TECH
China’s DeepSeek AI Challenges US Tech Dominance

The advanced Chinese AI model rattles Wall Street and U.S. policymakers, igniting debates over the effectiveness of export controls and the future of AI competition.
The recent release of DeepSeek-R1, an advanced large language model (LLM) developed by a Chinese research team backed by Hangzhou-based hedge fund High Flyer, has sent ripples through global markets and sparked debates about the effectiveness of U.S. export controls aimed at throttling China’s AI progress.
Claiming comparable performance to leading U.S.-built AI models such as OpenAI’s GPT-4 and Meta’s Llama, DeepSeek achieves this feat reportedly using just 2,000 older Nvidia chips and a modest $6 million training cost—far less than its U.S. counterparts. However, this announcement has also raised skepticism, with experts questioning the true cost, methodology, and strategic intent behind the release.
High Flyer’s announcement highlighted that DeepSeek achieved performance parity with models developed by U.S. tech giants, relying on new algorithms that improved chip efficiency and reduced costs. This development comes despite stringent U.S. export controls imposed under the Biden administration to limit China’s access to cutting-edge semiconductors.
The model’s open-source nature has allowed external researchers to examine some of its algorithmic innovations. These advancements could significantly reduce the barriers to entry for developing high-performing AI systems, especially in countries with limited access to advanced technology.
The news triggered a sharp sell-off in technology stocks. The Nasdaq index dropped 3.1% on Monday, and Nvidia, the chip manufacturer whose products power most advanced AI models, saw its stock price plunge nearly 17%. Investors panicked over the implications for U.S. dominance in AI, particularly the potential for China to catch up using less advanced, more readily available technology.
However, some analysts called the market reaction premature, pointing to limited information about DeepSeek’s actual development costs and computational requirements.
Many AI experts have urged caution when evaluating the significance of DeepSeek-R1. Critics, including U.K.-based AI expert Mel Morris, have highlighted the lack of transparency about the model’s true development costs and whether the claimed efficiency gains reflect the entire development process or just the final training phase.
“It’s not yet clear if DeepSeek represents a genuine leap in efficiency or if it simply optimized its existing resources,” said Lennart Heim, a data scientist at the RAND Corporation. Heim suggested that DeepSeek might have relied on a larger pool of resources during its development than it publicly disclosed, including tens of thousands of Nvidia chips the company already operates.
Heim also noted the timing of DeepSeek’s release, which coincided with the inauguration of a new U.S. president, as a calculated move aimed at undermining confidence in American AI leadership during a politically sensitive moment.
DeepSeek’s emergence has reignited debates about the efficacy of U.S. export controls. Since 2021, the Biden administration has imposed strict measures to limit China’s access to advanced semiconductors, arguing that restricting cutting-edge hardware would impede its ability to develop competitive AI models.
Critics, however, argue that the success of DeepSeek demonstrates that these controls may be ineffective, as Chinese firms find ways to innovate using older technology.
“This suggests that focusing export controls on cutting-edge chips might be insufficient if companies can develop comparable systems using less advanced technology,” said Paul Triolo of the Albright Stonebridge Group.
Others, like Georgetown University’s Sam Bresnick, contend that it is too early to assess the impact of export controls, as the most stringent measures were only implemented in 2023. Bresnick pointed out that DeepSeek’s CEO has acknowledged that the company’s limited access to high-performance computing resources remains a significant constraint.
The DeepSeek development underscores the intensity of the U.S.-China AI race and the growing importance of innovation in determining global tech leadership. While DeepSeek’s achievements are noteworthy, questions about scalability, long-term sustainability, and whether China can consistently match the innovation pipelines of U.S. giants remain open.
For U.S. policymakers, the episode is a reminder that export controls alone cannot ensure AI leadership. Investments in domestic R&D, fostering public-private partnerships, and maintaining access to global talent pools will be equally critical to maintaining an edge in the AI arms race.
DeepSeek-R1 represents a significant milestone in China’s AI development, showcasing the potential to achieve high performance with fewer resources. However, the model’s broader implications for the AI landscape remain uncertain, with questions about transparency, reproducibility, and geopolitical strategy still unanswered.
As the U.S. grapples with how to respond, the episode highlights the need for a comprehensive approach to maintaining technological leadership—one that combines regulation, innovation, and strategic diplomacy. Whether DeepSeek is a turning point or a well-timed disruption, it signals that the competition between the U.S. and China in AI is only just heating up.
TECH
How DeepSeek’s AI Technology Can Connect China and Somaliland

