we discussed deepseek's ai model . and president trump says microsoft is in talks to acquire the u.s. unit of tiktok. details later this hour but first we checked the markets and claw our way back, not nearly upsetting yesterday's selloff. we are up just a percentage point on the overall nasdaq. nvidia bounces back but 2% after a 17% selloff yesterday, $30 billion being added from the market cap wiped out by 600 billion dollars yesterday. this is surrounding china coming with a powerful, efficient, cheap open-source model. mike: nvidia called deepseek's new model and excellent ai advancement that complies with u.s. technology export controls and that it illustrates how new models can be created. let's bring in ian king to tell us more about this. this was a rough day yesterday for nvidia. it bore the brunt of the deepseek shock across the markets, yet their statement was curious. tell us your interpretation. >> they could have said nothing. they could have ignored it. they could have said it is dodgy technology that we

deepseek is gaining attention.hat company's technology represents a lower cost challenge that calls into question other a.i. sector leaders including nvidia. first let's show you what is happening in equity markets. the s&p 500 down for a second day, losing 1.7%. a lot of questions over the level of spending and energy required to build the u.s. a.i. industry. in particular focus here is the philadelphia semiconductor index down 9%. the biggest one-day drop since the pandemic, since 2020. nvidia which is down 15% isn't the biggest decliner. the 10-year yield moving lower. safe havens and the yen are falling below 4.5%. so yields have come back a little but here. and the yen is firm making the yen carry trade a lot less attractive today. the yen has further room to gain. but back the big story we're following right now. deepseek that has drawn global attention after its chatbot app surged the top of smartphone download charts. and no question this is what is driving markets today. here's what guests on bloomberg hav

deepseek creates a deep freak across tech.out the calls you are fielding and as to whether or not you are starting to see a question buying into chinese names. is that something that people want to see is a winner. jordan: that is a great question. i am not seeing people call me and say these are the list of chinese names that i want to own. i think this will bring up a discussion point that is probably needed and was overlooked as we can all own the same trade. if everyone owns the same names and then you get news like this which questions the longevity of this sustainability of this thesis, people just rush to sell and it is painful. escalator up, elevator down. people are getting a healthy wake-up call saying i have to have a diversified portfolio. the other thing i am encouraged by is look at a lot of the green on your screen as it relates to software and some of these other larger cap tech names. they are not all getting sold indiscriminately. i think people that you had on your show say this could only increase the adopt

program deepseek. >>> good news tonight. an important mission to save the steelhead. >> this is "nbc nightly news" with lester holt. >> good evening and welcome. vaccines, conspiracy theories and abortion rights made for heated exchanges with senate democrats today as rfk jr. faced his first senate confirmation hearing for health and human services secretary. a job that would put them in charge of more than a dozen agencies focused on the health of americans. armed for inevitable questions about his past statements opposing vaccines kennedy told right from the top of that he was not anti-vaccine. democrats drilled the controversial trumpet nominee over his claim that no vaccine is safe and effective.certain va kennedy vowing if confirmed that would not dissuade americans from receiving certain vaccinations but some of the sharper classes came over his changing positions on abortion. ryan nobles was there for today's hearing and has our report. >> reporter: tonight, president trump's controversial choice to, quote, make ameri

watch. >> the release of deepseek a.i.rom a chinese company should be a wake-up call for our industries that we need to be laser focused on competing to end we always have the ideas and were always first i would say that's a positive development. instead of spending billions and billions you will spend less and come up with the same solution under the trump administration we will unleash the tech companies and dominate the future like never before. maria: all always bullish on america trump remaining unphased on the a.i. race. watches. >> are you concerned about china's dominance. >> we're going to dominate everything. >> white house a.i. encryptor czar david sachs wrote this on x it will be very competitive and president trump was right to resend the bite in order and the companies without asking if china would do the same i'm confident in the united states but we can't be complacent writes david sachs, trump his writing to keep a competitive watch this. >> in the future we're going to be placing tariffs on foreign produc

