AI Shakes Up Global Tech & Stock Markets

SoftBank and OpenAI Forge a New AI Partnership in Japan

SoftBank Group and OpenAI have announced a joint venture, SB OpenAI Japan, aimed at expanding AI services across Japan. This 50-50 partnership is set to invest $3 billion annually to integrate Cristal, SoftBank’s AI service, into various companies.

OpenAI’s CEO Sam Altman revealed that “deep research” capabilities are now available in Japan, enhancing ChatGPT’s performance in the Japanese language.

DeepSeek’s New AI Model Disrupts the Industry

Chinese startup DeepSeek has unveiled an AI model that is reportedly more efficient and cost-effective than existing options. According to SBJ, the DeepSeek AI assistant costs less than $6 million** to train, significantly undercutting competitors like Anthropic, which have expenditures ranging from **$100 million to $1 billion.

This announcement had immediate financial repercussions:

• Over $1 trillion was wiped from the U.S. stock market on January 27th.
• Major tech companies like Nvidia, Oracle, Supermicrocomputer, and TSMC faced substantial losses.
• Nvidia experienced a 17% drop in value, amounting to $593 billion, before rebounding by 9% the next day.

Accusations and Bans Surrounding DeepSeek

During his nomination hearing, U.S. Commerce Secretary nominee Howard Lutnick accused DeepSeek of illegally acquiring technology. As reported by New Kerala, Lutnick claimed that DeepSeek:

• Purchased large quantities of Nvidia chips unlawfully.
• Exploited data from Meta’s open platform to develop its AI models at a reduced cost.

He emphasized the necessity of safeguarding U.S. innovation from unauthorized use.

In response to these concerns, Taiwan’s Ministry of Digital Affairs (MODA) has banned the use of DeepSeek AI in government institutions. The ban, detailed by Security Affairs, was enacted due to fears of sensitive data exposure to Beijing, potentially jeopardizing national security.

Global AI Summits and Investments

The French government is hosting the Artificial Intelligence Action Summit on February 10-11. As per the Hindustan Times, the summit will feature:

• Global leaders, including Indian Prime Minister Narendra Modi.
• CEOs, academics, and representatives from civil society.
• Discussions on international AI collaboration and ethical considerations.

In the United States, the Stargate project is making waves. Supported by President Donald Trump and involving heavyweights like SoftBank, OpenAI, and Oracle, the project is investing up to $500 billion in AI infrastructure. According to IG, there’s an expectation that this initiative will expand into Japan and other countries.

Cybersecurity Updates: AI and Data Breaches

The intersection of AI and cybersecurity has surfaced prominently:

• The German Federal Office for Information Security (BSI) successfully sinkholed a botnet consisting of 30,000 devices shipped with BadBox malware pre-installed.
• The U.S. Department of Justice seized Rydox, a notorious cybercrime marketplace facilitating illegal activities.

Additionally, several data breaches have been reported:

1. Reddit faced a breach on February 5th, where attackers accessed internal documents and systems using compromised employee credentials (Tech.co).

2. Sharp HealthCare notified 62,777 patients about a data breach exposing personal and health information.

3. Weee!, a food delivery service, suffered a breach affecting 1.1 million customers. The company assured that no payment data was compromised.

4. Topgolf Callaway, the golf equipment manufacturer, reported a breach impacting over one million customers, with stolen data including personal and account information.

Hardware Releases and Tech Innovations

Additional Tech Updates

• Apple and SpaceX have collaborated to add Starlink connectivity for select iPhone users, enhancing global communication capabilities.
• Comcast unveiled Ultra-Low Lag technology, aiming to reduce latency for Xfinity customers.
• Security researchers found a flaw in Apple’s processors that could leak sensitive data from browsers on Mac and iPhone devices.
• The WinkBed mattress, a handcrafted hybrid mattress designed for back pain relief, has entered the market as a competitor to the Saatva Classic.