<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3340" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/BX2ACVSUS5NCLBWMNCPTHS4WVE.avif" alt="" class="wp-image-596568"/><figcaption class="wp-element-caption">An interior of a BMW iX xDrive40 displaying battery power range, is seen at a BMW dealership in Sandton, South Africa, October 27, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



PRETORIA, March 12 (Reuters)&nbsp;&#8211;&nbsp;South Africa will spend 1 billion rand ($54.27 million) to support the local production of new energy vehicles and batteries, as well as related manufacturing projects, the National Treasury said on Wednesday.



The country is the largest automotive manufacturing hub in sub-Saharan Africa, hosting brands such as Toyota&nbsp;7203.T, Ford&nbsp;F.N, Isuzu&nbsp;7202.T, Volkswagen&nbsp;VOWG.DE&nbsp;and Mercedes&nbsp;MBGn.DE, among others.



The industry has said that government incentives and policy interventions will encourage original equipment manufacturers to invest more in the production of electric vehicles in the country.



South Africa released its Electric Vehicles White Paper in 2023, outlining the country&#8217;s strategy to transition the automotive industry from primarily producing internal combustion engine vehicles to a mix that includes electric vehicles by 2035.



In its annual budget review, the treasury said the department of trade and industry in partnership with the department of mineral resources, planned to approve and implement a regional critical minerals strategy, without giving a timeline.



Critical minerals such as copper, cobalt and lithium are needed for the production of products like electric vehicle batteries and solar panels, and are key to the world&#8217;s energy transition.



The treasury said 1 billion rand was being set aside over the medium term for the industrial development support programme, an incentive scheme that aims to increase participation and investment in infrastructure by firms in selected manufacturing sectors such as automotive.



&#8220;The purpose of the incentive is to enhance the local production and assembly of new-energy vehicles, batteries and projects focused on operational efficiency and competitiveness in new manufacturing projects,&#8221; the treasury added.



The incentive is expected to attract 30 billion rand in investment from the private sector, it added.



($1 = 18.4275 rand)



(Reporting by Nqobile Dludla; Editing by Olivia Kumwenda-Mtambo, Kirsten Donovan)

BX2ACVSUS5NCLBWMNCPTHS4WVE

South Africa to incentivise local EV production

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108093379-17380715992025-01-28t041731z_1709029148_rc2licannll2_rtrmadp_0_tech-ai-deepseek-820x547.jpeg" alt="" class="wp-image-585827" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108093379-17380715992025-01-28t041731z_1709029148_rc2licannll2_rtrmadp_0_tech-ai-deepseek-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108093379-17380715992025-01-28t041731z_1709029148_rc2licannll2_rtrmadp_0_tech-ai-deepseek-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108093379-17380715992025-01-28t041731z_1709029148_rc2licannll2_rtrmadp_0_tech-ai-deepseek-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108093379-17380715992025-01-28t041731z_1709029148_rc2licannll2_rtrmadp_0_tech-ai-deepseek-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108093379-17380715992025-01-28t041731z_1709029148_rc2licannll2_rtrmadp_0_tech-ai-deepseek-1536x1025.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/108093379-17380715992025-01-28t041731z_1709029148_rc2licannll2_rtrmadp_0_tech-ai-deepseek-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Dado Ruvic | Reuters</figcaption></figure>



BEIJING — Chinese businesses are tapping DeepSeek’s newest artificial intelligence model to see how it can improve productivity.



The Chinese AI model took the world by storm in recent weeks after showcasing its reasoning process and claims to undercut rival OpenAI’s ChatGPT on cost — despite U.S. restrictions on Chinese access to the advanced semiconductors needed to develop the tech.



Eight automakers including BYD, at least nine financial securities companies, three state-owned telecommunications operators and smartphone brand Honor are among the many that have rushed in the last week to integrate with DeepSeek. Cloud computing operators Alibaba, Huawei, Tencent and Baidu have all offered ways for clients to access DeepSeek’s latest model.



“This is quite unprecedented,” Wei Sun, principal analyst of artificial intelligence at Counterpoint Research, said in an email Monday. She pointed to the rate of adoption, scale of business integration and breadth of specific industries covered.



“When we have all of these, we know it’s making a big social and economic impact,” she said.



Optimism over artificial intelligence has spread to Chinese stocks. UBS said Wednesday that AI-related Chinese stocks are up by 15% since the start of the year, outperforming the broader MSCI China Index by 9%.



A big factor in the widespread interest is timing. DeepSeek released its latest R1 model on Jan. 20, and news of its low-cost reasoning capabilities prompted a global tech stock sell-off on Jan. 27 — just as millions of urban workers in China were returning to their hometowns to celebrate the eight-day Lunar New Year holiday.



As a result, less developed parts of China gained greater understanding of AI and its impact, a topic previously limited to conversations in China’s largest cities, said Wenhao Zhang, CEO of the Beijing-based consumer marketing consultancy Doodod.



“It’s a major education of the market. This will push the entire ecosystem’s development,” he said Tuesday in Mandarin, translated by CNBC.



Zhang, who studied AI at Tsinghua University, founded Doodod in 2012 to build customer engagement through social media analysis. He said the company —&nbsp;which counts China Merchant’s Bank and Toyota as clients — started looking at DeepSeek’s offerings late last year, and began using it more after the R1 release in late January.



DeepSeek, founded in 2023 out of a quantitative hedge fund, had released a basic version of R1 in November, and a V3 model in December. It launched a smartphone chatbot app in January.



<h2 class="wp-block-heading" id="h-open-source-local-deployment"><a></a>Open-source local deployment</h2>



Another attractive factor for businesses is that DeepSeek’s models are open-source, allowing individuals and companies to download and customize it.



DeepSeek also advertised drastically lower prices for applications to use its tech versus that of OpenAI. ChatGPT is not officially available in mainland China and requires users to provide an overseas phone number and payment method from a supported country such as the U.S.



DeepSeek changed the perception that AI models only belong to big companies and have high implementation costs, said James Tong, CEO of Movitech, an enterprise software company which says its clients include Danone and China’s State Grid.



He said Movitech started integrating an earlier version of DeepSeek in the fourth quarter of last year, helping boost sales by about 25% from the same period in 2023. The company plans to launch a new DeepSeek-integrated application by the end of March to improve clients’ ability to make decisions, he said.



Many recent videos on Chinese social media have showed off how to run a local version of DeepSeek on Apple’s Mac mini.



Apple Mac mini online sales in China climbed significantly from November to January, versus the same period the year prior,&nbsp;according to data from consultancy WPIC. The electronics-focused JD.com site recorded unit sales of around 20,200 in January, up from nearly 19,400 in December and around 12,250 in November, the data showed.



DeepSeek’s affordability is pressuring more expensive AI models to cut prices, enabling more businesses to adopt the tech, said Chim Lee, senior Asia analyst at the Economist Intelligence Unit. He added that open-source models allow finance, banking and healthcare businesses — which are&nbsp;subject to stringent data protection rules in China — to develop AI applications locally.



“It is still very early to point to concrete business applications, but a key takeaway is that DeepSeek will accelerate the commoditization of AI,” Lee said.



Beijing is also increasing support. China’s national supercomputing network announced Tuesday that eligible companies and individuals can obtain three free months of DeepSeek access, along with subsidized computing power.



The network is similar to OpenAI’s Trump-backed Stargate project in the U.S. for building AI infrastructure — with the potential for “even faster scaling,” Winston Ma, adjunct professor at NYU School of Law said Wednesday. He is also the author of “The Digital War: How China’s Tech Power Shapes the Future of AI, Blockchain and Cyberspace.” 



<h2 class="wp-block-heading" id="h-not-centered-on-deepseek"><a></a>Not centered on DeepSeek</h2>



The rush to try out DeepSeek doesn’t mean it will be the only AI provider for Chinese companies. Developers in the U.S. and China are regularly releasing new models.



Movitech also uses Alibaba’s Qwen AI model, Tong said, noting that the market wants the tech that can lower costs and produce results the most, whether it’s OpenAI or DeepSeek.



HangHang AI, which has invested several hundred million yuan to develop AI solutions for companies across 20 industries, uses a range of models, said partner and COO Shu Weibing.



Many people first used “Baidu, then realized it wasn’t as good as Kimi, then it wasn’t as good as [ByteDance’s] Doubao, which also cut prices,” Shu said in Mandarin, translated by CNBC. “Now it’s DeepSeek.”



It remains to be seen how much generative AI can boost productivity and profits.



Shu predicts that small businesses and companies that integrate AI&nbsp;with hardware&nbsp;will benefit more than&nbsp;large, consumer-facing internet platforms, whose AI work so far, he said, has focused more on boosting efficiency rather than creating new consumer services.



Despite AI models’ falling prices, “small and medium-sized businesses may still be in a period of wait-and-see” for adopting the tech due to the relatively high cost for a full deployment, including computing power and customization, Mike Fang, senior director analyst at Gartner, said Wednesday in Mandarin translated by CNBC.



