Tech News - TechSmartWorld

The annual Zoomtopia 2025 event has once again positioned itself as a key indicator of where the future of work is heading. Held virtually on September 17, this year’s theme — “Zoom for the People” — highlighted Zoom’s mission to empower users through smarter collaboration, human connection, and the growing influence of artificial intelligence.

However, a crucial question loomed over the event: Can Zoom continue to innovate and remain relevant in a world where many workers are returning to physical offices, while tech giants are racing ahead with AI integration?

Is Zoom Innovating Fast Enough for the Hybrid Era?

One of the major conversations at Zoomtopia 2025 centered on the ongoing back-to-office movement across many U.S. industries. From banking to technology, companies are increasingly calling teams back to the office, threatening the kind of growth Zoom saw during the pandemic.

Zoom’s strategy is clear — to make virtual collaboration more valuable than being in person. CEO Eric Yuan introduced Zoom as an AI-powered work platform, not merely a video meeting tool. He emphasized that Zoom is evolving to integrate video, voice, and automation in a way that turns routine online meetings into opportunities for faster decisions and stronger outcomes.

New updates to Zoom AI Companion and the idea of building digital twins of users illustrate this direction. These digital assistants aim to handle scheduling, note-taking, and project follow-ups automatically — turning remote meetings into efficient, action-driven spaces.

Still, the challenge remains: can technology truly replicate the spontaneous creativity of in-person interactions or the intangible energy of hallway conversations?

Zoom’s Bold AI Vision: The AI Companion and Digital Twin

If there was one overarching theme at Zoomtopia 2025, it was undoubtedly AI. Eric Yuan even introduced his AI avatar, designed to handle repetitive tasks — a preview of the company’s focus on intelligent automation.

Zoom unveiled AI Companion 3.0, which adds deeper integration across workflows — from summarizing meetings and automating tasks to managing communications and travel. The long-term goal? A personal digital twin that understands users’ preferences, context, and work routines well enough to assist with decision-making.

Yuan made it clear that the user remains the decision-maker, but this AI within Zoom aims to act as a digital manager that helps workers save time and improve productivity.

Zoom also showcased how businesses like Talkspace and Upwork are already leveraging AI-driven automations for greater efficiency. Yet, despite the bold vision, competition is fierce. Microsoft integrates Copilot with Teams and Windows, while Google builds AI tools into Workspace. Zoom’s challenge is to make its version of AI feel distinct and indispensable.

Zoom’s Strategic Focus: Simplicity, Efficiency, and Customer Connection

Zoom used the event to clarify its strategic direction, based on three core pillars:

It just works – Zoom remains committed to being simple, secure, and reliable — qualities that built its early success.
Make every second count – Through AI Companion, Zoom reduces repetitive work by summarizing meetings, assigning tasks, and syncing data with other business tools.
What matters to you – The platform is shaped by customer input, serving individuals, SMBs, and enterprise users alike.

Zoom also launched the Zoom Solopreneur 50, highlighting entrepreneurs and small business owners using Zoom to scale their ideas. This initiative underscores Zoom’s evolving identity — not just for corporations, but for individual professionals shaping the digital economy.

Why Partnerships Are Central to Zoom’s Growth

To thrive in the AI era, Zoom is expanding through strategic partnerships rather than isolation. Two highlight collaborations were announced during the event:

Cisco Partnership – A new Zoom-certified app will be available on Cisco Room devices, maintaining strong compatibility with enterprise hardware. This move supports Zoom’s open ecosystem philosophy.
Google Beam Integration – Partnering with Google’s Beam video technology, Zoom aims to deliver ultra-realistic meeting experiences that feel as natural as face-to-face interactions.

These partnerships reflect Zoom’s pragmatic approach: while others build closed ecosystems, Zoom positions itself as the “Switzerland” of workplace communication — connecting seamlessly with both hardware and software from diverse tech players.

Can Zoom Compete in the AI-Driven Future?

