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DeepSeek’s new technology makes AI actually understand what you’re asking for

Dashveenjit Kaur — Wed, 09 Apr 2025 08:26:44 +0000

DeepSeek’s AI feedback systems help make AI understand what humans want.
Method allows smaller AI models to perform as well as larger cousins.
Potential to reduce cost of training.

Chinese AI company DeepSeek has developed a new approach to AI feedback systems that could transform how artificial intelligence learns from human preferences.

Working with Tsinghua University researchers, DeepSeek’s innovation tackles one of the most persistent challenges in AI development: teaching machines to understand what humans genuinely want from them. The breakthrough is detailed in a research paper “Inference-Time Scaling for Generalist Reward Modeling,” and introduces a technique making AI responses more accurate and efficient – a win-win in the AI world where better performance typically demands more computing power.

Teaching AI to understand human preferences

At the heart of DeepSeek’s innovation is a new approach to what experts call “reward models” – essentially the feedback mechanisms that guide how AI systems learn. Think of reward models as digital teachers. When an AI responds, models provide feedback on how good that response was, helping the AI improve over time. The problem has always been how to create reward models that accurately reflect human preferences across many different types of questions. DeepSeek’s solution combines two techniques:

Generative Reward Modeling (GRM): Uses language to represent rewards, providing richer feedback than previous methods that relied on simple numerical scores.
Self-Principled Critique Tuning (SPCT): Allows the AI to adaptively generate its guiding principles and critiques through online reinforcement learning.

Zijun Liu, a researcher from Tsinghua University and DeepSeek-AI who co-authored the paper, explains that this combination allows “principles to be generated based on the input query and responses, adaptively aligning reward generation process.”

Doing more with less

What makes DeepSeek’s approach particularly valuable is “inference-time scaling.” Rather than requiring more computing power during the training phase, the method allows for performance improvements when the AI is used – the ‘point of inference’.

The researchers demonstrated that their method achieves better results with increased sampling during inference, potentially allowing smaller models to match the performance of much larger ones. The efficiency breakthrough comes at a important moment in AI development when the relentless push for larger models raises concerns about sustainability, supply chain viability, and accessibility.

What this means for the future of AI

DeepSeek’s innovation in AI feedback systems could have far-reaching implications:

More accurate AI responses: Better reward models mean AI systems receive more precise feedback, improving outputs over time.
Adaptable performance: The ability to scale performance during inference allows AI systems to adjust to different computational constraints.
Broader capabilities: AI systems can perform better across many tasks by improving reward modelling for general domains.
Democratising AI development: If smaller models can achieve similar results to larger models via better inference methods, AI research could become more accessible to those with limited resources.

DeepSeek’s rising influence

The latest advance adds to DeepSeek’s growing reputation in the AI field. Although founded only in 2023 by entrepreneur Liang Wenfeng, the Hangzhou-based company has made an impact with the V3 foundation model and R1 reasoning model. The company recently upgraded its V3 model (DeepSeek-V3-0324), which it said offered “enhanced reasoning capabilities, optimised front-end web development and upgraded Chinese writing proficiency.”

DeepSeek has also committed to open-source its AI technology, by opening five public code repositories in February which allow developers to review and contribute to software development.

According to the research paper, DeepSeek intends to make its GRM models open-source, although no specific timeline has been provided. Its decision could accelerate progress in the field by allowing broader experimentation with this type of advanced AI feedback system.

Beyond bigger is better

As AI continues to evolve rapidly, DeepSeek’s work demonstrates that innovations in how models learn can be just as important as increasing their size. By focusing on the quality and scalability of feedback, DeepSeek addresses one of the challenges to create AI that better understands and aligns with human preferences.

This possible breakthrough in AI feedback systems suggests the future of artificial intelligence may depend not just on raw computing power but on more intelligent and efficient methods that better capture the nuances of human preferences.

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US panic-buying as Trump’s tech tariffs hit 100%+

Dashveenjit Kaur — Tue, 08 Apr 2025 10:32:16 +0000

Trump’s tech tariff threats reach unprecedented levels.
Potential 100%+ duties on China, placing digital supply chain at risk.
Asian electronics manufacturers and US tech giants face market disruption.

“We’re all living inside the president’s head, and nobody knows anything,” wrote The Atlantic recently – an encapsulation of the market turmoil surrounding Trump’s tech tariffs.

The tariff policy has intensified rapidly, marking an escalation from the president’s previous trade approach. The latest threat to impose an additional 50% duty on Chinese imports unless Beijing withdraws its retaliatory measures would push the total tariff rate to 104%, more than quadrupling the cost of importing Chinese goods into the US.

Beijing’s 34% retaliatory tariffs, imposed in direct response to Trump’s initial tariff announcements, represent China’s own calculated approach – not seeking to match the complete US duties but sending a message that it won’t absorb economic punishment without a proportional response.

China’s Commerce Ministry stated, they “firmly oppose” the US threats and will “resolutely respond,” calling Trump’s approach “doubling down on its mistakes” and “exposing its nature of coercion.”

The severity of this action goes far beyond the 25% peak rates seen during Trump’s first administration, when economists warned of significant market disruption. Now, global technology supply chains that took decades to optimise face the prospect of a complete restructuring, as duties exceeding 100% would effectively close off the world’s largest consumer market to Chinese manufacturers.

This represents a continuation of Trump’s first-term policies and an amplification that creates immediate consequences for technology companies and consumers. “If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump declared on his Truth Social platform this week.

Immediate market response to Trump’s tech tariffs

The escalating tariffs have created an unexpected short-term boom for companies like Apple, with consumers flooding stores to purchase electronics before potential price increases. “Almost every customer asked me if prices were going to go up soon,” reported one Apple store employee, who requested anonymity as they weren’t authorised to speak publicly.

Bloomberg reports that Apple’s US retail locations experienced higher sales this past weekend than in previous years. The sudden purchasing surges illustrate the real-world impact of tariff policies on consumer behaviour, with the prospect of iPhones potentially costing thousands of dollars creating what one employee described as an atmosphere resembling “the busy holiday season.”

The mathematical absurdity of “reciprocal” tariffs

What makes Trump’s approach particularly problematic is the disconnect between his “reciprocal tariff” rhetoric and the calculation method employed. Documents from the office of the US Trade Representative reveal that the tariff levels do not match other countries’ rates; instead, they are based on bilateral trade deficits. The formula mathematically ensures that any nation selling more to America than it buys faces punitive duties, regardless of their actual trade practices.

