Latest news with #DeekSeek
25-06-2025
- Business
Bipartisan bill seeks to ban Chinese AI from federal agencies
WASHINGTON -- A bipartisan group of lawmakers on Wednesday vowed to keep Chinese artificial intelligence systems out of federal agencies while pledging to ensure the U.S. will prevail against China in the global AI competition. 'We are in a new Cold War, and AI is the strategic technology at the center,' Rep. John Moolenaar, the Republican chair of the House Select Committee on China, said as he opened a hearing on the matter. 'The future balance of power may very well be determined by who leads in AI.' The hearing on Capitol Hill comes about five months after a Chinese technology start-up called DeekSeek introduced an AI model that rivaled platforms from OpenAI and Google in performance, but cost only a fraction to build. This raised concerns that China was catching up to U.S. despite restrictions on chips and other key technologies used to develop AI. The ever-tighter race is now a central part of the U.S.-China rivalry. And so much is at stake that the U.S. must win, witnesses told the congressional panel. The two countries are 'in a long-term techno-security competition that will determine the shape of the global political order for the coming years,' said Thomas Mahnken, president and CEO of the Center for Strategic and Budgetary Assessments. Jack Clark, co-founder and head of policy at Anthropic, told the committee that AI has built-in values. 'I know that AI systems are a reflection of the societies that are built from. AI built in democracies will lead to better technology for all of humanity. AI built in authoritarian nations will... be inescapably intertwined and imbued with authoritarianism,' Clark said. 'We must take decisive action to ensure America prevails.' Earlier this year, Chris Lehane, OpenAI's head of global affairs, told reporters in Paris that the U.S. and China were the only two countries in the world that could build AI at scale. The competition, which he described as one between democratic AI and autocratic AI, is 'very real and very serious,' and the stakes are 'enormous,' he said, for 'the global rails of AI will be built by one of those two countries.' The 2025 AI Index Report by Stanford University's Human-Centered Artificial Intelligence center has the U.S. in the lead in producing top AI models. But the report notes China is rapidly closing the performance gap, reaching near parity in 2024 on several major benchmarks. It also shows that China leads in AI publications and patents. At the hearing, Clark urged the lawmakers to maintain and strengthen export controls of advanced chips to China. 'This competition fundamentally runs on compute,' he said. The U.S. must control the flow of powerful chips to China, Clark said, 'or else you're giving them the tools they will need to build powerful AI to harm American interests.' Mark Beall, Jr., president of government affairs at The AI Policy Network, said there are 'a number of very glaring gaps' in the U.S. export controls that have allowed China to obtain controlled chips. Lawmakers earlier this year introduced a bill to track such chips to ensure they would not be diverted to the wrong hands. In another legislative step, Republican and Democratic lawmakers in both the House and the Senate on Wednesday introduced a bill to ban Chinese AI systems in the federal government. 'The U.S. must draw a hard line: hostile AI systems have no business operating inside our government,' Moolenaar said. The No Adversarial AI Act, as proposed, seeks to identify AI systems developed by foreign adversaries and ban their use in the U.S. government, with exceptions for use in research and counter terrorism.
Yahoo
24-04-2025
- Business
- Yahoo
Nvidia Stock Falls on Export Control Warning. Why This Could Be a Great Buying Opportunity.
