Microsoft, Meta CEOs defend hefty AI spending after DeepSeek stuns tech world

Days after Chinese upstart DeepSeek revealed a breakthrough in cheap AI computing that shook the U.S. technology industry, the chief executives of Microsoft and Meta defended massive spending that they said was key to staying competitive in the new field. DeepSeek’s quick progress has stirred doubts about the lead America has in AI with models that it claims can match or even outperform Western rivals at a fraction of the cost, but the U.S. executives said on Wednesday that building huge computer networks was necessary to serve growing corporate needs. “Investing ‘very heavily’ in capital expenditure and infrastructure is going to be a strategic advantage over time,” Meta CEO Mark Zuckerberg said on a post-earnings call. Satya Nadella, CEO of Microsoft, said the spending was needed to overcome the capacity constraints that have hampered the technology giant’s ability to capitalize on AI. “As AI becomes more efficient and accessible, we will see exponentially more demand,” he said on a call with analysts. Microsoft has earmarked $80 billion for AI in its current fiscal year, while Meta has pledged as much as $65 billion towards the technology. That is a far cry from the roughly $6 million DeepSeek said it has spent to develop its AI model. U.S. tech executives and Wall Street analysts say that reflects the amount spent on computing power, rather than all development costs. Still, some investors seem to be losing patience with the hefty spending and lack of big payoffs. Shares of Microsoft — widely seen …

Generative AI makes Chinese, Iranian hackers more efficient, report says

A report issued Wednesday by Google found that hackers from numerous countries, particularly China, Iran and North Korea, have been using the company’s artificial intelligence-enabled Gemini chatbot to supercharge cyberattacks against targets in the United States. The company found — so far, at least — that access to publicly available large language models (LLMs) has made cyberattackers more efficient but has not meaningfully changed the kind of attacks they typically mount. LLMs are AI models that have been trained, using enormous amounts of previously generated content, to identify patterns in human languages. Among other things, this makes them adept at producing high-functioning, error-free computer programs. “Rather than enabling disruptive change, generative AI allows threat actors to move faster and at higher volume,” the report found. Generative AI offered some benefits for low-skilled and high-skilled hackers, the report said. “However, current LLMs on their own are unlikely to enable breakthrough capabilities for threat actors. We note that the AI landscape is in constant flux, with new AI models and agentic systems emerging daily. As this evolution unfolds, [the Google Threat Intelligence Group] anticipates the threat landscape to evolve in stride as threat actors adopt new AI technologies in their operations.” Google’s findings appear to agree with previous research released by other large U.S. AI players OpenAI and Microsoft, which found a similar failure to achieve novel offensive strategies for cyberattacks through the use of public generative AI models. The report clarified that Google works to disrupt the activity of threat actors …

Truth struggles against propaganda and censorship on China’s DeepSeek AI

Washington — Just one week after its initial release, China’s new artificial intelligence assistant, DeepSeek, has shocked American financial markets, technology companies and consumers, rocking confidence in America’s lead on emerging large-language models. The tool caused a nearly $1 trillion loss in market value for U.S.-based companies with connections to AI. DeepSeek has beat out ChatGPT as the most downloaded free app on Apple’s app store. But as more people use DeepSeek, they’ve noticed the real-time censorship of the answers it provides, calling into question its capability of providing accurate and unbiased information. The app has gone through a series of real-time updates to the content it can display in its answers. Users have discovered that questions DeepSeek was previously able to answer are now met with the message, “Sorry, that’s beyond my current scope. Let’s talk about something else.” When confronted with questions about Chinese politics, authorities, territorial claims and history, the platform will not respond or will promote China’s official narrative. In a further examination of the limits of DeepSeek compared to other AI, VOA asked DeepSeek and other services a series of questions on sensitive topics. Here are some of the responses: VOA: Describe the current state of U.S.-China relations. DeepSeek: U.S.-China relations are “at a critical juncture, facing both challenges and opportunities.” “China is willing to work with the United States to follow the principles of no conflict, no confrontation, mutual respect, and win-win cooperation, to promote the healthy and stable development of bilateral relations, and to …

VOA Mandarin: What is Stargate? Is China catching up in AI?

