DW Newsletter # 198 – DeepSeek, a new contender in the AI arena

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Dear readers,

When DeepSeek first emerged in late 2023, it seemed like another ambitious startup in the crowded AI landscape. Founded by Chinese hedge fund manager Liang Wenfeng, DeepSeek began with modest attention, releasing AI models that showed promise but were overshadowed by industry giants like OpenAI, Meta, and Google. However, in December 2024, the company catapulted into the global spotlight with the launch of DeepSeek R1, an AI model that shook the foundations of the tech world. This development was not just a technological marvel but a geopolitical wake-up call.

DeepSeek R1 stunned the industry with its ability to rival the capabilities of market leaders, achieving near-parity with models like GPT-4 and Gemini. What set it apart, however, was its shockingly low cost. While US companies like Meta and OpenAI pour billions into AI research and infrastructure, DeepSeek reportedly developed its model for just $5.6 million, leveraging less advanced chips that bypassed US export restrictions. The revelation underscored a significant shift in the AI arms race: resourcefulness could rival raw financial power. The app quickly became the most downloaded on Apple’s App Store, disrupting markets and causing US tech stocks to shed nearly $1 trillion in value within days.

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The conversation shifted to national security as the US government scrambled to respond. DeepSeek’s emergence directly challenged US dominance in AI and called into question the effectiveness of export restrictions imposed by the Biden administration. Returning for his second term, President Donald Trump convened a high-stakes meeting with Nvidia CEO Jensen Huang to discuss tightening chip export policies. Nvidia, whose shares dropped 17% after DeepSeek’s success, found itself at the centre of the geopolitical battle, with its cutting-edge AI chips both coveted and restricted.

The Trump administration is now contemplating additional measures to curb China’s access to advanced technology, including halting Nvidia’s H20 chip exports, initially designed to comply with export controls. Lawmakers from both parties are urging a thorough review of US export policies in light of DeepSeek’s achievements. Reports have even suggested that DeepSeek may have illegally obtained US-restricted chips, prompting investigations by the Commerce Department.

For its part, DeepSeek has embraced the controversy. Liang Wenfeng has framed the company’s success as a triumph of innovation over-dependence on Western technology. However, questions about the company’s transparency linger. Critics argue that DeepSeek’s low-cost claims omit the broader expenses of research and development, while concerns about its alignment with the Chinese government’s strategic goals have fueled scepticism in the West. The fact that DeepSeek’s earlier models censored politically sensitive content only deepens fears about its role in state-led narratives.

DeepSeek’s rise has challenged assumptions about the cost and accessibility of cutting-edge technology, prompting both excitement and unease. While the US tightens its policies and grapples with its response, DeepSeek’s trajectory is proof that the race for AI dominance is no longer confined to Silicon Valley; it’s now a high-stakes game of global power and influence.

Related news:

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US President Donald Trump and Nvidia CEO Jensen Huang discussed the challenges posed by China’s advancements in AI, particularly focusing on the impact of Chinese AI company DeepSeek.

Stay updated on DeepSeek developments!

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DeepSeek sparks AI investment surge in China

Chinese investors are flocking to AI-related stocks, betting that the success of home-grown startup DeepSeek will propel China to the forefront of the AI race amid the escalating Sino-US technology conflict.

Security concerns lead to Australian ban on DeepSeek

Concern over potential security threats has prompted Australia to ban Chinese AI startup DeepSeek from all government devices, joining a growing list of nations restricting its use.

Visit dig.watch now for the latest updates and other topics!

Marko and the Digital Watch team


Highlights from the week of 31-07 February 2025

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Imagine 100,000 people standing in utmost silence for 15 minutes, with their phone flashlights pointed at the sky. They pay tribute to the 15 innocent people who died under the rubble of the collapsed, newly reconstructed eave of the railway station in the city of Novi Sad, Serbia. 100,000 students and supporting citizens, standing still and united in palpable silence, in Belgrade, the capital of Serbia. Those present witnessed a moment that sent a chill up their spine.

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In this digitally porous media world, information spreads faster than ever, empowering creativity but also unleashing avalanches of misinformation and deepfakes that blur reality. High-profile clashes, from Novak Djokovic boycotting…

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Part 2 examines the UN’s funding paradox: 128 nations contributing 2.2% of the budget can outvote major donors. Can China replace US leadership? Is Security Council reform urgent? Explore power shifts, moral authority, and the future of multilateralism.