deepseek, time flies like an arrow. fruit like a banana.okes it thought about, but didn't meet our criteria. deepseek would not provide answer to some topics deemed sensitive in china. when we asked what happened in tiananmen square, it declined to answer. they say they train their model in two months for less than $6 million. seemingly leapfrogging its american competitors who have spent millions training their models. and doing it despite u.s. efforts to block high-power a.i. chips from the chinese market. >> they were able to really do this on what some people would call a shoestring budget. >> reporter: a week ago, the trump administration rolled out a $500 billion a.i. initiative called stargate. >> what we want to do is we want to keep it in this country. china is a competitor and others are competitors. we want it to be in this country. and we're making it available. >> reporter: the ceo of microsoft, which is participating in stargate, issued a warning about china's a.i. capabilities in an interview with cnbc from the world economic

watch here. >> the release of deepseek a.i.chinese company should be a wake-up call for our industries that we need to be laser focused on competing to win, because we have the greatest scientists in the world. we always have the ideas. we're always first. so i would say that's a positive. that could be very much a positive development. instead of spending billions and billions, you'll spend less, and you'll come up with, hopefully, the same solution. lauren: and his a.i. czar, david sacks, agrees, posting on x in part, president trump was right to rescind the biden executive the order which hamstrung american a.i. companies without asking whether china would do the same. he continues, we can't be place sent. biden's executive order -- can't be complacent. meanwhile, china used our technology to train its system real fast, and they announced it on the day of the inauguration, january the 20th. china also censors it. watch this. question for deepseek: what happened during the 1989 tiananmen square protest? the answer is, that's

, 77 deepseek, is77 app deepseek., which'ls" ~ .. .-. - increasing app deepseek., which'ls" ~ .. .-.ondent has more. but on monday, there were fresh questions about america's dominance of the ai race after a made in china ai model

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let's get to the deepseek story.nese ai startup deepseek rocked global technology startups, raising questions over america's tech dominance. buzz group over the weekend about the latest ai model being cost-effective while running on reduced capability chips. that is essential in the story. let's get analysis with robert lea from bloomberg intelligence. you have been doing research well before all this buzz kicked off. you know this business inside and out. talk to us about who deepseek are and how the firm has managed to rock the tech world at least for the moment. >> they are an innovative chinese startup whose history goes back 18 months. they have been on our radar at least the last seven months. from an investor perspective in asia, they are a well-known company, although the flurry of new stories the last three or four days has brought them more prominence with european and u.s. investors. the fundamental reason they are doing relatively well is the earlier chip exports. like any barrier or potential challenge i

scarlet: that is what they said before deepseek.y under pressure to move that higher or lower? what will investors respond to? caroline: everyone wants to hear, if you are going to spend that what is the return on spending? deepseek does not mean that suddenly we are not going to need inference. you are still going -- going to need gpu's. we were going to need cloud provision because we are going to be using a lot -- ai that much more ubiquitously. it still puts a lot of compute necessities out there. they're going to have to vindicate that this is the still direction of travel in terms of spending. all of this comes at a time where we are seeing more questioning about what deepseek has done, how they have potentially used openai's own data. scarlet: howard lutnick, the nominee for commerce secretary is saying that deepseek stole things. what do we know about this microsoft investigation? how quickly is it likely to show any results? caroline: i'm sure they are setting up more rooms to work out what the implications are. already we

said and in alienable part of china this is what we got from deepseek. >> deepseek itself says it ishinese laws and regulation and upholds socialist values so course this is what's going to happen when you chinese a.i. the problem is not only in china it'll be around the world where we will have chinese propaganda spread through a.i. >> i just want to ask you we have seen trump 2.0 take charge like he knows how the sausage is made and he doesn't get up for reelection, let's do this which i'm in love with but one thing i noticed last month before he came in china was already talking about twentysomething companies in the u.s. putting sanctions against them and baby them because are selling dual use components to taiwan now that we have the chip situation heated up trump kaman and his inauguration day what can trump actually do, it's been happening, the balloons have been coming, how long have we know that they have been stealing rip now the a.i. is actually starting to be materialized and monetized this is when they announce that we stole your stauffenberg to keep using it. >> don't u

he explained the imapct deepseek will have on the global ai race.s really, um, totally sent a tsunami through the technology industry because most observers thought that in order to get artificial intelligence of this quality, then you would have to throw enormous amounts of computing power at it to literally crowbar out the aland make it work. and deep tech has come along and blown that out of the water. we thought that that it would have to be, like, a big american car with a lot of gas and a huge engine. but it turns out the chinese have produced a small little car that that burns it off the lights. and so it's really transformational. it's not just energy. it's the chips, obviously, which are such a vital component. how do you think have they done it? because openai spent $5 billion last year. this, if we're to believe the chinese, cost 6 million. yeah, well, i mean, the irony is that the trade export ban on high performing chips like nvidia's h100 might have led to this scenario because necessity breeds invention. so, this chinese firm has, as