In the ever-evolving world of artificial intelligence stands out as a beacon of innovation. Founded in 2023, this Chinese company is on a mission to make Artificial General Intelligence (AGI) a reality. DeepSeek’s cutting-edge AI solutions are not just transforming industries within China but also have the potential to bridge gaps between nations, fostering global collaboration. One such opportunity lies in connecting China’s technological prowess with the untapped potential of Somaliland, a self-declared state in the Horn of Africa.
Somaliland, though not internationally recognized, is a region with a vibrant youth population and a growing appetite for technological advancement. However, limited infrastructure and resources have hindered its progress. This is where China, with its expertise in AI and technology, can step in to create a meaningful partnership. DeepSeek’s AI technologies could play a pivotal role in empowering Somaliland’s youth and driving sustainable development.
One of the most pressing challenges in Somaliland is youth unemployment. With over 70% of its population under the age of 30, the region needs innovative solutions to create opportunities. DeepSeek’s AI-driven platforms could revolutionize education and skill development. For instance, AI-powered learning tools could provide personalized education to Somaliland’s youth, helping them acquire skills in coding, data analysis, and digital literacy. These skills are essential for thriving in the global digital economy.
Moreover, DeepSeek’s AI could facilitate remote work opportunities. By training Somaliland’s youth in AI-related fields, they could access global job markets, working as data annotators, AI trainers, or even developers for international companies. This would not only reduce unemployment but also position Somaliland as a hub for tech talent in Africa.
Somaliland’s infrastructure is still in its nascent stages, presenting a unique opportunity to build smart systems from the ground up. China, with its experience in developing smart cities and AI-driven infrastructure, could collaborate with Somaliland to implement sustainable solutions. DeepSeek’s AI could optimize energy distribution, improve water management, and enhance transportation systems. For example, AI-powered predictive maintenance could ensure the longevity of infrastructure projects, reducing costs and improving efficiency.
The partnership between China and Somaliland could extend beyond technology. Historically, China has been a key player in Africa’s development through initiatives like the Belt and Road Initiative (BRI). By integrating AI technology into these efforts, China can further solidify its role as a global leader in innovation while fostering goodwill in Somaliland.
DeepSeek’s involvement could also open doors for cultural exchange. Chinese AI experts could work alongside Somaliland’s youth, creating a collaborative environment that fosters mutual understanding and respect. This exchange of knowledge and ideas would not only benefit Somaliland but also enrich China’s global perspective.
The potential for collaboration between China and Somaliland is immense. By leveraging DeepSeek’s AI technology, Somaliland can leapfrog traditional development stages, creating a future where its youth are empowered, its infrastructure is sustainable, and its economy is thriving. For China, this partnership represents an opportunity to showcase the transformative power of its technology while contributing to global progress.
In a world increasingly defined by technology, the connection between China and Somaliland could serve as a model for how innovation can bridge divides and create a brighter future for all. DeepSeek’s vision of AGI is not just about machines; it’s about people, partnerships, and the endless possibilities that arise when we work together.
TECH
How AI is Affecting the way Kids Learn to Read and Write.