But the consulting firm predicts that by 2027, the average price to access a generative AI model will be less than 1% of what it costs now — and that by 2029, 60% of Chinese businesses will have incorporated AI into their primary products and services, forming the top drivers of revenue growth.

108093379-17380715992025-01-28t041731z_1709029148_rc2licannll2_rtrmadp_0_tech-ai-deepseek

Chinese businesses rush to try DeepSeek AI at ‘unprecedented’ scale

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China builds space alliances in Africa as Trump cuts foreign aid

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-820x562.jpg" alt="" class="wp-image-579752" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">SAN ANSELMO, CALIFORNIA &#8211; JANUARY 27: In this photo illustration, the DeepSeek app is displayed on an iPhone screen on January 27, 2025 in San Anselmo, California. Newly launched Chinese AI app DeepSeek has surged to number one in Apple&#8217;s App Store and has triggered a sell-off of U.S. tech stocks over concerns that Chinese companies&#8217; AI advances could threaten the bottom line of tech giants in the United States and Europe. (Photo Illustration by Justin Sullivan/Getty Images)</figcaption></figure>



DeepSeek has rattled the U.S.-led AI ecosystem with its latest model, shaving hundreds of billions in chip leader Nvidia’s market cap. While the sector leaders grapple with the fallout, smaller AI companies see an opportunity to scale with the Chinese startup.



Several AI-related firms told CNBC that DeepSeek’s&nbsp;emergence is a “massive” opportunity for them, rather than a threat.&nbsp;



“Developers are very keen to replace OpenAI’s expensive and closed models with open source models like DeepSeek R1&#8230;” said Andrew Feldman, CEO of artificial intelligence chip startup Cerebras Systems.



The company competes with Nvidia’s graphic processing units and offers cloud-based services through its own computing clusters. Feldman said the release of the R1 model generated one of Cerebras’ largest-ever spikes in demand for its services.&nbsp;



“R1 shows that [AI market] growth will not be dominated by a single company — hardware and software moats do not exist for open-source models,” Feldman added.&nbsp;



Open source refers to software in which the source code is made freely available on the web for possible modification and redistribution. DeepSeek’s models are open source, unlike those of competitors such as OpenAI.



DeepSeek also claims its R1 reasoning model rivals the best American tech, despite running at lower costs and being trained without cutting-edge graphic processing units, though industry watchers and competitors have questioned these assertions.



“Like in the PC and internet markets, falling prices help fuel global adoption. The AI market is on a similar secular growth path,” Feldman said.&nbsp;



<h2 class="wp-block-heading" id="h-inference-chips-nbsp"><a></a>Inference chips&nbsp;</h2>



DeepSeek could increase the adoption of new chip technologies by accelerating the AI cycle from the training to “inference” phase, chip start-ups and industry experts said.



Inference refers to the act of using and applying AI to make predictions or decisions based on new information, rather than the building or training of the model.



“To put it simply, AI training is about building a tool, or algorithm, while inference is about actually deploying this tool for use in real applications,” said Phelix Lee, an equity analyst at Morningstar, with a focus on semiconductors.&nbsp;&nbsp;



While Nvidia holds a dominant position in GPUs used for AI training, many competitors see room for expansion in the “inference” segment, where they promise higher efficiency for lower costs.



AI training is very compute-intensive, but inference can work with less powerful chips that are programmed to perform a narrower range of tasks, Lee added.



A number of AI chip startups told CNBC that they were seeing more demand for inference chips and computing as clients adopt and build on DeepSeek’s open source model.&nbsp;



″[DeepSeek] has demonstrated that smaller open models can be trained to be as capable or more capable than larger proprietary models and this can be done at a fraction of the cost,” said Sid Sheth, CEO of AI chip start-up d-Matrix.&nbsp;



“With the broad availability of small capable models, they have catalyzed the age of inference,” he told CNBC, adding that the company has recently seen a surge in interest from global customers looking to speed up their inference plans.&nbsp;



Robert Wachen, co-founder and COO of AI chipmaker Etched, said dozens of companies have reached out to the startup since DeepSeek released its reasoning models.



“Companies are [now] shifting their spend from training clusters to inference clusters,” he said.&nbsp;



“DeepSeek-R1 proved that inference-time compute is now the [state-of-the-art] approach for every major model vendor and thinking isn’t cheap &#8211; we’ll only need more and more compute capacity to scale these models for millions of users.”



<h2 class="wp-block-heading"><a></a>Jevon’s Paradox&nbsp;</h2>



Analysts and industry experts agree that DeepSeek’s accomplishments are a boost for AI inference and the wider AI chip industry.&nbsp;



“DeepSeek’s performance appears to be based on a series of engineering innovations that significantly reduce inference costs while also improving training cost,” according to a report from Bain &amp; Company.



“In a bullish scenario, ongoing efficiency improvements would lead to cheaper inference, spurring greater AI adoption,” it added.&nbsp;



This pattern explains Jevon’s Paradox, a theory in which cost reductions in a new technology drive increased demand.



Financial services and investment firm Wedbush said in a research note last week that it continues to expect the use of AI across enterprise and retail consumers globally to drive demand.



Speaking to CNBC’s “Fast Money” last week, Sunny Madra, COO at Groq, which develops chips for AI inference, suggested that as the overall demand for AI grows, smaller players will have more room to grow.



“As the world is going to need more tokens [a unit of data that an AI model processes] Nvidia can’t supply enough chips to everyone, so it gives opportunities for us to sell into the market even more aggressively,” Madra said.

Newly Launched Chinese AI App DeepSeek Causes U.S. Tech Stocks To Tumble, Amid Its Rapid Rise To #1 In Apple’s App Store

DeepSeek has rattled large AI players — but smaller chip firms see it as a force multiplier

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-820x546.jpeg" alt="" class="wp-image-580429" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-820x546.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-768x511.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-1536x1022.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108043098-1727989387640-gettyimages-2173579499-META_CONNECT-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Mark Zuckerberg, CEO of Meta Platforms Inc., arrives for the Meta Connect event in Menlo Park, California, on Sept. 25, 2024. David Paul Morris | Bloomberg | Getty Images</figcaption></figure>



Meta CEO Mark Zuckerberg on Wednesday said it’s too early to tell what impact DeepSeek’s breakthrough AI model will have on his company and the broader tech industry. 



Still, Zuckerberg poured cold water on the notion that Meta’s overall AI spending will soon drop now that DeepSeek has allegedly proven that cutting-edge AI requires far less money and computing resources than previously thought.



“It’s probably too early to really have a strong opinion on what this means for the trajectory around infrastructure and CapEx,” Zuckerberg said. “There are a bunch of trends that are happening here all at once.”



The technology markets were reeling this week over an AI model created by DeepSeek, which is a Hangzhou-based AI lab linked to the Chinese hedge fund High-Flyer. DeepSeek claims it only took two months and less than $6 million to develop its R1 large language model. That news caused Nvidia shares to tank 17% on Monday because of the implications that companies don’t need as many of the chip-maker’s graphics processing units for their own artificial-intelligence projects.



Zuckerberg discussed DeepSeek during a call with analysts Wednesday as part of Meta’s fourth-quarter earnings. The company reported that sales rose 21% year over year to $48.39 billion, ahead of Wall Street expectations.



Meta’s shares rose nearly 2% on Monday, indicating some investors believe DeepSeek’s cost-efficiency could mean the social media company may be able to create powerful AI systems for less money. Meta announced last week plans to invest between $60 billion and $65 billion this year as part of its AI push. The company on Wednesday said its 2025 total expenses would come in between $114 billion to $119 billion.



Zuckerberg said Meta is still digesting some of DeepSeek’s feats and his team hopes to eventually implement some of those advancements for their own AI projects.



“That’s part of the nature of how this works, whether it’s a Chinese competitor or not,” Zuckerberg said, referring to how one company’s advances end up benefiting others.



While it’s possible that companies will eventually require less computing resources to train these powerful models, Zuckerberg said that having a ton of server power may be necessary when the software is actually running and performing actions, resulting in “a higher level of intelligence and a higher quality of service.”



“It’s going to be expensive for us to serve all of these people because we are serving a lot of people,” said Zuckerberg, whose company said it had 3.35 billion daily active people in the fourth quarter.



Meta will continue to learn from technologies like DeepSeek’s and release its own open source and free Llama AI models that can also push the industry, Zuckerberg said.



“I continue to think that investing very heavily in CapEx and infra is going to be a strategic advantage over time,” he said. “It’s possible that we’ll learn otherwise at some point, but I just think it’s way too early to call that, and at this point, I would bet that the ability to build out that kind of infrastructure is going to be a major advantage.”



Zuckerberg also said that DeepSeek’s emergence validates Meta’s commitment to an open-source approach to AI, Zuckerberg said.