on the right, chinese app deepseek sparking concerns that the u.s.lagging behind china in the a.i. race. leaders in the u.s. now allege china may have cheated building a competitor by tapping data from a larger model like openai in a process called distilling. >> there substantial evidence that what deepseek did here is they distilled the knowledge out of openai model. >> and openai spokesperson saying we are aware of and reviewing indications that deepseek may have inappropriately distilled our models adding they will work with government officials to take aggressive proactive countermeasures. experts say it's not clear if deepseek is really a copycat. >> it's almost like a knee-jerk reaction when it comes to anything china develops to think of it as potentially stolen. that something we need to take extremely seriously especially in a.i. >> all while openai faces a lawsuit from the new york times over unauthorized use of its content for training. openai say the case is without merit because training is fair use. the president's pick for commerce se

how has deepseek - to do this? at such - whole package. how has deepseek - to do this?ompared to low price point compared to chatgpt? they have used a novel approach such as ——— — ————e.:,——— ——— — 777an7d7 £5?§i�*“�*§mefit lessees—emf are lotof for the 77forthe7 models, 7 7f1>e£iié models, so applications for the madels. as can applications forthemadels, as can utilise applications for the models. so can utilise memories the bandwidth saith thffijfie�*ifi'fiithéfifi�*émfi , , thatis saith thffijfie�*ifi'fiithéfifi�*émfi , , that is very source to them. limited lease source to them. and this is a very fast moving technology, we with the technology, as we saw with the emergence of chatgpt and the over the last year or so. like over the last year or so. theory feels th's that”? feels tee a moment? iiiie these taste ice a moment? ., past ,-,;,.e .. 7 pa st of 7 past of years the past cobpte of years 77, ,,, , is asking me, why do everyone is asking me, why do we think china is lagging by 777 7- i'iy �* many years, �*many years, i'm �* many years, i'm not how many years, and i'm not sure

there's going to be a lot of questions about deepseek and whether or not they believe deepseek infringede of these earnings calls coming up are going to be about a.i. spending and the ability of these companies to turn that, manifest that into profitability. those are the questions that they should be asking. stuart: are you buying any tesla? i can't remember whether you're in that or not. are you buying it? >> don't own tesla. it's that had a heck of a run and i'm sorry i'm not in it but, no, not buying tesla. stuart: okay, we got it. shah ghailani, thanks for joining us. always a pleasure. thanks very much, indeed. the market is about to open. they're ringing the bell, that means you have got 10 seconds million the first trade. and on the right-hand side of the screen, somebody at the nasdaq presses the button, and we are trading. press it, there you go. take a look at where we are right from the get go. dow industrials down about 40 points, about 44,8. and there's a bit more green than there is red. so there's some buying of the dow 30. we just turned positive. s&p 500, slightly lower

caroline: asml fights back deepseek. it has surges as stronger chip orders and press plus did deepseek improperly use openai data. microsoft and open and i -- ai investigate. we sit down with the t-mobile ceo on the heels of the standout fourth-quarter first rechecking in the markets. it is fed day and when we get a pause later today but we are up .4%. we are being dragged down by microsoft and nvidia. we will see what earnings come up, and that -- not only are we reeling from deepseek but we have to digest the other numbers. tonight we keep an eye on the front three. and then we think about what we have already had in europe and it is asml. they managed to fight back some of those anxieties around deepseek. cheap ai models, does that metal for chips and chip equipment? asml surging and it was up the most since 2020. this was on the back of very strong orders. mike: and we are staying on asml and the big earnings beak. joining us is john in amsterdam. there were a surgeon orders for asml, far more than expected but all o

liz: deepseek. i think there's more to that story -- >> there is. liz: -- that the doesn't make it look like the wunderkind that everybody says it is. great to have you both. thank you so much. >>> to recap, markets are rebounding from monday's deepseek-fueled selloff, and the federal reserve kicking off its two-day meeting today. starbucks reports after the bell. if. >>> dow jones industrials up 153 points right now. when we come back, we have -- look on your screen -- lockheed's stock takes a dive, but rtx, that's a different story. so who to defense names are on the move -- the two defense names are on the move. we're watching that. and, you know, lockheed martinnen reported 5% sales growth last year. why the f-35 fighter jet's stock diving in details coming up. and russian president vladimir putin today throwing down the drone gauntlet, announcing he wants russia to become a global drone leader. well, billionaire entrepreneur palmer luckey is already ahead of that game. he's live as his growing defense tech company, and april, a leader in drone

