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China has  conditionally approved  its leading AI startup  DeepSeek  to purchase  Nvidia ’s  H200 artificial intelligence chips , a move that could significantly shape China’s next phase of AI development — and intensify US-China tech scrutiny. What Happened Chinese authorities granted  conditional approval  for DeepSeek to buy Nvidia’s  H200 AI chips Regulatory conditions are still being finalised , according to sources Approvals were issued by China’s industry and commerce ministries, with conditions set by the  National Development and Reform Commission The H200 is Nvidia’s  second most powerful AI chip  and has become a sensitive focal point in  US–China tech relations . Bigger Picture: Not Just DeepSeek Reuters previously reported that: ByteDance Alibaba Tencent were also given approval to collectively purchase  over 400,000 H200 chips , though shipments remain subject to final regulatory sign-off. Nvidia: Licenc...

Apple CEO Tim Cook visited Hangzhou, the birthplace of the AI sensation DeepSeek, to engage with the next generation of developers at Zhejiang University. In a post on his official Weibo account, Cook shared details of his meeting with aspiring tech minds at one of China’s elite universities. During the visit, Apple donated 30 million yuan (approximately US$4.1 million) to the university, reaffirming its commitment to advancing technology and fostering innovation in China. Zhejiang University is also notable for its alumni, which includes DeepSeek founder Liang Wenfeng and Colin Huang, the founder of e-commerce giant PDD Holdings Inc. Hangzhou, known as China’s AI hub, is home to major tech companies such as Alibaba Group and a growing number of startups like Manycore Tech and Unitree Robotics. These companies are part of the “Six Little Dragons” of Chinese technology, which are fueling hopes for a revival in the country’s tech sector amidst rising US export controls. While it remains ...

Key Developments: Tencent’s Yuanbao AI chatbot surpasses DeepSeek  as the  most downloaded free iPhone app in China . AI race heats up  as  three of the top five most popular apps  in China are now AI chatbots. Tencent integrates DeepSeek’s R1 model  into multiple platforms, including  WeChat search and gaming AI assistants . Alibaba ramps up AI investment , committing  US$53 billion  to compete with Tencent and DeepSeek. Monetization remains unclear , as AI chatbots are currently free and widely available in  open-source models . Tencent’s Yuanbao AI Overtakes DeepSeek Tencent Holdings Ltd.  has officially overtaken  DeepSeek  in China's rapidly expanding AI chatbot market, with its  Yuanbao AI chatbot  now the  most downloaded iPhone app  in the country. Tencent’s  strategic AI integration —embedding  Hunyuan AI tech  and DeepSeek’s  R1 reasoning model  into multiple platforms...

Key Takeaways North America remains skeptical  about China’s AI sector, while  Asian investors are going all-in . China’s AI boom fuels a $46 billion tech rally  domestically, despite concerns from global investors. Hedge funds profit from market volatility , while long-only emerging market (EM) funds double down on China. Valuation gaps widen:  Alibaba trades at  10x earnings , while  Nvidia sits at 32x . The US shifts its BTC reserve plan to a broader 'crypto reserve' , sparking mixed reactions. 1. The AI Divide: Silicon Valley vs. Shenzhen Western Investors Stay Skeptical: 62%  of US investors believe  China’s AI lags years behind  the US. 78% demand immediate returns  before committing capital. Only  22% believe AI can significantly move Chinese tech stocks . Asia Sees AI as China’s Next $1 Trillion Growth Driver: 93% of Chinese traders say AI is the biggest tech opportunity. "ROI takes a backseat to compute power." Investors fo...

Tech Giant Calls for Revisions to US Trade Policies Microsoft will push the Trump administration to ease AI chip export restrictions  for key US allies, including  India, Switzerland, and Israel , according to a report by  The Wall Street Journal  on Thursday. The proposal, expected to be published in a  Microsoft blog post , argues that  current curbs could drive allies toward China for AI infrastructure needs . Microsoft did not immediately respond to requests for comment. US-China AI Battle Intensifies Washington’s expanded AI chip export restrictions—introduced during Joe Biden’s final days in office—aim to limit China’s access to advanced computing power. These measures have  hurt US chipmakers and Big Tech companies  that rely on China as a major market for semiconductors. China is  capitalizing on US export restrictions , promoting itself as a  more reliable AI technology partner  for other countries, Microsoft President...

Tencent Enters AI Speed Race Tencent has launched its latest AI model, Hunyuan Turbo S , claiming it can respond to queries  faster than DeepSeek’s R1 —one of the most widely adopted AI models globally. The tech giant says  Turbo S can generate answers in under a second , setting it apart from models like  DeepSeek R1 and Hunyuan T1 , which require more processing time before responding. Performance and Competition Turbo S reportedly matches DeepSeek-V3  in fields like  knowledge, mathematics, and reasoning . DeepSeek-V3 has already surpassed OpenAI’s ChatGPT in app store downloads , adding pressure on Tencent and other Chinese tech firms to accelerate AI advancements. DeepSeek did not immediately respond  to Tencent’s performance claims. China’s AI Arms Race Intensifies DeepSeek’s rapid global success, particularly  its adoption in Silicon Valley , has  forced Chinese tech giants into a race to enhance their AI models . Last month, Alibaba launch...

Market Overview US equity futures bounced back on Wednesday , as investors  shifted focus to Nvidia's highly anticipated Q4 earnings  and  evaluated the impact of Trump’s evolving trade policies . The rebound follows a volatile session , where major indices  extended their declines  amid concerns over  rising tariffs and inflationary risks . Nvidia Earnings in Focus Nvidia (NVDA) , a  key driver of AI sector growth , is set to  report earnings later today . Key expectations : Revenue surge fueled by AI demand Guidance on next-gen GPU launches Competition with China's DeepSeek and regulatory challenges Investors will assess CEO Jensen Huang's comments on AI infrastructure and potential market risks . Tech Stock Movers Super Micro Computer (SMCI)  and  Palantir (PLTR)  saw  pre-market gains , reflecting  positive sentiment toward AI-linked stocks . Tesla (TSLA) continued its slide , with Elon Musk’s wealth  taking a maj...

Aggressive Price Cuts Shake AI Industry Chinese AI startup DeepSeek has announced steep discounts of up to 75% on its AI model usage during off-peak hours , according to an update on its website. The  move is expected to pressure global AI leaders like OpenAI and Google  to further lower their prices. Key Pricing Details Off-peak hours (1630 GMT – 0030 GMT)  will see: 75% reduction in API costs for DeepSeek’s R1 model 50% reduction for the V3 model While these hours are considered “off-peak” in Beijing (0030 – 0830 local time), they  coincide with peak daytime hours in the U.S. and Europe , potentially intensifying competition. Market Impact & Competitive Pressure DeepSeek’s rapid expansion and aggressive pricing strategy have already disrupted global AI markets , contributing to last month’s tech stock selloff. OpenAI and Google have responded by introducing their own price cuts  for their AI offerings. The company is now reportedly  accelerating the l...