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Czech Government Bans Use of Chinese AI Startup DeepSeek in Public Administration

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The Czech government has prohibited all use of services from Chinese AI startup DeepSeek within the country’s public administration, citing data security concerns, Prime Minister Petr Fiala announced on Wednesday. The decision aligns with similar restrictions imposed by Germany, Italy, and the Netherlands due to fears about data protection.

Fiala explained that DeepSeek, as a Chinese company, is legally required to cooperate with Chinese authorities, potentially granting Beijing access to data stored on the company’s servers in China. This risk prompted the government to ban DeepSeek’s AI products, applications, websites, and web services from official public use.

DeepSeek and the Chinese embassy in Prague have not yet responded to requests for comment. The startup made headlines earlier this year by claiming to offer a low-cost AI model competing with U.S. firms like OpenAI’s ChatGPT. However, concerns have grown in both the U.S. and Europe over DeepSeek’s handling of personal data.

DeepSeek’s privacy policy indicates that it stores user data, including AI requests and uploaded files, on Chinese servers, intensifying worries about user privacy and data security.

ABB Launches New Robot Families for China’s Mid-Sized Market to Boost Automation

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Swiss engineering giant ABB (ABBN.S) announced on Wednesday the launch of three new families of factory robots specifically designed for the Chinese market, aiming to capitalize on growing automation demand among mid-sized companies. These new robots will serve sectors such as electronics, food and beverage, and metals, performing tasks like polishing and product placement on production lines.

ABB highlighted that China’s mid-market segment, where robots handle simpler tasks like pick-and-place operations, packaging, and basic inspections, is expected to grow by 8% annually in value over the next three years—significantly faster than the global robotics industry in recent years. This surge is driven by labor shortages and the increasing ease of operating robotics technology, aided by advances in artificial intelligence.

The new ABB robot families—Lite+, PoWa, and IRB1200—offer different arm load capacities and speeds tailored to customer needs. One model can be set up and operational within 60 minutes of unpacking and can be programmed using voice commands or by demonstration. Pricing for these robots, along with controllers and equipment, ranges from approximately $20,000 to over $100,000.

China remains the largest robotics market globally, accounting for 51% of new robot installations worldwide in 2023, according to the International Federation of Robotics. It is also ABB’s biggest market for robotics, making up about 30% of the company’s robotics business.

Sami Atiya, president of ABB’s robotics and discrete automation division, downplayed concerns about potential impacts from U.S. tariffs on China, citing the strong domestic market and persistent labor shortages as key demand drivers. The robots will be manufactured at ABB’s new Shanghai factory.

Earlier this year, ABB announced plans to spin off its robotics division, which competes with Japan’s FANUC, Yaskawa, and Germany’s Kuka. Atiya said the spin-off remains on track for completion by Q2 2026 but did not disclose potential valuations or buyer interest, noting that while ABB is open to discussions, their primary goal is to proceed with the spin-off.

UK’s Bytes Technology Shares Plunge 27% After Profit Warning on Restructuring Delays and Market Pressures

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Shares of Bytes Technology (BYIT.L), a UK-based IT firm, tumbled over 27% on Wednesday following a profit warning. The company announced that its operating profit for the first half of fiscal 2026 would be marginally lower than expected, citing delayed customer decisions and extended internal restructuring readjustments as key factors.

Bytes attributed the weak trading in the early months of the year to macroeconomic challenges, which led many corporate clients to defer purchasing decisions. The firm is transitioning from a generalist sales approach to specialized, customer segment-focused teams—a shift that has taken longer to implement than initially anticipated.

Additional pressure came from changes to Microsoft’s enterprise agreement program, which reduced certain transactional incentives. These changes particularly impacted the first half of the fiscal year due to a high volume of contract renewals in March and April.

On Wednesday, Bytes reported that gross profit for the first half of fiscal 2026 is expected to remain flat, contrasting with its May guidance, which projected double-digit gross profit growth and high single-digit operating profit growth for the year. For comparison, the company posted an operating profit of £35.6 million ($48.8 million) in the first half of fiscal 2025.

The stock dropped to 369 pence at one point—the lowest since April 2023—before recovering slightly to 391.4 pence by 08:00 GMT. Analysts from Jefferies noted that the cautious AGM update, which downgraded growth expectations, may have surprised investors.