“There’s going to be an open-source standard globally,” he said. “For our own national advantage, it’s important that it’s an American standard.”

108043098-1727989387640-gettyimages-2173579499-META_CONNECT

Zuckerberg says Meta won’t slow down AI spend despite DeepSeek’s breakthrough

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-820x562.jpg" alt="" class="wp-image-579752" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2196255677-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">SAN ANSELMO, CALIFORNIA &#8211; JANUARY 27: In this photo illustration, the DeepSeek app is displayed on an iPhone screen on January 27, 2025 in San Anselmo, California. Newly launched Chinese AI app DeepSeek has surged to number one in Apple&#8217;s App Store and has triggered a sell-off of U.S. tech stocks over concerns that Chinese companies&#8217; AI advances could threaten the bottom line of tech giants in the United States and Europe. (Photo Illustration by Justin Sullivan/Getty Images)</figcaption></figure>



Chinese artificial intelligence startup DeepSeek could face curbs from the U.S. government as it upends the U.S. AI ecosystem, though enforcing restrictions on an open-source technology could be a challenge, experts said.



DeepSeek’s sudden rise has questioned the effectiveness of Washington’s efforts aimed at curbing China’s access to high-end tech over national security concerns.



For DeepSeek, which relied heavily on open-source code, the additional export restrictions that the U.S. government could impose are limited, said Lawrence Ward, a partner at U.S.-based law firm Dorsey &amp; Whitney with a specialization in national security law.



In terms of the company’s potential use of certain Nvidia chips, it might face civil and criminal penalties, but enforcing those penalties may be “difficult if not impossible,” Ward said.



On Monday, the U.S. lawmakers called for actions to slow down the Chinese tech startup, with some calling DeepSeek “a serious threat.”



There are no easy solutions to restrict the use of an open-source model, especially one that is being widely tested and used by organizations and individuals, said Paul Triolo, partner at Albright Stone Group.



One option would be for the Commerce Department to craft rules that require tech giants such as Apple and Google to take down DeepSeek’s app, restricting its downloads in the U.S. market, Triolo said, adding that it would, however, be challenging to pull the app off other platforms such as Github.



DeepSeek in December released a free, open-source large language model, which it claimed was built in just two months and at a fraction of the cost borne by other major players. Last week, the company released a reasoning model that reportedly outperformed OpenAI’s latest offerings in many third-party tests.



DeepSeek, whose AI chatbot has become the most downloaded free application on Apple’s App Store in the U.S., said it created the model despite the sweeping controls imposed in 2022 by the U.S. on China’s access to the most advanced Nvidia chips.



The Hangzhou-based startup said it used the less-advanced Nvidia H800 chips to build the model, which was available until the U.S. government widened the ban in October 2023.



“If DeepSeek had equipment that it shouldn’t have, it could certainly lead to further investigation,” said Daniel Newman, CEO of Futurum Group, who expects the U.S. government to look into DeepSeek’s hardware which might have violated export curbs.



U.S. President Donald Trump said Monday that the advancement of Chinese AI app DeepSeek “should be a wake-up call” for America’s tech companies, while lauding the low-cost model as “very much a positive development” for AI overall. “Instead of spending billions and billions, you’ll spend less, and you’ll come up with, hopefully, the same solution,” Trump said. 



DeepSeek’s claimed cost efficiency and effectiveness of its model sent U.S. tech stocks into a tailspin as investors questioned the amount of money big tech firms have been investing in AI models and data centers. U.S. companies could now leverage the public codes to refine their own models and possibly bring down computation costs.



Rep. John Moolenaar, R-Mich., the chair of the House Select Committee on China, said on Monday the U.S. government should work to place stronger export controls on technologies critical to DeepSeek’s AI infrastructure.



“The situation is somewhat unprecedented, and it is not likely that anyone in Washington has a clear idea what to do about it &#8230; we are clearly in uncharted waters at many levels,” Triolo said.



The company said on Monday that it temporarily limited new sign-ups to users with mainland China’s phone numbers following a large-scale malicious cyberattack that caused outages on its website.



On Jan. 20, the day when the the company’s R1 reasoning model was launched to the public, DeepSeek’s founder Liang Wenfeng attended a closed-door symposium for businessman and experts, chaired by Chinese premier Li Qiang, according to state media Xinhua.



CNBC’s Dylan Butts, Hui Jie Lim contributed to this report.

U.S. lawmakers in ‘uncharted waters’ as DeepSeek tests limits of American trade restrictions

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-820x547.jpeg" alt="" class="wp-image-579253" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A 3D-printed miniature model of U.S. President-elect Donald Trump and TikTok logo are seen in this illustration taken January 19, 2025. Dado Ruvic | Reuters</figcaption></figure>



President Donald Trump wants a U.S. investor to take a major stake in ByteDance’s TikTok. Several parties are in contention even as potential buyers face a litany of legal hurdles and barriers.



After stepping in to restore TikTok in the U.S. and delaying a law that would effectively ban the app, Trump is looking for avenues to keep the popular platform afloat.



He has put forward a proposal for an American stakeholder to buy the company and then sell a 50% stake to the U.S. government, which will jointly run the app along with the private party.&nbsp;



Trump reportedly said Saturday that he was in talks with multiple people over buying TikTok and that he would likely decide on its future in the next 30 days.



So, who are the likely contenders for one of the most popular apps in the U.S.?



<h2 class="wp-block-heading" id="h-elon-musk-nbsp"><a></a>Elon Musk&nbsp;</h2>



Trump has already flagged several major investors within his inner circle as acceptable buyers, one of which is Tesla and SpaceX owner Elon Musk.&nbsp;



The world’s richest person is leading Trump’s new Department of Government Efficiency, has close business ties to China and has voiced opposition to the TikTok ban. 



Bloomberg reported earlier this month that the Chinese government was considering a plan to have Musk acquire TikTok’s U.S. operations, citing anonymous sources. That followed a report from the Wall Street Journal, which claimed TikTok’s CEO had been soliciting advice from Musk ahead of Trump’s inauguration. 



CNBC was unable to reach Musk for comment.&nbsp;



“Elon Musk continues to be front and center as a potential bidder for TikTok which likely includes some tech partners/outside investors to get a deal done,” financial services company Wedbush Securities said in a research note on Wednesday.&nbsp;



“Musk would be hand picked by Beijing and his ironclad relationship with Trump would make this a very logical choice in our view,” the note added.&nbsp;



Nat Schindler, an analyst at Scotiabank, also noted that Musk’s acquisition of Twitter has demonstrated his interest in global social media platforms.



However, Paul Triolo of Albright Stone Group also sees some potential obstacles for the tech tycoon.&nbsp;



“Musk is under fire already for owning X and the perception that he is using it to promote certain political ideas, and any involvement in TikTok could draw additional fire and potentially antitrust scrutiny,” he said.&nbsp;



<h2 class="wp-block-heading" id="h-larry-ellison"><a></a>Larry Ellison</h2>



Trump has also said he’d “like” to see Oracle Chairman Larry Ellison purchase the platform.



Ellison, a longtime Trump supporter, stood beside the President at a press conference on his AI infrastructure investment plans on Tuesday, where Trump was asked questions about a potential TikTok deal. 



“What I’m thinking about saying to somebody is, buy it, and give half to the United States of America. Half and we’ll give you the permit,” Trump said before turning to Ellison to ask if the deal sounded reasonable.



“Sounds like a good deal to me Mr. President,” Ellison replied.&nbsp;



Ellison and his company are currently at the center of the TikTok dilemma, operating as a cloud infrastructure provider for ByteDance in the U.S.



Given its existing relationship with Tiktok, Oracle and is “directly invested in Tiktok’s success in the region,” Scotiabank’s Schindler said.&nbsp;



Ellison had bid for Tiktok, along with Walmart, back in 2020 when Trump first pushed for a ban on the platform. Neither company responded to CNBC’s request for comment. 



Trump had approved of the Walmart-Oracle deal in principle, which would’ve seen the tech and retail giants partner to take over the video-sharing app in the U.S., avoiding a shutdown. However, the Trump administration’s attempt to ban TikTok in the U.S. fell through in the face of legal challenges.



Ellison later joined a group of investors that helped Elon Musk buy social media platform Twitter, now known as X, in 2022. 



″[We believe] Oracle/Ellison could play a pivotal role in any deal given their key technology partnership with TikTok and his appearance at the White House with Project Stargate,” Wedbush said.



Wedbush added that it expects a slew of TikTok bids to come over the coming weeks from a host of players with Musk and Ellison leading the pack.



According to a National Public Radio report on Saturday, the Trump administration is working on a plan to save TikTok that would involve Oracle and a group of outside investors effectively taking control of it global operations.



<h2 class="wp-block-heading" id="h-perplexity-ai"><a></a>Perplexity AI</h2>



California-based artificial intelligence search engine startup Perplexity AI submitted a bid for TikTok to ByteDance on Jan. 18, as it seeks to create a new merged entity combining Perplexity, TikTok U.S. and new capital partners, CNBC learned.



