US officials are evaluating the potential national security risks posed by the Chinese AI app DeepSeek. White House press secretary Karoline Leavitt confirmed the National Security Council is leading the review, highlighting concerns about American AI dominance. White House AI and crypto adviser David Sacks suggested intellectual property theft might have played a role in DeepSeek’s development.
Global technology stocks faced a sell-off over fears that DeepSeek’s low-cost AI model could challenge major US firms like OpenAI and Google. Sacks explained that DeepSeek may have used a technique called distillation, allowing one AI model to learn from another. He warned that American AI companies would likely implement measures to block such practices.
Donald Trump argued that DeepSeek’s rise should push US firms to intensify their AI efforts. While acknowledging China’s progress, he maintained that American companies remain leaders in innovation. He suggested that more affordable AI solutions could benefit the industry without sacrificing technological advances.
Washington continues to restrict AI chip exports to China, aiming to slow its technological advancements. The Commerce Department, under Trump’s nominee Howard Lutnick, is set to play a key role in enforcing these limitations.
Chinese AI startup DeepSeek has shaken the global AI industry with its low-cost, high-performance models, sparking mixed reactions among leading US developers. Its flagship AI assistant recently surpassed OpenAI’s ChatGPT as the most downloaded app on Apple’s US App Store. DeepSeek achieved this using Nvidia’s H800 chips, training its model for under $6 million—an astonishing contrast to the billions spent annually by US tech giants.
While some American AI experts acknowledged DeepSeek’s achievements, many remain unconvinced. OpenAI’s CEO, Sam Altman, praised the R1 model for its cost-effectiveness, but analysts noted that the $6 million figure only reflects the final training phase, with total development costs likely exceeding $1 billion. Nvidia viewed DeepSeek’s success as evidence of growing demand for its AI chips, despite US export controls aimed at slowing China’s progress.
US-based firms like Snowflake have already added DeepSeek models to their AI offerings, citing overwhelming customer interest. However, concerns about China‘s involvement in AI technology persist. DeepSeek’s decision to release its models as open source has drawn applause from industry leaders, highlighting a shift toward more accessible AI development.
With China’s advancements narrowing the gap in AI innovation, competition between US and Chinese firms intensifies. DeepSeek’s rapid rise is forcing industry players to rethink their strategies, while questions about scalability and long-term sustainability remain unanswered.
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.
AI-powered study rooms are revolutionising online education in China by offering personalised, tech-driven learning experiences. These spaces cater to students aged 8 to 18, using advanced software to provide interactive lessons and real-time feedback. The AI systems analyse mistakes, adjust course materials, and generate detailed progress reports for parents, who can track their child’s improvement remotely. By leveraging technology, these study rooms aim to make education more engaging and tailored to individual learning needs.
These AI rooms are marketed as self-study spaces rather than traditional tutoring centres, allowing them to navigate China’s strict private tutoring regulations by framing their services as facility rentals or membership plans. This creative positioning allows them to operate within a regulatory grey area, avoiding restrictions on off-campus tutoring for students in grades one through nine. Membership fees range from 1,000 to 3,000 yuan monthly, making them a more affordable long-term alternative to expensive one-on-one tutoring sessions.
Despite their growing popularity, education experts remain sceptical of their educational value. Critics argue that many of these systems lack proper AI functionality, relying instead on preloaded prompts and automated responses. Furthermore, there are concerns that their heavy emphasis on drilling questions to improve test scores may neglect critical thinking and deeper comprehension. However, proponents believe these AI-powered study rooms represent an essential step toward integrating technology into education and expanding access to personalised learning.
Discussions surrounding TikTok’s ownership and future in the US are intensifying, with President Trump indicating a decision could come within 30 days. Speaking aboard Air Force One, he confirmed conversations with multiple parties interested in acquiring the app. Trump emphasised substantial interest in TikTok, which boasts 170 million American users.
The White House is reportedly pursuing a plan involving Oracle and external investors to address national security concerns. The proposal under consideration would allow ByteDance, TikTok’s China-based parent company, to retain a minority stake, while Oracle would oversee data management and software updates. These arrangements aim to allay fears of Chinese government interference.
Oracle’s involvement builds on its existing role in hosting TikTok’s US user data. However, Trump clarified he had not directly discussed the matter with Oracle’s Larry Ellison. Reports suggest ByteDance’s US investors, including Susquehanna International Group and Sequoia Capital, may also participate in the deal.
The situation remains fluid, with details of the potential agreement subject to change. While Trump has suggested US ownership in a joint venture, finalising a deal will require balancing Congressional scrutiny, national security considerations, and free speech concerns raised by TikTok’s advocates.
Some US TikTok users are voicing concerns over what they perceive as heightened content moderation following the app’s return. The platform, owned by China’s ByteDance, faced a temporary ban over national security concerns before being revived through an executive order. Although TikTok insists its policies remain unchanged, many users report noticeable differences in their experience.
