Billionaire Elon Musk said on Thursday many federal government agencies must be eliminated as part of President Donald Trump’s push to radically overhaul the US government.

“We do need to delete entire agencies, as opposed to leave part of them behind. Just leave part of them behind. It’s easy. It’s kind of like leaving a weed,” Musk said in a video call addressing the World Governments Summit in Dubai.

Important: Elon Musk plans to build Dubai Loop: ‘It’s going to be like a wormhole’

“If you don’t remove the roots of the weed, then it’s easy for the weed to grow back. But if you remove the roots of the weed, it doesn’t stop weeds from ever going back, but it makes it harder.

“So we have to really delete entire agencies, many of them.”

The comments came as Musk this week has had to defend his role as an unelected official who has been granted unprecedented authority by the Republican president to dismantle parts of the US government.

Elon Musk’s Grok 3: This AI chatbot, ChatGPT challenger is to release soon

Since Trump took office on January 20, Musk has dispatched members of his Department of Government Efficiency (DOGE) to scrutinize sensitive personnel and payment information in government computer systems. Musk has led a successful drive to dismantle two agencies – one that provides a lifeline to the world’s needy, USAID, and another that protects Americans from unscrupulous lenders, the Consumer Financial Protection Bureau.

Musk, the world’s richest man, has disparaged civil servants as bureaucrats who are not elected and not held accountable to American taxpayers.

“We really have here rule of the bureaucracy, as opposed to rule of the people democracy. We want to restore rule of the people. And so what that means is reducing the size of the federal government, basically reducing regulation,” Musk told the Dubai audience.

Trump has said Musk, the CEO of Spacex and Tesla who also owns X social media platform, will excuse himself from any conflicts of interest between his various business interests and his efforts to cut costs for the federal government

Undoubtedly DeepSeek is introducing a new era for AI, highlighting that different paths might be followed in implementing effective AI infrastructure and optimise the related costs.

DeepSeek, with its R1 model, diverges significantly from traditional AI structures like those powered by NVIDIA, both in terms of operational architecture and resource efficiency.

Here are the main structural differences:

Mixture of experts (MoE) architecture: DeepSeek R1 uses an MoE approach, allowing for selective parameter activation (only 37 billion out of 671 billion) based on the task at hand. This contrasts with NVIDIA’s models like o1, which often rely on a fully engaged network for every query, leading to higher computational demands.

Dynamic inference: DeepSeek R1’s model can scale its computational effort according to the complexity of the problem, enhancing efficiency for both simple and complex tasks. NVIDIA’s models typically operate at full capacity regardless of task complexity, which can be resource-intensive.

Mixed precision computing: DeepSeek R1 employs a strategy where it uses both 8-bit and 32-bit precision, enabling faster processing with minimal accuracy loss. This is less common in traditional models, which might stick to higher precision across all operations, thus consuming more resources.

DeepSeek versus other models: Resource utilisation efficiencies

The new structure leads to considerable resource utilisation efficiencies, including:

• GPU optimisation: DeepSeek R1 was developed using fewer, less powerful GPUs, making it more accessible for firms with constrained resources. NVIDIA’s solutions often require high-end GPUs in large quantities, escalating costs. Reports indicate that DeepSeek’s R1 model was developed using approximately 2,000 Nvidia H800 GPUs, significantly fewer than the tens of thousands typically employed by competitors, resulting in considerable cost savings. That leads to the fact that AI models can be developed using GPUs that must not be necessarily sourced from the latest state-of-the-art Nvidia products.
• Lower operational costs: The efficiency of DeepSeek R1 means financial institutions can deploy AI at scale with significantly reduced costs, a key consideration in an industry where margins are often tight.

Cost-benefit analysis for financial institutions

The financial sector stands to gain significantly from AI models that deliver robust performance without incurring prohibitive costs.

DeepSeek‘s R1 model exemplifies this balance by offering high-level capabilities at a fraction of the traditional expense. The company has demonstrated that its AI models can be developed with less advanced hardware, resulting in considerable cost savings. DeepSeek R1’s development cost was around $5.58m, a fraction compared to the billions required for NVIDIA’s top-tier models. This cost efficiency can be a game-changer for financial firms looking to implement AI without prohibitive expenses.