Following Trump’s comments on a TikTok deal structure, the AI company revised its merger proposal on Sunday to also allow for the U.S. government to own up to 50% of the new company upon future IPO, according to a proposal document seen by CNBC. 



The document proposes ByteDance offer TikTok U.S., without its recommendation algorithm, in exchange for the company’s existing investors receiving equity in the merged company.&nbsp;



The deal would reportedly bring more video to Perplexity — recently valued at about $9 billion — as it gains increasing investor interest amid the generative AI boom and competes with OpenAI and Google. 



<h2 class="wp-block-heading" id="h-big-players-serious-money-nbsp"><a></a>Big players, serious money&nbsp;</h2>



Experts flagged several other parties likely to be interested in a potential deal for TikTok, adding that the barriers to entry were high.&nbsp;



Given the financial stakes of a TikTok deal, it’s unlikely that some rogue investor is going to swoop in and buy the platform on the cheap, according to Albright Stone Group’s Triolo.&nbsp;



“While an up-to-date valuation on TikTok is difficult to come up with, it is likely to the order of $40-80 billion, meaning whoever decides to jump in has to be ready with some serious money,” he said.&nbsp;



He added that potential suitors are likely to include some of America’s largest social media and technology players, such as Meta and Google, in addition to Musk’s X. 



Meta and Google didn’t immediately respond to a CNBC inquiry.



Sarah Kreps, the director of the Tech Policy Institute at Cornell University, however, warned that players such as Meta, Google and Musk getting a substantial stake in TikTok could raise antitrust questions.



Scotiabank analyst Nat Schindler noted that there were also a number of other players, including existing investors BlackRock, Coatue, and General Atlantic, who own a large chunk of TikTok’s parent company. According to him, some of these investors are likely to participate in any sale of the U.S. platform by investing in the new entity.



“Other large VCs, hedge funds, and asset managers from Tiger to Fidelity would also likely show interest in a fast growing global platform with such a huge viewer base,” said Schindler, adding that finding investors to own a part of Tiktok won’t be a problem.



<h2 class="wp-block-heading" id="h-mrbeast-nbsp"><a></a>MrBeast&nbsp;</h2>



The fervor surrounding a purchase of TikTok U.S. has also seen some unconventional players enter the fray.&nbsp;



Social media superstar MrBeast — real name Jimmy Donaldson — who has more than 100 million TikTok followers has posted several videos in which he indicated serious interest in buying the platform, claiming he has had talks with billionaires.&nbsp;



In one video, the internet personality claimed he had an official offer ready, jesting that he might be the new TikTok CEO. 



Media reports have also mentioned Donaldson and a group of investors preparing to make a bid for TikTok. 



On Thursday, Matthew Hiltzik, a spokesperson for Donaldson, told CNBC that “Several potential buyers are in ongoing discussions with Jimmy, but he has no exclusive agreements with any of them.”



<h2 class="wp-block-heading" id="h-the-people-s-bid-for-tiktok"><a></a>‘The People’s Bid for TikTok’</h2>



Led by Project Liberty Founder Frank McCourt and involving Canadian businessman and TV personality Kevin O’Leary, “The People’s Bid for TikTok,” has made a $20 billion cash offer to buy TikTok.&nbsp;



O’Leary told CNBC last year that he wanted to buy the platform at a discount as any possible deal won’t include TikTok’s original algorithm. The organization said it already has a replacement for the algorithm to use for TikTok U.S. 



Following Trump’s comments on a 50% stake in the platform, both McCourt and O’Leary told CNBC this week that they were interested in a TikTok deal and were hoping to work with Trump to make it happen. 



McCourt has also told CNBC that he wants TikTok to run a decentralized social networking protocol, or DSNP, overseen by the Project Liberty Institute, a nonprofit founded by the billionaire.



Bidding interest aside, a number of legal and tech experts have told CNBC that Trump’s executive order to delay the TikTok ban contradicts the Supreme Court’s earlier ruling to uphold the PAFACA and could face legal opposition.



O’Leary also told CNBC on Monday that a TikTok deal could not happen under the current law, after the Supreme Court upheld an impending ban on TikTok under the Protecting Americans from Foreign Adversary Controlled Applications Act, or PAFACA, on Sunday. 



Beijing and its pending negotiations with Trump regarding trade with the U.S. is also expected to play a determining factor in whether the Chinese government would allow ByteDance to make a divestiture.



“In this game of high stakes poker between the Trump Administration and Beijing it’s clear TikTok is a big chip on the table,” Wedush said.



— CNBC’s Hayden Field contributed to this report



Correction: This copy has been updated to fix a quote attribution.

108088767-17373189882025-01-19t185837z_1888681257_rc26dca2p0uv_rtrmadp_0_usa-tiktok

Trump is searching for potential TikTok buyers — who are the likely contenders?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088768-1737318993901-gettyimages-2194750964-4m7a5799_kbh8pivj-820x547.jpeg" alt="" class="wp-image-576785" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088768-1737318993901-gettyimages-2194750964-4m7a5799_kbh8pivj-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088768-1737318993901-gettyimages-2194750964-4m7a5799_kbh8pivj-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088768-1737318993901-gettyimages-2194750964-4m7a5799_kbh8pivj-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088768-1737318993901-gettyimages-2194750964-4m7a5799_kbh8pivj-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088768-1737318993901-gettyimages-2194750964-4m7a5799_kbh8pivj-1536x1025.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088768-1737318993901-gettyimages-2194750964-4m7a5799_kbh8pivj-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">In this photo illustration an iPhone displays a popup message on the social media platform TikTok on January 19, 2025 in Washington, D.C.  Kayla Bartkowski | Getty Images</figcaption></figure>



TikTok was available to some U.S. users on Sunday after President-elect Donald Trump said that he would sign an executive order on Monday following his inauguration to delay a federal ban of the app.



In a statement on X, the company wrote that it would bring back access to its American users.



“In agreement with our service providers, TikTok is in the process of restoring service,” TikTok wrote. “We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive.”



The decision is “a strong stand for the First Amendment and against arbitrary censorship,” the company added. “We will work with President Trump on a long-term solution that keeps TikTok in the United States.”



This came after Trump wrote on his social media app Truth Social he would “issue an executive order on Monday” to extend the period of time before the ban was set to take place.



“I’m asking companies not to let TikTok stay dark!” Trump wrote on Sunday morning.



Although TikTok was shut down for American users late Saturday night, and also removed from Apple and Google’s app stores, some were able to log on to the platform on Sunday through their mobile apps and desktops.



The law banning TikTok was set to take effect on Sunday as ByteDance, the China-based owner of TikTok, had not yet divested the company to a non-Chinese entity. The Supreme Court had ruled on Friday to uphold the law that would ban the app and penalize third-party internet service providers, such as Apple and Google, if they supported TikTok on their platforms after the ban went into effect.



Despite TikTok’s pledge to reinstate service in the U.S. following Trump’s statement, the company’s future remains unclear under the current law.



Trump has previously stated on Truth Social that he would like the U.S. to hold 50% ownership of TikTok in a joint venture to “keep it in good hands and allow it to stay up.” However, ByteDance has not changed its stance on having no plans to sell the company.

108087891-17370552112025-01-16t184115z_264065835_rc26bcansfjq_rtrmadp_0_usa-china-tiktok

TikTok restoring U.S. service after Trump provided ‘assurance’

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1080" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108087889-17370551552025-01-16t184404z_820877807_rc26bcaoa7bg_rtrmadp_0_usa-china-tiktok-1.jpeg" alt="" class="wp-image-576489" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108087889-17370551552025-01-16t184404z_820877807_rc26bcaoa7bg_rtrmadp_0_usa-china-tiktok-1.jpeg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108087889-17370551552025-01-16t184404z_820877807_rc26bcaoa7bg_rtrmadp_0_usa-china-tiktok-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108087889-17370551552025-01-16t184404z_820877807_rc26bcaoa7bg_rtrmadp_0_usa-china-tiktok-1-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108087889-17370551552025-01-16t184404z_820877807_rc26bcaoa7bg_rtrmadp_0_usa-china-tiktok-1-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108087889-17370551552025-01-16t184404z_820877807_rc26bcaoa7bg_rtrmadp_0_usa-china-tiktok-1-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108087889-17370551552025-01-16t184404z_820877807_rc26bcaoa7bg_rtrmadp_0_usa-china-tiktok-1-1536x864.jpeg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">Dado Ruvic | Reuters</figcaption></figure>



Apple and Google removed TikTok from their app stores Saturday night, complying with a law requiring China’s ByteDance to divest the social app or see it face an effective ban in the U.S. 