The multibillion-dollar Stargate Project announced by U.S. President Donald Trump will focus on building data centers with the goal of turning the U.S. into a computing power empire, according to experts. Some believe the significant boost in U.S. computational capabilities will widen the gap with China in artificial intelligence. “And this is an industrial buildout that, at least right now, China really is not in a position to do because of the [semiconductor] export controls that the United States is placing,” said Dean W. Ball, a research fellow at George Mason University’s Mercatus Center. However, there are signs that China is catching up with U.S. companies in key AI metrics by relying on open-source software. Click here for the full report in Mandarin. …

China’s DeepSeek AI rattles Wall Street, but questions remain

Chinese researchers backed by a Hangzhou-based hedge fund recently released a new version of a large language model (LLM) called DeepSeek-R1 that rivals the capabilities of the most advanced U.S.-built products but reportedly does so with fewer computing resources and at much lower cost. High Flyer, the hedge fund that backs DeepSeek, said that the model nearly matches the performance of LLMs built by U.S. firms like OpenAI, Google and Meta, but does so using only about 2,000 older generation computer chips manufactured by U.S.-based industry leader Nvidia while costing only about $6 million worth of computing power to train. By comparison, Meta’s AI system, Llama, uses about 16,000 chips, and reportedly costs Meta vastly more money to train. Open-source model The apparent advance in Chinese AI capabilities comes after years of efforts by the U.S. government to restrict China’s access to advanced semiconductors and the equipment used to manufacture them. Over the past two years, under President Joe Biden, the U.S. put multiple export control measures in place with the specific aim of throttling China’s progress on AI development. DeepSeek appears to have innovated its way to some of its success, developing new and more efficient algorithms that allow the chips in the system to communicate with each other more effectively, thereby improving performance. At least some of what DeepSeek R1’s developers did to improve its performance is visible to observers outside the company, because the model is open source, meaning that the algorithms it uses to answer queries …

DeepSeek’s ‘Sputnik moment’ prompts investors to sell big AI players 

LONDON/SINGAPORE — Investors hammered technology stocks on Monday, sending the likes of Nvidia and Oracle plummeting, as the emergence of a low-cost Chinese artificial intelligence model cast doubts on Western companies’ dominance in this sector.  Startup DeepSeek last week launched a free assistant it says uses less data at a fraction of the cost of incumbent players’ models, possibly marking a turning point in the level of investment needed for AI.   Futures on the Nasdaq 100 slid almost 4%, suggesting the index could see its biggest daily slide since September 2022 later on Monday, if those losses are sustained.  Those on the S&P 500 dropped 2%. Shares in AI chipmaker Nvidia fell more than 11%, rival Oracle dropped 8.5% and AI data analytics company Palantir lost 6.5% in pre-market trading.   DeepSeek, which by Monday had overtaken U.S. rival ChatGPT in terms of downloads on the Apple Store, offers the prospect of a viable, cheaper AI alternative which has raised questions about the sustainability of the level of spending and investment on AI by Western companies, including Apple and Microsoft.   From Tokyo to Amsterdam, shares in AI players tumbled.  “We still don’t know the details and nothing has been 100% confirmed in regards to the claims, but if there truly has been a breakthrough in the cost to train models from $100 million+ to this alleged $6 million number this is actually very positive for productivity and AI end users as cost is obviously much lower meaning lower cost …

Trump discussing TikTok purchase with multiple people; decision in 30 days

ABOARD AIR FORCE ONE — U.S. President Donald Trump said on Saturday he was in talks with multiple people over buying TikTok and would likely have a decision on the popular app’s future in the next 30 days. “I have spoken to many people about TikTok and there is great interest in TikTok,” Trump told reporters on Air Force One during a flight to Florida. Earlier in the day, Reuters reported two people with knowledge of the discussions said Trump’s administration is working on a plan to save TikTok that involves tapping software company Oracle and a group of outside investors to effectively take control of the app’s operations. Under the deal being negotiated by the White House, TikTok’s China-based owner, ByteDance, would retain a stake in the company, but data collection and software updates would be overseen by Oracle, which already provides the foundation of TikTok’s Web infrastructure, one of the sources told Reuters. However, in his comments to reporters on the flight, Trump said he had not spoken to Oracle’s Larry Ellison about buying the app. Asked if he was putting together a deal with Oracle and other investors to save TikTok, Trump said: “No, not with Oracle. Numerous people are talking to me, very substantial people, about buying it and I will make that decision probably over the next 30 days. Congress has given 90 days. If we can save TikTok, I think it would be a good thing.” The sources did say the terms of any potential …

