Chinese startup DeepSeek‘s launch of its latest AI models, which it says are on a par or better than industry-leading models in the United States at a fraction of the cost, is threatening to upset the technology world order.

The company has attracted attention in global AI circles after writing in a paper last month that the training of DeepSeek-V3 required less than $6m worth of computing power from Nvidia H800 chips.

DeepSeek‘s AI Assistant, powered by DeepSeek-V3, has overtaken rival ChatGPT to become the top-rated free application available on Apple’s App Store in the United States.

This has raised doubts about the reasoning behind some US tech companies’ decision to pledge billions of dollars in AI investment and shares of several big tech players, including Nvidia, have been hit.

Below are some facts about the company shaking up the AI sector worldwide.

Why is DeepSeek causing a stir?

The release of OpenAI’s ChatGPT in late 2022 caused a scramble among Chinese tech firms, who rushed to create their own chatbots powered by artificial intelligence.

But after the release of the first Chinese ChatGPT equivalent, made by search engine giant Baidu, there was widespread disappointment in China at the gap in AI capabilities between US and Chinese firms.

The quality and cost efficiency of DeepSeek‘s models have flipped this narrative on its head. The two models that have been showered with praise by Silicon Valley executives and US tech company engineers alike, DeepSeek-V3 and DeepSeek-R1, are on par with OpenAI and Meta’s most advanced models, the Chinese startup has said.

They are also cheaper to use. The DeepSeek-R1, released last week, is 20 to 50 times cheaper to use than OpenAI o1 model, depending on the task, according to a post on DeepSeek‘s official WeChat account.

But some have publicly expressed scepticism about DeepSeek‘s success story.

Scale AI CEO Alexandr Wang said during an interview with CNBC on Thursday, without providing evidence, that DeepSeek has 50,000 Nvidia H100 chips, which he claimed would not be disclosed because that would violate Washington’s export controls that ban such advanced AI chips from being sold to Chinese companies. DeepSeek did not immediately respond to a request for comment on the allegation.

Bernstein analysts on Monday highlighted in a research note that DeepSeek‘s total training costs for its V3 model were unknown but were much higher than the $5.58m the startup said was used for computing power. The analysts also said the training costs of the equally-acclaimed R1 model were not disclosed.

Who is behind DeepSeek?

DeepSeek is a Hangzhou-based startup whose controlling shareholder is Liang Wenfeng, co-founder of quantitative hedge fund High-Flyer, based on Chinese corporate records.

Liang’s fund announced in March 2023 on its official WeChat account that it was “starting again”, going beyond trading to concentrate resources on creating a “new and independent research group, to explore the essence of AGI” (Artificial General Intelligence). DeepSeek was created later that year.

ChatGPT makers OpenAI define AGI as autonomous systems that surpass humans in most economically valuable tasks.

It is unclear how much High-Flyer has invested in DeepSeek. High-Flyer has an office located in the same building as DeepSeek, and it also owns patents related to chip clusters used to train AI models, according to Chinese corporate records.

High-Flyer’s AI unit said on its official WeChat account in July 2022 that it owns and operates a cluster of 10,000 A100 chips.

How does Beijing view DeepSeek?

DeepSeek‘s success has already been noticed in China’s top political circles. On January 20, the day DeepSeek-R1 was released to the public, founder Liang attended a closed-door symposium for businessman and experts hosted by Chinese premier Li Qiang, according to state news agency Xinhua.

Liang’s presence at the gathering is potentially a sign that DeepSeek‘s success could be important to Beijing’s policy goal of overcoming Washington’s export controls and achieving self-sufficiency in strategic industries like AI.

A similar symposium last year was attended by Baidu CEO Robin Li.

This Data Privacy Day brings with it the sense of being at a crucial crossroads, particularly since generative artificial intelligence (GenAI) invaded our daily life.

At the heart of data privacy is security, they are intertwined – you can’t have privacy without safeguarding it.

Data is the lifeblood that decisions are made on – it fuels innovation in the cloud, but the volume and complexity in hybrid and multi-cloud environments make it difficult to secure. Siloed data security solutions produce many critical alerts, but how do security teams know if those risks should take priority over other exposures like an over-privileged virtual machine or a workload with a severe CVE? If everything is “critical”, nothing is, and security teams are left guessing where they should direct their remediation efforts.

Protecting data in public cloud environments starts with answering three seemingly simple security questions:

• What type of data do I have in the cloud? How is it classified? Is it sensitive?
• Where is my sensitive data in the cloud? Who has access?
• What are the risks to my cloud data?

AI muddying the waters

With data at the heart of everything, it would be amiss not to mention the potential disruption AI is driving an ever-increasing volume and variety of data stored in the cloud, adding another layer of risk.

As AI applications become more sophisticated, they require more data to learn and function effectively. For organisations, controlling AI deployment usage while also identifying vulnerabilities within AI tools and AI development packages, this is yet another headache for the security team to worry about.

Together, this creates a virtuous cycle — the more data stored and used the greater the range of AI use cases, which attracts even more users. But with each new user, data type and storage solution, the cloud attack surface expands.

