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Capgemini CEO Criticizes EU’s AI Regulations as Too Restrictive

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Aiman Ezzat, CEO of Capgemini, expressed concerns that the European Union has overreached with its artificial intelligence regulations, making it more challenging for global companies to deploy AI in the region. In an interview, Ezzat highlighted the difficulties businesses face as they navigate different AI laws across multiple countries. His remarks come ahead of the AI Action Summit in Paris and amidst growing frustration from the private sector regarding AI regulations.

The EU’s AI Act, which is touted as the world’s most comprehensive AI law, has been criticized by some companies for stifling innovation. Ezzat commented, “In Europe, we went too far and too fast on AI regulation,” emphasizing that the absence of global AI standards has made the regulatory landscape increasingly complex.

Capgemini, one of Europe’s largest IT services firms, partners with major companies like Microsoft, Google Cloud, and Amazon Web Services (AWS), and serves clients such as Heathrow Airport and Deutsche Telekom. At the upcoming summit in Paris, AI policy frameworks are expected to be discussed, and Ezzat anticipates efforts to align global policy on AI.

While the AI Act won’t be fully implemented for several years, concerns have already arisen regarding privacy law violations by AI actors. Several European data protection authorities are reviewing DeepSeek, a Chinese startup that has drawn attention for its ability to compete with U.S. companies at a fraction of the cost. Despite DeepSeek’s open-source model, Ezzat noted its transparency limitations, such as the lack of access to the datasets used to train the models.

Capgemini is in the early stages of exploring the integration of DeepSeek’s models with clients, according to Ezzat.

Chinese Companies Embrace DeepSeek’s AI Amid Growing Frenzy

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Chinese companies, including Great Wall Motor and major telecom providers, are quickly integrating the AI model released by DeepSeek, capitalizing on its attention and breakthroughs. Great Wall Motor, China’s first listed automaker, confirmed that it had embedded DeepSeek’s AI into its connected vehicle system, branded “Coffee Intelligence.” This integration marks a significant shift as the company seeks to enhance its technological offerings.

Meanwhile, China’s Ministry of Industry and Information Technology (MIIT) announced that the country’s three largest telecom operators—China Mobile, China Unicom, and China Telecom—are collaborating with DeepSeek to promote the inclusive application of AI technology. This move is part of a larger trend as companies rush to incorporate the model into their products.

DeepSeek’s AI platform has sparked investor interest, fueling speculation about its disruptive potential across China’s tech sector. Stocks of Chinese companies tied to AI, including chipmakers, software developers, and data center operators, have surged in response to this new development. Capitalonline Data Service and MeiG Smart Technology, two listed companies, experienced significant stock price jumps after announcing their integration of DeepSeek’s AI. However, both firms have cautioned investors, stating that the impact on their future business performance remains uncertain.

Other industry giants like Tencent and Huawei have also joined the wave, revealing they have integrated DeepSeek’s model into their own offerings. The rapid adoption highlights the growing impact of DeepSeek’s AI on China’s tech landscape.

OpenAI Co-founder Sutskever’s Startup SSI in Talks for $20 Billion Valuation

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Safe Superintelligence (SSI), a startup co-founded by OpenAI’s former chief scientist Ilya Sutskever, is reportedly in discussions to raise funding at a valuation of $20 billion. This would mark a significant increase from its previous $5 billion valuation during a September funding round, where it raised $1 billion from investors like Sequoia Capital, Andreessen Horowitz, and DST Global.

SSI’s talks come at a time when high-profile AI ventures are facing a reappraisal of their valuations following Chinese startup DeepSeek’s release of a cost-effective AI model. Despite not yet generating any revenue, SSI’s mission is to develop “safe superintelligence” that is both smarter than humans and aligned with human interests. However, much of the company’s work and approach remains under wraps, fueling intrigue among investors.

The company’s founders include Daniel Gross, previously of Apple, and Daniel Levy, a former OpenAI researcher. While SSI’s approach to AI is still not widely known, Sutskever’s reputation for groundbreaking work in AI, particularly in scaling and inference techniques, has garnered significant attention. SSI’s focus on “scaling in peace” aims to insulate progress from short-term commercial pressures, a stark contrast to the trajectory of OpenAI, which shifted to commercial products after the success of ChatGPT in 2022.

The conversation around SSI’s valuation highlights the ongoing competition in the AI space, with OpenAI in talks to potentially double its valuation to $300 billion, and rival Anthropic nearing a funding round that would value it at $60 billion.