Japan’s METI Says DeepSeek’s Impact on Energy Demand is Hard to Predict

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Japan’s Ministry of Economy, Trade, and Industry (METI) has stated that it is currently difficult to predict the potential impact of DeepSeek, a Chinese AI startup, on electricity demand. While there is a prevailing view that the growth of data centers could lead to increased power consumption, METI highlighted the complexities involved in determining how emerging technologies like DeepSeek will influence future energy requirements.

In December, the Japanese government released a draft of its updated basic energy plan, a policy document reviewed every three years. The plan projected a 10-20% rise in electricity generation by 2040, driven in part by the growing use of AI technologies. However, the advent of DeepSeek, which is rumored to consume less power compared to its competitors, has led analysts to debate whether electricity demand will rise or decrease. While some suggest that DeepSeek’s efficiency could lower demand, others believe that as the technology becomes more accessible and widespread, its adoption may ultimately increase power consumption.

METI explained that the relationship between AI and energy demand is influenced by numerous factors, including improvements in AI performance, cost reductions, and the development of energy-efficient technologies. As such, it remains challenging to predict how specific technologies like DeepSeek will affect Japan’s future energy needs.

The ministry emphasized that Japan’s economic growth and industrial competitiveness will be closely tied to these evolving dynamics, underscoring the importance of considering various technological, economic, and energy-related variables when forecasting demand.

 

EU to Hold E-commerce Platforms Liable for Unsafe Goods, Targeting Temu, Shein, and Amazon

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The European Union is moving forward with plans to hold e-commerce platforms like Temu, Shein, and Amazon Marketplace responsible for dangerous or illegal products sold on their websites, according to a report by the Financial Times on Saturday. The new proposal includes customs reforms that would require online platforms to provide detailed data on products before they reach the EU, giving customs authorities more control over inspections and the ability to better track and regulate goods.

Under current rules, consumers who purchase goods online within the EU are considered the importers for customs purposes. However, the new reform would shift this responsibility to the e-commerce platforms themselves. Platforms like Amazon, Shein, and Temu would be required to ensure that products comply with EU safety standards, collect the relevant customs duties and VAT, and provide detailed product information before goods are shipped to the EU.

The EU also plans to create a new central customs authority, the EU Customs Authority (EUCA), which will pool customs data from the 27 member states. This new body will be tasked with screening goods and identifying potential risks before the products are even loaded for transport or physically arrive within the EU, as per the draft proposal seen by the Financial Times.

Currently, Amazon, Shein, and the EU have not commented on the matter, and Temu could not be reached for a statement. The new rules are expected to provide stronger oversight and improve consumer safety in the rapidly growing e-commerce sector.

 

Musk Leads Efforts to Shut Down USAID, Part of Broader U.S. Government Downsizing

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Elon Musk, billionaire CEO of Tesla and SpaceX, shared an update on his role in U.S. President Donald Trump’s efforts to reduce the size of the federal government, revealing that work is underway to shut down the U.S. Agency for International Development (USAID). Musk, who leads a federal cost-cutting panel called the Department of Government Efficiency (DOGE), stated that USAID is “beyond repair” and that Trump agrees the agency should be dissolved. This announcement was made during a social media conversation on Musk’s platform, X, which he owns.

Musk’s comments came alongside former Republican presidential candidate Vivek Ramaswamy and Senators Joni Ernst and Mike Lee. In a related move, most USAID staff were told to work remotely, as per an email reviewed by Reuters. The agency has also experienced a shake-up with the removal of two top security officials after they attempted to block DOGE representatives from accessing restricted areas of the agency’s headquarters.

The U.S. has historically been the largest global donor, with USAID contributing significantly to humanitarian efforts such as health programs, clean water access, and anti-corruption work. In fiscal year 2023, the U.S. disbursed $72 billion in foreign aid. However, Trump’s “America First” policy has led to a global freeze on most U.S. foreign aid, impacting critical programs such as field hospitals and disease treatment in developing countries.

During the conversation, Musk also discussed broader efforts to cut the U.S. budget, suggesting that the administration could reduce the deficit by $1 trillion. He claimed that fraudulent foreign operations were siphoning off large sums from the U.S. but did not provide supporting evidence for his statement. This estimate and Musk’s involvement in controlling key government systems have raised concerns, particularly regarding his access to sensitive U.S. Treasury data.

Democrats have questioned the scope of Musk’s influence, with Senator Peter Welch calling it “a gross abuse of power” and pointing out that Musk’s access to taxpayer information could pose serious risks. Meanwhile, Trump praised Musk for his cost-cutting efforts, though acknowledged that not all of Musk’s approaches would be universally agreed upon.