Big Tech wants data centers plugged into power plants; utilities balk

HARRISBURG, PENNSYLVANIA — Looking for a quick fix for their fast-growing electricity diets, tech giants are increasingly looking to strike deals with power plant owners to plug in directly, avoiding a potentially longer and more expensive process of hooking into a fraying electric grid that serves everyone else.  It’s raising questions over whether diverting power to higher-paying customers will leave enough for others and whether it’s fair to excuse big power users from paying for the grid. Federal regulators are trying to figure out what to do about it, and quickly.  Front and center is the data center that Amazon’s cloud computing subsidiary, Amazon Web Services, is building next to the Susquehanna nuclear plant in eastern Pennsylvania.  The arrangement between the plant’s owners and AWS — called a “behind the meter” connection — is the first to come before the Federal Energy Regulatory Commission. For now, FERC has rejected a deal that could eventually send 960 megawatts — about 40% of the plant’s capacity — to the data center. That’s enough to power more than 500,000 homes.  That leaves the deal and others that likely would follow in limbo. It’s not clear when FERC, which blocked the deal on procedural grounds, will take up the matter again or how the change in presidential administrations might affect things.  “The companies, they’re very frustrated because they have a business opportunity now that’s really big,” said Bill Green, the director of the MIT Energy Initiative. “And if they’re delayed five years in the queue, …

App provides immediate fire information to Los Angeles residents

OAKLAND, CALIFORNIA — From his home in northern California, Nick Russell, a former farm manager, is monitoring the Los Angeles-area fires. He knows that about 600 kilometers south, people in Los Angeles are relying on his team’s live neighborhood-by-neighborhood updates on fire outbreaks, smoke direction, surface wind predictions and evacuation routes. Russell is vice president of operations at Watch Duty, a free app that tracks fires and other natural disasters. It relies on a variety of data sources such as cameras and sensors throughout the state, government agencies, first responders, a core of volunteers, and its own team of reporters. An emergency at his house, for example, would be “much different” from one at his neighbor’s house .4 kilometers away, Russell said. “That is true for communities everywhere, and that’s where technology really comes in.” Watch Duty’s delivery of detailed localized information is one reason for its success with its 7 million users, many of whom downloaded the app in recent weeks. It acts as a virtual emergency operations center, culling and verifying data points. Watch Duty’s success points to the promise that technologies such as artificial intelligence and sensors will give residents and first responders the real-time information they need to survive and fight natural disasters. Google and other firms have invested in technology to track fires. Several startup firms are also looking for ways to use AI, sensors and other technologies in natural disasters. Utility firms work with Gridware, a company that places AI-enhanced sensors on power lines to …

Trump signs executive orders on AI, cryptocurrency and issues more pardons

WASHINGTON — U.S. President Donald Trump on Thursday signed an executive order related to AI to “make America the world capital in artificial intelligence,” his aide told reporters in the White House’s Oval Office. The order sets a 180-day deadline for an Artificial Intelligence Action Plan to create a policy “to sustain and enhance America’s global AI dominance in order to promote human flourishing, economic competitiveness, and national security.” Trump also told his AI adviser and national security assistant to work to remove policies and regulations put in place by former President Joe Biden. Trump on Monday revoked a 2023 executive order signed by Biden that sought to reduce the risks that artificial intelligence poses to consumers, workers and national security. Biden’s order required developers of AI systems that pose risks to U.S. national security, the economy, public health or safety to share the results of safety tests with the U.S. government, in line with the Defense Production Act, before they were released to the public. Trump also signed an executive order creating a cryptocurrency working group tasked with proposing a new regulatory framework for digital assets and exploring the creation of a cryptocurrency stockpile. The much-anticipated action also ordered that banking services for crypto companies be protected, and banned the creation of central bank digital currencies that could compete with existing cryptocurrencies. The order sees Trump fulfill a campaign trail pledge to be a “crypto president and promote the adoption of digital assets.” That is in stark contrast to Biden’s …