AI is transforming the way students learn to read and write, sparking a mix of excitement and concern among educators. In classrooms like that of Lisa Parry, a 12th-grade teacher in South Dakota, AI is seen as a helpful tool to spark fresh ideas. For example, Parry used ChatGPT to help her students brainstorm unique essay topics for their book report on Fast Food Nation, which allowed students to think beyond the typical focus on health effects and explore more interesting angles, such as how McDonald’s uses sugar in its products.
AI tools like ChatGPT and others are becoming common in classrooms, with a growing number of teachers using them to generate writing prompts, quizzes, and even feedback. Parry and other educators say AI helps reduce their workload by providing instant writing feedback, allowing teachers to better support students without overwhelming themselves with tasks like grading every essay.
However, there are concerns. As AI technology evolves, so too do the risks of over-reliance on these tools. Some teachers worry that AI could replace critical thinking and creativity in student work, with students potentially submitting AI-generated essays instead of doing the work themselves. Katie Thomas, a high school English teacher, faced this issue firsthand when she discovered many of her students used ChatGPT to write their essays. She responded by banning computer-based essays and requiring students to write by hand in class to ensure their learning was genuine and not AI-driven.
Despite these concerns, AI is also being used for specific literacy-focused programs that assist with foundational reading skills. Platforms like Amira Learning and Khan Academy’s Khanmigo are designed to help students practice reading comprehension, but experts, such as Ying Xu from Harvard, point out that while AI can support early literacy and writing, it struggles with more advanced skills like oral language comprehension and deep, critical thinking.
Teachers are still finding their balance with AI. While it offers benefits such as providing personalized feedback, there’s concern that overusing AI could reduce students’ social interactions and oral communication skills, which are crucial to their overall development. Schools are slowly adopting AI tools, with some districts planning to use AI for literacy instruction in the coming years.
For educators like Parry, AI offers a chance to explore new teaching possibilities, but she remains cautious, emphasizing that students must still produce their own work, and that AI should be a tool for editing and brainstorming rather than writing entire essays. As AI continues to evolve, teachers will need to strike a balance between using it to enhance learning and ensuring it doesn’t hinder the development of critical thinking and independent writing skills.
TECH
Leaking, Spying, or Just ‘Solving Puzzles’? Officials Fear a Breach

National Security or Tech-Driven Takeover? The Battle Over America’s Data Begins.
Elon Musk’s 19-year-old protégé, Edward Coristine, has landed a senior role at the U.S. State Department, triggering outrage among career officials. Known online as ‘Big Balls,’ Coristine was part of Musk’s Department of Government Efficiency (DOGE), a group of young engineers tasked with cutting government waste. Now, he’s been appointed as a senior adviser at the Bureau of Diplomatic Technology, giving him access to highly sensitive diplomatic communications.
State Department insiders are furious, warning that his new position poses a serious security risk. Coristine was previously fired from an internship for leaking sensitive data, raising fears that his placement in the State Department could lead to major breaches. “This is dangerous,” said one U.S. official. “All of the department’s data runs through this office—it’s a goldmine of intelligence.”
He’s not alone. Another DOGE recruit, 23-year-old Luke Farritor, is also listed in the department’s IT directory, suggesting Musk’s young efficiency team is quietly embedding itself in key government agencies. Critics fear Musk is using DOGE to exert control over federal operations, raising questions about whether these young operatives could be manipulating diplomatic negotiations or leaking classified intelligence.
The White House has stayed silent, but frustration is growing. Washington insiders say this is no longer just about government efficiency—it’s about control. The question now isn’t if Musk is shaping U.S. policy, but how much power he already has.
TECH
Learn How DeepSeek, a Chinese Startup, is Disrupting the AI sector

DeepSeek’s cost-efficient AI models rival U.S. leaders, shaking up the global tech landscape and sparking debates over export controls.
Chinese AI startup DeepSeek has made headlines by unveiling models that rival industry leaders like OpenAI and Meta at a fraction of the cost. The company’s flagship models, DeepSeek-V3 and R1, reportedly match top-tier U.S. offerings while being 20 to 50 times cheaper to operate. DeepSeek claims its V3 model was trained using just $6 million worth of computing power, far below the costs incurred by U.S. competitors.
This breakthrough has disrupted global markets, with major tech stocks like Nvidia taking significant hits. DeepSeek’s AI Assistant has also dethroned ChatGPT as the top-rated free app on Apple’s U.S. App Store, further cementing its credibility.
However, skeptics question the full extent of DeepSeek’s achievements. Analysts point out that the true cost of training its models may be much higher than reported. Accusations have also surfaced regarding its possible access to restricted U.S.-made chips, though these remain unverified.
Backed by High-Flyer, a Chinese hedge fund, DeepSeek has benefited from substantial resources, including an advanced chip cluster of 10,000 A100 GPUs. Its success has drawn attention from Beijing, with founder Liang Wenfeng recently attending a closed-door meeting with Chinese Premier Li Qiang, signaling government interest in leveraging DeepSeek’s advancements to counter U.S. export restrictions.
DeepSeek’s emergence challenges the effectiveness of U.S. policies aimed at curbing China’s AI progress. Despite export controls, the startup has achieved impressive results, highlighting the need for U.S. firms to innovate rapidly to maintain their edge.
DeepSeek’s rise underscores China’s growing capabilities in AI and the fierce competition reshaping the global tech landscape. Whether its models live up to the hype or not, DeepSeek has ignited debates about cost-efficiency, innovation, and the shifting balance of power in the AI sector.
TECH
TikTok Blackout in the U.S. as Ban Looms, Trump Hints at Delay

