OpenAI has made claims that Chinese competitor DeepSeek used its AI model to train its chatbot, causing turmoil in global financial markets. OpenAI suspects DeepSeek of “distilling” data, leading to concerns about the integrity of the US stock market boom based on the need for massive computing power for AI training. Nvidia’s share price plummeted before recovering slightly, while other global indices stabilized. OpenAI and Microsoft are investigating whether DeepSeek obtained data improperly, potentially violating OpenAI’s terms of service. This revelation has sparked new technological tensions between the US and China.
Venture capitalist David Sacks, appointed as AI and cryptocurrency “tsar” by President Donald Trump, has cited evidence of “distillation” by DeepSeek, suggesting that AI companies will take steps to prevent such practices. The claims come amidst ongoing legal battles for OpenAI over the use of others’ intellectual property. Meanwhile, Europe’s tech industry is seeing a boost, with Dutch chip equipment maker ASML reporting strong performance, reflecting the demand for advanced chips for AI models.
In other news, WH Smith reported falling UK high street sales, prompting its parent company to consider selling its retail business. South West Water owner Pennon Group also announced a rights issue to fund increased investments required by regulators. Overall, European stock markets have had a mixed opening, with the FTSE 100 dropping slightly. These developments highlight the ongoing challenges and opportunities in the global business and financial landscape.
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