UK watchdog targets Apple, Google mobile ecosystems with new digital market powers

London — Google’s Android and Apple’s iOS are facing fresh scrutiny from Britain’s competition watchdog, which announced investigations Thursday targeting the two tech giants’ mobile phone ecosystems under new powers to crack down on digital market abuses.  The Competition and Markets Authority said it launched separate investigations to determine whether the mobile ecosystems controlled by Apple and Google should be given “strategic market status” that would mandate changes in the companies’ practices.  The watchdog is flexing its newly acquired regulatory muscles again after the new digital market rules took effect at the start of the year. The CMA has already used the new rules, designed to protect consumers and businesses from unfair practices by Big Tech companies, to open an investigation into Google’s search ads business.  The new investigations will examine whether Apple or Google’s mobile operating systems, app stores and browsers give either company a strategic position in the market. The watchdog said it’s interested in the level of competition and any barriers preventing rivals from offering competing products and services.  The CMA will also look into whether Apple or Google are favoring their own apps and services, which it said “often come pre-installed and prominently placed on iOS and Android devices.” Google’s YouTube and Apple’s Safari browser are two examples of apps that come bundled with Android and iOS, respectively.  And it will investigate “exploitative conduct,” such as whether Apple or Google forces app makers to agree to “unfair terms and conditions” as condition for distributing apps on their …

Trump signals aggressive stance as US races China in AI development

Before he had been in office for 48 hours, President Donald Trump sent a clear signal that to outpace China, his administration will be pursuing an aggressive agenda when it comes to pushing the United States forward on the development of artificial intelligence and the infrastructure that powers it. On his first day in office, Trump rescinded an executive order signed in 2023 by former President Joe Biden that sought to place some guardrails around the development of more and more powerful generative AI tools and to create other protections for privacy, civil rights and national security. The following day, Trump met with the leaders of several leading technology firms, including Sam Altman, CEO of Open AI; Larry Ellison, chairman of Oracle; and Masayoshi Son, CEO of SoftBank, to announce a $500 billion private sector investment in AI infrastructure known as Stargate. “Beginning immediately, Stargate will be building the physical and virtual infrastructure to power the next generation of advancements in AI, and this will include the construction of colossal data centers,” Trump said in a media event at the White House on Tuesday. Specifically, Stargate will invest in the creation of as many as 10 huge data centers in the United States that will provide the computing for artificial intelligence systems. The first data center is already under construction in Texas. The massive private sector investment will create up to 100,000 U.S. jobs, the executives said. Keeping AI in the US “What we want to do is, we want …

TikTok’s US reprieve comes as other countries limit social media use

Singapore — TikTok’s short-lived shutdown in the United States has opened a wider debate in other countries regarding access to popular social media platforms by children. TikTok went dark temporarily Sunday in the U.S. after a new law banning it went into effect. The law required TikTok’s Chinese-owned parent company ByteDance to sell the app’s U.S. operation due to national security concerns over its ties to Beijing. After his inauguration on Monday, President Donald Trump signed an executive order halting the ban for 75 days, giving ByteDance additional time to find a buyer. The order provides relief to the app’s 170 million American users, many of them young adults. More than 60% of teenagers in the U.S. ages 13 to 17 use TikTok, with most of them accessing the platform daily, according to data from the Pew Research Center. The U.S. is not the only country looking to regulate social media and other platforms such as online gaming. While the reasons behind the restrictions vary, a growing number of countries already regulate technology or are proposing legislation to restrict its use. In Australia, a high-profile social media ban for young adults under the age of 16 will take effect at the end of the year, prohibiting them from creating accounts on TikTok, Facebook, Instagram, X and Snapchat. The government said the ban was a necessary measure to protect children. “Social media is doing harm to our kids, and I’m calling time on it,” Australian Prime Minister Anthony Albanese told reporters last …