In addition, threat actors are starting to harness AI to write malware for ransomware attacks. Discovered by CheckPoint, FunkSec is one such group that is believed to use AI-assisted malware development. The danger is that this could see inexperienced actors able to spin up and refine tools quickly to launch attacks.

With ransomware, we’ve seen malicious actors get increasingly aggressive with their threats. Ten years ago a ransomware attack was really obvious. Today these attacks are less obvious and can go undetected for a few weeks as threat actors look to obfuscate their presence as they creep around and steal data.

Once they’ve extracted the information it’s out of your control. With some governments looking to ban ransomware payments, it could mean that they lay incendiaries, threatening to destroy the data which could leave an organisation unable to function.

Data risks: When things go wrong

While there are many cloud exposures to manage, data risks aren’t something to ignore. Whether it’s a breach of customer information, financial records, or intellectual property, unauthorised access to data can have severe regulatory and reputational consequences. It can lead to mistrust and brand damage externally, while internally there is increased scrutiny from the board who are questioning the organisation’s security posture. If there’s not, there should be!

The cloud’s unique challenges and opportunities for data and AI make it crucial for organisations to address the full spectrum of security responsibilities that accompany collecting, storing and using data. These responsibilities include automatically and continuously scanning data assets, discovering and monitoring sensitive data and alerting on any potential risk.

Data security posture management (DSPM) is a set of ongoing processes and technologies that provides visibility into where sensitive data is stored, who has access to it, and how it’s being used across an organisation’s systems, providing analysis of the overall security posture around data itself, rather than just the infrastructure hosting it.

Cloud native application protection platform (CNAPP) solutions replace a patchwork of siloed products that often cause more problems than they solve, such as multiple false positives and excessive alerts. Those individual products usually provide only partial coverage and often create overhead and friction with the products they’re supposed to work with.

Most importantly, CNAPPs allow businesses to monitor the health of cloud native applications as a whole rather than individually monitoring cloud infrastructure and application security.

When DSPM is integrated into CNAPP it empowers the security team to obtain actionable data context that better prioritises risks and reduces the organisation’s exposure to customer data breaches and the compromise of AI resources and intellectual property.

This Data Privacy Day, every organisation must take action to protect the data it relies upon to function and that it’s trusted to protect, wherever it resides.

Security teams need a comprehensive view of their cloud data and the risks associated with it, allowing them to know where they’re exposed and take action to close those critical risks.”

The writer is the VP, Middle East & North Africa at Tenable.

Read: How governments can deal with data sovereignty

Charging an electric vehicle (EV) on the go in Saudi Arabia is poised to become easier, thanks to a landmark partnership announced this week.

The Electric Vehicle Infrastructure Company (EVIQ) — a joint venture between the Public Investment Fund (PIF) and the Saudi Electricity Company (SEC) — has signed a Memorandum of Understanding (MoU) with Al-Futtaim Electric Mobility, the local representative of Chinese EV powerhouse BYD.

The collaboration aims to accelerate EV adoption in Saudi Arabia by integrating EVIQ’s expertise in fast-charging infrastructure with BYD’s expanding customer base.

In 2024, BYD sold 4.27 million new energy vehicles (NEVs) across the globe, surpassing Tesla to become the world’s largest EV carmaker.

Regionally, BYD is also gaining traction, with over 1,000 of its vehicles sold in the UAE last year, according to Hasan Nergiz, managing director of Al-Futtaim Electric Mobility Company.

This new partnership in Saudi Arabia is expected to further BYD’s foothold in the Kingdom. Plans include deploying high-speed public charging stations at BYD Al-Futtaim locations nationwide, along with tailored charging packages for BYD owners.

The agreement aligns with Saudi Arabia’s Vision 2030, which aims to ensure 30 per cent of vehicles on Riyadh’s roads are electric by the end of the decade.

“Our partnership with BYD Al-Futtaim Electric Mobility marks a significant milestone in transforming Saudi Arabia’s transportation landscape,” said Mohammad Gazzaz, CEO of EVIQ.

“By combining our expertise in fast-charging infrastructure with BYD’s electric mobility innovations, we aim to deliver an unparalleled EV charging experience, contributing to the Kingdom’s sustainability goals and Vision 2030 agenda.”

A recent PwC emobility outlook report highlights that Saudi Arabia has committed $39bn to building an EV ecosystem, including $18bn for EV manufacturing, $9bn for batteries, and $12bn for semiconductors. These investments are projected to attract $150m in foreign direct investment, add $8bn to GDP by 2034, and create over 30,000 jobs.

EVIQ is at the forefront of this transition, with plans to install more than 5,000 chargers across the Kingdom by 2030. Its Riyadh-based R&D facility, the first of its kind in the region, will play a key role in testing and refining technologies for the local market.

Al-Futtaim Electric Mobility, part of the Al-Futtaim Group, is optimistic about the partnership’s potential.

“Strategic collaborations like this are key to shaping a greener, more sustainable future for Saudi Arabia,” said Badr Khojandi, general manager of BYD KSA.

“Together, we aim to empower EV adoption with accessible, efficient, and high-quality charging solutions across the Kingdom.”