Zoomtopia 2025 painted a forward-looking picture filled with optimism. From advanced AI features and digital twin concepts to collaborations with major tech names, Zoom is positioning itself as a complete AI-powered collaboration platform.

However, some skepticism remains. As employees return to the office, Zoom may face slower growth in usage. Additionally, competitors like Microsoft Teams, Google Workspace, and Cisco Webex have vast integrated ecosystems that give them an edge.

While Zoom’s innovations are impressive, they must stand out among similar tools from larger players. The company’s challenge is to remain not just useful, but essential.

In essence, Zoom is still innovating boldly — but whether innovation alone is enough to secure its long-term dominance remains to be seen.

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Tech News

Dolby Vision 2: A Bold Leap in HDR—But Not Without Controvers

September 3, 2025 techsmartworld team Dolby Vision 2 Max

Dolby Vision 2: The Next Generation of HDR Technology

Dolby has officially launched Dolby Vision 2, a major upgrade to its renowned high dynamic range (HDR) format. With new AI-driven features and motion control tools, it’s already sparking conversations among filmmakers, tech reviewers, and home cinema enthusiasts.

Understanding Dolby Vision 2: Smarter HDR for Modern Screens

Building on the success of the original Dolby Vision, this new iteration introduces two standout innovations:

Content Intelligence: AI-powered optimization that adapts visuals to your viewing environment.
Authentic Motion: A motion processing tool designed to preserve cinematic quality while minimizing judder.

These upgrades aim to align creative intent with real-world viewing conditions—especially in homes with varied lighting and display setups.

Content Intelligence: Adaptive Brightness Meets Artistic Fidelity

One of the biggest complaints about HDR content is its tendency to appear too dark on non-premium TVs or in brightly lit rooms. Iconic scenes like the Battle of Winterfell in Game of Thrones or the shadowy corridors of Silo have left viewers squinting.

Dolby Vision 2 addresses this with ambient light sensors and AI-based image adjustments. The goal? Deliver crystal-clear visuals in any lighting condition—without diluting the filmmaker’s vision. This could be a breakthrough for everyday viewers who lack high-end gear.

Authentic Motion: Precision Motion Control for Cinematic Storytelling

Motion smoothing has long divided audiences. While some appreciate the hyper-smooth look, many directors argue it disrupts the cinematic experience, making films resemble soap operas or high-frame-rate demos.

Dolby’s new Authentic Motion feature offers scene-by-scene control over motion rendering. Marketed as the first creator-led motion tool, it promises to reduce judder while preserving filmic texture.

Still, key questions linger:

Will it truly differ from traditional motion smoothing?
Can it eliminate visual artifacts?
Will filmmakers adopt it—or push back?

Dolby Vision 2 vs Dolby Vision 2 Max: Tiered Support for TV Displays

Dolby Vision 2 will be available in two performance tiers:

Tier	Target Audience	Key Features
Dolby Vision 2	Entry-level & mid-range TVs	Standard HDR enhancements
Dolby Vision 2 Max	Premium & flagship displays	Full suite of AI and motion tools

Hisense is the first TV manufacturer to confirm support, while CANAL+ plans to integrate the format into its production pipeline. More announcements are expected at CES this January.

Final Verdict: Innovation or Interference?

Dolby Vision 2 blends artificial intelligence, creative control, and environmental adaptability. Whether it becomes a new industry standard or faces resistance will depend on how well it balances technical advancement with artistic authenticity.

Stay tuned for CES updates—and let’s hear your take: Is Dolby Vision 2 a cinematic leap forward, or does it risk tampering with movie magic?

Tech News

Samsung to buy German cooling system maker FlaktGroup for $1.7 billion

May 14, 2025 techsmartworld team AI, Artificial Intelligence, CHIP

Samsung Electronics (005930.ks) opens a new tab on Wednesday, as it had agreed to buy the German Flakt Group for 1.5 billion euros ($ 1.68 billion), as it seems to meet the growing demand for cooling of data centers used for artificial intelligence projects.