The reductive approach treats complex global trade relationships as a simplistic zero-sum game, ignoring the reality of how modern supply chains function.

Tech industry fallout

Few sectors stand to lose more from the escalation in trading relations than technology. The industry’s heavy reliance on transnational production networks means that components often cross borders multiple times before reaching consumers. Each crossing potentially incurs tariffs, creating a compound effect that industry analysts call a “tariff cascade.”

Apple exemplifies companies subject to this effect. While it has worked to diversify its manufacturing base since Trump’s first term, shifting some production to Vietnam, India, and other locations, China remains central to its supply chain. The company’s stock suffered its worst three-day rout since 2001 following Trump’s tariff announcements. Bloombergreported that Apple “lost more than half a trillion dollars in valuation” in just two trading days.

Beyond rhetoric: the real-world impact

Despite the president’s claims that tariffs will revitalise American manufacturing, economic forecasts paint a different picture. Fitch Ratings warned that the tariffs have “significantly raised the risk for a recession in the United States” through higher consumer prices, squeezed wages, and dampened business investment.

Larry Fink, CEO of BlackRock, said “most CEOs I’ve talked to would say we are probably in a recession right now.”

For tech consumers, the Yale Budget Lab estimates American households could face an additional $2,100 in annual costs due to the April 2nd tariff announcement alone. Lower-income households will bear a disproportionate burden of these increases, as they spend a higher percentage of their income on consumer electronics and other goods affected by the tariffs.

Strategic incoherence

Perhaps most concerning for the technology sector is the lack of coherent objective.

As Navin Girishankar, head of the economic security programme at the Centre for Strategic and International Studies, told the South China Morning Post, “The Trump administration has been transparent all along about its desire to use tariffs primarily as an instrument of choice for several different objectives,” but “less coherent, I would say incoherent, about the actual goals.”

The strategic ambiguity leaves tech companies in a precarious position, unable to make informed long-term investment decisions. Should they accelerate reshoring efforts, potentially at great expense, or hope for a negotiated resolution?

Cracks in support

Even some of Donald Trump’s most staunch supporters have begun to express concern. Elon Musk, who serves as a senior adviser to Trump, has expressed discomfort with the policy. Meanwhile, billionaire investor Bill Ackman stated bluntly, “I am just frustrated watching what I believe to be a major policy error occur.”

The coming days will determine whether Trump follows through on his threat to escalate duties to their new levels. What’s already clear is that his approach to trade represents a wrecking of the integrated global technology ecosystem that has fuelled innovation worldwide.

For tech companies and consumers across Asia, the message is unmistakable: the era of predictable trade in digital goods is over, at least for now. As markets reel and supply chains reconfigure, uncertainty is the only certainty.

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Trump’s tariffs: A strategic gambit or economic self-harm?

Dashveenjit Kaur — Mon, 07 Apr 2025 13:24:36 +0000

Trump’s reciprocal tariffs rely on formula that ignores trade realities.
Threatens Asian supply chains

Region face tariffs as high as 60%, in “strategic containment via tariff warfare.”

When President Donald Trump stepped to the podium last Wednesday brandishing colourful charts listing countries and their supposed trade barriers, the world watched with collective anxiety. “If you look at that… China, first row, 67%. That’s tariffs charged to the USA,” Trump declared, waving his visual aid.

However, as markets tumbled and governments scrambled to respond, a striking revelation emerged: Trump’s reciprocal tariffs didn’t match actual foreign tariff rates. Instead, buried in documents published by the US Trade Representative’s office (USTR) was an entirely different calculation – a simple mathematical formula focused primarily on bilateral trade deficits.

For all the rhetoric about fairness and reciprocity, the administration had quietly reduced complex global trade relationships to a single ratio: If a country sells more to America than it buys, it’s “cheating” and must be punished accordingly. The approach assumes persistent trade deficits automatically indicate unfair practices by trading partners, a view that has caused economists to object.

The formula uses price elasticity of import demand, tariff pass-through rates, and a country’s export-import balance with the US, and ensures mathematically that any nation selling more to America than it buys faces punitive tariffs. It’s a simplistic solution to what trade experts recognise as a complex, multi-faceted issue.

“This isn’t tit-for-tat – it’s strategic containment via tariff warfare,” noted Stephen Innes from SPI Asset Management, describing what he calls “a full-frontal assault on Beijing’s extended supply chain.”

Asia in the cross-hairs: “Slamming the door shut”

The consequences are particularly severe for Asia. China faces a 34% reciprocal tariff, compared to the 20% tariffs that Trump created. Meanwhile, Southeast Asian nations that benefited from supply chain relocation during Trump’s first term now face what Professor Pushan Dutt of INSEAD business school described as having their door “slammed shut,” with Vietnam facing 46% tariffs, Cambodia 49%, and Laos 48%, according to BBC reporting.

The approach represents a stunning reversal in American economic policy. As Malaysian Prime Minister Anwar Ibrahim observed, “It is quite unusual, as the country that previously supported the spirit of free trade and established the World Trade Organisation and the General Agreement on Tariffs and Trade […] is now taking a different approach.”

The USTR document outlines the administration’s underlying assumptions: “If trade deficits are persistent because of tariff and non-tariff policies and fundamentals, then the tariff rate consistent with offsetting these policies and fundamentals is reciprocal and fair.” Yet this position contradicts economic understanding that trade deficits reflect broader macroeconomic factors, including savings rates, investment flows, and economic structures.

The White House claims the tariffs will force manufacturing back to American shores. “If you want your tariff rate to be zero,” Trump declared, “then you build your product right here in America.” However, economic forecasts suggest a different outcome. Fitch Ratings warns that the tariffs have “significantly raised the risk for a recession in the United States” through higher consumer prices, squeezed wages, and dampened business investment.

Strategic responses: Retaliation or regional integration?

For Asian economies, the impact could be devastating. The targeting of Cambodia, Vietnam, and Laos – among the region’s poorest countries – threatens to undermine their development models.

Those nations are heavily dependent on exports and Chinese investment in supply chain infrastructure, and now face prohibitive barriers to their largest market. China’s Commerce Ministry immediately called the move “a typical act of unilateral bullying” and pledged “resolute countermeasures.” The country’s response signals a likely escalation rather than capitulation.

As former US trade negotiator Stephen Olson told the BBC, “China and the Chinese will have to retaliate. They will not be able to sit back and watch this.”

The strategy may also backfire by accelerating Asian economic integration. China, South Korea, and Japan recently held their first trilateral economic talks in five years, with new momentum to finalise a free trade agreement proposed over a decade ago. Meanwhile, Malaysian Prime Minister Anwar Ibrahim has called for ASEAN to present a unified stance with its combined market of 640 million people.