Shares of Nvidia (NASDAQ: NVDA) tumbled after the company revealed that it will incur a $5.5 billion charge in the first quarter related to its H2O graphics processing units (GPUs) due to new export restrictions on the sale of its chips to countries like China. Nvidia's stock has had a tough start to 2025, with its share price down about 25% as of this writing. A dumbed-down version of its H100 and H200 GPUs, Nvidia's H20 chip was designed specifically to sell into the Chinese market to meet prior export control restrictions. These chips have lower bandwidth and slower interconnection speeds to meet export guidelines. However, it will now require an export license to China to sell any chips. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » China was Nvidia's fourth-largest geography in fiscal year 2024, with $17 billion in sales last year. However, last quarter, the company reported that its revenue from China had dropped by half compared to the period before the original export restrictions were implemented. DeekSeek's popular R1 model was supposedly trained on H20 chips. The H20 export ban will impact Nvidia's sales in China, which accounted for 13% of its $130.5 billion in total revenue for the last fiscal year. However, sales won't stop entirely, as Nvidia sells other chips, such as the L20 and L2, that aren't banned. Additionally, a sizable black market exists in China for Nvidia's chips. There is also no natural replacement for Nvidia's chips in China. Huawei has developed artificial intelligence (AI) chips manufactured by SMIC, but the Chinese foundry has limited access to the extreme ultraviolet (EUV) lithography tools used to manufacture advanced chips, such as GPUs. This is because EUV tools from ASML, the only maker of these systems, are also prohibited from being sold to China. Consequently, the supply of Chinese-made AI chips is limited. Given this, I wouldn't be surprised if sales of black market Nvidia chips to China increase. Nvidia could also start directing some of the manufacturing capacity dedicated to its H20 chips to other chips, such as Hopper and Blackwell. These chips are estimated to cost between 2 and 4 times the cost of an H20 chip, so there could be a benefit. Now, this doesn't just happen with a snap of the finger, but it is possible. Shifting to the older Hopper architecture will be easier since the H20 chips share the same die design. Blackwell uses a dual-die design, and Nvidia would need to secure more of Taiwan Semiconductor's Chip-on-Wafer-on-Substrate (CoWoS) advanced packaging capacity, which would make it more difficult and time-consuming. Blackwell is already capacity-constrained. As such, shifting capacity to Hopper could help in the near term, while transitioning to Blackwell would likely take considerable time, although it could provide a longer-term benefit. Overall demand for Nvidia's chips remains robust, though. Cloud computing companies are spending big on AI infrastructure to keep up with the increasing demands of their customers who run AI workloads through their data centers. The big three -- Amazon, Microsoft, and Alphabet -- plan to spend a combined $250 billion-plus on AI data center capital expenditures (capex) this year. Meanwhile, companies like OpenAI, Meta Platforms, and xAI have been spending heavily on building out their own AI infrastructure in a race to develop the best AI models. Meta's Llama 4 AI model and xAI's Grok 3 were both trained on 10 times as many GPUs as their prior versions. Enterprises have also begun increasing their AI infrastructure spending, as many look to deploy a hybrid cloud model. Nvidia predicts that AI data center capex will surpass $1 trillion by 2028. Even without China in the mix, that's a significant amount of potential growth for the company moving forward. It won't capture all the spending directed toward AI chips, but it will secure more than its fair share. The company has established a wide moat in the GPU space with its CUDA software platform and the extensive collection of libraries and tools it has developed to facilitate AI model training and speed up inference. Nvidia's stock is cheap enough at current levels that it can withstand any reduction in growth resulting from the loss of selling its H20 chips to China. The stock currently trades at a forward price-to-earnings ratio (P/E) of under 23 times this year's analyst estimates and a 0.44 price/earnings-to-growth (PEG) ratio, with numbers below 1 being considered undervalued. If you wiped away $15 billion in Chinese revenue, Nvidia's estimated revenue growth this year would go from 54% to 43%. Meanwhile, it would reduce its 2025 earnings per share by about $0.35 (using a 75% gross margin, 25% tax rate, and 24.4 million shares outstanding) to $4.10. That would be a forward P/E of about 25 times. So, even if most of its Chinese revenue were to disappear, Nvidia's stock would still look attractively valued. As such, this is a good time to start accumulating the stock while looking to add to more shares on any further pullback. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $532,771!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $593,970!* Now, it's worth noting Stock Advisor's total average return is 781% — a market-crushing outperformance compared to 149% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Nvidia Stock Falls on Export Control Warning. Why This Could Be a Great Buying Opportunity. was originally published by The Motley Fool Sign in to access your portfolio
Bloomberg
19-03-2025
- Business
- Bloomberg
Nvidia CEO Says DeepSeek Impact Analysis Wrong, More Gear Needed
Nvidia Corp., whose products have fueled a flood of artificial intelligence spending, said new types of AI models that produce more complex answers will only increase the need for computing infrastructure. Chief Executive Officer Jensen Huang said that concerns caused by Chinese startup DeekSeek's R1 AI model — that fewer chips and powerful servers would be needed for such software in the future — were misplaced.
