AI app DeepSeek, accusing it of excessively collecting personal data and using it for training purposes. The agency warned government bodies last week to take security measures, highlighting that unlike other AI services, DeepSeek collects sensitive data such as keyboard input patterns and transfers it to Chinese servers. Some South Korean government ministries have already blocked access to the app due to these security concerns.

The NIS also pointed out that DeepSeek grants advertisers unrestricted access to user data and stores South Korean users’ data in China, where it could be accessed by the Chinese government under local laws. The agency also noted discrepancies in the app’s responses to sensitive questions, such as the origin of kimchi, which DeepSeek claimed was Chinese when asked in Chinese, but Korean when asked in Korean.

DeepSeek has also been accused of censoring political topics, such as the 1989 Tiananmen Square crackdown, prompting the app to suggest changing the subject. In response to these concerns, China’s foreign ministry stated that the country values data privacy and security and complies with relevant laws, denying that it pressures companies to violate privacy. DeepSeek has not yet commented on the allegations.

EU AI regulations making it harder for global firms, Ezzat says

Aiman Ezzat, CEO of Capgemini, has criticised the European Union’s AI regulations, claiming they are overly restrictive and hinder the ability of global companies to deploy AI technology in the region. His comments come ahead of the AI Action summit in Paris and reflect increasing frustration from private sector players with EU laws. Ezzat highlighted the complexity of navigating different regulations across countries, especially in the absence of global AI standards, and argued that the EU’s AI Act hailed as the most comprehensive worldwide, could stifle innovation.

As one of Europe’s largest IT services firms, Capgemini works with major players like Microsoft, Google Cloud, and Amazon Web Services. The company is concerned about the implementation of AI regulations in various countries and how they affect business operations. Ezzat is hopeful that the AI summit will provide an opportunity for regulators and industry leaders to align on AI policies moving forward.

Despite the regulatory challenges, Ezzat spoke positively about DeepSeek, a Chinese AI firm gaining traction by offering cost-effective, open-source models that compete with US tech giants. However, he pointed out that while DeepSeek shares its models, it is not entirely open source, as there is limited access to the data used for training the models. Capgemini is in the early stages of exploring the use of DeepSeek’s technology with clients.

As concerns about AI’s impact on privacy grow, European data protection authorities have begun investigating AI companies, including DeepSeek, to ensure compliance with privacy laws. Ezzat’s comments underscore the ongoing tension between innovation and regulation in the rapidly evolving AI landscape.

Taiwanese chipmakers struggle against rising Chinese competitors

Powerchip Technology, a Taiwanese IT company, is facing intense competition from Chinese foundries like Nexchip, which has rapidly gained market share in the legacy chip sector. This shift, driven by steep discounts and aggressive capacity expansion, has been accelerated by China’s localisation efforts, forcing Powerchip to retreat from the once-profitable business of making integrated circuits for Chinese flat panels. The increasing dominance of Chinese companies in the $56.3 billion legacy chip market is causing concern in Taiwan, with companies like Powerchip and UMC now focusing on more advanced technologies to stay competitive.

Chinese foundries, supported by strong government funding and low margins, have significantly increased their production capacity, undercutting Taiwanese rivals on price. By 2027, China is projected to surpass Taiwan’s global mature node manufacturing capacity. Taiwanese executives are exploring specialisation and diversification, shifting focus from legacy chips to more advanced processes like 3D stacking, which integrates logic and DRAM memory to improve performance.

The rising competition from China is compounded by geopolitical tensions, as some customers are now requesting chips made outside China. This shift is partly due to the US’s trade policies and worsening relations between Beijing and other nations. Taiwanese companies are seeing more orders directed to their local fabs, with some customers explicitly avoiding ‘Made in China’ products.

While Taiwanese companies still have an edge in terms of process stability and production yields, the pressure from Chinese competitors is forcing them to rethink their strategies and adapt to the changing landscape. The future of the industry may depend on how Taiwan navigates both the rising Chinese competition and the geopolitical challenges shaping global supply chains.

OpenAI’s Stargate project eyes US data centre locations

OpenAI announced on Thursday that it is evaluating US states as potential locations for data centres supporting its ambitious Stargate project, which aims to secure the US’s lead in the global AI race. The project is seen as crucial for ensuring that AI development remains democratic and open, rather than falling under authoritarian control, according to Chris Lehane, OpenAI’s chief global affairs officer.

Stargate, a venture backed by SoftBank, OpenAI, Oracle, and other investors, is set to receive up to $500 billion for AI infrastructure. A significant portion of this investment, $100 billion, will be deployed immediately, with the rest scheduled over the next few years. Texas has been designated as the flagship location for Stargate’s data centres. An initial site under construction in Abilene is expected to begin operations later this year.

The announcement follows the rise of DeepSeek, a Chinese AI model that challenges the traditional view that AI development requires large, specialised data centres. DeepSeek’s use of cheaper chips has raised concerns among investors, leading to a significant drop in tech stock values, including a record $593 billion loss for Nvidia, the leading AI chipmaker.

OpenAI is considering data centre locations in approximately 16 states, with plans to expand the Stargate network to five to ten campuses in the coming months.