..- . we deepseek and when we look at deepseek and that update earlier this week, what do you think itderou think and sans for héppeheit 7 7 77 7 77 happened7wit7h77 7 7 77 happened7wit7i17t7h7e77 7 happenedwith7th7e77d7e7epseek what happened with the deep-seek. is that for the news is that investors for the time a very long time first time. ina vsry tong tims a reason to to had a reason to start to this massive of investment in al infrastructure. that has not for a happened for a while, that there was a reason to doubt it. caused and we this caused uncertainty and we saw a massive sell—off of saw a mauwesdi—d“ sf high exposure saw a mauwesdi—af“ sf high exposure to companies with high exposure to ai infrastructure, so nvidia, oii course companies iiike and of course companies like asml, then equipment manufacturers. the reason is that if there is investment in slowing, and ai infrastructure slowing, and remains to see whether that it remains to see whether that is going to personally is going to happen, personality don't think it is, it tcimst tisi'sis. it is. itis 7' - discussion, tc

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deepseek. was c cc c , to this company; deepseek; was c cc c , to according this company; deepseek; wasl at a develeped this medel at a of the cost, a fraction of the compute that its competitors the us have z and it is offering dens ens! it'i'e efferihd the for ddne end it'ie efferind ec'ne for a dene end it'i'e efferind ec'ne for a cheaper than service for a lot cheaper than what some of those competitors do and it is really a question ccciiiiscc c c thisc cio c of is this going to fundamentally shift ai or our eendeseee er eec" ineeetsrejeets ewe'wewee'w" for eendsseee erserineesterejese ' ' ~ for right now. yeah, and beyond that stock market and the spooked numbers well, you heard donald trump today addressing this, with the head of softbank, unveiling this private investment. he was noticeably quiet on that platform on monday. and one of the most recent posts that we see is an aerial view of stargate's first location in texas. and that kind ofjob creation in the cards if it's really feasible for a competitor to do what openai and others have done for so much cheaper and with such f

stuart: talking about tiktok or deepseek? >> deepseek can be added to the tiktok list. think tiktok is a problem, deepseek will be a bigger problem. stuart: think we need to spend all the money on data centers? microsoft will report this afternoon. they better be saying yeah, we're sticking with it otherwise you've got a real problem on your hands. >> if they don't and these companies do not, we will be selling nvidia. one thing we tell clients, we will not fall in with a name and be hard headed. that changes the fundamentals and margins and everything on spending comes down and that'll be a problem for nvidia. that'll be the number one question every one of the mag seven companies will be asked and if they don't answer correctly, nvidia will be a big loser. stuart: if there's any mistakes, any upsets amongst the big tech companies, are you getting out of them? >> depends if they break the 50-day moving average and the fundamentals. stock selection this year will be critical. we said 2025 is not a buy and hold year. we have had so much activity already much the reason w

what does the rise of deepseek mean?last two hours, the white house press secretary gave her first press briefing promising to provide the truth in launching a striking new tone promoting the president. she focused on immigration, inflation, and the d.e.i. agenda, but she then faced a number of questions on the announcement federal funding, trillions of dollars, is being frozen with apparent confusion on what that actually means for ordinary americans. she was on the front foot from the start in promoting president trump. >> while i vow to provide the truth from this podium, we ask all of you hold yourselves to that same standard. we know for a fact there have been lies pushed by many legacy media outlets in this country about this president, his family, and we will not accept that. we will call you out when we feel your reporting is wrong, or there is misinformation about this white house. so yes, i will hold myself to the truth and i expect everyone in this room to do the same. >> our north america correspondent was at