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DeepSeek’s open-source approach promotes accountability and allows developing countries to leverage AI solutions, potentially levelling the playing field. The shift towards open-source models may also encourage smaller players to create tailored AI systems, fostering a collaborative environment rather than a competitive race. Consequently, trade and technological diffusion can significantly enhance global economic growth and innovation.

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What if we could overcome overconsumption? Could Wikipedia’s approach of respect and collaboration offer a solution? Aldo Matteucci writes.

Italian activist targeted by spyware, Meta warns

Luca Casarini, a prominent Italian migrant rescue activist, was warned by Meta that his phone had been targeted with spyware. The alert was received through WhatsApp, the same day Meta accused surveillance firm Paragon Solutions of using advanced hacking methods to steal user data. Paragon, reportedly American-owned, has not responded to the allegations.

Casarini, who co-founded the Mediterranea Saving Humans charity, has faced legal action in Italy over his rescue work. He has also been a target of anti-migrant media and previously had his communications intercepted in a case related to alleged illegal immigration. He remains unaware of who attempted to hack his device or whether the attack had judicial approval.

The revelation follows a similar warning issued to Italian journalist Francesco Cancellato, whose investigative news outlet, Fanpage, recently exposed far-right sympathies within Prime Minister Giorgia Meloni’s political youth wing. Italy’s interior ministry has yet to comment on the situation.

Meta to restrict high-risk AI development

Meta has introduced a new policy framework outlining when it may restrict the release of its AI systems due to security concerns. The Frontier AI Framework categorises AI models into ‘high-risk’ and ‘critical-risk’ groups, with the latter referring to those capable of aiding catastrophic cyber or biological attacks. If an AI system is classified as a critical risk, Meta will suspend its development until safety measures can be implemented.

The company’s evaluation process does not rely solely on empirical testing but also considers input from internal and external researchers. This approach reflects Meta’s belief that existing evaluation methods are not yet robust enough to provide definitive risk assessments. Despite its historically open approach to AI development, the company acknowledges that some models could pose unacceptable dangers if released.

By outlining this framework, Meta aims to demonstrate its commitment to responsible AI development while distinguishing its approach from other firms with fewer safeguards. The policy comes amid growing scrutiny of AI’s potential misuse, especially as open-source models gain wider adoption.

DW Newsletter # 197 – Tech titans and Trump: the power play shaping US digital future

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Dear readers,

Donald Trump’s return to the presidency has ushered in a new era of complex alliances between his administration and the tech world. Once an outspoken critic of major tech companies, Trump now finds himself supported by the leaders he previously condemned. Executives from Amazon, Meta, Alphabet, Tesla, and others have contributed heavily to his second inaugural fund, seeking favour in a political landscape where their stakes are higher than ever. Such an intricate web of mutual benefit has created an environment where political ambitions and corporate interests are deeply intertwined.

Most notably, Elon Musk, CEO of Tesla, SpaceX, and X (formerly Twitter), has emerged as one of Trump’s most influential backers. Musk’s $277 million contribution to Trump’s campaign and political committees has secured him direct access to the president and a leadership role atop the newly formed Department of Government Efficiency. Musk’s ambitions extend from expanding federal support for Starlink to reducing regulations for Tesla’s self-driving cars. Perhaps most importantly, Musk hopes Trump will champion his lifelong dream of sending astronauts to Mars, a vision that aligns with the administration’s rhetoric on US innovation and global leadership.

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Jeff Bezos, the founder of Amazon and another recent Trump backer, has recalibrated his approach to Trump. Despite previous hostilities, including Tramp’s sharp criticisms of the Washington Post, Bezos has made strategic moves to mend relations. Amazon’s $1 million donation to Trump’s inauguration and the production of a Melania Trump documentary highlight Bezos’s efforts to secure a softer regulatory environment for Amazon. With antitrust challenges and labour disputes threatening the company’s operations, Bezos’s strategy underscores the importance of aligning with political power to protect Amazon’s interests in cloud services, e-commerce, and space exploration.

Mark Zuckerberg, CEO of Meta, has also aligned his platform’s policies with those of the Trump administration. Meta contributed $1 million to Trump’s inaugural fund, and Zuckerberg significantly changed his platform’s stance on misinformation, ending fact-checking initiatives that Trump had long criticised. These moves have brought Zuckerberg closer to Trump as Meta faces antitrust litigation over its ownership of Instagram and WhatsApp. A more lenient regulatory approach could prove pivotal for Meta’s future as Zuckerberg continues to court political favour.