The Apple App Store and the Google Play store’s removal of TikTok means people in the U.S. can no longer download the popular short-form video app on their devices. The app’s delisting comes after the Supreme Court on Friday unanimously upheld the Protecting Americans from Foreign Adversary Controlled Applications Act, which President Joe Biden signed in April. TikTok on Friday said its service would go dark, meaning it would stop working for Americans, unless the Biden administration intervened.



On Apple’s App Store, a message saying “App Not Available” appears on TikTok’s former app-install page.



“This app is currently not available in your country or region,” the message said.



“We’re sorry, the requested URL was not found on this server,” said a message on the page the previously hosted TikTok on the Google Play store.



Some users who visited TikTok’s app and website on Saturday were greeted with a message that said, “Sorry, TikTok isn’t available right now.”



“A law banning TikTok has been enacted in the U.S. Unfortunately, that means you can’t use TikTok for now,” the notice said. “We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned!”



Lemon8, another service owned by ByteDance, also displayed a notice letting users know it wasn’t available in the U.S. The app had shot up the charts recently, becoming one of the most popular free apps on iOS.



“Sorry, Lemon8 isn’t available right now,” the notice states.



The law requires that service providers no longer support TikTok within the U.S. if ByteDance failed to carry out a “qualified divestiture” of the app by Sunday. As a result, Apple, Google and Oracle could face tough penalties for failing to adhere to the law. Apple and Google previously distributed the app through its app stores while Oracle provides cloud computing services to TikTok and said in June that the law would hurt its business.



After the Supreme Court’s decision, TikTok CEO Shou Chew said use of TikTok is a First Amendment right and added that over 7 million American businesses use it to make money and find customers.



<h2 class="wp-block-heading" id="h-awaiting-trump"><a></a>Awaiting Trump</h2>



“Rest assured, we will do everything in our power to ensure our platform thrives as your online home for limitless creativity and discovery as well as a source of inspiration and joy for years to come,” Chew said in a TikTok video.



Chew also thanked President-elect Donald Trump, who previously asked the Supreme Court to pause the law’s implementation and allow his administration “the opportunity to pursue a political resolution of the questions at issue in the case.” Chew is expected to attend Trump’s inauguration in Washington on Monday, along with tech leaders from companies including Meta, Amazon, Apple and Google.



Trump arrived in Washington Saturday evening. His transition team did not immediately respond to the TikTok shutdown. Trump on Friday said that the Supreme Court’s decision was expected “and everyone must respect it.”



“My decision on TikTok will be made in the not too distant future, but I must have time to review the situation. Stay tuned!” Trump wrote in a post on his social media app Truth Social.



White House press secretary Karine Jean-Pierre on Saturday acknowledged TikTok’s statement that it would go dark and characterized it as a “stunt.”



“We have laid out our position clearly and straightforwardly: actions to implement this law will fall to the next administration,” Jean-Pierre said. “So TikTok and other companies should take up any concerns with them.“ Trump told NBC News on Saturday that he would “most likely” give TikTok a 90-day extension of the Sunday deadline, and that he would “probably announce” a decision on Monday.



“I think that would be, certainly, an option that we look at,” Trump said in the phone interview. “The 90-day extension is something that will be most likely done, because it’s appropriate. You know, it’s appropriate. We have to look at it carefully. It’s a very big situation.”



Artificial intelligence startup Perplexity AI on Saturday submitted a bid for TikTok that would result in the AI-powered search engine startup combine with TikTok’s U.S. operations and new capital partners, CNBC reported.



Businessman Frank McCourt’s internet advocacy group Project Liberty announced on Jan. 9, that it had submitted a proposal to buy TikTok from ByteDance at undisclosed terms. McCourt told CNBC on Friday that “we, I believe, are the only bidder” that meets the necessary criteria of disentangling the technology from the Chinese algorithm.

108087889-17370551552025-01-16t184404z_820877807_rc26bcaoa7bg_rtrmadp_0_usa-china-tiktok (1)

Apple, Google remove TikTok from stores as app halts service in U.S.

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108083800-17363625762025-01-08t185239z_2145872781_rc2u5ca99h17_rtrmadp_0_usa-court-tiktok-820x461.jpeg" alt="" class="wp-image-575022" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108083800-17363625762025-01-08t185239z_2145872781_rc2u5ca99h17_rtrmadp_0_usa-court-tiktok-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108083800-17363625762025-01-08t185239z_2145872781_rc2u5ca99h17_rtrmadp_0_usa-court-tiktok-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108083800-17363625762025-01-08t185239z_2145872781_rc2u5ca99h17_rtrmadp_0_usa-court-tiktok-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108083800-17363625762025-01-08t185239z_2145872781_rc2u5ca99h17_rtrmadp_0_usa-court-tiktok-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108083800-17363625762025-01-08t185239z_2145872781_rc2u5ca99h17_rtrmadp_0_usa-court-tiktok-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108083800-17363625762025-01-08t185239z_2145872781_rc2u5ca99h17_rtrmadp_0_usa-court-tiktok.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Dado Ruvic | Reuters</figcaption></figure>



Chinese social media app RedNote has skyrocketed to the top of Apple’s app store, underscoring concerns that TikTok will soon be effectively banned in the U.S.



RedNote, or Xiaohongshu, as it’s known in China, is the No. 1 free app on the Apple app store as of Monday, followed by TikTok’s photo-sharing Lemon8 app and OpenAI’s ChatGPT.



Many TikTok creators are rushing to find alternatives where they can continue posting videos while waiting to see what happens with TikTok, which faces a potential Jan. 19 ban in the U.S. The Supreme Court held oral arguments last week about the April law setting the stage for a ban, and seemed to side more favorably with the U.S. government’s arguments that ByteDance’s ownership of TikTok poses a national security risk.



Attorneys representing TikTok and creators argued that the law violates the free-speech protections of millions of its U.S. users.



If the Supreme Court upholds the law, third-party service providers such as Apple and Google will be penalized for supporting TikTok, thus effectively banning the app in the U.S. It’s unclear whether President-elect Donald Trump, who takes office on Jan. 20, would choose to enforce the law.



Some TikTok creators are enacting contingency plans by migrating to RedNote.



One content creator, who goes by the username allieusyaps, said in a post Monday that while “it’s OK” that TikTok could be banned in the U.S., he and other TikTok creators “aren’t going back to Instagram and Facebook,” because they joined RedNote.



“Look I might not have a job in the next week, but we about to learn Mandarin baby!” the user wrote.



Another TikTok creator named Krystan Walmsley posted a short video teaching people how to set up and decorate their RedNote accounts.



“This app is so cute and it’s a lot of fun so far,” Walmsley said.



RedNote, based in Shanghai, was founded in 2013, and has increasingly challenged Alibaba and Douyin, ByteDance’s version of TikTok in China, in e-commerce and social media. It had about 300 million monthly active users as of July 2024, according to a report by the South China Morning Post.



RedNote was valued at $17 billion after raising funding in July from investors such as Boyu Capital and HongShan Capital Group, formerly Sequoia Capital’s Chinese investment arm, according to PitchBook. It’s raised over $900 million in total funding and has more than 2,000 employees, PitchBook said.



Representatives from RedNote and TikTok didn’t immediately respond to requests for comment.

108083800-17363625762025-01-08t185239z_2145872781_rc2u5ca99h17_rtrmadp_0_usa-court-tiktok

Users worried about TikTok ban appear to be downloading a different Chinese social media app

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108038935-17272715482024-09-25t132450z_828786131_rc2p7aapgnt6_rtrmadp_0_un-assembly-starmer-820x461.png" alt="" class="wp-image-574742" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108038935-17272715482024-09-25t132450z_828786131_rc2p7aapgnt6_rtrmadp_0_un-assembly-starmer-820x461.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108038935-17272715482024-09-25t132450z_828786131_rc2p7aapgnt6_rtrmadp_0_un-assembly-starmer-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108038935-17272715482024-09-25t132450z_828786131_rc2p7aapgnt6_rtrmadp_0_un-assembly-starmer-160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108038935-17272715482024-09-25t132450z_828786131_rc2p7aapgnt6_rtrmadp_0_un-assembly-starmer-768x432.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108038935-17272715482024-09-25t132450z_828786131_rc2p7aapgnt6_rtrmadp_0_un-assembly-starmer.png 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Britain’s Prime Minister Keir Starmer gives a media interview while attending the 79th United Nations General Assembly at the United Nations Headquarters in New York, U.S. September 25, 2024. Leon Neal | Via Reuters</figcaption></figure>



LONDON — The U.K is looking to build a homegrown challenger to OpenAI and drastically increase national computing infrastructure, as Prime Minister Keir Starmer’s government sets its sights on becoming a global leader in artificial intelligence.



Starmer is set to visit Bristol, England, on Monday to announce the pledge, which follows work done by British tech investor Matt Clifford to establish an “AI Opportunities Action Plan.” The plan aims to help the U.K. take advantage of the potential of AI.



The government is primarily seeking to expand data center capacity across the U.K. to boost developers of powerful AI models which rely on high-performance computing equipment hosted in remote locations to train and run their systems.