Inevitably, American businesses operating in Asia will face significant uncertainty. Major companies like Apple, Intel, and Nike maintain substantial manufacturing operations in Vietnam, and a recent survey by the American Chamber of Commerce found that most US manufacturers expect to lay off staff if tariffs are imposed.

While the US administration has framed the tariffs as a negotiating tactic that could be rolled back if countries eliminate their “unfair trade practices” or reduce their trade surpluses with the US, the actual mechanism for such adjustments remains unclear. Commerce Secretary Howard Lutnick’s comment that other countries must do some “deep soul-searching on how they treat us poorly” suggests little appetite for compromise.

Trump’s drastic economic realignment demands an equally strong response from businesses and policymakers in Asia. Whether through regional integration, economic diversification, or direct negotiations, Asian economies must now navigate what Malaysian Prime Minister Anwar aptly called “post-normal times, when political and economic policies are implemented unexpectedly.”

Will Trump’s reciprocal tariffs achieve their stated aim of re-balancing global trade, or will they fragment the global economy into competing blocs? With policy volatility becoming the new normal in international trade, businesses and governments across Asia must adapt to a reality where today’s tariff walls could be tomorrow’s negotiating chips. As markets reel and supply chains reconfigure, the coming months will determine whether this represents a temporary disruption or a fundamental realignment of global commerce.

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AI race intensifies: China narrows the gap

Dashveenjit Kaur — Thu, 27 Mar 2025 13:54:25 +0000

China is closing the gap with the US in AI technology advancements.

DeepSeek’s open-source models demonstrate improvements through algorithmic efficiency.

The artificial intelligence race between China and the United States has entered a new phase as Chinese companies narrow the technology gap despite Western sanctions.

According to Lee Kai-fu, CEO of Chinese startup 01.AI and former head of Google China, the gap in core technologies has shrunk from “six to nine months” to “probably three months,” with China actually pulling ahead in specific areas like infrastructure software engineering. The Chinese AI startup DeepSeek has become the epicentre of the intensifying technological rivalry.

On January 20, 2025, while the world’s attention was fixed on Donald Trump’s inauguration, DeepSeek quietly launched its R1 model – a low-cost, open-source, high-performance large language model with capabilities reportedly rivalling or surpassing OpenAI’s ChatGPT-4, but at a fraction of the cost.

“The fact that DeepSeek can figure out the chain of thought with a new way to do reinforcement learning is either catching up with the US, learning quickly, or maybe even more innovative now,” Lee told Reuters, referring to how DeepSeek models show users their reasoning process before delivering answers.

Innovative efficiency: China’s response to chip sanctions

DeepSeek’s achievement is particularly notable because it emerged despite US restrictions on advanced processor chip exports to China. Instead of being hampered by international limitations, Chinese companies have responded by optimising efficiency and compensating for lower-quality hardware with quantity.

The adaptive approach was demonstrated further on March 25, 2025, when DeepSeek upgraded its V3 large language model. The new version, DeepSeek-V3-0324, features enhanced reasoning capabilities, optimised front-end web development, and upgraded Chinese writing proficiency. DeepSeek-V3-0324 significantly improved in several benchmark tests, especially in mathematics and coding. Häme University lecturer Kuittinen Petri highlighted the significance of these advancements, stating on social media:

“DeepSeek is doing all this with just [roughly] 2% [of the] money resources of OpenAI.” He added that when he asked the new model to “create a great-looking responsive front page for an AI company,” it produced a mobile-friendly, properly functioning website after coding 958 lines.

Global market implications

The impact of China’s AI advances extends beyond technological achievement to financial markets. When DeepSeek launched its R1 model in January, America’s Nasdaq plunged 3.1%, while the S&P 500 fell 1.5%, demonstrating the wider economic significance of technological competition.

The AI race presents opportunities and challenges for Asia and other regions. China’s low-cost, open-source model could help emerging economies develop AI innovation and entrepreneurship. It also pressures closed-source firms like OpenAI to reconsider their stance.

Meanwhile, both superpowers are making massive investments in AI infrastructure. The Trump administration has unveiled the $500 billion Stargate Project, and China is projected to invest more than 10 trillion yuan (US$1.4 trillion) into technology by 2030.

A double-edged sword for global technology

The US-China tech rivalry risks deepening global divides, forcing nations to navigate growing complexities. Countries face difficult questions: How can they manage research partnerships with China without jeopardising collaboration with US institutions?

How can nations reliant on Chinese materials and exports avoid Chinese technologies? South Korea, the world’s second-largest producer of semiconductors, labours with this dilemma. In 2023, it became more dependent on China for five of the six important raw materials needed for chip-making. Major firms like Toyota, SK Hynix, Samsung, and LG Chem remain vulnerable due to Chinese supply chain dominance. And, the climate implications of this AI race are significant.

According to the Institute for Progress, maintaining AI leadership will require the United States to build five-gigawatt clusters in the next five years. By 2030, data centres could consume 10% of US electricity, more than double the 4% recorded in 2023.

The path forward

As the AI landscape evolves, DeepSeek’s arrival has challenged the assumption that US sanctions were constraining China’s AI sector. Washington’s semiconductor sanctions have proven to be what Lee Kai-fu calls a “double-edged sword” that created short-term challenges and forced Chinese firms to innovate under constraints.

The rapid development of Chinese AI has reignited debates over US chip export controls. Critics argue that the present restrictions have accelerated China’s domestic innovation, as evidenced by DeepSeek’s development and improving capabilities.

China is demonstrating remarkable resilience and innovation in the face of restrictions. As DeepSeek prepares to launch its R2 model potentially early, the technology gap continues to narrow.

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TikTok deadline looms: Will ByteDance survive in the US?

Dashveenjit Kaur — Thu, 27 Mar 2025 10:53:47 +0000

The TikTok April 5 ban deadline approaches.

Multiple paths for ByteDance to retain control emerge, Oracle as key player.

Trump administration signals flexibility on deadline extension as deals take shape.

As the April 5 TikTok ban deadline approaches, ByteDance is attempting to secure a deal that would allow the popular video-sharing platform to continue operating in the United States.

The Chinese tech giant faces a federal mandate to divest TikTok’s US operations or see the app banned entirely, following years of national security-focused statements about potential data privacy risks and Chinese government influence. The showdown over TikTok’s future represents the culmination of a years-long saga that began during Trump’s first term and has accelerated since his return to office.