The case of TikTok presents another layer to this evolving narrative. After being targeted for a ban under Trump’s first term due to national security concerns, TikTok has experienced a dramatic shift in its relationship with the administration. Trump’s newfound appreciation for the platform’s ability to disseminate pro-Trump content has led to a reprieve, with an executive order delaying its ban. TikTok’s CEO, Shou Zi Chew, is now working to secure the platform’s long-term presence in the USA, potentially through a joint venture with US investors. The merger of the two streams would ensure TikTok’s survival and cement its role in the US digital ecosystem.

As the Trump administration takes shape, the interplay between politics and technology has reached enviable levels. Tech leaders leverage their contributions and influence to secure regulatory leniency, government contracts, and policy endorsements. In return, Trump gains significant financial backing and digital support from some of the world’s most powerful companies. While the immediate benefits of these alliances are evident, the long-term implications for innovation, regulation, and public trust remain uncertain. Such an intersection of technology and politics is poised to shape the future of both industries, reflecting the growing importance of strategic partnerships in navigating today’s complex political and economic landscape.

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DeepSeek-linked group suspected in OpenAI data probe

Microsoft and OpenAI are investigating whether a group linked to Chinese AI startup DeepSeek accessed OpenAI data without authorisation.

Will DeepSeek rise strenghten open-source AI in the United States?

Chinese tech firm DeepSeek has sparked a shift in the global tech landscape, challenging American companies’ dominance of closed-source models. DeepSeek’s models are praised for their cost-effectiveness and openness, which could promote rapid innovation and wider adoption.

Visit dig.watch now for the latest updates and other topics!

Marko and the Digital Watch team


Highlights from the week of 24-31 January 2025

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The 21st century is considered to have started on 20 January 2025, marked by two significant events: Donald Trump’s return to power and the launch of DeepSeek, a transformative open-source AI.

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Explore Trump 2.0’s Indo-Pacific strategy: Quad alliances, AUKUS militarization, and China’s growing UN influence. Analyze impacts on regional security and global multilateralism.

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From mastering fire to launching rockets, discover the key milestones that have shaped human evolution. Aldo Matteucci examines.

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Tech firms urged to remove violent content after Southport murders

The UK government has demanded urgent action from major social media platforms to remove violent and extremist content following the Southport killings. Home Secretary Yvette Cooper criticised the ease with which Axel Rudakubana, who murdered three children and attempted to kill ten others, accessed an al-Qaeda training manual and other violent material online. She described the availability of such content as “unacceptable” and called for immediate action.

Rudakubana, jailed last week for his crimes, had reportedly used techniques from the manual during the attack and watched graphic footage of a similar incident before carrying it out. While platforms like YouTube and TikTok are expected to comply with the UK‘s Online Safety Act when it comes into force in March, Cooper argued that companies have a ‘moral responsibility’ to act now rather than waiting for legal enforcement.

The Southport attack has intensified scrutiny on gaps in counter-terrorism measures and the role of online content in fostering extremism. The government has announced a public inquiry into missed opportunities to intervene, revealing that Rudakubana had been referred to the Prevent programme multiple times. Cooper’s call for immediate action underscores the urgent need to prevent further tragedies linked to online extremism.

Ads to launch on Threads platform

Meta has begun testing advertisements on its Threads platform in the US and Japan, targeting a small group of users with image ads in their home feeds. The trial comes as the platform surpasses 300 million monthly active users. Businesses will have the opportunity to extend their existing Meta campaigns to Threads, with the company closely monitoring the tests before a wider rollout.

Advertisers will also benefit from a new inventory filter powered by AI, enabling control over the type of content their ads appear alongside. Analysts suggest that while Threads is still a minor player in Meta’s overall revenue strategy, growing uncertainty around TikTok has led brands to explore alternative platforms.

Launched in July 2023 as a competitor to X, formerly known as Twitter, Threads continues to attract users following X’s controversial changes under Elon Musk. Meta’s plans to expand its AI infrastructure with a $65 billion investment this year further highlight its ambitions to remain competitive with tech giants such as OpenAI and Google.

While Threads is not expected to contribute significantly to Meta’s revenue by 2025, its integration into Meta’s broader ad ecosystem demonstrates the company’s efforts to capitalise on the platform’s growing popularity.

Zuckerberg drives Meta’s bold AI ambitions with $65 billion plans for 2025

Meta Platforms plans to invest up to $65 billion in 2025 to strengthen its artificial intelligence infrastructure, positioning itself against competitors OpenAI and Google. Chief Executive Mark Zuckerberg announced the plans, including ramped-up hiring for AI roles and the development of a massive 2-gigawatt data centre, enough to cover much of Manhattan.

