White House examines security concerns over China’s DeepSeek AI

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.

Government of Taiwan weighs response to potential US chip tariffs

Taiwan’s government is assessing whether to assist its industry in response to possible US tariffs on semiconductors, Premier Cho Jung-tai confirmed. Authorities are closely monitoring recent developments after former President Donald Trump pledged to impose tariffs to encourage domestic production in the US.

Taiwan, home to leading chipmaker TSMC, plays a crucial role in global technology supply chains. Cho emphasised Taiwan’s strategic position in the industry and pledged continued efforts to strengthen external cooperation and maintain technological leadership. Economy Minister Kuo Jyh-huei downplayed concerns, suggesting any tariff impact would be minimal due to Taiwan’s technological edge.

During Trump’s previous administration, TSMC committed to a $12 billion factory in Arizona, later expanding the investment to $65 billion. The latest tariff proposal follows his recent directive for US agencies to investigate trade deficits and alleged currency manipulation, which could present further challenges for Taiwan.

Taiwan’s trade surplus with the US surged 83% last year, reaching a record $111.4 billion, driven by high-tech exports, particularly semiconductors. TSMC has declined to comment on the potential tariffs, while the government continues to evaluate its response.

DeepSeek challenges US AI dominance with low-cost innovation

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.

Trump reveals Microsoft in negotiations to buy TikTok

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.

OpenAI faces legal action from Indian news companies

Several prominent Indian media outlets, including those owned by billionaires Gautam Adani and Mukesh Ambani, are taking legal action against OpenAI. These outlets, such as NDTV and Network18, along with organisations like the Indian Express and Hindustan Times, have filed to join an ongoing lawsuit against OpenAI in a New Delhi court. They allege that OpenAI has been improperly scraping their copyrighted content to train its AI model, ChatGPT, without permission or payment.

The legal claim, which is being led by the Digital News Publishers Association (DNPA), argues that OpenAI’s practices pose a significant threat to the copyrights of its members. The publishers claim that OpenAI’s actions amount to ‘wilful scraping’ and the use of their work for commercial gain, especially as the company generates revenue through ads linked to AI-generated content. This lawsuit highlights broader concerns in the media industry about the influence of large tech companies on content distribution and monetisation.

The legal proceedings are part of a larger global trend, with authors, musicians, and news organisations worldwide suing AI firms for using their works without compensation. In the US, the New York Times has filed a similar lawsuit against OpenAI and its major backer, Microsoft. This new case in India adds significant pressure to OpenAI, which has denied the allegations, arguing that its AI systems rely on publicly available data and that deleting such data could violate US law.

The Indian plaintiffs argue that OpenAI’s failure to strike content-sharing deals with local publishers, while it has done so with international media outlets, undermines the business of Indian news companies. The publishers warn that OpenAI’s practices could weaken the media landscape and negatively impact democracy, calling for greater protection of intellectual property in the age of AI.

UMG and Spotify strike new multi-year deal

Universal Music Group (UMG) and Spotify have announced a new multi-year agreement covering recorded music and music publishing. The deal establishes a direct license between Spotify and UMG across the US and several other countries, aimed at enhancing the streaming experience for artists, songwriters, and consumers.

The partnership promises to introduce new offerings, including upgraded paid subscription tiers and a more expansive catalogue of music and visual content. Both companies emphasise that this collaboration will drive continuous innovation, making music subscriptions more appealing to a global audience.

As Spotify works to improve its profitability, the company has recently implemented cost-cutting measures, including layoffs and a reduced focus on podcasts. It has also raised prices for its US plans to cater to the growing demand for premium services.

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.

Trump hints at TikTok deal within 30 days

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.

TikTok users report censorship concerns after US ban lifted

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.

Hashtag issues add to Meta’s chaotic transition week during US presidency handover

Meta has come under scrutiny after its AI chatbot failed to identify the current US president correctly. Despite Donald Trump’s inauguration on Monday, the chatbot continued to name Joe Biden as president through Thursday. The error led Meta to activate its high-priority troubleshooting protocol, a ‘site event’, to address the issue urgently.

The incident marked at least the third emergency Meta faced this week during the US presidential transition. Other problems included forcing users to re-follow Trump administration profiles on social media and hashtag search errors on Instagram. Meta attributed the re-following issue to delays in transferring White House accounts, which affected ‘unfollow’ requests.

Complaints also arose after searches for Democratic hashtags were blocked while Republican hashtags displayed results normally. Meta acknowledged the issue, claiming it affected searches for various hashtags across the platform. These errors come amid broader platform changes, including scrapping fact-checking programs and reshaping its leadership.

Critics have linked the missteps to perceived shifts in Meta’s political alignment. CEO Mark Zuckerberg’s attendance at Trump’s inauguration and recent strategic moves, such as appointing Trump allies to key positions, have fuelled debate over the platform’s neutrality.