President Trump provided ByteDance with a 75-day reprieve in January, postponing enforcement of the Protecting Americans from Foreign Adversary Controlled Applications Act, which Congress passed with bipartisan support in April 2024. “We have much interest in TikTok,” Trump told reporters in early March. “Hopefully, China will approve of the deal.”

The shift in stance marks a change from a more combative approach during his first administration, suggesting a potential pathway for TikTok’s survival through restructuring rather than a complete sale.

Oracle emerges as a key player

A central figure in discussions about TikTok’s future is cloud computing company Oracle, founded by Larry Ellison. The company already serves as TikTok’s primary cloud provider, hosting US user data since 2022 as part of the platform’s “Project Texas” initiative. Project Texas aimed to address US regulatory concerns by storing Americans’ data domestically.

According to recent reports from The Information and Bloomberg, Oracle is a leading contender to help to rescue TikTok from its current predicament. One proposed deal structure, reportedly being considered by the White House, would assign Oracle the task of safeguarding Americans’ data on TikTok in exchange for a stake in the company while leaving the app’s proprietary algorithm in ByteDance’s hands.
TikTok CEO Shou Zi Chew has objected repeatedly to relinquishing control of the app’s algorithm, which powers its highly-effective content recommendation system and is the platform’s core competitive advantage.

Other multiple pathways forward

Several potential solutions have emerged in recent weeks:

Non-Chinese investor takeover: Reuters reported that major non-Chinese ByteDance investors, including Jeff Yass’s Susquehanna International Group and Bill Ford’s General Atlantic, may increase their existing stakes and acquire TikTok’s US operations as part of a new entity, with Oracle protecting US user data. The arrangement would reduce Chinese ownership below the important 20% threshold needed to avoid the US ban.

Potential new buyers: President Trump mentioned that four groups were negotiating to buy the platform. Names previously floated include Microsoft, AI startup Perplexity, a coalition of billionaire investors, and the US government.

Individual entrepreneur bids: Several high-profile figures have expressed interest in acquiring TikTok, including billionaire Frank McCourt, who is partnering with Reddit co-founder Alexis Ohanian, investor Kevin O’Leary, and popular content creator MrBeast (Jimmy Donaldson).

Vice President JD Vance recently expressed optimism about reaching a resolution, telling reporters, “There will almost certainly be a high-level agreement that satisfies our national security concerns and allows for a distinct American TikTok enterprise.”

Executive departures signal uncertainty

The recent departure of key executives adds to the complexity of TikTok’s predicament. On March 24, Blake Chandlee, TikTok’s global business solutions head who oversaw advertising sales and marketing, announced his resignation effective April 1.

In an internal memo, Chandlee wrote that he would be “scaling back my day-to-day role to an advisory one.” This follows exits by other senior leaders, including North America head of ad sales Sameer Singh, and US general manager of agency business Jack Bamberger, suggesting potential internal disruption as the deadline approaches.

Political pressure mounting

The pressure on TikTok comes from multiple directions. Three Democratic senators – Ed Markey, Chris Van Hollen, and Cory Booker – wrote to President Trump on Monday urging him to seek congressional authority to extend the deadline to October, writing, “the path to saving TikTok should run through Capitol Hill.”

Meanwhile, TikTok has ramped up its public relations efforts with an intensive advertising campaign portraying itself as a force for good. According to estimates from AdImpact, the company increased ad spending from $5 million to over $7 million in February and March compared to the same period last year.

What happens if the TikTok ban deadline passes?

If ByteDance fails to secure a deal by April 5, several enforcement scenarios could unfold:

Google and Apple might be required to remove TikTok from their app stores,

Internet service providers could be directed to block access to TikTok’s servers,

Further legal challenges from TikTok and users could follow.

Despite the fast-approaching deadline, TikTok is operating as usual, planning appearances at industry events beyond the April deadline, including the Cannes Lions advertising festival in June and the Interactive Advertising Bureau’s NewFronts in May. As the clock ticks down to April 5, the eventual fate of TikTok – with 170 million American users – remains unclear. The outcome will determine the future of a wildly-popular social media platform and set precedents for how the US government handles perceived national security threats from foreign-owned companies.

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Nvidia chip crackdown: Malaysia under US pressure to stop AI reaching China

Dashveenjit Kaur — Tue, 25 Mar 2025 15:29:21 +0000

Malaysia tightens semiconductor regulations amid Nvidia chip diversion to China.

$390 million fraud case in Singapore reveals vulnerabilities in SE Asia supply chain.

The Nvidia chip crackdown in Malaysia is intensifying. The country is apparently facing mounting pressure from the United States to prevent advanced semiconductors from being diverted to China.

Malaysia’s Trade Minister Zafrul Aziz has confirmed the Malaysian government plans to tighten regulations on semiconductor movements in response to specific US demands to monitor high-end Nvidia chips entering the country. “[The US is] asking us to make sure that we monitor every shipment that comes to Malaysia when it involves Nvidia chips,” Aziz told the Financial Times [paywall]. “They want us to ensure that servers end up in the data centres they’re supposed to and not suddenly move to another ship.”

The minister has formed a special task force with Digital Minister, Gobind Singh Deo, to strengthen regulations around Malaysia’s rapidly-growing data centre industry, which heavily relies on chips from industry leader Nvidia. The move comes amid heightened concerns in the US that Malaysia may be serving as a transit point for advanced AI chips ultimately destined for China, in violation of US export controls.

Singapore fraud case highlights regional concerns

The Malaysian moves follow closely on the heels of a major fraud investigation in neighbouring Singapore, where authorities have charged three individuals – two Singaporeans and one Chinese national – over trades in hardware servers allegedly worth approximately $390 million.

During a press briefing in early March, Singapore’s Home Affairs Minister K Shanmugam stated that the servers in question “may contain Nvidia chips.” The case involves Dell and Supermicro servers imported from the US and subsequently sold to a company in Malaysia. “The question is whether Malaysia was a final destination or from Malaysia it went somewhere else, which we do not know for certain at this point,” Shanmugam said, adding that the Singaporean government had requested assistance from both the US and Malaysian authorities in its investigation.

Two of the individuals charged – Alan Wei Zhaolun, 48, and Aaron Woon Guo Jie, 40 – hold senior positions at Aperia Cloud Services as CEO and COO respectively. According to its website, Aperia claims to be “Nvidia’s first qualified Nvidia Cloud Partner in Southeast Asia,” with “priority access to the highest-performing [graphics processing units] available in the market.” The third individual, a 51-year-old Chinese national named Li Miang, is accused of claiming fraudulently that the end user of items he purchased was a Singaporean computer equipment sales company, Luxuriate Your Life.