A target of increasing “sovereign,” or public sector, compute capacity in the U.K. by twentyfold by 2030 has been set. As part of that pledge, the government will begin opening access to the AI Research Resource, an initiative aimed at bolstering U.K. computing infrastructure.



Starmer’s administration last year canceled £1.3 billion of taxpayer-funded spending commitments towards two significant computing initiatives in order to prioritize other fiscal plans. The projects, an AI Research Resource and a next-generation “exascale” supercomputer, were pledges were made under Starmer’s predecessor, Rishi Sunak.



Sovereign AI has become a hot topic for policymakers, particularly in Europe. The term refers to the idea that technologies critical to economic growth and national security should be built and developed in the countries people are adopting them in.



To further bolster Britain’s computing infrastructure, the government also committed to setting up several AI “growth zones,” where rules on planning permission will be relaxed in certain places to allow for the creation of new data centers.



Meanwhile, an “AI Energy Council” formed of industry leaders from both energy and AI will be set up to explore the role of renewable and low-carbon sources of energy, like nuclear.



It comes as tech giants like Amazon, Microsoft and Google are investing hundreds of millions of dollars in small modular reactors (SMR) to provide nuclear energy for the data centers that power their AI systems.



<h2 class="wp-block-heading" id="h-building-a-challenger-to-openai"><a></a>Building a challenger to OpenAI</h2>



The last major initiative the U.K. government proposed was to create homegrown AI “champions” of&nbsp;a&nbsp;similar scale to American tech giants responsible for the foundational AI models that power today’s generative AI tools such as OpenAI’s ChatGPT.



Britain plans to use the AI growth zones and a newly established National Data Library to connect public institutions — such as universities — to enhance the country’s ability to create “sovereign” AI models which aren’t reliant on Silicon Valley.



It’s worth highlighting that the U.K. faces serious challenges in its bid to create an effective OpenAI alternative. For one, several entrepreneurs in the country have bemoaned funding challenges that make it difficult for startups in the country to raise the kind of cash available to AI success stories.



Many U.K. founders and venture capitalists have called for the country’s pension funds to allocate a greater portion of their portfolios toward riskier, growth-focused startups — a reform the government has committed to pushing previously.



“In the U.K., there’s $7 trillion in this pocket,” Magnus Grimeland, CEO and founder of venture capital firm Antler, told CNBC in an interview last year. “Imagine if you take just 5% of that and allocate it to innovation — you solve the problem.”



U.K. tech leaders have nevertheless generally praised the government’s AI action plan. Zahra Bahrololoumi, Salesforce’s U.K. boss, told CNBC the plan is a “forward-thinking strategy,” adding she’s encouraged by the government’s “bold vision for AI and emphasis on transparency, safety and collaboration.”



Chintan Patel, Cisco’s chief technology officer in the U.K., said he’s “encouraged” by the action plan. “Having a clearly defined roadmap is critical for the UK to achieve its ambition to become an AI superpower and a leading destination for AI investment,” he said.



Britain doesn’t yet have formal regulations for AI. Starmer’s government has previously said it plans to draw up legislation for AI — but details remain thin.



Last month, the government announced a consultation on measures to regulate the use of copyrighted content to train AI models.



More generally, the U.K. is pitching a differentiated regulatory regime from the EU following Brexit as a positive factor — meaning, it can introduce regulatory oversight for AI but in a way that’s less strict than the EU, which has taken a more hard-line approach to regulating the technology with its AI Act.

108038935-17272715482024-09-25t132450z_828786131_rc2p7aapgnt6_rtrmadp_0_un-assembly-starmer

Britain seeks to build homegrown rival to OpenAI in bid to become world leader in artificial intelligence

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108075021-1734011164475-gettyimages-1456167226-gitech84-820x461.jpeg" alt="" class="wp-image-566950" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108075021-1734011164475-gettyimages-1456167226-gitech84-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108075021-1734011164475-gettyimages-1456167226-gitech84-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108075021-1734011164475-gettyimages-1456167226-gitech84-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108075021-1734011164475-gettyimages-1456167226-gitech84-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108075021-1734011164475-gettyimages-1456167226-gitech84-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/108075021-1734011164475-gettyimages-1456167226-gitech84-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China is focusing on large language models (LLMs) in the artificial intelligence space.  Blackdovfx | Istock | Getty Images</figcaption></figure>



China’s attempts to dominate the world of artificial intelligence could be paying off, with industry insiders and technology analysts telling CNBC that Chinese AI models are already hugely popular and are keeping pace with — and even surpassing — those from the U.S. in terms of performance.



AI has become the latest battleground between the U.S. and China, with both sides considering it a strategic technology. Washington continues to restrict China’s access to leading-edge chips designed to help power artificial intelligence amid fears that the technology could threaten U.S. national security.



It’s led China to pursue its own approach to boosting the appeal and performance of its AI models, including relying on open-sourcing technology and developing its own super-fast software and chips.



<h2 class="wp-block-heading" id="h-china-is-creating-popular-llms"><a></a>China is creating popular LLMs</h2>



Like some of the leading U.S. firms in the space, Chinese AI firms are developing so-called large language models, or LLMs, which are trained on huge amounts of data and underpin applications such as chatbots.



Unlike OpenAI’s models which power the hugely popular ChatGPT, however, many of these Chinese companies are developing open-source, or open-weight, LLMs which developers can download and build on top of for free and without stringent licensing requirements from the inventor.



On Hugging Face, a repository of LLMs, Chinese LLMs are the most downloaded, according to Tiezhen Wang, a machine learning engineer at the company. Qwen, a family of AI models created by Chinese e-commerce giant Alibaba, is the most popular on Hugging Face, he said.



“Qwen is rapidly gaining popularity due to its outstanding performance on competitive benchmarks,” Wang told CNBC by email.



He added that Qwen has a “highly favorable licensing model” which means it can be used by companies without the need for “extensive legal reviews.”



Qwen comes in various sizes, or parameters, as they’re known in the world of LLMs. Large parameter models are more powerful but have higher computational costs, while smaller ones are cheaper to run.



“Regardless of the size you choose, Qwen is likely to be one of the best-performing models available right now,” Wang added.



DeepSeek, a start-up, also made waves recently with a model called DeepSeek-R1. DeepSeek said last month that its R1 model competes with OpenAI’s o1 — a model designed for reasoning or solving more complex tasks.



These companies claim that their models can compete with other open-source offerings like&nbsp;<a href="https://www.cnbc.com/quotes/META/">Meta</a>’s Llama, as well as closed LLMs such as those from OpenAI, across various functions.



“In the last year, we’ve seen the rise of open source Chinese contributions to AI with really strong performance, low cost to serve and high throughput,” Grace Isford, a partner at Lux Capital, told CNBC by email.



<h2 class="wp-block-heading"><a></a>China pushes open source to go global</h2>



Open sourcing a technology serves a number of purposes, including driving innovation as more developers have access to it, as well as building a community around a product.



It is not only Chinese firms that have launched open-source LLMs. Facebook parent Meta, as well as European start-up Mistral, also have open-source versions of AI models.



But with the technology industry caught in the crosshairs of the geopolitical battle between Washington and Beijing, open-source LLMs give Chinese firms another advantage: enabling their models to be used globally.



“Chinese companies would like to see their models used outside of China, so this is definitively a way for companies to become global players in the AI space,” Paul Triolo, a partner at global advisory firm DGA Group, told CNBC by email.



While the focus is on AI models right now, there is also debate over what applications will be built on top of them — and who will dominate this global internet landscape going forward.



“If you assume these frontier base AI models are table stakes, it’s about what these models are used for, like accelerating frontier science and engineering technology,” Lux Capital’s Isford said.



Today’s AI models have been compared to operating systems, such as Microsoft’s Windows, Google’s Android and Apple’s iOS, with the potential to dominate a market, like these companies do on mobile and PCs.



If true, this makes the stakes for building a dominant LLM higher.



“They [Chinese companies] perceive LLMs as the center of future tech ecosystems,” Xin Sun, senior lecturer in Chinese and East Asian business at King’s College London, told&nbsp;CNBC&nbsp;by email.



“Their future business models will rely on developers joining their ecosystems, developing new applications based on the LLMs, and attracting users and data from which profits can be generated subsequently through various means, including but far beyond directing users to use their cloud services,” Sun added.



<h2 class="wp-block-heading"><a></a>Chip restrictions cast doubt over China’s AI future</h2>



AI models are trained on vast amounts of data, requiring huge amounts of computing power. Currently,&nbsp;<a href="https://www.cnbc.com/quotes/NVDA/">Nvidia</a>&nbsp;is the leading designer of the chips required for this, known as graphics processing units (GPUs).



Most of the leading AI companies are training their systems on Nvidia’s most high-performance chips — but not in China.