Furthermore, the model’s architecture allows for scaling AI operations without a linear increase in cost, enabling firms to handle increased volumes of data analysis or decision-making during peak market times.

For financial institutions, this translates to the ability to implement advanced AI-driven analytics and decision-making tools without the need for extensive capital investment in infrastructure. The reduced energy consumption further contributes to operational savings and aligns with growing environmental, social, and governance (ESG) considerations.

However, it’s essential to recognise that while DeepSeek’s models offer cost advantages, they may not yet match the performance of NVIDIA-powered solutions in all scenarios. NVIDIA’s hardware and software ecosystems are deeply entrenched in the AI industry, providing optimised performance for a wide range of applications. Financial institutions must carefully assess their specific needs, evaluating whether the cost savings with DeepSeek’s models justify any potential trade-offs in performance or compatibility.

Risks of AI dependency in financial institutions

Despite the allure of advanced AI models, financial institutions must exercise caution to avoid overdependence. An overreliance on AI can lead to several risks:

• Systemic risk: Over-reliance on AI, even with models like DeepSeek R1, can introduce systemic risks. If AI systems fail or are manipulated, the consequences could ripple through financial markets, an issue I’ve often highlighted in discussions on financial stability.
• Model risk: All AI models, including DeepSeek, operate as “black boxes”, making it challenging to interpret decision-making processes and are susceptible to manipulation or ‘jailbreaking’. There’s a particular risk with DeepSeek R1 due to its open-source nature, where malicious actors could exploit known vulnerabilities or manipulate input to skew outputs, leading to flawed financial decisions or security breaches.
• Manipulation of outputs: Deep manipulation of AI outputs is a universal concern, but with DeepSeek R1, this risk is heightened due to its broad accessibility. In finance, where decisions can move millions, ensuring the integrity of AI outputs is paramount. The potential for adversaries to craft inputs that lead to desired but incorrect outputs (like in adversarial attacks) poses a significant threat.
• Data quality and bias: AI systems are only as effective as the data they are trained on. Poor-quality or biased data can result in inaccurate predictions or reinforce existing biases, leading to flawed decision-making. While the R1 model has shown a great advantage in training costs, the quality of such analysis is still linked to the quality and depth of data it is fed with.
• Regulatory and ethical compliance: As AI becomes more integrated into financial decision-making, regulatory eyes sharpen. The open-source aspect of DeepSeek could complicate compliance with data privacy laws and ethical AI use policies.
• Operational continuity: An over-dependence on AI could disrupt operations if systems go down or if the AI’s decision-making is compromised. Financial institutions need robust backup systems and human oversight to mitigate this.
• Human oversight reduction: There’s a risk that the reliance on AI might diminish the role of human judgement, which is crucial for ethical decision-making and nuanced risk assessment, areas where AI can be lacking.

In conclusion, while DeepSeek R1 offers compelling advantages in terms of cost and efficiency, the integration into financial services must be tempered with caution. The benefits of optimised AI-driven analytics are clear, but the risks, particularly around manipulation and dependency, require vigilant risk management.

A hybrid model where AI supports but does not replace human expertise seems to be preferable, especially in the complex world of finance where every decision carries weight. Ensuring AI models are part of a broader, secure, and ethical framework is essential to harnessing their power responsibly.

The writer is the CEO of Axiory Global.

Read: AI-powered desktop for $3,000? This is Nvidia’s plan for Project DIGITS

The launch of the Dubai Loop, an ambitious project aimed at implementing a fast and seamless transportation system across Dubai’s most densely populated areas, was announced today.

Important: Dubai eyes solar-powered rail buses in future transport mix

According to a Wam report, the announcement was made by Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, and Vice Chair of the World Government Summit 2025 (WGS), along with Elon Musk, CEO of Tesla.

What is the Dubai Loop?

The Dubai Loop will span 17 kilometers and features 11 stations. With a capacity to carry 2,000 passengers per hour and a speed of 160kms, it will provide commuters with a sustainable mobility option powered by electric vehicles.

The project is part of Dubai’s broader plan to innovate and evolve its transport sector through a network of advanced underground tunnels, allowing passengers to travel quickly across the city while avoiding traffic congestion.