thank you so much for being here, what is your assessment of deepseek?t correlation between deepseek and other ai molds like chatgpt, these are technologies do different things don't compete bitcoin value digital cold cryptocurrencies in, facilitate transactions, beyond just money anything of value. so we don't see a direct correlation but saw broad self across tech sector this week introduction of deepseek. the bitcoin between 2 and 7%, that is actually pretty normal volatility for bitcoin we don't see this as a -- as any direct correlation to by the bit but this has caused significant disruption to, the tech sector overall. maria: i think worth mentioning that many people are questioning if in fact it actually costs as little as they claim, 5 1/2 million dollars to create -- and the fact communist china officials have been stealing intellectual property from america for decades, and we now have you know, tech leadership saying they did it again, with deepseek. president trump meanwhile, executive order last week to make united states crypto capital of

the deepseek fallout continues. asia getting hit hard, japan the drag today, an extension of yesterday's losses, the nikkei today declining the most in two weeks. many major markets in asia are shot. hong kong on a half day. this is the picture going into the long weekend. chinese tech shares are doing well, and if they continue outperformance by the time these big u.s. tech names are done with earnings this week, and after the long lunar new year holiday, our mliv colleagues have flagged maybe it is time for a new narrative. some of these chinese tech names are doing well today because of this idea they could benefit from cheaper ai costs thanks to deepseek. as we look through japan, the deep losses today were no thanks to the chip shares, advantest, two day losses 18%, they supply testers to nvidia its worst rout since august, softbank under pressure. the stocks rallied hard last week thanks to softbank saying it was participating in the u.s. ai infrastructure fund. just to show you how the entire ai supply chain

. >> release of deepseek a.i.rom a chinese company should be a wake-up call for our industries that we need to be laser focused on competing to win. >> ainsley: plus, doge is already at work. we will tell you how is cutting spending. >> lawrence: "fox & friends" starts right now. >> lawrence: buckle up. fox news alert. shocking drone video shows suspected mexican cartel members aiming rifles at border patrol. drone -- border patrol drone after opening up fire on agents on the u.s. side of the border. >> ainsley: that cross-border violence happening as new daily crossing numbers show the trump administration's crackdown is already working. >> steve: brooke singman has summarized it all and joins us with this report this morning. brooke? >> brooke: good morning, guys. new video being released by texas dps chris olivares on x last night. this footage taken after suspected mexican cartel members trading gunfire with u.s. border patrol agencies near fronten texas monday afternoon as a group of migrants tried internet c

the deepseek drama is slamming the a.i. sector still.o trade what does it mean to all the silicon valley and silicone venture capitalist who were planning support huge amounts of cash into artificial intelligence startups this year, carter ream is one of them the m13 cofounder has been one of the top vcs in the nation he will join us live in studio and a fox business exclusive this is a rare interview. we will ask him are you still ceding startups that are focused on a.i. and does this situation scare you? a dexcom g7 is one of the easiest ways to take better control of your diabetes. this small wearable... replaces fingersticks, lowers a1c, and it's covered by medicare. not managing your diabetes really affects your health for the future. the older you get, the more complications you're gonna see. i knew i couldn't ignore my diabetes anymore because it was causing my eyesight to go bad. for my patients, getting on dexcom g7 is the biggest eye opener they've ever had. i couldn't believe how easy it was. this small wearable sends my gluco

i if— the us to deepseek? it is hard to say. i if we _ the us to deepseek?if we take prior behai is likely —e— to say, but if we take prior behai is likely some sort there is likely to be some sort of reaction from the united 0f of reaction from the united of i priv7y know privy know more am privy to know more information than most other people are. information than most other peeple are-— information than most other --eole are. ., ., ., people are. you are not giving us an exclusive. sadly, no. ou so us an exclusive. sadly, no. - you so - for- us an exclusive. sadly, no. i - you so - for talking thank you so much for talking us through all of that and i your ,.—.e :ee 7 your time. appreciate your time. thank you for having _ appreciate your time. thank you for having me. _ of the liberation of auschwitz. make today's ceremony. one of those is susan pollack who lost more than 50 the family to prepare to leave. tomorrow morning, we'll come for you." the police came for us. i was a little girl. we were so obedient. we got into this train full of little childre

