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The United Arab Emirates is spending $20 billion on OpenAI’s Stargate UAE. The project is billed as a sovereign AI capability, yet it relies entirely on American chips, software, and infrastructure. This is the sovereign AI paradox: The harder nations push for AI independence, the deeper their dependencies become.The UAE is not alone. From Paris to New Delhi, governments are pouring billions into so-called “sovereign” frontier models. France backs Mistral. India promotes BharatGPT. Each promises strategic autonomy yet is dependent on a globalized stack.The term “AI factories,” adopted by Nvidia CEO Jensen Huang, rebrands data centers as strategic infrastructure akin...

The Chinese artificial intelligence (AI) company DeepSeek is allegedly syphoning American user data to China’s communist government, according to a new congressional report. Released on Wednesday by the House Select Committee on the Chinese Communist Party (CCP), the 16-page analysis contends that the China-based AI firm “collects detailed user data, which it transmits via backend infrastructure that is connected to China Mobile.” A state-owned telecommunications giant, China Mobile was flagged by the Pentagon earlier this year for having ties to Beijing’s military. In 2019, the Federal Communications Commission (FCC) prohibited the firm from operating within the U.S. over concerns that...

Major AI service providers continue to deploy content moderation algorithms designed to suppress and manipulate viewpoints, actively enforcing censorship under the guise of moderation. From Foreign PsyOps to Domestic Thought Control The censorship and content manipulation we see today did not emerge organically—it was the result of government-directed psychological operations (PsyOps) repurposed for domestic control. What was once used in foreign influence campaigns to destabilize adversarial regimes or control narratives abroad was turned inward—against the American people. The Twitter Files, exposed by investigative journalists Matt Taibbi and Michael Shellenberger, provided irrefutable evidence that U.S. government agencies used taxpayer dollars to...

The rapid-fire news cycle hurts pretty much everyone. It makes it hard to focus, hard to learn, and ultimately distorts the importance of events.So today I’m traveling back in time one whole month for a reality check on DeepSeek R1, the impressive large language model released by a Chinese hedge fund in December.On Monday, January 27, the debut of the DeepSeek iOS app ​caused Nvidia’s stock to crater​ 16% in a day.Want to guess what has happened in the 24 days since then?The stock is exactly where it was a month ago, before the DeepSeek “crisis.”And if you look at...

Elon Musk's artificial intelligence startup xAI has introduced Grok-3, the latest iteration of its chatbot, as it looks to compete with Chinese AI firm DeepSeek, Microsoft-backed OpenAI, and Alphabet's Google. Grok-3 debut comes at a critical moment in the AI arms race, just days after DeepSeek unveiled its powerful open-source model and as Musk moves aggressively to expand xAI's influence. The chatbot is being rolled out immediately to Premium+ subscribers on X, the social media platform owned by Musk. xAI is also launching a new subscription tier, SuperGrok, for users accessing the chatbot via its mobile app and Grok.com website....

Apple is partnering with Alibaba to roll out artificial intelligence features for iPhone users in China, the Information reported on Tuesday, citing one person with direct knowledge of the decision.The development could clear months of uncertainty over Apple's AI strategy for China, where it has been losing market share to domestic rivals, including a resurgent Huawei whose smartphones have included AI tools since last year...Apple had selected Baidu as its main partner last year, but the Chinese company's progress in developing models for Apple Intelligence fell short of its standards, the report said.After that, Apple considered models developed by Tencent,...

BEIJING, Jan 29 (Reuters) - Chinese tech company Alibaba (9988.HK), opens new tab on Wednesday released a new version of its Qwen 2.5 artificial intelligence model that it claimed surpassed the highly-acclaimed DeepSeek-V3. The unusual timing of the Qwen 2.5-Max's release, on the first day of the Lunar New Year when most Chinese people are off work and with their families, points to the pressure Chinese AI startup DeepSeek's meteoric rise in the past three weeks has placed on not just overseas rivals, but also its domestic competition. "Qwen 2.5-Max outperforms ... almost across the board GPT-4o, DeepSeek-V3 and Llama-3.1-405B,"...

Key Points * Chinese electric car giant BYD announced late Monday that it was releasing a “DiPilot” assisted driving system for its cars, which includes a 69,800 yuan ($9,555) low-cost vehicle. * BYD also said it was integrating artificial intelligence from Chinese startup DeepSeek into at least the most advanced version of the new driver assist system. * Tesla’s most advanced version of driver assistance, called “Full-Self Driving,” has yet to receive Beijing’s approval. ================================================================= BEIJING — Chinese electric car giant BYD shares hit a record high in Hong Kong trading Tuesday after the company said it is going all...

The stock market's response to emerging technologies can sometimes be as volatile as the innovations themselves. A recent example of this occurred on January 27, 2025, when a sharp sell-off hit the nuclear energy sector. This sudden downturn was triggered by news surrounding DeepSeek, a new artificial intelligence (AI) model touted for its potentially lower energy consumption compared to existing AI technologies. The market, seemingly fearing that a less power-hungry AI could diminish the need for energy production, reacted negatively, impacting companies across the energy sector. However, a closer examination suggests that this market dip represents a significant overreaction, obscuring...