In the greatest acquisition of the South Korean company in eight years, you will buy the manufacturer of air conditioning systems and heating systems of the private capital group Triton.

Samsung said in a statement that the data center segment has a high input barrier that requires global supply experience and the ability to present optimal designs and solutions. He hopes that the Flaktgroup agreement will close within this year.

Samsung, led by President Jay Y. Lee, said at a shareholders meeting in March that he was looking for “significant” agreements this year to boost growth after being left behind the rivals to take advantage of the rise of Chip AI leaders led by Nvidia (NVDA.O), opens a new tab. Samsung added that it was aimed at seeking acquisitions in the chip industry.
Investors awaiting larger agreements involving Samsung’s effective cow chip business could feel disappointed by Flaktgroup’s announcement, analysts said.

“This acquisition is more about strengthening its consumer electronics and appliances business, so it is not the agreement that changes the game that the market had been waiting for,” said Greg Roh, Hyundai Motor Securities research leader.
Samsung’s appliance business also manufactures commercial cooling and heating systems.

“It seems that the company is playing for sure instead of making bold bets,” Roh said.

The actions in the consumer electronics and the semiconductor manufacturer increased 0.7% in line in line with the Benchmark Kospi (.ks11), opens a new tab.

Samsung has rejected the main acquisitions since its purchase of $ 8 billion of the manufacturer of electronic car products, Harman International Industries, in 2017. This month, Harman agreed to buy the audio business of the American firm Masimo (MASI.O), opening a new tab for $ 350 million.

Samsung said Consumer Audio is a new growth engine, along with cooling and heating systems, medical devices, and robotics.
In December, Samsung became the largest shareholder of Rainbow Robotics (277810.kq) in South Korea (277810.kq), opening a new tab with the purchase of an additional participation of 267 billion won ($ 189.03 million).

Last year, Samsung formed a joint company with Lennox (LII.N), opens a new tab in the heating, ventilation and air conditioning (HVAC) sector, and was among the bidders for Johnson Controls International (JCI.N), opens new TAB HVAC assets that were bought by rival Robert Bosch for $ 8 billion last year.
($ 1 = 0.8937 euros)
($ 1 = 1,412.5000 cattle)

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Tech News

Samsung launches world’s 1st 500Hz OLED gaming monitor

May 12, 2025 techsmartworld team game support, OLED

Samsung has presented the Odyssey OLED G6 (G60SF), an innovative game monitor with an ultra-high update rate of 500Hz of 500Hz.

The innovative product promises to offer an immersive visual experience for players, serving soft images in all genres.

It also comes with a response speed of up to 0.03 ms (GTG standard), which makes it even more attractive to serious players.

Specifications

Take a look at the screen Specifications

The Odyssey OLED G6 comes with a 27-inch OLED QD panel, which promises an improved shine and a wide range of colors for vibrant images.

It has an appearance ratio of 16: 9, a maximum brightness of 1,000 nits, QHD+ resolution (2560×1440 pixels), and HDR10+ game support.

To save his eyes during long game sessions, the monitor presents a cape without a pre-installed glow to minimize reflection.

Advanced reinforcement and burning prevention

The monitor also presents Samsung’s OLED Safaguard+ technologies, including a dynamic cooling system that uses a refrigerant to evaporate and condense, spreading the heat five times faster than a graphite leaf.

This would help reduce the central temperature and maintain optimal performance.

In addition, the internal thermal modulation system automatically adjusts the brightness to keep the monitor fresh.

The device even intelligently reduces brightness in static images such as logos and task bars to avoid burns.

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Compatibility

A friendly monitor for players

The Odyssey OLED G6 supports AMD Freesync Premium Pro and NVIDIA G-SYNC, which allows soft game visuals without any screen breakage in high specification games.

It is Pantone and Pantone Skintone validated to reproduce more than 2,100 colors and more than 110 skin tones of the Pantone Library.

The monitor also supports height adjustment, inclination, horizontal/vertical conversion, left/right rotation, and VESA wall support.