US export controls on Nvidia chip and regional impact

The increased scrutiny stems from broader US efforts to obstruct China’s development of advanced technologies, particularly AI with potential military applications. During the final days of the Biden administration in late 2024, the US introduced a three-tier licensing system for AI chips designed for use in data centres, explicitly targeting Nvidia’s powerful graphics processing units (GPUs). The measures were designed to prevent Chinese companies from circumventing US restrictions by accessing restricted chips through third countries. The US is also investigating if Chinese AI firm DeepSeek (which made headlines recently about its impressive AI model performance) has been using banned US chips.

Malaysia’s growing data centre industry

Malaysia has emerged as one of the fastest-growing global data centre development markets, with much of this growth concentrated in the southern state of Johor. According to Zafrul, the state has attracted over $25 billion in investment from major technology companies, including Nvidia, Microsoft, and ByteDance (TikTok’s parent company) in the past 18 months alone. The country recently agreed to form a special economic zone with Singapore, further embedding it as a key player in regional technology infrastructure. However, with the growth comes an increased responsibility to ensure compliance with international export controls.

Challenges in enforcement

Minister Zafrul has acknowledged the significant challenges in tracking semiconductors through complex global supply chains. “The US is also putting much pressure on their own companies to be responsible for ensuring [chips] arrive at their rightful destination,” he said. “Everybody’s been asked to play a role throughout the supply chain.” He emphasised the difficulty of enforcement, stating plainly, “Enforcement might sound easy, but it’s not.”

Nvidia’s global sales patterns underscore the challenge. It generates nearly a quarter of its global sales through its Singapore office, raising attention in the US around potential hardware movements to China. Nvidia has maintained that almost all of these sales constitute invoicing of international companies through Singapore, with very few chips passing through the city-state.

Regional context and industry impact

The focus on semiconductor flows in Southeast Asia represents one aspect of broader technology trade restrictions in place. In a parallel development, the European Union recently sanctioned Splendent Technologies, a Singaporean chip distributor, as part of measures targeting companies allegedly helping Russia’s defence sector.

Balancing economic development with regulatory compliance presents a practical challenge for Malaysia. The country’s efforts to strengthen monitoring systems must address complex supply chains while be supportive of its growing position in the regional technology ecosystem. As Malaysia implements new oversight measures, technology companies operating in the region may face additional compliance requirements stemming from Kuala Lumpur. However, the precise impact on the broader semiconductor industry will depend on the specific implementation approach and enforcement capacity.

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BYD dominates Tesla: How Chinese EV giant is winning the global EV race

Dashveenjit Kaur — Tue, 25 Mar 2025 10:59:27 +0000

BYD beats Tesla with $107 billion revenue and aggressive price on-priced Model 3 competitor.

Chinese EV maker overtakes as political backlash and price competition drive Tesla’s sales down.

Tesla’s once unassailable position in the electric vehicle (EV) market continues to erode in 2025 as Chinese automaker BYD dominates the global EV landscape with its recipe of innovation and aggressive pricing.

The US electric vehicle pioneer, led by Elon Musk, now struggles against BYD’s global expansion and technological advances that are reshaping consumer expectations worldwide. The power shift has fundamentally altered the competitive dynamics of the global EV industry, with profound implications for automakers across all markets.

Revenue milestone

According to a stock filing published Monday at the Shenzhen stock exchange, BYD’s 2024 revenue reached 777.1 billion yuan ($107.2 billion), ahead of Tesla’s $97.7 billion. The crossover in leadership position marks the first time the Chinese automaker has surpassed its American rival in revenue.

“BYD’s revenue results represent a 29% increase from the previous year and outperformed a Bloomberg forecast of 766 billion yuan,” reported AFP. BYD’s net profit reached 40.3 billion yuan, up 34% from 2023, and it recorded a record quarterly profit of 15 billion yuan in Q4 2024. The timing is significant, coinciding with Tesla’s declining sales trajectory in most major markets and BYD’s aggressive expansion into international territories previously dominated by Western manufacturers.

The “Model 3 killer” strategy

Perhaps most threatening to Tesla’s position is BYD’s direct assault on its bestselling Model 3. On Sunday, BYD launched the Qin L, priced at just 119,800 yuan ($16,517), positioning it as what the South China Morning Post describes as a “Model 3 killer.”

For comparison, the basic edition of Tesla’s Model 3 in China is priced at 235,500 yuan – more than double. Despite the price difference, the Qin L offers competitive specifications with a driving range of 545km to Model 3’s 634km. Both cars feature preliminary self-driving software and digital cockpits, demonstrating BYD’s ability to at least match Tesla’s technology at a significantly lower price point.

“BYD has already impressed most Chinese drivers as a maker of reliable electric cars, and its new products that are affordable to middle- and low-income consumers will lure some Tesla fans away from its Model 3 and Model Y,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “As it enjoys a pricing advantage, Qin L will easily generate thousands of deliveries a month.”

Meanwhile, Guangzhou-based Xpeng is challenging Tesla and BYD with its Mona M03, priced the same as the Qin L at 119,800 yuan. The company shipped more than 15,000 units of the Mona M03 in February.

Global sales disparity: How BYD dominates Tesla

The contrast in sales performance is stark. BYD reported selling 322,846 cars in February 2025, up 164% on last year. According to AFP, its monthly sales jumped 161% in February to 318,000 units. Meanwhile, Tesla’s shipments from China dropped 49% in February, with the automaker shipping 30,688 vehicles – the lowest monthly figure since July 2022.

On a broader level, Tesla’s market share in China has dropped from more than 16% of the market in 2022 to 4.3% in February 2025.

Tesla’s global decline

Tesla’s challenges extend beyond China. According to TIME, the company’s stock dropped 15% on Monday, its steepest decline in five years. European sales have been particularly hard hit, with Tesla selling just 7,517 vehicles in Europe in January, half of what it sold in January the previous year, despite overall rising EV sales in the region.

In Germany, Tesla sales were down more than 70% compared to last year, with less than 1,500 new Teslas registered in February. Similar patterns emerged across Europe, with sales falling 50% in Portugal, 45% in France, 42% in Sweden, and 48% in Norway between January and February 2025. The UK is the only country where the brand remains in increased demand.

Australia has also seen Tesla sales drop over 70% compared to last year, with just 1,592 sales in February compared to 5,665 in February 2024, according to The Guardian. Even in California, Tesla’s home market and the largest domestic market for EVs in the US, sales have slumped for five consecutive quarters.