does deepseek success based on millions upend that narrative? >> it certainly calls it into question what deepseek has done. it's thrown the u.s. off its game by challenging this leading strategy. >> that more compute and more. >> capital equals dominance. china has shown that that's not necessarily true. so this moment, it reminds us that breakthroughs that can happen at any time. some people. >> are calling. >> this china's sputnik. >> moment for ai. >> and i. >> think what happens from. >> this point. forward will let us know if. that is in fact, true. i do believe if this is the sputnik moment, we're going to see ai innovation come out of the u.s.. >> like never before. >> if they have that up their sleeve, if not, this. could mark. >> a. >> turning point in china stepping forward. >> but this. >> certainly creates a challenge. >> for the moment. openai has depended on and for all of the investment. meta has poured in to their. >> strategy. >> and now they are no longer necessarily the leading open source provider in the world. >> and presid

can even catch up to what deepseek is doing?g to demand answers, wondering if they knew what the competition is doing? angelo: the competitive landscape has definitely intensified over the last couple days. we do have to take china seriously at this point in time. there are definitely a number of storylines also created. from a privacy perspective, other storylines as well, that i think the u.s. government will have to address. as far as the ability for meta's models to be compared to the likes of deepseek and others out there, you will continue to see that. that competitive landscape long-term is good for the industry. near term, it gets a lot of investors worried. jonathan: angelo zino, appreciate your time. we can see that worry across the board, in single names, certainly in nvidia. a lot of skepticism out there, how many chips were used, how are they used? lisa: elon musk weighing in on that. alexander wang saying that nvidia has things they cannot talk about because of export controls in place. that speaks to the skepticis

some things that went into deepseek?mi cap equipment not going to china because the government does not want china to have the ability to make them and build that other models? annmarie: when it comes to trade and tariffs, will chips be used as negotiating leverage as well? ed: absolutely, annmarie. the rules written by biden, in many ways we thought those were things that were written with donald trump in mind. they are country by country caps. to have donald trump say, do you want that cap to go up or go down? what are you going to do for me on trade? when it comes to china, this will be front and foremost in the negotiations. donald trump wants china to adhere to their phase one trade deal that they inked back in 2020. he will add restrictions on semi cap equipment that they want today. annmarie: what do you make of the fact that the rhetoric coming out of the oval office has been really about other countries? more about canada, mexico, colombia. he's been more reserved when it comes to beijing. ed: annmarie, the thin

it is like deepseek never happened.a: people have reassessed how much chipmakers will get hit if there is a greater efficiency. if you have greater adoption, you will have greater uses of chips. it is not that chips that have gotten was hammered. it is the power generators. that has been the take away. jonathan: did not see a convincing bounce out of constellation energy. i was looking at the same thing yesterday. did not see a convincing bounce. lisa: jp morgan indicated this was the one area they are rethinking as a result of some of the efficiency -- not necessarily the chipmakers or the big tech players. that is what we saw play out yesterday. jonathan: asml positive by 9%. a federal judge blocking the trump administration from enforcing a new directive to hold trillions of dollars in federal spending as president trump is offering buyouts to federal employees that will not comply with his demands that they return to the office. this could have big economic consequences. lisa: and constitutional once too -- ones too

. >>> we're talking about a start-up known as deepseek. it's overtaken chap gpt from bay area-based openai on the apple app store. deep seek is catching the attention of investors and while the dow rose slightly, the tech heavy nasdaq plummeted more than 3% and the s&p 500 dropped by 1.5%. it was an especially brutal day for nvidia which makes advanced chips that power a lot of a.i. development in the u.s., the stock falling by 17%, costing the company roughly $600 billion in market value. >>> the cdc has been told to stop working with the world health organization immediately. this comes a week after president trump moved to withdraw the u.s. from the global health agency. a memo was sent out to cdc staff saying they were not allowed to communicate with w.h.o. in person or personally, including visiting their offices. this comes as health authorities are monitoring bird flu outbreaks among u.s. livestock. uscf infectious disease expert dr. peter chin hong tells us the move is alarming. >> it's almost like you deactivated your smoke alarm.