TikTok halts access in the U.S. hours before a ban takes effect, while Trump signals possible talks to restore the app.
TikTok went dark in the United States on Saturday, cutting off 170 million users just before a federal ban was set to take effect. The sudden move comes as the Supreme Court upheld legislation banning the app unless its Chinese owner, ByteDance, sells it to a U.S.-based company. While the blackout shocked users, the app hinted it could return soon, citing ongoing discussions with President-elect Trump, who has suggested a possible 90-day delay to resolve the issue.
The controversy stems from longstanding national security concerns about TikTok’s data collection and its ties to the Chinese Communist Party. ByteDance’s refusal to sell TikTok has only intensified these fears, with lawmakers insisting the app poses a significant threat. Still, Trump, who previously criticized TikTok as a “spy app,” now appears willing to negotiate, likely recognizing its massive popularity and economic influence.
The shutdown has left TikTok creators, small businesses, and influencers scrambling for alternatives, with some rival apps seeing a surge in downloads. Yet, many remain hopeful that a deal could bring TikTok back quickly. ByteDance, however, faces immense pressure to comply with U.S. demands or risk losing access to one of its largest markets.
While Trump has indicated he may pause the ban, bipartisan political support for restricting TikTok shows no signs of waning. The situation underscores broader tensions between the U.S. and China over technology and data security. TikTok’s fate remains uncertain, but its suspension marks a dramatic turning point in this ongoing geopolitical and economic battle.
TECH
Clock Ticking on TikTok Ban in the United States

The wildly popular social media platform TikTok, known for its viral dances, comedy skits, and life hacks, faces an uncertain future in the United States as the Supreme Court prepares to weigh in on its fate. Owned by Chinese tech giant ByteDance, TikTok has become a cultural phenomenon with over 170 million U.S. users, but concerns about data privacy and national security have brought it to the brink of a nationwide ban.
The legal battle stems from a new law passed by Congress with strong bipartisan support, citing fears that TikTok could provide the Chinese government access to sensitive user data or serve as a tool for manipulating public opinion. The ban, set to take effect on January 19, has spurred ByteDance to challenge the law in court, arguing it violates free speech protections under the U.S. Constitution.
The Stakes of the Ban
The Supreme Court’s decision will be pivotal in determining whether ByteDance can retain its largest market or if it must divest TikTok’s U.S. operations. While the Biden administration and President-elect Donald Trump have backed the ban, Trump recently hinted at reconsideration after TikTok proved highly effective for his campaign outreach. However, legal experts like Alan Rozenshtein of the University of Minnesota predict a challenging path for ByteDance unless a sale or alternative arrangement is finalized.
Kevin O’Leary, a Canadian investor and media personality, has entered the fray, announcing a near-complete deal to acquire TikTok’s U.S. assets. Trump, meanwhile, has requested a pause in the court proceedings to negotiate the sale, aligning with his inauguration as president on January 20, just one day after the ban is set to take effect.
A Clash of Interests
TikTok’s defense centers on its assertion that U.S. user data is safeguarded against foreign influence. The platform has even launched campaigns urging users to rally against the ban. However, critics argue that Chinese ownership inherently poses risks, citing potential manipulation of TikTok’s algorithms to influence the American speech environment.
This case highlights the tension between national security concerns and constitutional freedoms, as well as the broader geopolitical stakes in the U.S.-China rivalry. ByteDance’s other app, Lemon8, is already encouraging TikTok users to migrate in anticipation of the ban, signaling the company’s strategic pivot should the Supreme Court uphold the law.
Cultural and Economic Implications
The impending decision has far-reaching implications not only for ByteDance but also for content creators, advertisers, and the broader social media ecosystem. TikTok’s seamless integration into American culture has made it a powerful tool for expression and commerce. Its potential disappearance would leave a void that competing platforms are eager to fill.
As the clock ticks down, the Supreme Court’s deliberations will set a precedent for how the U.S. navigates the intersection of technology, free speech, and national security in an era of global digital interdependence.
TECH
Meta’s Gamble with AI Bots: A Desperate Bid for Engagement Amid User Exodus