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What is more?

Connectivity and prices

The Odyssey OLED G6 comes with a range of connectivity options, including 1 EA Displayport, 1.4 DisplayPort, 2.2 HDCP version, and 2 HDMI ports of EA.

It also has an HDMI port of 2.1, a headphone connector, 1 USB-B ascending port, and 2 USB-type USB ports with a 3.2 USB type-A downstream version.

The monitor costs approximately $ 1,488 SGD (around ₹ 97,900) and will be available in Singapore, Vietnam, Malaysia, and Thailand as of May 12. Other market availability details have not yet been confirmed.

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Tech News

Sony’s PlayStation Network down for nearly 20 hours, now restored, users to get free PS Plus days

February 11, 2025 techsmartworld team PS3, ps4, ps5

Sony’s PlayStation Network (PSN) suffered a global outage on Saturday, February 8. Thousands of gamers faced connectivity issues due to this glitch and were unable to access online services, stores, and multimedia apps.

Users also complained about login issues. The outage started at around 5:20 PM ET and lasted for nearly 20 hours. Server failure complaints peaked at 5:49 PM ET, as Down Detector recorded over 65,000 complaints within approximately half an hour of the issue starting.

Meanwhile, the company itself recognized the issue and informed users about it on X (formerly Twitter). “We are aware some users might be currently experiencing issues with PSN,” PlayStation said in a post.

Speaking of the details, many users encountered error messages, like “PlayStation Network is currently undergoing maintenance (WS-37432-9),” while trying to access PSN services.

These messages repeatedly appeared on their screens, preventing them from logging in or playing online. Users had no option but to either close the message and wait or check PlayStation’s support page for further updates on the issue.

Considering the timing of the outage, the problem became more significant, as the evening hours are generally peak gaming times. Many users were returning home from work or school.

Notably, the PlayStation outage was not limited to a single country or region, it affected players worldwide. This means the disruption spanned multiple time zones, impacting gamers at different times of the day. Both casual players and esports professionals were affected, making the outage a significant issue for all types of users.

The PSN outage severely disrupted essential PlayStation services, preventing users from engaging in various online activities. Many players reported being unable to log into their PSN accounts, access their friends lists, or join multiplayer games.

As a result, online-based titles such as Call of Duty: Modern Warfare III, Fortnite, Grand Theft Auto Online, EA FC 24, and Destiny 2 became inaccessible. This left competitive gamers particularly frustrated, as they rely on stable online connections for ranked matches and team-based gameplay.

The outage affected all PlayStation devices, not just one specific console. Players using the PS5, PS4, PS3, and PS Vita all reported connectivity problems.

Additionally, the disruption wasn’t limited to gaming consoles – it also impacted PlayStation’s web-based services, including PlayStation Direct (the online store) and the PlayStation mobile app, making it difficult for users to access PlayStation services across different platforms. Of course, this is not the first time PlayStation has experienced a major outage. Last year, in October, the PlayStation Network was down for several hours.

Sony has now announced offering free PS Plus days to all affected users.

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Elon Musk-led consortium offers $97.4Bn to take control of OpenAI, Altman responds

February 11, 2025 techsmartworld team

Elon Musk and a group of investors have made a $97.4 billion offer to buy OpenAI’s controlling non-profit entity. The bid was submitted to OpenAI’s board, according to a report by WSJ.

However, neither OpenAI nor Musk has publicly commented on it yet. The situation is significant because Musk (who is also leading this consortium of investors) and OpenAI’s CEO, Sam Altman, have a history of conflicts.

Musk was originally involved in OpenAI’s founding in 2015 but has since been critical of its shift from a non-profit to a for-profit model, especially after securing major investments from Microsoft and others.

Musk has accused OpenAI of straying from its original mission of creating AI for the benefit of humanity and has criticized its lack of openness and focus on safety. This, coupled with his public conflicts with Altman, seems to have led to a more serious step from Musk, going as far as buying a controlling stake.

