Good morning. Since the launch of ChatGPT, OpenAI’s innovative AI tool, American companies have seemed to have a significant advantage in developing this generation’s most important technology. However, a small Chinese competitor has emerged that appears to offer capabilities comparable to those of OpenAI and other US tech giants, but at a much lower cost and with less demand for computing power, which has contributed to Nvidia becoming the most valuable company globally. This development led to a dramatic decline in Big Tech stock values yesterday, resulting in a historic $593 billion drop in Nvidia’s market value. Today’s newsletter delves into these events and their implications. Here are the key stories.
Five major headlines:
– **Gaza ceasefire**: Tens of thousands of Palestinians returned to northern Gaza on Monday after Israel reopened military checkpoints that had separated the region for over a year, ending a forced separation from their homes and families that many feared could become permanent.
– **UK security**: A leaked government report, commissioned after last summer’s riots, identified Hindu nationalism, misogyny, and the “manosphere” as breeding grounds for extremism. The report also dismissed claims of “two-tier policing” as a “rightwing extremist narrative.”
– **Auschwitz**: Elderly former inmates of Auschwitz gathered for what may be the final time on the 80th anniversary of the camp’s liberation. During the event, four survivors cautioned world leaders about the rising threat of antisemitism.
– **Roman Abramovich**: An offshore scheme appears to have enabled companies owned by billionaire Roman Abramovich to evade duties potentially worth tens of millions of dollars. Abramovich’s legal team denied any knowledge of or responsibility for the alleged tax evasion.
– **Local government**: Bristol city council may become the first local authority in England to collect black rubbish bins only once every four weeks. The Green-led council claims that switching from a bi-weekly to a monthly collection would save over £2 million annually and help improve declining recycling rates.
**In depth: Is this a $6 million solution to a $209 billion problem?**
If you haven’t heard of DeepSeek, you’re not alone. Founded in 2023 by a hedge fund manager in Hangzhou, China, the company only gained attention after unveiling its new AI system and publishing a research paper explaining its workings. Prior to its recent launch, it was largely unknown in the West, except among AI experts. However, the DeepSeek app quickly became the most popular free app in the US following its release. The company’s announcement of its remarkably low operational costs prompted a swift reevaluation of the future of AI, leading to significant stock market repercussions.
What makes DeepSeek noteworthy? Until now, the most successful AI models have been…