Over the past year or so, the U.S. has ramped up export restrictions on advanced semiconductor and chipmaking equipment to China. It means Nvidia’s leading-edge chips cannot be exported to the country and the company has had to create sanction-compliant semiconductors to export.



Despite, these curbs, however, Chinese firms have still managed to launch advanced AI models.



“Major Chinese technology platforms currently have sufficient access to computing power to continue to improve models. This is because they have stockpiled large numbers of Nvidia GPUs and are also leveraging domestic GPUs from Huawei and other firms,” DGA Group’s Triolo said.



Indeed, Chinese companies have been boosting efforts to create viable alternatives to Nvidia. Huawei has been one of the leading players in pursuit of this goal in China, while firms like Baidu and Alibaba have also been investing in semiconductor design.



“However, the gap in terms of advanced hardware compute will become greater over time, particularly next year as Nvidia rolls out its Blackwell-based systems that are restricted for export to China,” Triolo said.



Lux Capital’s Isford flagged that China has been “systematically investing and growing their whole domestic AI infrastructure stack outside of Nvidia with high-performance AI chips from companies like Baidu.”



“Whether or not Nvidia chips are banned in China will not prevent China from investing and building their own infrastructure to build and train AI models,” she added.

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China wants to dominate in AI — and some of its models are already beating their U.S. rivals

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="625" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108066045-1732144350860-Bluesky_CEO_Jay_Graber_2-820x625.jpg" alt="" class="wp-image-557334" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108066045-1732144350860-Bluesky_CEO_Jay_Graber_2-820x625.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108066045-1732144350860-Bluesky_CEO_Jay_Graber_2-300x229.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108066045-1732144350860-Bluesky_CEO_Jay_Graber_2-118x90.jpg 118w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108066045-1732144350860-Bluesky_CEO_Jay_Graber_2-768x585.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108066045-1732144350860-Bluesky_CEO_Jay_Graber_2-1536x1170.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/108066045-1732144350860-Bluesky_CEO_Jay_Graber_2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Bluesky has surged in popularity since the presidential election earlier this month, suddenly becoming a competitor to Elon Musk’s X and Meta’s Threads. But CEO Jay Graber has some cautionary words for potential acquirers: Bluesky is “billionaire proof.”



In an interview on Thursday with CNBC’s “Money Movers,” Graber said Bluesky’s open design is intended to give users the option of leaving the service with all of their followers, which could thwart potential acquisition efforts.



“The billionaire proof is in the way everything is designed, and so if someone bought or if the Bluesky company went down, everything is open source,” Graber said. “What happened to Twitter couldn’t happen to us in the same ways, because you would always have the option to immediately move without having to start over.”



Graber was referring to the way millions of users left Twitter, now X, after Musk purchased the company in 2022. Bluesky now has over 21 million users, still dwarfed by X and Threads, which Facebook’s parent debuted in July 2023.



X and Meta didn’t immediately respond to requests for comment.



Threads has roughly 275 million monthly users, Meta CEO Mark Zuckerberg said in October. Although Musk said in May that X has 600 million monthly users, market intelligence firm Sensor Tower estimates 318 million monthly users as of October.



Bluesky was created in 2019 as an internal Twitter project during Jack Dorsey’s second stint as CEO, and became an independent public benefit corporation in 2022. In May of this year, Dorsey said he is no longer a member of Bluesky’s board.



“In 2019, Jack had a vision for something better for social media, and so that’s why he chose me to build this, and we’re really thankful for him for setting this up, and we’ve continued to carry this out,” said Graber, who previously founded Happening, a social network focused on events. “We’re building an open-source social network that anyone can take into their own hands and build on, and it’s something that is radically different from anything that’s been done in social media before. Nobody’s been this open, this transparent and put this much control in the users hands.”



Part of Bluesky’s business plan involves offering subscriptions that would let users access special features, Graber noted. She also said that Bluesky will add more services for third-party coders as part of the startup’s “developer ecosystem.”



Graber said Bluesky has ruled out the possibility of letting advertisers send algorithmically recommended ads to users.



“There’s a lot on the road map, and I’ll tell you what we’re not going to do for monetization,” Graber said. “We’re not going to build an algorithm that just shoves ads at you, locking users in. That’s not our model.” Bluesky has previously experienced major growth spurts. In September, it added 2 million users following X’s suspension in Brazil over content moderation policy violations in the country and related legal matters.



In October, Bluesky announced that it raised $15 million in a funding round led by Blockchain Capital. The company has raised a total of $36 million, according to Pitchbook.

108066045-1732144350860-Bluesky_CEO_Jay_Graber_2

Bluesky CEO Jay Graber says X rival is ‘billionaire proof’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="518" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/H4D76FPFLJJOFKKB6PZX3XGHFQ-1-820x518.jpg" alt="" class="wp-image-554697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/H4D76FPFLJJOFKKB6PZX3XGHFQ-1-820x518.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/H4D76FPFLJJOFKKB6PZX3XGHFQ-1-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/H4D76FPFLJJOFKKB6PZX3XGHFQ-1-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/H4D76FPFLJJOFKKB6PZX3XGHFQ-1-768x485.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/H4D76FPFLJJOFKKB6PZX3XGHFQ-1-1536x971.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/H4D76FPFLJJOFKKB6PZX3XGHFQ-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A Starlink satellite internet system is set up on a caravan truck of a tourist, parked in a street in Ronda, Spain February 12, 2024. REUTERS/Jon Nazca/FILE PHOTO</figcaption></figure>



CAPE TOWN, Nov 15 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s information and communications technology sector needs policy and regulatory changes to keep up with emerging technologies, the chair of the country&#8217;s communications regulator told Reuters.



Technological advances such as satellite internet and artificial intelligence are forcing governments and regulators worldwide to revamp their oversight of the industry.



Mothibi Ramusi, the new chair of the Independent Communications Authority of South Africa, or ICASA, told Reuters one of his priorities was to ensure the regulator adapted to change.



The regulator is working on finalising its five-year strategy plan, which will guide its priorities going forward.



&#8220;As we have it right now, our legislative frameworks are still a barrier to leapfrog into the future,&#8221; he said on the sidelines of Africa Tech conference on Thursday.



&#8220;The first priority to get things right is we need to revamp the entire ICT framework. The policy needs to be reviewed, the ICASA Act and other associated acts, like the Electronic Communication Transaction Act.&#8221;



South Africa is yet to sign into law proposed amendments to the Electronic Communications Act, which have been in discussion for years. The bill, among other things, proposes new regulations for mobile virtual networks and allows spectrum sharing.



The regulator has also initiated an inquiry into the licensing framework for satellite-internet providers to provide clear rules for potential operators in the country, amid the growing demand for Starlink, operated by Elon Musk&#8217;s SpaceX.



Submissions for comments were closed this week and ICASA will analyse the inputs and begin public consultations before finalising the appropriate licensing framework, Ramusi said.



&#8220;We are mindful that whilst you&#8217;re talking infrastructure expansion, there are other areas where you might not be able to connect people with what you call terrestrial infrastructure,&#8221; Ramusi said.



&#8220;So satellite becomes another infrastructure layer that we need because you need rapid deployment. In South Africa, we are embracing that.&#8221;



South Africa was one of the first few African countries where Starlink wanted to launch its satellite internet but is hindered by the country&#8217;s regulations, which require foreign-owned companies to sell a 30% stake to historically disadvantaged groups in order to operate in country.



(Reporting by Nqobile Dludla; Editing by Christina Fincher)

A Starlink satellite internet system is set up on a caravan truck of a tourist, parked in a street in Ronda

New tech requires rulebook revamp, says S.Africa’s communications regulator

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI-820x429.jpg" alt="" class="wp-image-546009" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Customers and workers are seen at a Huawei store at Sandton City mall in Sandton, South Africa February 16, 2022. REUTERS/Siphiwe Sibeko <a href="https://www.reutersagency.com/en/licensereuterscontent/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead" target="_blank" rel="noreferrer noopener">Purchase Licensing Rights</a></figcaption></figure>



JOHANNESBURG, Oct 24 (Reuters)&nbsp;&#8211;&nbsp;Huawei&nbsp;HWT.UL&nbsp;Cloud&#8217;s business in South Africa has grown fast over the past five years and it plans to launch more cloud solutions to expand market share to boost revenue, a company executive said on Thursday.



Increased demand for faster computing from South African firms and the government has attracted big cloud operators into the country, with Huawei the first international vendor to host a local &#8216;hyperscale&#8217; cloud data centre in South Africa in 2019.



Huawei Cloud has served more than 1,000 customers from the government, financial services, education and telecoms sectors as well as some media and e-commerce companies, Jacqueline Shi, president of Huawei Cloud Global Marketing and Sales Service told delegates at the company&#8217;s cloud summit in Johannesburg.



&#8220;With this kind of strong support from different customers, our cloud business in South Africa has increased more than 16 times over the past five years,&#8221; Shi said.