Musk’s attorney, Marc Toberoff, confirmed the development, as per the report. Toberoff submitted the bid to OpenAI’s board on February 10. According to Musk’s statement in the WSJ report, he believes OpenAI has drifted away from its original values, and he wants to restore its commitment to openness and safety.

The bid is backed by Musk’s own AI company, xAI (founded in 2023), which suggests that if the deal goes through, xAI and OpenAI could merge. OpenAI’s Sam Altman however, has publicly come out and rejected the deal with a post on X, saying “No thank you but we will buy Twitter for $9.74 billion if you want”, thus directly acknowledging that there indeed was an attempt to buy out controlling stake in OpenAI.

The offer comes at a time when several reports suggest that SoftBank is planning to invest around $15-25 billion in the AI trendsetter firm – OpenAI at over $300 billion valuation.

Notably, OpenAI reached a valuation of approximately $157 billion in its last funding round in October 2024, when the company raised nearly $6.6 billion. So far, the ChatGPT maker has raised a total of $17.9 billion in funding over 10 rounds.

OpenAI is also a prominent part of the recently announced Stargate Project in the United States, which primarily aims to develop new data centers to support AI advancements and generate over 100,000 jobs across the country.

Just after Donald Trump’s inauguration as the new US president, SoftBank, OpenAI, Oracle, Microsoft, Nvidia, and Abu Dhabi-based MGX announced the initiative. Under this project (more precisely, the joint venture) these companies intend to allocate around $500 billion over the next four years to strengthen AI infrastructure in the US.

Coming back to the row between Elon Musk and OpenAI, last year, Musk sued OpenAI and its CEO, Sam Altman. He alleged that OpenAI was initially founded as a non-profit project rather than for financial gain.

He argues that now the ChatGPT maker has only focused on profit-making. In December 2024, a non-profit organization, Encode also joined Elon Musk’s effort to block OpenAI’s transition to a for-profit entity.

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ChatGPT Search now available to everyone without login

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ChatGPT Search now available to everyone without login

February 8, 2025 techsmartworld team

The next time users want to check out ChatGPT’s web search tool, they will be able to do so even if they do not log in or sign up first. OpenAI has announced that its ChatGPT Search feature is now accessible to all users, with no login required. The announcement, made on Wednesday via X (the erstwhile Twitter), marks a major expansion of OpenAI’s AI-powered web search capabilities.

By December, the feature had been extended to all logged-in free-tier users, but an account was still necessary to use the search functionality. Now, the AI research firm is taking it one step further and has removed the sign-in barrier entirely, allowing anyone to access ChatGPT’s real-time search capabilities simply by visiting ChatGPT.com.

Unlike Google and other conventional search engines that primarily display ranked lists of web links, ChatGPT Search presents users with AI-generated summaries alongside sourced citations.

The move could well be a direct result of the havoc that China-based Deepseek wrecked across the largely US-dominated, multi-billion AI sector. Deepseek provided credible proof that it is indeed easy to develop large, complex LLMs at a fraction of the cost that OpenAI and others project.

This has made it necessary for the likes of OpenAI, Google, Microsoft, and others to speed up their own AI efforts even further and make their offerings more accessible to a wider user group.

Originally branded as SearchGPT, ChatGPT’s search feature aimed to bridge the gap between AI-generated responses and real-time web data.

Traditional AI chatbots, including earlier versions of ChatGPT, were restricted to knowledge from their last training update, limiting their ability to provide current and time-sensitive information.

The launch of ChatGPT Search addressed this issue by allowing the chatbot to retrieve live information on topics such as sports scores, financial markets, news updates, and weather forecasts.

The next major update arrived later, in December when OpenAI expanded the feature to all free-tier users—though they still had to log into their OpenAI accounts.

By eliminating the need for user authentication, ChatGPT Search seems to be shaping up as a potential competitor to Google — the world’s most dominant search engine.

As mentioned earlier, while Google relies on keyword-based searches and ranked web pages, ChatGPT Search uses natural language processing to generate summarized responses based on real-time web data. For users, this means that they can spend less time sifting through multiple links and gain more direct answers to queries.