Al Bawaba
01-03-2025
- Business
- Al Bawaba
DeepSeek records over 545% daily profit
Published March 1st, 2025 - 06:53 GMT ALBAWABA – DeepSeek, the Chinese artificial intelligence company known for developing large language models (LLMs), announced a daily profit increase of approximately 545%, driven by its advanced AI tools and models. Also Read DeepSeek now adopted by multiple Chinese home appliance companies DeekSeek announces daily profits The company stated on GitHub, a proprietary developer platform, that its daily profits reached nearly 545%, driven by the performance of its V3 and R1 models. DeepSeek also revealed that the total cost of renting Nvidia H800 chips is around $2 per hour, resulting in a daily operating cost of $87, DeepSeek has been experiencing significant growth due to its advanced models, great performance, and low cost. The new artificial intelligence (AI) chatbot faced significant opposition from the United States upon its launch, as it was released with advanced features that outperform both ChatGPT and Llama. DeepSeek even surpassed ChatGPT, a generative AI chatbot developed by OpenAI, in U.S. App Store downloads. (Shutterstock) Previously, the company claimed that its new model outperformed many well-known AI models on the market, which are typically only accessible via API. DeepSeek even surpassed ChatGPT, a generative AI chatbot developed by OpenAI, in US App Store can now download and modify the new DeepSeek V3 model to perform multiple tasks, including coding, translation, and writing articles and emails, according to TechCrunch and Al company stated that the new model outperformed many well-known artificial intelligence (AI) models on the market, which are typically only accessible via an API. Notably, DeepSeek surpassed other models, including Meta's Llama 3.1 (405B), OpenAI's GPT-4, and Alibaba's Qwen 2.5 (72B), in programming competitions hosted on the Codeforces platform. Also Read South Korean App stores remove DeepSeek over privacy concerns © 2000 - 2025 Al Bawaba (
Yahoo
18-02-2025
- Business
- Yahoo
Grok 3 launch confirmed as 10 times more powerful than previous model
Elon Musk and the xAI team announced the Grok 3 AI model in an evening live stream on Monday. The team detailed that the new model is 'a magnitude more capable' than Grok 2, indicating Grok 3 has 10 to 15 times more power than Grok 2. They also claim that Grok 3 is more powerful than its AI model competitors such as DeekSeek and Google Gemini. The xAI team said it has been improving on the Grok 3 AI model over the last several months, noting that it will be very, very funny, and adding that it has only been 17 months since the launch of the Grok 1 model. The team has tested Grok 3 against many scholastic challenges, including the American Invitational Mapping Foundation, which the model matched up well against. In demos, the xAI team showed how Grok 3 performed interesting tasks, such as computing a spacecraft mission from Earth to Mars and back and creating a game that is a mix of Tetris and Bejeweled. The team also mentioned that Grok 3 includes a feature called Big Brain, which is a reasoning model mode allowing for deeper thinking when processing queries. Musk noted that 17 months prior, the original Grok model could barely solve high school problems, and now 'Grok is ready to go to college,' with how much it has advanced. In addition to Grok 3, the team also mentioned that it is working on an AI gaming studio, which will be a service for consumers. Additionally, it is developing a Deep Search feature for Grok, which will be xAI's version of AI Agents. Grok 3 will be available as of Monday for Premium + users. The team is also rolling out a new subscription product called SuperGrok, which will have better access to the AI model and additional features. The xAI team noted that Grok 3 should be treated as a beta version, and users should be mindful of errors in its processing. In a post-launch Q&A, the team confirmed that Grok 3 can process audio into text. Additionally, they confirmed, that Grok 2 will be made open source once Grok 3 is 'mature and stable.'