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geoff: so, explain for the unfamiliar, what is deepseek, this new chinese-based a.i.that's the source of such consternation in silicon valley? gerrit de vynck: yes, so i mean, people are maybe familiar with openai or the maker of chatgpt. maybe they have used other a.i. tools from other big tech or american companies to help them write a resume or help them write a wedding speech or maybe even help them with e-mails at work, generate images, that kind of thing. deepseek is just a small chinese company that essentially makes a product very similar to chatgpt. it's a chatbot that you can have a conversation with. you can ask it to generate all kinds of writing. you can sort of do research on it. and the big reason why people are so freaked out about it here in silicon valley and i think in political and national security circles as well is that people have seen a.i. as something that's very expensive to do. you need to put a lot of money into it, tens and even hundreds of millions of dollars, in order to train a.i. software to be as capable as the leading a.i. programs

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officials are looking at the security concerns of deepseek.ntellectual property from america for decades, as deepseek's terms of service shows it collects and stores user data in china, sparking similar national security concerns leading to the congressional crackdown on tiktok. alibaba is releasing a new version of the artificial intel intelligence model, claiming it outperforms competitors such as deepseek and chatgpt. joining me is the president of general catalyst institute, theresa carlson. the company partners with ambitious entrepreneurs to drive resilience and apply a.i. great to see you. >> good morning. thanks for having me. maria: you have seen so much in your career, leading technology groups throughout your career. first, i want to get your take on deepseek and now china claims that alibaba can also outperform america. >> i love the marketing here. it's like we're all like -- maria: it's marketing. >> well, first of all, let's just state the obvious. there are no better entrepreneurs in the world than american. like we have the be

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trump calls the chinese ai app deepseek a wake—up call for the us tech industry, as its rising popularitypooks wall street. plus, with the lunar new year upon us, we take a look at how the world's second—largest economy is staying on track. hello and welcome to business today. i'm steve lai. we begin in the us, with nvidia losing nearly $600 billion in market capitalization on monday. that's the biggest one—day loss in us history. the sell—off was spurred by the rising popularity of a low—cost chinese artificial intelligence app — deepseek, which is presenting increased competition in the global ai battle.0ur north america business house. the release of deepseek ai from a chinese company should be a coalfor f-f 7-7 that we 7 to be laser is that we need to be laser competing to win. deepseek�*s r1 model impressive. on the live page. many families are preparing for the biggest holiday of year. for updates throughtout the day, please head over to our website bbc.com where you can get more details on the live page. in other news — us president donald trump told reporters on monday that micros

deepseek free model. free model was released a week ago on january 20th, and the startup is only about a year old. but that's not all. the company says they were able to train their a.i. using a fraction of the compute power, as other a.i. companies. some of the leading a.i. firms use 16,000 chips or more to train their systems, according to the new york times. but deepseek engineers say they only needed around 2000. they say they spent just 5.6 million bucks to train their software. compare that to the hundreds of millions or even billions of dollars that american companies are spending to train their models. now, this disruption causing such massive waves that even the president weighed in today. >> i've been reading about china and some of the companies in china, one in particular, coming up with a faster method of a.i. and much less expensive method. and that's good because you don't have to spend as much money. i view that as a positive, as an asset. the release of deepseek a.i. from a chinese compan

deepseek shows that this moat is not as big.eople who bet on open source will come out of this with a clear view of the future but proprietary model developers need to reconsider their models. scarlet: what does this mean for suppliers like nvidia who have been making the high-end ai chips, which the government has limited and restricted purchases by china? darila: export control may have turned out to be a double-edged sword. on one side, we don't know if deepseek had access to any of those nvidia chips or if they acquired some from other countries, holes that may have existed in the export control. that is one option. the other option is because of export control, they have been able to domestically produced chips that can create cutting edge models more on par with chatgpt and the other cutting edge models. for nvidia, i think the demand for them will gain back up. if those models are so accessible, a lot more people will use them, which will drive the gpu demand they have for training. scarlet: thank you so much. the head of

race even as china's deepseek shakes up the sector. madison alworth has more on this right now. madison. >> reporter: good morning, maria. american a.i. leaders are still pouring tens of billions into the space. meta reporting after the bell that capital expenditures are in the range of $60-65 billion because of increased investments in generative a.i. up from just $39 billion in 2024. mark zuckerberg really doubling down saying meta will spend, quote, hundreds of billions of dollars in investing in a.i. infrastructure over the long term and that 2025 will be the the year a personalized a.i. assistant reaches more than 1 billion people. and i expect that meta a.i. will be leading that a.i. assistant. microsoft says its data center capacity hasn't expanded fast enough and that there are plans to invest $80 billion to beef up their a.i. infrastructure. all this as a softbank is reportedly in talks to invest up to $25 the billion into open, ai. that would make them potentially chatgpt's biggest investor. but some venture capitalists say i