OpenAI states that ChatGPT Search will automatically fetch live web results when needed, though users can also manually trigger searches by selecting the search icon below the chat input field.

In addition to this, the firm has refined the user interface to make ChatGPT Search feel more like a traditional search engine. The latest updates introduce maps, images, and structured descriptions, making it easier for users to find information on local businesses, tourist attractions, and geographic locations — a feature that directly competes with Google’s local search capabilities.

Still, OpenAI and ChatGPT have a long way to go before they stand a chance of dethroning Google’s place in the online search market ecosystem. Google’s search engine maintains its dominance in the sector, and already profits from a massive web indexing infrastructure and proprietary algorithms that rank and filter search results.

ChatGPT, on the other hand, remains dependent on external sources for live data, which may limit its ability to provide search results at the same scale as Google. Google itself has been actively incorporating AI into its own search experience in recent times as well – its Search Generative Experience (SGE) maintains Google’s traditional link-based approach and comes with AI-powered enhancements to refine search queries and highlight key insights.

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US lawmakers seek to ban DeepSeek on government devices

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US lawmakers seek to ban DeepSeek on government devices

February 7, 2025 techsmartworld team DeepSeek

A new bipartisan bill introduced in the House Intelligence Committee now seeks to halt the use of DeepSeek’s AI chatbot on all US government-issued devices, citing national security risks and concerns over potential links to the Chinese Communist Party (CCP).

The legislation, known as the No DeepSeek on Government Devices Act, is being co-sponsored by Representative Josh Gottheimer (D-NJ) and Representative Darin LaHood (R-IL). The lawmakers argue that DeepSeek’s AI system could expose data to Chinese state-controlled entities.

“The Chinese Communist Party has made it abundantly clear that it will exploit any tool at its disposal to undermine our national security, spew harmful disinformation, and collect data on Americans,” Gottheimer commented on the matter. “We simply can’t risk the CCP infiltrating the devices of our government officials and jeopardizing our national security.”

If passed, the bill would require all federal agencies to remove DeepSeek from government networks within 60 days and prevent any future installations of the chatbot on official devices.

The proposed DeepSeek ban closely mirrors previous actions taken against TikTok, the Chinese-owned social media app that was banned from federal government devices in 2022 due to security concerns.

In that case, lawmakers argued that TikTok’s parent company, ByteDance, had the potential to share US user data with Chinese authorities, prompting a wave of legislative actions to limit the app’s influence in the US.

For those who missed it, DeepSeek, the Chinese AI startup, has quickly gained global recognition for its advanced large language models (LLMs), such as DeepSeek-V3 and R1.

These models rival AI systems developed by OpenAI, Google, and Meta, and can provide high-quality responses at a lower computational cost. DeepSeek’s latest model, R1, has drawn attention for reportedly outperforming OpenAI’s GPT-4o in reasoning tasks as well.

However, despite DeepSeek’s success, its alleged ties to the Chinese government have triggered security concerns. According to media reports, a recent cybersecurity analysis by Feroot Security, a Canadian security firm, revealed that DeepSeek’s chatbot application contains hidden scripts that transmit user data to China Mobile, a state-owned telecom company with documented ties to the Chinese military.

The Federal Communications Commission (FCC) has already banned China Mobile from operating in the US. DeepSeek’s chatbot is said to store sensitive user data, including conversations, uploaded documents, and proprietary business information, creating the possibility that this data could be accessed by the Chinese government under China’s strict cybersecurity laws.

While the proposed legislation is still in its early stages, several US federal agencies and military branches have already moved to block DeepSeek from their networks.

The Pentagon recently restricted access to the AI chatbot after discovering that employees had connected government computers to DeepSeek’s servers for at least two days before security officials intervened.