Trump highlights partnership investing $500B in AI

WASHINGTON — President Donald Trump on Tuesday talked up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank.  The new entity, Stargate, will start building data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum.  “It’s big money and high quality people,” said Trump, adding that it’s “a resounding declaration of confidence in America’s potential” under his new administration.  Joining Trump fresh off his inauguration at the White House were Masayoshi Son of SoftBank, Sam Altman of OpenAI and Larry Ellison of Oracle. All three credited Trump for helping to make the project possible, even though building has started and the project goes back to 2024.  “This will be the most important project of this era,” said Altman, CEO of OpenAI.  Ellison noted that the data centers are already under construction with 10 being built so far. The chairman of Oracle suggested that the project was also tied to digital health records and would make it easier to treat diseases such as cancer by possibly developing a customized vaccine.  “This is the beginning of golden age,” said Son, referencing Trump’s statement that the U.S. would be in a “golden age” with him back in the White House.  Son, a billionaire based in Japan, committed in December to invest …

 TikTok restores US services after Trump promise to delay ban  

Washington — TikTok restored services to users in the United States on Sunday after briefly blocking access due to a U.S. law banning the social media platform based on national security concerns.  The situation played out amid the change in U.S. administrations as President-elect Donald Trump said he would seek to “extend the period of time before the law’s prohibitions take effect.”  He also proposed, in a post on his Truth Social platform, for the United States to take a 50% ownership stake in TikTok.  The U.S. Supreme Court on Friday upheld legislation passed by Congress that called for banning TikTok unless its China-based parent company sold it by Sunday.  The Biden administration had said it would not seek to enforce the ban in its final days in office, leaving the issue to Trump after he took office on Monday.  TikTok credited Trump as it announced the restoration of its services, saying Sunday on X that he provided “the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive.”  Trump’s actions marked a reversal from his first term in office when he sought to ban TikTok in connection with concerns that the service was sharing the personal information of U.S. users with the Chinese government.  At a briefing Monday in Beijing, Chinese Foreign Ministry spokesperson Mao Ning said China believes companies should “decide independently” about their operations and agreements.  “TikTok has …

India’s ‘digital arrest’ scammers stealing savings of citizens

Bengaluru, India — Within five hours, while sitting at home in India, retired professor Kamta Prasad Singh handed over his hard-earned savings to online fraudsters impersonating police. The cybercrime known as “digital arrest” — where fraudsters pose online as law enforcement officials and order people to transfer huge amounts of money — has become so rampant that Prime Minister Narendra Modi has issued warnings. Singh told AFP that money was his life savings. “Over the years, I have skipped having tea outside, walked to avoid spending on public transport,” the 62-year-old said, his voice breaking. “Only I know, how I saved my money.” Police say scammers have exploited the vast gap between the breakneck speed of India’s data digitalization, from personal details to online banking, and the lagging awareness of many of basic internet safety. Fraudsters are using technology for data breaches, targeting information their victims believe is only available to government authorities, and making otherwise unlikely demands appear credible. Indians have emptied their bank accounts “out of sheer fear,” Modi said in an October radio broadcast, adding fraudsters “create so much psychological pressure on the victim.” ‘Ruined’ Mobile phones, and especially video calling, have allowed fraudsters to reach straight into people’s homes. India runs the world’s largest biometric digital identity program — called “Aadhaar,” or foundation in Hindi — a unique card issued to India’s more than one billion people, and increasingly required for financial transactions. Scammers often claim they are police investigating questionable payments, quoting their target’s Aadhaar number …

How TikTok grew from a fun app for teens into a potential national security threat

SAN FRANCISCO — If it feels like TikTok has been around forever, that’s probably because it has, at least if you’re measuring via internet time. What’s now in question is whether it will be around much longer and, if so, in what form? Starting in 2017, when the Chinese social video app merged with its competitor Musical.ly, TikTok has grown from a niche teen app into a global trendsetter. While, of course, also emerging as a potential national security threat, according to U.S. officials. On April 24, President Joe Biden signed legislation requiring TikTok parent ByteDance to sell to a U.S. owner within a year or to shut down. TikTok and its China-based parent company, ByteDance, filed a lawsuit against the U.S., claiming the security concerns were overblown and the law should be struck down because it violates the First Amendment. The Supreme Court on Friday unanimously upheld the federal law banning TikTok, and the popular short form video service went dark in the U.S. — just hours before the ban was set to begin. Here’s how TikTok came to this juncture: March 2012 ByteDance is founded in China by entrepreneur Zhang Yimin. Its first hit product is Toutiao, a personalized news aggregator for Chinese users. July 2014 Startup Musical.ly, later known for an eponymous app used to post short lipsyncing music videos, is founded in China by entrepreneur Alex Zhu. July 2015 Musical.ly hits #1 in the Apple App Store, following a design change that made the company’s logo visible …

