Latest news with #DeepSeek
South China Morning Post
2 hours ago
- Business
- South China Morning Post
Tech takes centre stage as Chinese students weigh up major choices
Like millions of Chinese students, 18-year-old He Junjie is anxiously waiting to see which university and major will admit him after last month's intensely competitive National Higher Education Entrance Examination, or gaokao. After evaluating his score and studying the universities and programmes he qualified for, He focused on engineering when submitting his applications a few weeks ago. Information and communications technology, as well as vehicle engineering, were the top choices, the young man from east China's Zhejiang province said, because they 'represent the direction of future industrial development'. 'Many of my classmates have also chosen majors related to new technology and engineering, because we think there's quite a lot of demand for such talent in Hangzhou,' He said, referring to the provincial capital that is home to artificial intelligence (AI) start-up DeepSeek and humanoid robotics firm Unitree Robotics. While international trade and urban planning were among the most popular subjects with students two decades ago, when China joined the World Trade Organization and its property market started to boom, a new wave of technology-focused academic priorities is reshaping higher education. Engineering disciplines related to possible technological advancements have reigned supreme as China's state-driven system funnels students into such fields amid intensified tech competition with the United States.
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Nikkei Asia
6 hours ago
- Business
- Nikkei Asia
DeepSeek represents a shift in the global tech narrative
Seemingly overnight, DeepSeek has become China's national champion, along with companies like battery maker CATL and EV producer BYD. © Reuters Henny Sender is the founder and managing partner of Apsara Advisory, a strategic consultancy for financial services companies. She was previously a managing director at the investment company BlackRock. The DeepSeek moment has been likened to the Sputnik moment of the 1950s, when technologists in the U.S. -- the world's most powerful nation -- were jolted by an unexpected challenge to their dominance from the Soviet Union, a rival whose accomplishments they had long dismissed.
Mint
14 hours ago
- Business
- Mint
China could yet trump the US in a global scramble for AI talent
Next Story Catherine Thorbecke Big sign-on bonuses can keep Silicon Valley ahead for the time being, but it's clear that Chinese education is driving key advances in artificial intelligence (AI) that America should envy. Eventually, China could win the talent war. There are signs that Chinese campuses are hotbeds of AI research. Gift this article Today's eye-watering artificial intelligence (AI) outlays aren't for high-end chips or data centres, but individuals. The competition for AI talent prompted Meta Platforms to reportedly offer sign-on bonuses of $100 million to lure senior staff from rivals. Today's eye-watering artificial intelligence (AI) outlays aren't for high-end chips or data centres, but individuals. The competition for AI talent prompted Meta Platforms to reportedly offer sign-on bonuses of $100 million to lure senior staff from rivals. It feels 'as if someone has broken into our home and stolen something," OpenAI's chief research officer said of the aggressive poaching in a memo to staff. The latest victim: Apple Inc, which just lost top executive Ruoming Pang to Meta. It's telling that so many superstar players that US tech titans are boasting of adding to their rosters are of Chinese origin. Including Pang, eight of the 12 new recruits to the Meta Superintelligence Labs team graduated from universities in mainland China before pursuing careers abroad. It means that a key driver of the global AI race is a scramble for Chinese talent. The outsize role they play in developing AI systems for China's geopolitical rival isn't likely lost on Beijing. In other tech fields where workers hold a knowledge edge, the government hasn't been afraid of asking them to return home. Authorities have already reportedly restricted travel for some of DeepSeek's employees. Instead of cracking down on immigration, US policymakers must do more to entice the best and brightest from China and beyond. But American business leaders shouldn't assume that the big paychecks alone will win an international talent contest. Researchers at Harvard University last month said that the number of high-impact scientific publications shows that China dominates in 'raw human capital for AI." This helps drive indigenous research despite US advantages in computing power and investment. Top workers may still be keen on making money overseas, but that does not mean a lot of them will not stay at home. Separate researchers at Stanford University in May analyzed