Australia has banned DeepSeek from all government devices over concerns that the Chinese artificial intelligence startup poses security risks, the government said on Tuesday. The Secretary of the Department of Home Affairs issued a mandatory direction for all government entities to “prevent the use or installation of DeepSeek products, applications and web services and where found remove all existing instances of DeepSeek products, applications and web services from all Australian Government systems and devices,” the statement said. Home Affairs Minister Tony Burke said DeepSeek posed an “unacceptable risk” to government technology and the immediate ban was “to protect Australia’s national...

Is DeepSeek inaccurate? … claims of plagiarism … how DeepSeek’s technology works … the risks it represents … a roundtable discussion with our expertsThe DeepSeek story continues to evolve as new information comes to light.Let’s begin with Reuters:Chinese AI startup DeepSeek’s chatbot achieved only 17% accuracy in delivering news and information in a NewsGuard audit that ranked it tenth out of eleven in a comparison with its Western competitors including OpenAI’s ChatGPT and Google Gemini.The chatbot repeated false claims 30% of the time and gave vague or not useful answers 53% of the time in response to news-related prompts, resulting...

Chinese tech company Alibaba has unveiled a new artificial intelligence (AI) model that it claims outperforms its rivals at OpenAI, Meta and DeepSeek. The announcement of the Qwen2.5-Max model yesterday (Jan. 29) is the second major AI announcement from China this week, after DeepSeek's R1 open-weight model took the world by storm following claims that it performs better and is more cost-effective than its American competitors. Now, Alibaba claims that Qwen 2.5-Max, which is also partly open-source, is even more impressive — surpassing a number of rival models in various tests run by the company. "In benchmark tests such as...

DeepSeek, China’s new artificial intelligence model, refuses to answer certain questions about the Chinese Communist Party (CCP) and responds to others with brazen propaganda. DeepSeek has captivated Silicon Valley this week, with U.S. tech leaders simultaneously impressed and concerned over the model matching the capabilities of firms like OpenAI at substantially lower costs. While the language model performs similarly to mainstream U.S. companies in programming and scientific benchmarks, it differs in its apparent reverence for China’s ruling party. The AI system refused to answer the Daily Caller News Foundation’s questions entirely when prompted to critique Chinese President Xi Jinping, or...

DeepSeek’s terms of service explicitly states it stores user data on Chinese servers and that it governs that data under Chinese law — which mandates cooperation with the country’s intelligence agencies. But that didn’t stop U.S. Department of Defense workers from getting caught up in the DeepSeek hype this week and connecting their work computers to Chinese servers, using the service for at least two days, Bloomberg reported. The Pentagon has since started blocking DeepSeek on some of its network, although some employees could still access the service, according to Bloomberg. The U.S. government is grappling with the national security...

CNBC asked industry experts for their views on DeepSeek, and how it actually compares to OpenAI, creator of viral chatbot ChatGPT, which sparked the AI revolution.

Chinese AI startup DeepSeek's chatbot achieved only 17% accuracy in delivering news and information in a NewsGuard audit that ranked it tenth out of eleven in a comparison with its Western competitors including OpenAI's ChatGPT and Google Gemini. The chatbot repeated false claims 30% of the time and gave vague or not useful answers 53% of the time in response to news-related prompts, resulting in an 83% fail rate, according to a report published by trustworthiness rating service NewsGuard on Wednesday. That was worse than an average fail rate of 62% for its Western rivals and raises doubts about AI...

OpenAI has claimed it found evidence suggesting that DeepSeek used distillation, a technique that extracts data from larger models to train smaller ones. OpenAI’s GPT-4 model, which cost over $100 million to train, is an example of a large and complex AI system.OpenAI has raised serious concerns about Chinese AI startup DeepSeek, suspecting the company of using its data to train its own models. DeepSeek has gained significant attention for its cost-effective AI solutions, which are seen as strong competitors to OpenAI’s offerings. Following this, OpenAI and its partner Microsoft are now investigating whether DeepSeek used OpenAI’s API to integrate...

Technology stocks were rocked to their core Monday after claims made by a Chinese start-up threatened to upend the existing artificial intelligence (AI) paradigm.There’s a compelling argument that recent developments in the field of artificial intelligence (AI) could have vast implications for the future. Over the past couple of years, advances in generative AI have helped fuel a roaring bull market with promises of significant productivity increases. The potential windfall of increased profits has companies racing to adopt these next-generation algorithms.One of the biggest beneficiaries of these secular tailwinds has been Nvidia (NVDA 8.93%). The company’s graphic processing units (GPUs),...

Investors in energy stocks panicked this week over the release of a new, cheaper AI model, ignoring an argument that reducing the energy needs of such models could actually increase demand for energy overall. Why it matters: The news could end up being bullish for those stocks, which lost more than $40 billion in value on Monday. How it works: The Jevons Paradox, as first formulated in 1865 by English economist William Stanley Jevons, states that greater efficiency in the use of any given resource can result in increased demand for that resource. His example was coal: After the Watt...

It was only a matter of time before an innovative mind created the next mainstream AI tool to compete with ChatGPT. In a massive step toward AI advancement, Liang Wenfeng of China launched DeepSeek, an open-source large language models (LLM) intended to compete if not one day overshadow ChatGPT. The launch immediately wiped $1 trillion off the US stock exchange and the tech competition between China and the US is coming to a head. ChatGPT is run by OpenAI. Its creation marked the dawn of a new way of interacting with the internet and accessing information. Users can ask AI...