Technology race

BYD isn’t winning on price alone. The company is pushing technological innovation, recently unveiling its “Super e-Platform” battery and charging system. The system boasts peak speeds of 1,000 kilowatts – double the 500 kilowatts currently offered by Tesla’s Superchargers. The system allows cars to travel up to 470 kilometres after just a five-minute charge.

Last month BYD announced that at least 21 of its models, including the Seagull hatchback that starts at just 69,800 yuan, would be fitted with its advanced driver assistance system at no additional cost. The system allows cars to navigate and drive semi-autonomously on roads and park itself.

Tesla’s response

To counter its sales decline in China, Tesla is currently designing a cheaper version of its bestselling Model Y. According to the South China Morning Post, the new edition will be 20% cheaper than the existing variants available in China, which range in price from 263,500 yuan to 303,500 yuan. The US firm plans to start making the car at its Shanghai factory next year.

As reported by Reuters, Tesla has also sent engineers to work with Baidu to integrate Chinese map data with Tesla’s driver-assistance systems, helping vehicles better recognise mainland China’s lane markings and traffic signals. When asked about managing his various businesses amid these challenges, Musk told Fox Business’s Larry Kudlow that he was doing so “with great difficulty.”

Market valuation gap

Despite BYD’s revenue gains, Tesla maintains a significant lead in market valuation. Fortune reports that, “Tesla is worth about $800 billion despite a share-price rout that’s seen the stock plunge 38% this year. BYD has a market capitalisation closer to $157 billion.”

Tesla also continues to lead in profitability ratio, with a 2024 net income of $7.6 billion compared to BYD’s approximately $5.6 billion (40.3 billion yuan). This suggests that while BYD dominates sales volume and revenue, Tesla maintains higher profit margins per vehicle.

Outlook

Wang Chuanfu, BYD’s chairman and founder, stated that Chinese auto brands in the era of intelligence-led vehicles were no longer merely followers but at the forefront of the trend. “They’re ‘daring’ to be first in the world and are collaborating with other domestic brands to go global and move up the value chain,” he said, according to Fortune.

The company that once dominated the EV landscape faces questions about its positioning and strategy. With production shortages affecting its upgraded Model Y deliveries in Shanghai and competitors offering comparable technology at half the price, Tesla’s first-mover advantage has largely evaporated. The global EV race has entered a new phase, and BYD dominates Tesla in ways few would have predicted just a few years ago.

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Is the US losing its edge in AI?

Muhammad Zulhusni — Mon, 24 Mar 2025 11:44:44 +0000

US AI firms warn America’s AI lead is shrinking to DeepSeek’s R1 and Ernie X1.

OpenAI and Anthropic cite national security risk from Chinese AI models.

Major US artificial intelligence companies, like OpenAI, Anthropic, and Google, have expressed concern over China’s increasing abilities in AI development.

In submissions to the US government, the companies have warned America’s edge in AI is dwindling, as Chinese models like DeepSeek R1 become more advanced. The submissions were filed in response to a government request for input on an AI Action Plan, and were made in March 2025.

China’s growing AI presence

DeepSeek R1, the AI model from China, has drawn attention from US developers. OpenAI described DeepSeek as evidence that the technological gap between the US and China is closing. The corporation described DeepSeek as “state-subsidised, state-controlled, and freely available,” and expressed concerns about China’s ability to influence global AI development.

OpenAI compared DeepSeek to Chinese telecommunications company Huawei, warning that Chinese regulations could allow the government to compel DeepSeek to compromise sensitive systems or important infrastructure.

OpenAI also expressed worries about data privacy, pointing out that DeepSeek’s requirements for data-sharing with the Chinese government could strengthen the state’s surveillance abilities.

Anthropic’s submission focused on biosecurity, noting that DeepSeek R1 “complied with answering most biological weaponisation questions, even when formulated with a clearly malicious intent.”

The willingness to generate possibly dangerous information contrasts with the safety protocols the submissions describe as implemented in US-developed models.

Competition goes beyond DeepSeek. Baidu, China’s largest search engine, recently launched Ernie X1 and Ernie 4.5, two new AI models designed to compete with leading Western systems. Ernie X1, a reasoning model, is said to match DeepSeek R1’s performance at half the cost. Meanwhile, Ernie 4.5 is priced at 1% of OpenAI’s GPT-4.5 and has outperformed it on certain benchmarks, according to Baidu.

Both OpenAI and Anthropic framed the competition as ideological, describing it as a contest between “democratic AI” developed under Western principles and “authoritarian AI” shaped by state control. However, the recent success of Baidu and DeepSeek suggests that cost and accessibility may have a greater impact on global adoption than ideology.

US AI security and infrastructure concerns

The US companies’ submissions also raised their concerns about security and infrastructure challenges linked to the technology development. OpenAI’s submission focused on the dangers of Chinese state influence over AI models like DeepSeek, while Anthropic’s submission its emphasised biosecurity concerns tied to AI capabilities. The company disclosed that its own Claude 3.7 Sonnet model demonstrated improvements in biological weapon development, highlighting the dual-use nature of advanced AI systems. Anthropic also pointed to gaps in US export controls.

While Nvidia’s H20 chips comply with US export restrictions, they still perform well in text generation – a key factor in reinforcement learning. Anthropic urged the government to strengthen these controls to prevent China from gaining an advantage.

Google’s submission took a more balanced approach, acknowledging security risks while warning against over-regulation. The company argued that strict export controls could harm US economic competitiveness by creating barriers for domestic cloud providers and AI developers. Google suggested targeted controls to protect national security without disrupting business operations.

All three businesses stressed the need for improved government oversight of AI security. Anthropic called for expanding the AI Safety Institute and strengthening the National Institute of Standards and Technology (NIST) to assess and mitigate AI-related security threats.

Economic competitiveness and energy needs

The submissions also focused on the economic factors shaping AI development. Anthropic stressed infrastructure challenges, warning that by 2027, training a single advanced AI model could require five gigawatts of power. The corporation proposed the building 50 gigawatts of AI-dedicated power capacity by 2027 and streamlining the power transmission line approval process.

Baidu’s recent announcements have highlighted the importance of cost-effective AI development. Ernie 4.5 and X1 are reportedly available for a fraction of the cost of comparable Western models, with much lower token processing fees than OpenAI’s current models. Such pricing strategies from Chinese models could pressure US developers to reduce costs to remain competitive. OpenAI portrayed the competition as an ideological contest between Western and Chinese models’ arguing a free-market strategy would result in more innovation and better outcomes for consumers.