To add to this, the Defense Information Systems Agency, which oversees Pentagon cybersecurity operations, took immediate action to block DeepSeek’s website, preventing further access. Similarly, both the US Navy and NASA have issued internal bans on the chatbot, following their security assessments. At the state level, Texas has become the first US state to enact a ban on DeepSeek across all government-owned devices.

The US is not alone in taking steps to mitigate the security risks presented by DeepSeek. Italy, South Korea, and Australia have all implemented government-wide bans on DeepSeek, restricting public officials from using the chatbot on government-owned devices.

Meanwhile, India’s Ministry of Electronics and Information Technology has issued an official warning to government officials, advising them to “strictly avoid” using AI tools like DeepSeek and ChatGPT for official tasks, fearing that sensitive data could be compromised.

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DeepSeek’s AI models trigger historic US tech stock sell-off

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DeepSeek’s AI models trigger historic US tech stock sell-off

February 7, 2025 techsmartworld team AI, OpenAI

DeepSeek, the two-year-old Hangzhou-based startup, recently released its DeepSeek-V3 and DeepSeek-R1 models. The AI sector has grown by leaps and bounds in recent years, fueled by advancements in AI tech, the demand for popular chatbots like ChatGPT and Gemini, and the millions that have been invested in the sector by investors across the globe.

Now, the exact opposite has happened – China-origin DeepSeek’s foray into AI has resulted in a massive upheaval in the global tech sector – the company’s low-cost, high-performance AI models have now challenged established players in the sector and triggered an unprecedented sell-off in tech stocks, wiping out billions of dollars in market value.

DeepSeek, the two-year-old Hangzhou-based startup, recently released its DeepSeek-V3 and DeepSeek-R1 models. These AI platforms, according to the company, rival the capabilities of leading Western competitors like OpenAI’s ChatGPT but operate at a fraction of the cost.

What makes these developments all the more enticing is that DeepSeek’s AI models were reportedly developed on Nvidia’s less powerful H800 chips at a cost of under $6 million—significantly less than what competitors typically spend. In other words, you can have fast, efficient performance at a fraction of the cost.

The DeepSeek-R1 model introduced just a week ago, is said to be 20 to 50 times more cost-efficient than similar offerings from industry giants. Independent third-party evaluations have corroborated the company’s claims, confirming that DeepSeek’s models outperform in several key areas.

Moreover, the decision to make these models open-source means that developers worldwide have access to, and can deploy, these tools without substantial investment on their part.

DeepSeek’s gain has proved to be the detriment of other tech companies, though. Nvidia, a dominant force in AI hardware, saw its stock plunge by nearly 17%, translating to a loss of $593 billion in market capitalization. This marked the largest single-day loss in the history of Wall Street, surpassing even its previous record of $279 billion in September.

“DeepSeek demonstrates an alternative path to efficient model training than the current arm’s race among hyperscalers by significantly increasing the data quality and improving the model architecture.

DeepSeek is now the lowest cost of LLM manufacturing, allowing frontier AI performance at a fraction of the cost with 9-13x lower price on output tokens vs. GPT-4o and Claude 3.5,” Morgan Stanley commented on the development.

Other semiconductor companies were similarly affected. Broadcom’s shares fell by 17.4%, while Marvell Technology suffered a 19.1% decline. The Philadelphia Semiconductor Index, a key benchmark for the sector, dropped by 9.2%, its steepest decline since the onset of the pandemic back in 2020.

According to analysts, this widespread fall can be attributed to fears that the demand for high-performance AI chips could be significantly reduced by the rise of more efficient alternatives like DeepSeek’s models.

The Nasdaq Composite Index, heavily populated with tech and AI-focused firms, fell by 3.1%, marking one of its most significant single-day declines in recent years. At its lowest point during the trading session, the index had lost more than $1 trillion in valuation. Similarly, major Big Tech companies like Microsoft and Alphabet, which have invested heavily in proprietary AI technologies, also experienced notable declines.

Microsoft, a key backer of OpenAI, saw its shares drop by 2.1%, while Alphabet, Google’s parent company, fell by 4.2%. Outside the U.S., global markets mirrored this downturn. Japan’s SoftBank Group closed 8.3% lower, and European semiconductor firms like ASML reported losses of over 7%.