The company, a significant buyer of Nvidia’s AI chips, aims to have over 1.3 million graphics processors in place by the end of the year. Meta intends to introduce about 1 gigawatt of computing power in 2025, marking a pivotal step in its strategy. Zuckerberg highlighted the transformative potential of AI, predicting its influence on Meta’s products and business over the coming years.

Competition in the AI sector has intensified, with companies like Microsoft and Amazon also committing tens of billions to AI infrastructure. Meta’s announcement follows news of Stargate, a $500 billion AI venture involving OpenAI, SoftBank, and Oracle. Analysts suggest Meta’s timing underscores its determination to remain a key player in the AI race.

Meta has distinguished itself with its open-source Llama AI models, which are freely accessible to consumers and businesses. Zuckerberg expects Meta’s AI assistant, already serving 600 million users, to reach over 1 billion by 2025. The planned investment significantly exceeds previous spending levels, signalling Meta’s commitment to leading in the rapidly evolving AI landscape

Databricks secures $10 billion backing from Meta

Meta Platforms has joined a $10 billion investment round for Databricks, a data analytics firm specialising in AI applications. The funding, which closed on Wednesday, values the San Francisco-based company at $62 billion. This round also included a $5.25 billion credit facility led by major financial institutions such as JPMorgan Chase and Goldman Sachs, aimed at boosting Databricks’ expansion and product development efforts.

Founded in 2013, Databricks provides tools to help businesses process, analyse, and apply artificial intelligence to complex datasets. The firm has benefited from the increasing corporate demand for AI technology, catalysed by the rapid adoption of platforms like OpenAI’s ChatGPT. Meta’s investment strengthens an existing partnership between the two, particularly in leveraging Meta’s Llama, a family of open-source large language models.

With over 10,000 organisations, including Shell and Comcast, already utilising its platform, Databricks is at the forefront of enterprise AI applications. According to CEO Ali Ghodsi, this deepened collaboration with Meta will help Databricks better serve enterprise clients using Llama, further solidifying its position in the AI race.

Confusion as Meta users face automatic follow issue with Trump profiles

Meta users in the US are experiencing an unusual phenomenon where they are being automatically re-followed by the accounts of President Donald Trump, Vice President JD Vance, and first lady Melania Trump. The issue emerged after users intentionally unfollowed these accounts following the administration’s transition. Feedback from users, including actress Demi Lovato and comedian Sarah Colonna, highlighted frustration over the inability to maintain their choice to unfollow prominent political figures.

Upon the change of administration, official White House social media accounts are supposed to transition smoothly to the new leaders. While Meta’s communications director Andy Stone acknowledged that followers from the Biden administration were carried over to Trump’s accounts, he confirmed that users were not being forced to re-follow these profiles. Stone suggested that delays in processing follow and unfollow requests might contribute to the confusion experienced by users.

Many individuals reported recurrent issues despite efforts to unfollow the accounts multiple times, raising questions about the underlying technicalities involved. Users are expressing concerns over privacy and choice in the use of social media platforms, as the ability to curate their feeds appears compromised. However, this automatic re-following could reflect broader implications for user control in digital spaces.

As Meta has yet to release a detailed response to the reported glitch, users continue to voice their concerns across multiple platforms. The situation underscores an ongoing need for clarity and assurance regarding user preferences in social media interactions, especially during a politically sensitive time.

WhatsApp wins temporary relief in India data sharing case

An Indian court has temporarily suspended a ban on data sharing between WhatsApp and its parent company, Meta. The ban, imposed by India’s competition regulator last year, had restricted WhatsApp from sharing user data with other Meta platforms, such as Facebook and Instagram, for advertising purposes.

Meta had argued that this restriction would severely impact its business model and potentially force it to roll back features. The court acknowledged the potential harm to WhatsApp’s business and agreed to suspend the ban while it continues to hear Meta’s appeal.

India is a crucial market for Meta, with hundreds of millions of users across its platforms. The company had warned that the data sharing restrictions would prevent businesses from effectively targeting ads to relevant audiences, hindering their ability to grow and reach customers. The court’s decision provides a temporary reprieve for Meta while the legal battle continues.

The Indian competition regulator had argued that WhatsApp’s data sharing practices were anti-competitive and unfairly benefited Meta. However, Meta maintained that the data sharing was necessary for providing a seamless user experience and offering valuable services to businesses. The court’s decision highlights the ongoing debate surrounding data privacy and the use of user data for targeted advertising.