Google’s stance in the submissions was more concerned with practical policy recommendations. The company called for increased federal investment in AI research, improved access to government contracts, and streamlined export controls.

Regulatory strategies

A unified approach to AI regulation emerged as a consistent theme across all three submissions. OpenAI proposed a regulatory framework managed by the Department of Commerce, claiming that fragmented domestic state-level regulations could drive AI development overseas. The company supported a tiered export control framework that would allow broader access to US-developed AI in countries considered democratic while restricting access in authoritarian states. Anthropic called for stricter export controls on AI hardware and training data, warning that even marginal improvements in model performance could provide strategic advantages to China.

Google’s submission focused on copyright and intellectual property rights. The company argued that its current ‘fair use’-based policies are essential for AI development, and warned that overly strict copyright rules could disadvantage US firms compared to Chinese competitors.

All three companies emphasised the need for faster governmental implementation of AI. OpenAI suggested removing existing testing and procurement processes, joining Anthropic’s advocacy of streamlined AI procurement processes from federal agencies. Google supported similar reforms, highlighting the importance of improved interoperability in government cloud infrastructure.

Maintaining a competitive edge

The submissions from OpenAI, Anthropic, and Google reflect a shared concern about maintaining US leadership in AI in the country as competition from China intensifies. The rise of DeepSeek R1 and Baidu’s latest models points to a growing challenge not just in technological capability but also in cost and accessibility.

As AI development accelerates, the balance between security, economic growth, and technological leadership will likely remain key policy challenges.

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Tesla sales plummet worldwide as competition and political backlash intensify

Dashveenjit Kaur — Wed, 19 Mar 2025 12:33:23 +0000

Tesla sales decline globally amid Elon Musk’s politics and competition from local rivals.

Electric vehicle pioneer sees market share erosion in Europe, China, and Australia.

Tesla is designing a cheaper Model Y and enhancing its autonomous-driving capabilities in China as it scrambles to reverse a worldwide sales slide.

The Tesla sales decline has become a challenge for the electric vehicle maker. To combat plummeting market share, the new Model Y variant is planned to be 20% cheaper than existing models.

Once the undisputed leader in the global EV market, Tesla is grappling with consumer backlash against CEO Elon Musk’s political association with the Trump administration and increasingly fierce competition from local rivals in key markets. According to the South China Morning Post, the company’s market share in China has dropped dramatically from more than 16% in 2022 to just 4.3% in February 2025.

Stock market response

The impact has been felt on Wall Street, where Tesla’s stock dropped 15% on Monday, marking its steepest decline in five years. According to TIME, the drop came alongside a stock market plunge following President Donald Trump’s hint at a recession. The president acknowledged Tesla’s struggles in a post on Truth Social, where he blamed “radical left lunatics” for boycotting Musk’s EV company and pledged to “buy a brand new Tesla” himself.

European market struggles

The decline in Tesla sales is particularly pronounced in Europe. According to the European Automobile Manufacturers’ Association (ACEA), Tesla sold just under 7,517 vehicles in Europe in January, half of January 2024 sales. The decline comes despite the rise of overall battery and hybrid electric vehicle sales as the European Union (EU) continues to tighten regulations on emissions from new vehicles.

In February, electric vehicle sales in Germany, the largest market for EVs in the EU, rose 30% year over year, yet Tesla sales were down more than 70% compared to last year. TIME reports that less than 1,500 new Teslas were registered in Germany in February.

Other European countries have also witnessed Tesla’s market share erode. Between January and February of 2025, Tesla recorded a 50% drop in sales in Portugal and 45% in France, according to Reuters, while sales fell 42% in Sweden and by 48% in Norway.

Australian and Chinese markets

The Tesla sales decline includes Australia, where data from the Electric Vehicle Council shows that Tesla sales dropped over 70% compared to last year, with just 1,592 sales in February compared to 5,665 in February 2024, as reported by The Guardian.

In China, Tesla is facing particular challenges. Tesla sales in China dropped 49% in February, with the automaker shipping 30,688 vehicles – the lowest monthly figure since July 2022, according to Bloomberg. Tesla’s market share in the country has plummeted from more than 16% in 2022 to just 4.3% in February 2025, as reported by the South China Morning Post.

Chinese automaker BYD has emerged as a formidable competitor, selling more than 318,000 electric and hybrid cars last month – a 161% increase from last year. In December, sales of Tesla’s Model 3 fell behind those of the SU7, developed by smartphone vendor Xiaomi, by 25,815 to 21,046.

US market challenges & the bright spots amid global decline

Even in Tesla’s home market, the company is facing headwinds. In California – the biggest domestic market for EVs thanks to its state mandate that 35% of new 2026 car models sold must be zero-emissions – Tesla sales slumped for the fifth consecutive quarter, according to data from the California New Car Dealers Association (CNCDA).

However, not every market has seen a similar decline. Britain saw a record number of EV sales in 2024, and Tesla sales were up 20% in February, bucking the global trend.

Musk’s response to global challenges

When Fox Business’s Larry Kudlow asked Musk how he was managing his various businesses amid these challenges, Musk candidly admitted he was doing so “with great difficulty.” Tesla has not officially released a statement addressing its falling sales, but its actions in various markets speak of the company’s recognition of the severity of the situation.

Competition intensifies as price war unfolds

Mainland China is Tesla’s second-largest market worldwide, trailing only the US, and the Shanghai factory is the carmaker’s most extensive production base. However, the company faces increasingly sophisticated competition from local manufacturers offering comparable or superior technology at significantly lower prices. An entry-level edition of Xpeng’s Mona M03, an EV fitted with preliminary autonomous-driving technology, costs 119,800 yuan, just half the price of the Model 3.

The price disparity illustrates the fundamental challenge Tesla faces in markets like China, where domestic manufacturers have rapidly closed the technological gap while maintaining a substantial cost advantage. Chinese brands also employ aggressive pricing strategies that Tesla has struggled to match. According to China Passenger Car Association data, a record 227 models, including electric and petrol cars, had their prices cut in 2024, compared with 148 in 2023. The price war puts additional pressure on Tesla’s margins when the company is already contending with declining sales volumes.

The road ahead: Critical challenges mount

The decline in Tesla sales represents a pivotal moment for the company that once dominated the EV landscape. While Tesla is taking steps to address its challenges – particularly in China with its new lower-priced Model Y and enhanced autonomous capabilities – these moves may be too little, too late as competitors continue to gain momentum.