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Alphabet highlights aggressive AI spending in Q4 earnings, revenue grows 12%

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Alphabet highlights aggressive AI spending in Q4 earnings, revenue grows 12%

February 5, 2025 techsmartworld team AI, Alphabet, Google

Google parent Alphabet saw its shares drop significantly following the release of its fourth-quarter earnings report for 2024. While the company reported strong earnings growth, its revenue fell short of Wall Street expectations.

The company reported a revenue of $96.47 billion for the fourth quarter, marking a 12% year-over-year increase from $86.31 billion in the same period the previous year. However, this figure came in slightly below analysts’ estimates of $96.56 billion.

Despite the revenue miss, Alphabet’s earnings per share (EPS) exceeded expectations, coming in at $2.15 compared to the anticipated $2.13. The company’s net income rose sharply to $26.54 billion, marking a growth of 28% from the $20.69 billion reported in the same quarter a year earlier.

Operating income also showed a healthy uptick, growing by 31% to amount to $30.97 billion for the three months ended December 2024. For the entire fiscal year, Alphabet’s revenue amounted to $350 billion, while its net income and diluted EPS for the same period amounted to $100 billion and $8.04 respectively.

“Q4 was a strong quarter driven by our leadership in AI and momentum across the business. We are building, testing, and launching products and models faster than ever, and making significant progress in computing and driving efficiencies. In Search, advances like AI Overviews and Circle to Search are increasing user engagement.

Our AI-powered Google Cloud portfolio is seeing stronger customer demand, and YouTube continues to be the leader in streaming watchtime and podcasts.

Together, Cloud and YouTube exited 2024 at an annual revenue run rate of $110 billion. Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core businesses.

We are confident about the opportunities ahead, and to accelerate our progress, we expect to invest approximately $75 billion in capital expenditures in 2025,” Sundar Pichai, Alphabet CEO, commented on the matter.

For the first quarter of 2025 alone, Alphabet expects capital expenditures to range between $16 billion and $18 billion, surpassing the $14.3 billion forecasted by analysts. In the fourth quarter of 2024, Alphabet’s capital expenditures totaled $14 billion, slightly above the $13.26 billion estimated by analysts.

Google’s advertising segment, which remains the largest contributor to Alphabet’s overall revenue, reported $72.46 billion in revenue for the fourth quarter. This represented a year-over-year increase of 10.6%, slightly below the 11% growth recorded during the same period in 2023. Revenue from Google Search, a key component of Google’s advertising business, rose by 12.5% (narrowly missing the 12.7% growth rate achieved in the previous year) to amount to $54 billion for Q4 2024. For the same period, YouTube’s advertising revenue reached $10.47 billion, surpassing analysts’ expectations of $10.23 billion.

However, this marks a slowdown from the 15.5% growth recorded in the fourth quarter of 2023, as YouTube ad revenue increased by 13.8% year over year to reach $10.473 billion (exceeding the $10 billion mark for the first time).

Similarly, Alphabet’s Google Cloud division, which has been a focal point of the company’s growth strategy, reported revenue of $11.96 billion for the fourth quarter.

This marked a 30% increase from the previous year but fell short of Wall Street’s expectations of $12.19 billion. Alphabet’s Other Bets segment, which includes ventures such as the life sciences unit Verily and the autonomous driving unit Waymo, continued to struggle in the fourth quarter.

The segment reported revenue of $400 million, significantly below the $616.4 million expected by analysts and a sharp decline from the $657 million reported in the same quarter the previous year. The segment also posted a loss of $1.17 billion, compared to a loss of $863 million in the fourth quarter of 2023.

“We had strong demand for AI products in the fourth quarter and exited the year with more demand than we had available capacity,” Anat Ashkenazi, Alphabet CFO, commented on the matter during the earnings call, adding that the company is “in a tight supply-demand situation.”

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