She told reporters that the total revenue amount &#8220;is still not so big&#8221;, which has encouraged the company to launch more cloud solutions and capture a larger share of the country&#8217;s market.



The cloud market in South Africa is expected to grow at a compound annual rate of around 26% between 2023 and 2028 to 113 billion rand ($6 billion) in value, according to market research company Africa Analysis.



The adoption of artificial intelligence is also driving spending by corporate customers.



&#8220;Go to cloud or not, is not an option anymore. The question is how far and how to do it quickly,&#8221; Huawei Cloud South Africa Chief Executive Steven Chen told reporters.



The Chinese tech giant, which is going head-to-head with cloud services rivals Microsoft&nbsp;MSFT.O, Amazon&nbsp;AMZN.O&nbsp;and Alphabet&#8217;s&nbsp;GOOGL.O&nbsp;Google for customers in South Africa, has three data centre zones or locations in Johannesburg.



($1 = 17.6962 rand)



(Reporting by Nqobile Dludla; Editing by Emelia Sithole-Matarise)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_44RTBPTQEBOPJJS4DZGDBIRFWI

Huawei Cloud sees fast business growth in South Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107240789-1684075132097-gettyimages-1240490159-UK_UBER-820x461.jpeg" alt="" class="wp-image-539941" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107240789-1684075132097-gettyimages-1240490159-UK_UBER-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107240789-1684075132097-gettyimages-1240490159-UK_UBER-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107240789-1684075132097-gettyimages-1240490159-UK_UBER-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107240789-1684075132097-gettyimages-1240490159-UK_UBER-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107240789-1684075132097-gettyimages-1240490159-UK_UBER-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107240789-1684075132097-gettyimages-1240490159-UK_UBER.jpeg 1858w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An Uber-dedicated charger at a BP Pulse electric vehicle charging station in central London, U.K., on Monday, April 11, 2022. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Uber CEO Dara Khosrowshahi on Tuesday announced that the company is updating its platform with new sustainability-minded features, including an “EV preference” that will let customers opt for fully electric vehicles by default, whenever they hail a ride.



The company previously launched an “Uber Green,” service which has historically included a mix of battery electric vehicles, and hybrid electric models. Now, Uber can offer battery electric vehicles as the sole “green” option in more than 40 cities globally, executives said at Uber’s annual Go Get Zero sustainability conference in London on Tuesday.



Speaking at Uber’s GO-GET Zero event in London, Khosrowshahi said that the company’s rollout of new sustainability-focused features arrives ahead of the 2024 U.S. elections, adding this is a time when the topic of EVs has become a “politically-charged issue.”



However, he noted that the overall trend is moving toward all-electric mobility options.



“The reality is that we will only reach or zero emission goals if policymakers and other businesses do their part as well,” Khosrowshahi said at the event.



“We need more affordable EVs, we need stronger EV mandates, we need incentives for people who are driving the most. We want to make sure that chargers are available at every community, not just the wealthiest. So we all need to step up,” he said.



For drivers, Uber said it is rolling out an “EV Mentor” program, which connects drivers for any questions about electric mobility. The company also debuted an AI chatbot powered by OpenAI’s ChatGPT, looking to answer questions for drivers on the ride-hail network about what it takes to buy and use a battery electric vehicle instead of a gas-burning vehicle.



Transportation has been responsible for about 25% of carbon emissions from human activity globally, according to estimates by the non-profit International Council on Clean Transportation. Carbon emissions, and other greenhouse gases from human activity, cause long-term shifts in temperatures and weather, while also contributing to respiratory disease by forming smog and air pollution.



Ride-hailing services like Uber’s can contribute to traffic congestion and therefore, pollution, according to analysis by Suvrat Dhanorkar, Gordon Burtch and others published in the journal of Transportation Science. Uber has been working to reduce its environmental footprint and looks to become a “zero-emissions platform” by 2040.



On the delivery side of its platform, Uber is adding farmers’ market produce to Uber Eats offerings in two major U.S. markets: New York City and Los Angeles.



Uber said it will also be investing nearly $1 million to enable restaurants in Paris that sell meals via Uber Eats to switch to more sustainable packaging, such as seaweed-based packaging from NotPLA,&nbsp;bags made of foliage by Releaf, and&nbsp;straws made of agricultural suAgar residuals from IAmPlasticFree.



According to statistics tracked by the Organization for Economic Co-operation and Development (OECD), residents in Paris generate more than 400 kg (880 lb) of waste each year. France has implemented laws to reduce this waste, requiring fast food restaurants to move away from disposable, plastic packaging and utensils.



In the U.K., specifically, Uber said it’s launched a partnership with British energy supplier Octopus Energy and Chinese EV firm BYD to co-fund 1,000 free home chargers worth almost £1,000 each for drivers in the U.K.



The deal will give Uber drivers the ability to access Octopus’ “Intelligent Go” tariff to help them with EV charging costs. Drivers will also be able to get 8% off at public charging systems across Octopus’ Electroverse network.



“This is the first partnership between uber a power company and an EV manufacturer and it will meaningfully reduce charging costs for drivers,” Rebecca Tinucci, Uber’s head of global sustainability, said at the London event Tuesday. Tinucci was formerly senior director of charging infrastructure at Tesla.

107240789-1684075132097-gettyimages-1240490159-UK_UBER

Uber gives users option to only hail full-electric cars, launches AI chatbot for EV-curious drivers

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108038698-1727224394854-OpenAI_Voice-820x615.jpg" alt="" class="wp-image-534792" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108038698-1727224394854-OpenAI_Voice-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108038698-1727224394854-OpenAI_Voice-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108038698-1727224394854-OpenAI_Voice-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108038698-1727224394854-OpenAI_Voice-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108038698-1727224394854-OpenAI_Voice-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/108038698-1727224394854-OpenAI_Voice-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">OpenAI has launched advanced voice mode for audio chats with ChatGPT. Jordan Novet, CNBC</figcaption></figure>



ChatGPT is ready for more natural audio chats.



OpenAI said Tuesday that its popular chatbot now has an advanced voice feature for people who pay for the premium service. The tool allows for more fluid conversations.



The release will continue through the week. The company said it’s not yet available in EU countries, Iceland, Liechtenstein, Norway, Switzerland or the U.K.



OpenAI announced the new capability in May. The rollout got plenty of publicity because of a voice called Sky that resembled that of Scarlett Johansson in the 2013 movie “Her.” Legal counsel working on behalf of Johansson sent OpenAI letters claiming the company didn’t have the right to use the near-identical voice, and OpenAI paused using it in its products, CNBC reported.



In the months since, people have been able to configure ChatGPT to talk to them in other voices through a free tier. The advanced version responds more quickly and will stop talking and listen if you interrupt it. There are now nine voices to choose from, and you can enter instructions for voice chats in the Customizations part of the app’s settings.



“Hope you think it was worth the wait,” Sam Altman, OpenAI’s co-founder and CEO, wrote in an X post on Tuesday.



It’s an increasingly competitive space for OpenAI, which is backed by Microsoft.



For the past couple weeks, Google has been releasing its own Gemini Live voice feature in English on Android devices. And on Monday, Reuters reported that Meta will introduce celebrity voices later this week that can be accessed through Facebook, Instagram and WhatsApp.



OpenAI got a head start in the generative AI chatbot market, when it launched ChatGPT in late 2022. In August, OpenAI told media outlets that ChatGPT had over 200 million weekly active users.



The advanced mode is only available to those with subscriptions to OpenAI’s Plus, Team or Enterprise plans. The most affordable option is the Plus tier at $20 per month.



<h2 class="wp-block-heading" id="h-here-s-what-to-do"><a></a>Here’s what to do</h2>



If you’re paying, it’s easy to get started, assuming OpenAI has granted access to your device.



First, make sure you have the latest version of the app on your phone.



Open the ChatGPT app.



OpenAI says you’ll receive a notification in the app once it’s turned on access to the new feature. Hit the continue button to get started.



Create a new chat by swiping right or tapping the two-line icon in the top left corner and selecting ChatGPT at the top. To the right of the “Message” text field and the microphone icon, you should see a sound wave icon. Tap that and make sure your sound is on.



In a few seconds, you’ll hear a little “bump” sound, and the circle in the middle of the screen will morph into a fluid sky-like blue and white animation. Start speaking. You should receive a response quickly. Don’t be surprised if audio breaks up a bit.



OpenAI said it has improved accents in some foreign languages and has increased the speed of conversations. But if you don’t like what you’re hearing, you can ask ChatGPT to speak differently. You can tell it to speed up, for example, or incorporate a Southern accent.



With advanced voice mode, you can have ChatGPT tell you a bedtime story, help you get ready for a job interview or even work on your foreign language skills.



But even if you’re paying, you won’t have unlimited access to advanced voice mode. After using it for about a half hour on Tuesday, I started seeing “15 minutes left” at the bottom of the screen.



OpenAI didn’t immediately respond to a request for details about the time limit.

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