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Microsoft Adds DeepSeek’s AI Model to Azure, Expands AI Offerings

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Microsoft announced on Wednesday that it has made DeepSeek’s R1 artificial intelligence model available on its Azure cloud platform and GitHub, expanding its AI offerings. The model will be added to the model catalog, joining over 1,800 other AI models offered by Microsoft, and will be accessible to developers using these platforms.

This move comes just days after DeepSeek launched a free AI assistant that promises to use significantly less data and cost much less than existing services, leading to a surge in downloads. By Monday, the assistant had overtaken OpenAI’s ChatGPT in downloads on Apple’s App Store, causing concern among tech investors.

Microsoft’s adoption of DeepSeek’s R1 model is part of the company’s effort to reduce its reliance on OpenAI, which developed ChatGPT. Microsoft is seeking to integrate both internal and third-party AI models into its flagship Microsoft 365 Copilot product. Additionally, Microsoft plans to offer customers the ability to run the R1 model locally on Copilot+ PCs, which may help address privacy and data-sharing concerns.

DeepSeek’s decision to store user data on servers in China could pose a challenge for its broader adoption in the U.S., where data security is a key concern. Microsoft and OpenAI are also investigating whether a group linked to DeepSeek unlawfully obtained data from OpenAI’s technology.

In response to DeepSeek’s rise in the AI space, OpenAI’s CEO Sam Altman announced adjustments to their releases, including a new version of ChatGPT tailored for U.S. government agencies. Meanwhile, Chinese tech giant Alibaba also unveiled a new AI model, Qwen 2.5, marking the start of a busy period in the AI market.

 

Trump Commerce Secretary Nominee Claims DeepSeek Used Stolen U.S. Technology

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Howard Lutnick, President Donald Trump’s nominee for U.S. Commerce Secretary, accused China’s DeepSeek of creating its advanced AI model “dirt cheap” by using stolen U.S. technology and leveraging advanced U.S. semiconductors. During his testimony before the U.S. Senate Commerce, Science, and Transportation Committee, Lutnick vowed to take action against such practices if confirmed, stressing the need to address the misuse of American technological innovations.

Lutnick also advocated for the U.S. to establish a “light touch” model to set global standards for artificial intelligence, similar to the country’s approach to cybersecurity. He emphasized that maintaining leadership in the AI sector requires the U.S. to establish standards that the rest of the world adheres to. “We need to make sure we set standards that the world meets,” Lutnick stated, adding that this approach would help the U.S. maintain its technological dominance.

 

Trump Administration Weighs Stricter Curbs on Nvidia’s China Sales

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The Trump administration is reportedly considering tightening restrictions on Nvidia’s sales of its H20 chips to China, according to sources familiar with the matter. These chips, designed to run artificial intelligence (AI) software, were developed to comply with existing U.S. restrictions on shipments to China, which were initially put in place during the Biden administration. The discussions, still in their early stages, have been ongoing for more than six months, with some elements of the conversation stemming from the previous administration’s stance on technology exports to China.

The potential move to limit Nvidia’s sales of these chips comes amid growing concerns about China’s progress in AI development. China’s recent launch of DeepSeek, an AI assistant that reportedly uses less data and costs significantly less than existing models, has raised alarms that China may be closing the gap on the U.S. in AI technology.

Nvidia has stated that it is “ready to work with the administration as it pursues its own approach to AI.” Following the news, Nvidia’s stock, which was already in decline, saw slight additional losses. The White House has not yet commented on the matter.

While the Biden administration previously enacted a broad set of restrictions barring AI chip exports to China and limiting shipments to other countries, certain AI chips like Nvidia’s H20 remain permissible for export. The potential tightening of these regulations underscores growing tensions over the global AI race and the strategic importance of controlling the flow of advanced technology.