data on the more than 200 authors listed on DeepSeek's technical papers. The firm's success story is 'fundamentally, one of homegrown talent," they found. Half of DeepSeek's team never left China for education or work, and those who did ultimately returned to pursue AI development. This has policy implications for the US. China looks at international experience less as a brain drain and more as a way for researchers to acquire knowledge before returning home, the Stanford paper said. The US 'may be mistakenly assuming it has a permanent talent lead." This finding aligns with other data that suggests America has been losing its allure as a destination for top-tier AI researchers. Only 42% of these individuals worked in the US in 2022, compared to 59% in 2019. During that same period, China was closing the gap fast, rising to 28% from 11%. The Chinese government, meanwhile, has been funding AI labs and research at universities as part of industrial policy. It's not clear how well this investment has paid off, but it has helped incubate talent who went on to support breakthroughs at private companies. One of DeepSeek's keystone papers, for example, was co-authored by scholars at Tsinghua University, Peking University and Nanjing University. In this way, China has been building an ecosystem of innovation that doesn't centre around poaching individual star players. Domestic firms are less able to spend so lavishly to attract top talent. US private investment in AI was nearly 12 times the amount in China, according to a recent analysis. Earlier this year, the state-backed news outlet Global Times reported on 'high-paying job offers" from DeepSeek, which could amount to annual income of some 1.54 million yuan per year (just under $215,000). It's a significant sum in urban China, but hardly the instant millionaire-minting figures being tossed around in Silicon Valley. DeepSeek is nonetheless in the midst of a recruitment blitz—one that's trying to attract overseas Chinese AI researchers to come back home. It has posted a spate of roles on LinkedIn, a platform that's not used domestically. As my colleague Dave Lee has written, this is about more than just money, but instead convincing workers that their contribution 'will matter most in the history books." DeepSeek may be hoping that this pitch will work on homesick Chinese talent. Ultimately, just under half of the world's top-tier AI researchers come from China, compared to 18% from the US. Many may be seeking opportunities abroad, but Beijing is pulling all its levers to convince at least some to stay at a time when America isn't signalling a warm welcome. Mind boggling sign-on bonuses from Silicon Valley may be enough to win a cross-border battle for talent, but time will tell if it's enough to win the war. ©Bloomberg The author is a Bloomberg Opinion columnist covering Asia tech. Topics You May Be Interested In Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Yahoo
a day ago
- Business
- Yahoo
Here are investors' burning AI questions with tech earnings around the corner
AI has powered the market to all-time highs. But this earnings season will be an important moment for Big Tech to show that massive AI spending is paying off. Here are three big questions investors have about AI before tech earnings kick off this month. Big Tech companies are soon going to let investors know if all the hype is still worth it. Amid tariff turmoil and market uncertainty, the tech trade continues to power the S&P 500 higher. With mega-cap tech earnings due to kick off later this month, investors are looking for clues to know if the AI-fueled momentum can keep powering stocks higher. The launch of DeepSeek—a cost-efficient AI model from a startup in China—was an "existential moment" for the AI trade, according to Eric Sheridan, co-business unit leader of the TMT group at Goldman Sachs. "There's an increasing focus on the payoff or the return dynamic," Sheridan told Business Insider. "How are we seeing enterprises use AI? How are we seeing consumers adopt AI applications in their day-to-day life? Is AI technology delivering on its promise of increasing productivity and profit margins? Investors will soon be turning to second-quarter earnings season for answers. Big Tech companies have poured billions into building out AI infrastructure, and there's a lot of debate on Wall Street about how much more companies can spend. As of February, Amazon, Microsoft, Alphabet, and Meta's total AI investment for 2025 was over $300 billion, a notable increase from the $246 billion spent in 2024. Competition in the AI space is fierce as Big Tech companies race to develop better large language models. And it's still early stages, meaning that this level of capital expenditure could persist well into the future. "There's still pretty low visibility into what they're going to spend next year," Sheridan said of the Big Tech companies. "I wouldn't put a high probability