deepseek is a small chinese company that makes a product similar to chatgpt. chatbot you can have a conversation with. you can ask it to generate all kinds of writing, you can do research on it. the big reason why people are so freaked out about it here in silicon valley and in political and national security circles as well is that people have seen ai as something that is very expensive to do. you need to put a lot of money into it. tens, even hundreds of millions of dollars in order to train ai software to be as capable as the leading ai programs like chatgpt. and according to these chinese researchers who work at deepseek, they have found ways to do it much more efficiently. meaning they can produce very highly capable ai software at a fraction of the cost of what american companies have been spending. geoff: deepseek says it took them only two months and less than $6 million to create this model it uses, which raises the question, washington banned the export of advanced technology to china so it could not have an upper hand in the u.s.-china battle for te

i want to ask you about deepseek. are you worried about it?tition pushes for that. but the fact that they can be more efficient and cost effective should raise the an antennas for any developer here in america. also the market volatility, and we can see how very quickly one innovation disrupts everything that we were taking for granted and so bullish about. i think this is time to double down on investment and show off what america can do with its ingenuity. charles: you buying it? >> this was really born out of a hedge fund and someone when disdains experience, charles. they like to take new people that don't have the experience because what happens? if oh, let's discover. discover this new -- let's just not assume going into it that we know exactly how the machinations are going to play out. and that is what was beautiful about the fact that there can be this a.i. friendship without the massive quantum computing expense which is the problem with the expensive chips -- >> and you know what, charlessome if the open source culture that comes wi

a ceo i spoke with today joked deepseek makes tiktok look like "sesame street." meaning the u.s.ng to ban that social media app tiktok because of evidence that its owner can and will siphon up information about americans and use it to control and shape information that they consume. so deepseek could do the same in the ai space, and at this hour, millions of americans have downloaded it. so keep in mind here, chinese law requires companies to assist in intelligence gathering if it is requested by their gove government. >> maurice: okay, margaret brennan in washington, thank you. >> john: there is another chinese threat to u.s. security and also involves high technology. >> maurice: jim axelrod shows you how chinese spies are using social media to get american military secrets. >> reporter: it was here on the sprawling seaside navy base in california where thomas zhao, then a 26-year-old naval electrician admitted to passing sensitive documents to an undercover chinese intelligence officer. we obtained this recording of his compassion. >> so why were you taking money from him? >>

the deepseek app, which was launched last week,

will remain a dominant force inlet industry even as deepseek upends the market. president trump hinting at which american company could buy tiktok. >> president trump: it could be good, if it comes in cheaper, it will benefit us. >> are you concerned about china's ai dominance? >> we'll dominate everything. >> is microsoft interested in tiktok? >> president trump: i would say yes. >> brooke: trump will make a decision on tiktok's future. >> carley: three people dead after shooting inside indiana grocery store yesterday evening. two loves were wounded after exchanging gunfire with the gunman. one is in stable condition and one has been released. the police department is investigating, motive is unknown. there is no threat to the public. >> todd: justice department firing people who worked on jack smith's team. acting attorney general james mc henry says the individuals could not be trusted. smith was appointed by merrick garland in november of 2022. he charged trump in both classified documents case and his election interference case. the president pleaded not gui

deepseek the training one of its latest models cost $5.6 million.it comes to the chips deepseek claims to have used just around 2000 and video chips to train its a model. compared to the 10 thousands of chips used for u.s. models. this has caused a big sell off nvidia down almost 17% today. it was really taken on the chin across the board. deepseek seemingly shows you can get similar results with far less energy, far less money, and fewer chips. >> will: thank you. let me see if i understand together. so all of this money right now for the future of ai is largely focused on the energy needed to run the ai companies like chatgpt or whatever it maybe. but also the infrastructure underneath the energy meaning the data houses, the warehouses that are filled with these chips like elon musk kroc it is in memphis it is a huge warehouse with chips, because the presumption was that nvidia and these others had to have tons of chips to do ai. and now out of the blue here is a chinese company that does it for what did you have a minutes ago? the fifth of the pr