The Gulf Cooperation Council (GCC) remains a significant player in global trade, despite experiencing a decline in trade volume in 2023, according to the latest Foreign Trade Report issued by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat).

The GCC ranked sixth globally in the volume of trade in goods, accounting for 3.4 per cent of the world’s total trade in goods. However, the region’s overall trade volume dropped by 4.0 per cent to $1.5 trillion in 2023, down from the previous year.

In terms of merchandise trade balance, the GCC secured the third position globally, with a value of $163.7 bn in 2023. This marks a significant decrease of 57.1 per cent compared to the $381.3 bn recorded in 2022.

The report also highlighted the region’s performance in commodity exports, with the GCC ranking fifth worldwide. The region contributed 3.1 per cent to global commodity exports, valued at $0.8tn in 2023, reflecting a 14.5 per cent decline compared to 2022.

On the import side, the GCC ranked ninth globally, accounting for 2.7 per cent of total global merchandise imports, valued at $0.7tn in 2023. This represents a 13.4 per cent increase over the previous year.

A detailed analysis showed that the GCC’s trade in goods, excluding intra-regional trade, declined by 4 per cent to $1,482.4bn in 2023, from the same amount in 2022.

Commodity exports saw a significant drop, falling from $962.6bn in 2022 to $823.1bn in 2023, a decrease of $139.5bn. Conversely, commodity imports grew by 13.4 per cent, rising to $659.3bn in 2023, up from $581.3bn the year prior.

Oil exports, a major driver of GCC trade, fell by 20.5 per cent in 2023, totalling $525.5bn, compared to $661.1bn in 2022.

GCC countries’ key trading partners

In terms of trading partners, China remained the GCC’s top trading partner, leading in both the commodity trade volume and commodity exports indices.

The GCC’s commodity trade with China totaled $297.9bn in 2023, well ahead of India, the second-largest partner at $150.4bn, marking a $147.6bn gap.

China was also the largest importer of Gulf commodities, purchasing 19.2 per cent of total GCC exports, valued at $158.3 bn, though this was a decrease of 16.8 per cent compared to $190.4bn in 2022.

On the import side, China ranked first among the GCC’s main trading partners, accounting for 21.2 per cent of the region’s total merchandise imports. The value of imports from China grew by 10.8 per cent to $139.6bn, up from $126bn in 2022.

While the overall figures reflect a slight slowdown in the GCC’s trade activities in 2023, the region’s position within global trade remains robust, with China continuing to be a dominant partner in both exports and imports.

Meraas, a subsidiary of Dubai Holding Real Estate, has taken a significant step towards transforming Dubai’s waterfront landscape with a key construction contract worth over Dhs1bn.

Awarded to the China State Construction Engineering Corporation (Middle East), the deal will bring the highly anticipated Bluewaters Bay project to life, with completion slated for Q4 2027.

Bluewaters Bay, designed to be a standout residential destination, will feature two luxurious residential towers connected by a dynamic podium.

Highlights of Bluewaters Bay

The development will offer 678 apartments, with one to four-bedroom options, including penthouses. In addition to the residential spaces, Bluewaters Bay will host a variety of retail and food and beverage outlets on the podium level, promising a vibrant lifestyle offering.

Key amenities will include a landscaped promenade, an outdoor pool, a children’s play area, and BBQ facilities — ideal for residents seeking a sophisticated yet relaxed living environment.

Khalid Al Malik, CEO of Dubai Holding Real Estate, emphasised the strategic importance of the project in shaping Dubai’s waterfront future. “Bluewaters Bay is nestled in a prime location within one of Dubai’s most sought-after waterfront destinations. Positioned at the gateway to Bluewaters, residents will enjoy unparalleled access to world-class entertainment such as Ain Dubai, pristine beaches, and a curated selection of retail and dining experiences,” he said.

Al Malik went on to highlight the project’s reflection of Dubai Holding’s commitment to crafting exceptional waterfront communities that elevate the city’s dynamic urban fabric. “We are confident that China State Construction Engineering Corporation’s expertise will bring this vision to life, creating a destination that residents and visitors will cherish.”

For their part, Tian Sanchuan, president of China State Construction Engineering Corporation (Middle East), expressed pride in the partnership. “We are proud to collaborate with Dubai Holding Real Estate on the construction of Meraas’ prestigious Bluewaters Bay project,” he said.

“This partnership underscores our dedication to delivering world-class developments with precision and innovation. We look forward to leveraging our expertise to deliver this visionary destination and set new standards for quality and excellence,” he said.

Prime location

Bluewaters Bay’s integration with Dubai’s vibrant waterfront is poised to further extend the appeal of both Marina Walk and the Bluewaters boardwalk. The development is designed to offer residents not just a home, but a lifestyle, with sophisticated dining venues, exciting retail outlets, and abundant outdoor spaces.

The project’s prime location within walking distance of Jumeirah Beach Residence (JBR) and just a short drive from Al Maktoum International Airport further enhances its appeal.

Access is streamlined with two main vehicle entry points, including a convenient bridge ramp from the Bluewaters bridge to Podium 3.

Read: Meraas awards Dhs850m construction contract for Bvlgari Lighthouse