on a slowdown," he added. A lot of money and effort is being poured into AI tools for companies, but investors want a clearer sign of what it all means. Investors will look for clues on earnings calls that AI adoption is accelerating. They're not just interested in whether Nvidia beats consensus expectations; they're also looking for more widespread adoption of AI among other companies. Investors have reasons to be optimistic, as there have been green shoots in previous months. The earliest signs of AI adoption have been showing up primarily in the software industry as companies adopt agentic AI to complete tasks autonomously. According to Bank of America, earnings calls of Russell 2000 companies have mentioned AI more frequently over the last few quarters. This quarter's earnings season will be key to determining whether the trend holds. In June, Bank of America identified software winners, including Microsoft, Salesforce, and ServiceNow. The bank expects monetization to begin taking off in 2026. For Big Tech, the pressure is on to show strong software margins. "We think the AI backdrop is a big stimulant for the cloud computing businesses on the revenue side," Sheridan said. "And we'll be looking for some proof points around that through earnings season as well." First-quarter earnings were stronger than expected despite uncertainty related to tariffs. That's mostly thanks to Big Tech, and investors are watching to see if the sector can continue to lead to outperformance again. Nadia Lovell, senior US equity strategist at UBS Global Wealth Management, believes AI will continue to be the primary driver of earnings growth across the S&P 500. "Yes, there might be vulnerability, but we need to focus on those secular and structural growth stories, like AI power and resources," Lovell said at the bank's roundtable on July 8. Tariffs are putting extra pressure on the AI trade, as investors are worried about higher import costs eating into company margins. Could AI use cases provide a shield against tariff headwinds? Jeremy Siegel, Wharton professor and senior economist at WisdomTree, thinks firms need to start showing investors that they're putting AI to use, especially as tariffs drag on consumer sentiment. "I think they're going to have to do it very soon, facing some of these tariff price increases," Siegel said on CNBC on Friday. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
International Business Times
a day ago
- Business
- International Business Times
US Senators Warn Nvidia CEO Jensen Huang Against Meeting Chinese Military-Linked Firms During China Trip
Two prominent U.S. senators have urged Nvidia CEO Jensen Huang to avoid meetings with Chinese companies suspected of undermining U.S. export controls during his planned visit to China. In a letter sent Friday, Republican Senator Jim Banks and Democratic Senator Elizabeth Warren expressed concerns that such interactions could legitimize entities tied to China's military and intelligence sectors. The senators specifically asked Huang to steer clear of any engagement with companies listed on the U.S. export control list. "We are worried that your trip to the PRC could legitimize companies that cooperate closely with the Chinese military or involve discussing exploitable gaps in U.S. export controls," the letter stated. Huang is scheduled to visit China on Friday. In response, an Nvidia spokesperson defended the company's global strategy, emphasizing that American technology should lead worldwide. "American wins when our technology sets the global standard," the spokesperson said, highlighting China's massive base of software developers. Earlier this year, Huang praised former President Donald Trump's decision to lift certain AI chip export controls, criticizing previous rules as ineffective. However, new restrictions imposed in April on Nvidia's modified AI chips—designed to comply with U.S. controls—are projected to reduce company revenue by $15 billion. The letter underscores a broader bipartisan consensus in Washington over limiting advanced AI hardware exports, which lawmakers fear could help modernize China's military. Some legislators are pushing for new laws requiring U.S. chipmakers to verify where their technology ends up. Recent reports have intensified scrutiny. Reuters revealed last month that Chinese AI firm DeepSeek, believed to support the country's military and intelligence operations, used shell companies to bypass U.S. chip restrictions. In May, Reuters also reported Nvidia's plan to release a low-cost version of its Blackwell AI chips for China. Senators Banks and Warren pointed to Nvidia's new research center in Shanghai as a worrisome example of how the company's operations could inadvertently bolster China's AI ambitions. They reiterated earlier concerns that Nvidia's actions may support the expansion of China's AI and chip sectors—potentially at America's expense. (With inputs from agencies)