Meta, the parent company of Facebook and Instagram, has unveiled a bold yet controversial strategy to counter declining user engagement—introducing millions of AI-driven bots designed to mimic real accounts. These bots, as described by Meta’s vice-president of product for generative AI, Connor Hayes, will possess profiles, bios, and the ability to create and share AI-generated content, mirroring traditional user accounts. While still in a testing phase with hundreds of thousands of bots already active, the announcement has sparked a heated debate over the ethics, transparency, and implications of such a move.
For Meta, the stakes are high. The platform has faced waning appeal, particularly among younger demographics, while its core revenue model—advertising—relies on high engagement metrics. The introduction of AI bots seems to be a calculated risk to keep advertisers satisfied and metrics afloat. Yet, this strategy could backfire spectacularly, exacerbating user frustration with what many perceive as an increasingly impersonal and artificial social media landscape.
Critics have been quick to voice their concerns. Social media platforms like Reddit have seen heated discussions about the potential fallout from Meta’s AI-driven approach. Detractors argue that the bots undermine the authenticity of user interactions, a cornerstone of social media platforms. By filling feeds with artificial content, Meta risks alienating its user base further while raising ethical questions about misleading advertisers.
The advertising angle is particularly contentious. Meta’s heavy reliance on ad revenue means the inclusion of AI bots could inflate engagement numbers artificially, prompting concerns about deceptive practices. If advertisers are unknowingly paying for impressions or interactions generated by bots rather than genuine users, it could erode trust and lead to significant backlash from partners.
Ethical considerations also loom large. Critics worry about the broader implications of deploying AI bots at scale, from cluttering user feeds with algorithmically generated content to creating a social media experience that feels increasingly detached from reality. The strategy highlights a fundamental tension: the drive to maintain engagement metrics versus the need to preserve user trust and platform authenticity.
Meta’s move reflects the broader challenges facing legacy social media platforms in an evolving digital landscape. Competing with newer, more dynamic platforms like TikTok, Meta has struggled to retain relevance, particularly among Gen Z users who are gravitating toward fresh and innovative online experiences. The introduction of AI bots may offer a temporary boost to activity metrics, but it risks deepening dissatisfaction among those already critical of the platform’s trajectory.
Ultimately, Meta’s decision to populate its platforms with AI bots represents a high-stakes gamble. If successful, it could offer a lifeline for sustaining engagement and ad revenue. However, the risks are significant. A backlash from users and advertisers, combined with growing scrutiny over ethical and transparency issues, could make this strategy a cautionary tale in the annals of social media history. For now, the move has been met with skepticism, with many viewing it as a desperate attempt to mask the platform’s decline rather than a genuine effort to innovate or rebuild trust.
TECH
Tech Giants Court Trump as Amazon Donates $1 Million to Inauguration

Bezos, Zuckerberg, and Silicon Valley’s Pivot Toward Trump Sparks New Alliances
Amazon’s $1 million pledge to President-elect Donald Trump’s inauguration signals a dramatic shift in its approach to political engagement. Historically critical of Trump, Amazon founder Jeff Bezos now joins a growing number of tech leaders fostering relationships with the incoming administration.
The donation, split between cash and in-kind streaming services on Amazon Video, comes amidst a broader thaw in relations. Bezos, who previously sparred with Trump over The Washington Post and antitrust concerns, has recently softened his stance. His public praise for Trump’s resilience during a summer assassination attempt and his decision to refrain from endorsing Vice President Kamala Harris in the 2024 election have fueled speculation of a calculated rapprochement.
Meta CEO Mark Zuckerberg has followed a similar path. Once banning Trump from its platforms, Meta recently donated $1 million to Trump’s inaugural fund, with Zuckerberg engaging in private discussions at Mar-a-Lago. Both tech magnates face accusations of seeking favor with the president-elect, as their companies navigate antitrust scrutiny and political pressures.
This pivot reflects Silicon Valley’s pragmatic response to Trump’s rising influence, potentially reshaping tech-political dynamics for years to come. However, the public backlash, including staff resignations and canceled subscriptions at The Washington Post, underscores the contentiousness of these alliances.
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