DeepSeek's Ascendancy in Europe
Chinese AI startup DeepSeek is making waves in Europe, offering tech firms a chance to catch up in the global AI race. German startup Novo AI transitioned from OpenAI's ChatGPT to DeepSeek due to its lower costs and ease of migration. DeepSeek's competitive pricing, estimated to be 20 to 40 times cheaper than OpenAI's, could democratize AI access, pushing U.S. firms like OpenAI to reduce prices and improve models. Despite concerns about data copying and censorship, DeepSeek's cost-effectiveness and performance have attracted early adopters like NetMind.AI and Empatik AI, suggesting a shift in the AI industry.
SoftBank and OpenAI's Strategic Partnership
In a significant move, Japanese tech giant SoftBank Group and OpenAI announced the establishment of a joint venture named SB OpenAI Japan, with equal ownership stakes. This collaboration aims to advance artificial intelligence services, starting with the implementation of the AI service "Cristal" within SoftBank's group companies, including Arm and PayPay, backed by an annual budget of $3 billion. OpenAI CEO Sam Altman highlighted ChatGPT's deep research capabilities, emphasizing its proficiency in performing complex tasks swiftly, now available in Japanese. Both leaders also mentioned their involvement in the Stargate project, with plans to expand into Japan.
CBA's AI Integration for Business Clients
The Commonwealth Bank of Australia (CBA) is set to enhance its AI capabilities by deploying an AI agent to assist its business customers with queries and provide ChatGPT-style responses. This initiative is part of a new five-year agreement with AWS, CBA's primary cloud provider, which will enable greater computing power and expedite cloud migration. The new AI tool, CommBiz Gen AI, aims to offer personalized banking experiences, facilitating quicker payments and more confident transactions. CBA's Chief Technology Officer, Rodrigo Castillo, emphasized their commitment to leveraging AI to deliver rapid, innovative solutions. As the AI competition among Australian banks escalates, CBA's partnership with AWS positions it at the forefront, alongside NAB and ANZ, who are also investing heavily in AI technologies. The agreement will enable CBA to double the pace of digital infrastructure migration to the cloud and further develop its 2000 AI models. According to AWS head of financial services Jamie Simon, CBA remains a crucial and strategic client for AWS's operations in Australia.
Regulatory Actions Against DeepSeek
Texas has become the first state to ban the AI app DeepSeek and social media apps RedNote and Lemon8 from government devices, citing concerns over data security and potential Chinese Communist Party influence. The ban responds to reports that DeepSeek collects U.S. user data stored in China. This move reflects a growing trend of scrutiny and restrictions on Chinese-backed applications within the United States.
OpenAI's 'Deep Research' Tool Launch
OpenAI has unveiled "deep research," a new tool purported to rival human research analysts by generating comprehensive reports in ten minutes. Leveraging the latest o3 AI model, deep research analyzes and synthesizes data from various online sources. The announcement follows closely on the heels of a commitment by OpenAI to expedite product releases, driven by competition from Chinese AI firm DeepSeek. Deep research aims to assist professionals in finance, science, and engineering, with the tool integrated into the ChatGPT interface for Pro subscribers in the US. However, experts caution against fully trusting AI outputs without human verification.