Content creators claim that livestreams are less frequent and posts are being flagged or removed for guideline violations at higher rates. Some allege the platform has been restricting searches, issuing misinformation warnings, and deleting previously acceptable content, such as comments mentioning ‘Free Palestine’ or referencing political figures. TikTok asserts it does not permit violent or hateful content and blames temporary instability during the restoration of its US operations.
Prominent creators have shared their struggles. Comedian Pat Loller reported his satirical video on Elon Musk faced sharing restrictions, while political commentator Danisha Carter’s account was permanently banned for alleged policy violations. Other users describe strikes against seemingly harmless content, fuelling suspicions that moderation may target specific identities or viewpoints.
The controversy has revived debates about censorship and freedom of speech on social media platforms. As TikTok navigates its future, including potential acquisition by a US buyer, creators and users alike question the impact of these changes on online expression.
Across China, artificial intelligence-powered ‘smart pets’ are becoming a popular solution for emotional relief, particularly among younger generations. These devices, such as the BooBoo robot produced by Hangzhou Genmoor Technology, offer companionship through lifelike interactions. Nineteen-year-old Zhang Yachun, for example, says her AI pet, Aluo, has helped her cope with anxiety and feelings of isolation.
The market for ‘social robots’ is rapidly growing, with estimates projecting a sevenfold increase to $42.5 billion globally by 2033. While initially designed for children, these AI companions are increasingly appealing to adults and families. Some view the robots as tools to supplement limited time with children, though sceptics note the lack of emotional depth compared to real pets.
Experts attribute the rise in AI pets to societal changes, including China‘s one-child policy, economic pressures, and evolving family dynamics. These robots, which can mimic behaviours and provide emotional stimulation, serve as an outlet for individuals who feel disconnected. For Zhang, Aluo has also fostered better communication with her parents, highlighting the role AI companions can play in bridging gaps in human relationships.
ByteDance, the Chinese tech giant behind TikTok, has allocated over 150 billion yuan ($20.64 billion) for capital expenditure this year, with a significant focus on AI, according to sources familiar with the matter. About half of the investment will support overseas AI infrastructure, including data centres and networking equipment. Beneficiaries of this spending are expected to include chipmakers Huawei, Cambricon, and US supplier Nvidia, although ByteDance has denied the accuracy of the claims.
The investment aims to solidify ByteDance’s AI leadership in China, where it has launched over 15 standalone AI applications, such as the popular chatbot Doubao, which boasts 75 million monthly active users. Its international counterparts include apps like Cici and Dreamina, reflecting ByteDance’s strategy to adapt its AI offerings globally. The company also recently updated its flagship AI model, Doubao, to rival reasoning models like those developed by Microsoft-backed OpenAI.
ByteDance’s international spending aligns with its efforts to expand AI capabilities abroad amid challenges like the uncertain future of TikTok in the United States. While ByteDance’s $20 billion plan is substantial, it remains modest compared to the AI investments of US tech giants like Google and Microsoft, which spent $50 billion and $55.7 billion respectively on AI infrastructure in the past year. The spending will also bolster ByteDance’s partnerships with suppliers such as Nvidia, from which it has procured custom AI chips tailored to China despite US export restrictions.
China’s foreign ministry stated on Monday that companies should make independent decisions regarding their business operations and agreements. The remarks came in response to United States President-elect Donald Trump’s proposal requiring 50% US ownership of TikTok.
The proposed ownership demand has reignited tensions over the popular social media app, owned by Chinese company ByteDance, as US officials continue to express concerns over national security and data privacy. Chinese officials have consistently emphasised the importance of allowing businesses to operate without undue government interference.
TikTok, which boasts millions of users worldwide, has faced scrutiny in several countries over its links to China. The foreign ministry’s statement highlights Beijing’s stance that such matters should remain in the hands of corporations rather than being dictated by political decisions.
A new poll by the Allensbach Institute reveals that Germans who rely on TikTok for news are less likely to view China as a dictatorship, criticise Russia’s invasion of Ukraine, or trust vaccines compared to consumers of traditional media. The findings suggest that the platform’s information ecosystem could contribute to scepticism about widely accepted narratives and amplify conspiracy theories. Among surveyed groups, TikTok users exhibited levels of distrust in line with users of X, formerly Twitter.
The study, commissioned by a foundation affiliated with Germany’s Free Democrats, comes amid ongoing US debates over the potential national security risks posed by the Chinese-owned app. The research highlights how young Germans, who make up TikTok’s largest user base, are more inclined to support the far-right Alternative for Germany (AfD) party, which has surged in popularity ahead of Germany’s upcoming election. By contrast, consumers of traditional media were significantly more supportive of Ukraine and critical of Russian aggression.
Concerns about misinformation on platforms like TikTok are echoed by researchers, who warn that foreign powers, particularly Russia, exploit social media to influence public opinion. The poll found that while 57% of newspaper readers believed China to be a dictatorship, only 28.1% of TikTok users shared the same view. Additionally, TikTok users were less likely to believe that China and Russia disseminate false information, while being more suspicious of their own government. Calls for action to address misinformation underscore the platform’s potential impact on younger, more impressionable audiences.