The Dubai Loop will enable commuters to move effortlessly from one point to another, without the hassle of long distances or traffic delays. Musk described the project as allowing people to travel through the city as if they were moving through a “wormhole.”

Escaping traffic delays: Advantages of tunnel systems for travel

Elon Musk highlighted several advantages of traveling through tunnel systems over alternatives, such as flying cars. These include:

• Practicality
• Safety
• Efficiency, as tunnels are protected from weather and noise
• A smoother travel experience for commuters

The Roads and Transport Authority (RTA) of Dubai also unveiled the RAILBUS system, a next-generation autonomous mass transit solution powered by solar energy, at its stand at the ongoing World Government Summit (WGS) 2025. This system enhances first- and last-mile connectivity while offering a sustainable and efficient alternative to conventional public transport.

Musk also introduced his AI chatbot, Grok 3, during a video call at the World Government Summit in Dubai. Grok 3 is in its final stages of development and is expected to be released in the next week or two.

“Grok 3 has very powerful reasoning capabilities. In the tests we’ve done so far, Grok 3 is outperforming anything that’s been released, to our knowledge, which is a promising sign,” he emphasised.

Dubai-based luxury real estate developer OMNIYAT has launched a new ultra-luxury segment, OMNIYAT Bespoke, aiming to redefine high-end living by offering one-of-one creations tailored to the aspirations of ultra-high-net-worth individuals (UHNWI).

The launch coincides with the unveiling of Luna Sky Palace at ORLA, Dorchester Collection, Dubai, a 58,476-square-foot residence featuring a 13,500-square-foot rooftop sky garden with a 36-meter infinity pool.

The three-level property includes private lobby lounges, an exclusive wellness spa, a fitness suite, and a garage accommodating up to 10 cars.

What OMNIYAT Bespoke will target

“OMNIYAT Bespoke is about bringing dreams to life — offering rare, one-of-one creations that embody the deepest aspirations of our clients,” said Mahdi Amjad, founder and executive chairman at OMNIYAT. “We aspire to inspire, empowering individuals to shape surroundings that not only reflect their vision but elevate their lifestyle to something extraordinary.”

OMNIYAT Bespoke builds on the company’s track record of record-breaking sales in Dubai’s luxury real estate sector. The division stems from the developer’s initial bespoke creation at One at Palm Jumeirah, Dorchester Collection, Dubai, which became the most valuable residence of its kind in the city in 2017.

Since then, the developer has continued to create new offerings, including the Sky Palace at AVA at Palm Jumeirah, which became the most expensive residence in Palm Jumeirah upon its sale.

With demand for exclusive and ultra-rare lifestyles growing, OMNIYAT Bespoke plans to expand its portfolio with new creations in prime locations, including additional Sky Palaces and a one-of-one mansion.

Read: Omniyat Group unveils Beyond, a new development company

AHS Properties has cemented its position as one of the leading developers in Dubai’s luxury real estate market, leading sales of high-end properties valued between $5m and $10m in 2024.

This achievement underscores the company’s commitment to excellence and luxury living, with flagship developments including One Canal, One Crescent, and Casa Canal driving its success.

“Our portfolio continues to attract elite clientele from across Europe who seek the finest in waterfront and ultra-luxury living,” said Abbas Sajwani, founder and CEO of AHS Properties.

“The success of One Canal, One Crescent, and Casa Canal demonstrates our ability to not only meet but exceed expectations in delivering world-class residences that redefine luxury,” Sajwani added.

Founded in 2017 by Sajwani, AHS Group has grown into a powerhouse with an asset value nearing $3bn and a workforce exceeding 2,000 employees.

In 2020, AHS Investments was launched, building a $150m diversified portfolio across private and public equity.

Under his leadership, the company was launched in 2021, rapidly gaining recognition for its innovative approach to luxury real estate.

The company’s sales in 2024 reflect its ability to cater to the sophisticated preferences of high-net-worth individuals, with the majority of buyers hailing from Italy, Germany, France, the UK and Switzerland.

AHS Properties has achieved significant milestones, including the successful introduction of Casa Canal, featuring opulent interiors by Fendi Casa, and contributing to a gross development value (GDV) of $2.7bn as of 2024.

With an ambitious pipeline, the company targets a GDV of $5bn this year, further cementing its dominance in Dubai’s luxury real estate sector.