Tesla’s production problems compound its market challenges. Even as the company unveiled an upgraded Model Y in China in late February, buyers in Shanghai are still waiting for deliveries due to production shortages, according to the South China Morning Post. These operational issues further erode consumer confidence at an important juncture. The reality facing Tesla is stark: its first-mover advantage has largely evaporated, and the company now finds itself in unfamiliar territory – playing defence rather than setting the agenda for the industry.

With EV adoption accelerating globally and Tesla’s share of the growing market shrinking, the company faces existential questions about its positioning and strategy. For a company whose stratospheric valuation was predicated on market dominance and industry leadership, this period of retrenchment signals a fundamental recalibration of Tesla’s prospects.

Whether Musk’s company can regain its footing in an increasingly crowded landscape remains today’s a pressing question in the electric vehicle industry.

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Chinese AI agent Manus is breakthrough in autonomous AI technology

Dashveenjit Kaur — Fri, 14 Mar 2025 09:35:52 +0000

Chinese AI agent Manus gains attention executing complex tasks autonomously.

Manus is partnership with Alibaba’s Qwen.

Designed to expand capabilities for the Chinese market.

Chinese AI agent Manus has emerged as the latest breakthrough in artificial intelligence technology, generating a significant buzz in the global tech community for its advanced autonomous capabilities.

Developed by Tencent Holdings-backed startup Butterfly Effect, Manus claims to be the world’s first general AI agent, distinguishing itself from conventional chatbots by focusing on task completion rather than just conversation. Unlike traditional AI assistants that primarily handle dialogue, the Chinese AI agent Manus utilises multiple AI models to perform complex, multi-step tasks autonomously.

During its invitation-only online preview last week, Manus demonstrated impressive capabilities, including creating customised websites, screening résumés, and producing property recommendation reports based on specific criteria. Manus executes complex tasks from start to finish, delivering complete solutions rather than just suggestions.

“The video says the AI agent is more advanced than a chatbot because it doesn’t only generate ideas but delivers tangible results, like producing a report recommending properties to buy based on specific criteria,” reported CNN Business.

How Manus works

* Manus was evaluated in standard mode using the same configuration as its production version for reproducibility.
* Comparative data from OpenAI Deep Research and other systems were sourced from OpenAI’s release blog.

In a post on X, Peak Ji Yichao, co-founder and chief scientist at Butterfly Effect, stated the Chinese AI agent Manus was built using existing large language models, including Anthropic’s Claude and fine-tuned versions of Alibaba’s open-source Qwen. The multi-model approach enables more sophisticated reasoning and action capabilities.

According to MIT Technology Review, which obtained access to the platform, using Manus “feels like collaborating with a highly intelligent and efficient intern.”

The publication tested Manus on three tasks: compiling a list of journalists covering China tech, searching for property listings with specific criteria, and nominating candidates for MIT Technology Review’s Innovators Under 35 list.

“While it occasionally lacks understanding of what it’s being asked to do, makes incorrect assumptions, or cuts corners to expedite tasks, it explains its reasoning clearly, is remarkably adaptable, and can improve substantially when provided with detailed instructions or feedback,” wrote Caiwei Chen in MIT Technology Review. What differentiates Manus is “Manus’s Computer” window, which allows users to observe what the agent is doing and intervene at any point. The transparency and collaborative machine-human approach gives users greater control over the AI’s actions.

Limited access despite growing interest

Despite generating significant buzz, access to Manus remains highly restricted. Fewer than 1% of users on the wait-list have received an invite code. The platform’s Discord channel has attracted more than 186,000 members, indicating substantial interest from potential users worldwide.

According to Chinese media outlet 36Kr, Manus’s per-task cost is approximately $2, which is claimed to be one-tenth of the cost of OpenAI’s DeepResearch service. If its server infrastructure improves, this cost efficiency could position the Chinese AI agent Manus as a preferred choice for individual professionals and small teams.

The system isn’t without limitations, however. MIT Technology Review reported that Manus encountered obstacles with pay-walled content and experienced occasional crashes due to high service loads. The message “Due to the current high service load, tasks cannot be created. Please try again in a few minutes” appeared multiple times during testing.

Strategic partnership with Alibaba

Recognising the potential for growth in the Chinese market, Manus recently announced a strategic partnership with Alibaba. According to the South China Morning Post, the March 11 announcement revealed “Manus will engage in strategic cooperation with Alibaba’s Qwen team to meet the needs of Chinese users. ”

The two companies are working closely to ensure all Manus functions are available on “domestic models and computing platforms,” although no specific launch date was provided. A representative of Alibaba’s cloud computing unit confirmed the cooperation, saying both parties are collaborating on open-source models and looking forward to “working with more global AI innovators.”

Alibaba’s QwQ-32B reasoning model advances in parallel

The partnership comes when Alibaba is progressing AI development. On March 6, the company unveiled its latest reasoning model, QwQ-32B, claiming its capabilities surpass OpenAI’s o1-mini and rival DeepSeek’s R1 model. The news was impactful enough to boost Alibaba’s Hong Kong-listed shares by 8% on the announcement day.

“Alibaba touted its new model, QwQ-32B, in an online statement as delivering exceptional performance, almost entirely surpassing OpenAI-o1-mini and rivalling the strongest open-source reasoning model, DeepSeek-R1,” reported CNN Business.

What makes this development notable is the model’s efficiency – Alibaba claims QwQ-32B contains just 32 billion parameters compared to DeepSeek R1’s 671 billion, suggesting significantly lower computational requirements. The tech giant intends to invest at least 380 billion yuan ($52.4 billion) in AI and cloud computing infrastructure over the next three years, underscoring its commitment to establishing leadership in AI.

China’s AI ecosystem gains momentum

As the Chinese AI agent Manus continues to develop through its partnership with Alibaba, it symbolises a broader phenomenon. The Chinese government’s policies include promoting technological self-reliance, generous funding initiatives, and a robust pipeline of AI graduates from top Chinese universities, which together have created a fertile ecosystem for progression.

Chinese firms are now creating increasingly advanced large language models that compete directly with Western counterparts. The Chinese government’s pledge to support “emerging industries and industries of the future” with increased funding for artificial intelligence, combined with Alibaba’s massive $52.4 billion investment commitment, demonstrates the nation’s strategic prioritisation of AI development.

The centrally-coordinated approach is yielding results. The emergence of tools like Manus suggests that the global AI landscape is evolving into a genuinely multi-polar space, with Chinese innovations increasingly setting trends rather than following them.

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