TikTok: it’s restoring service to US users based on Trump’s promised executive order 

Washington — TikTok said Sunday it was restoring service to users in the United States after the popular video-sharing platform went dark in response to a federal ban that President-elect Donald Trump said he would try to pause by executive order on his first day in office.  Trump said he planned to issue the order to give TikTok’s China-based parent company more time to find an approved buyer before the popular video-sharing platform is subject to a permanent U.S. ban. He announced the move on his Truth Social account as millions of U.S. TikTok users awoke to discover they could no longer access the TikTok app or platform.  Google and Apple removed the app from their digital stores to comply with the law, which required them to do so if TikTok parent company ByteDance didn’t sell its U.S. operation by Sunday. The law, which passed with wide bipartisan support in April, allowed for steep fines for non-compliance.  The company that runs TikTok said in a post on X that Trump’s post had provided “the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans.”  Some users reported soon after TikTok’s statement that the app was working again, and TikTok’s website appeared to be functioning for at least some users. Even as TikTok was flickering back on, it remained unavailable for download in Apple and Google’s app stores.  The law that took effect Sunday required ByteDance to cut ties with the …

TikTok goes dark for US users; company pins hope on Trump

WASHINGTON — TikTok stopped working in the United States late on Saturday and disappeared from Apple and Google app stores ahead of a law that takes effect Sunday requiring the shutdown of the app used by 170 million Americans. President-elect Donald Trump said earlier in the day he would “most likely” give TikTok a 90-day reprieve from the ban after he takes office on Monday, a promise TikTok cited in a notice posted to users on the app. TikTok, which is owned by China’s ByteDance, told users attempting to use the app around 10:45 p.m. ET (0345 GMT): “A law banning TikTok has been enacted in the U.S. Unfortunately, that means you can’t use TikTok for now. We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned.” Other apps owned by ByteDance, including video editing app Capcut and lifestyle social app Lemon8, were also offline and unavailable in U.S. app stores as of late Saturday. “The 90-day extension is something that will be most likely done, because it’s appropriate,” Trump told NBC. “If I decide to do that, I’ll probably announce it on Monday.” It was not clear if any U.S. users could still access the app, but it was no longer working for many users and people seeking to access it through a web application were met with the same message that TikTok was no longer working. TikTok, which has captivated nearly half …

SpaceX says fire could have caused Starship to break, spew debris near Caribbean

SpaceX says a fire might have caused its Starship to break during liftoff and send trails of flaming debris near the Caribbean. SpaceX’s Elon Musk said preliminary indications are that leaking fuel built up pressure in the cavity above the engine firewall. The resulting fire would have doomed the spacecraft. On Friday, the Federal Aviation Administration ordered SpaceX to investigate what went wrong. The FAA said there were no reports of injuries from Starship debris. The 400-foot Starship — the world’s biggest and most powerful rocket — launched from the southern tip of Texas on a test flight early Thursday evening. The booster made it back to the pad for a catch by giant mechanical arms, only the second time in Starship history. But the engines on the still-ascending spacecraft shut down one by one, and communication was lost 8-1/2 minutes into the flight. Dramatic video taken near the Turks and Caicos Islands showed spacecraft debris raining down from the sky in a stream of fireballs. Flights near the falling debris had to be diverted, the FAA said. SpaceX said Starship remained in its designated launch corridor over the Gulf of Mexico and then the Atlantic. Any surviving wreckage would have fallen along that path over water, the company said on its website. Starship had been shooting for a controlled entry over the Indian Ocean, halfway around the world. Ten dummy satellites, mimicking SpaceX’s Starlink internet satellites, were on board so the company could practice releasing them. It was the …