This week saw AI rivalry intensify and major tech earnings shake up the market. DeepSeek’s breakthrough rattled U.S. tech giants, while Microsoft and Meta’s results underscored the rewards—and risks—of AI investments. Here’s what’s driving Wall Street’s latest moves.
The U.S. and China are battling for AI dominance as Stargate’s $500B initiative drives U.S. investment, while China’s DeepSeek disrupts with cost-efficient AI, surpassing ChatGPT on Apple’s App Store. A “large-scale malicious attack” hit DeepSeek, highlighting fierce competition and security risks.
US tech stocks tumbled as China-based DeepSeek launched a groundbreaking AI platform, shaking market confidence in American AI giants. With Nvidia stocks down 18%, the rivalry between US and Chinese AI innovation is intensifying, raising questions about the future of AI investment.
Mass Exodus Looms as OpenAI Staff Rally Behind Sam Altman, Eyeing Microsoft Move
Over 700 OpenAI employees demand CEO Sam Altman's reinstatement, threatening to join Microsoft. The crisis exposes deep internal unrest, with staff declaring, "OpenAI is nothing without its people," challenging the board's leadership.
OpenAI Saga Series: Navigating Corporate Turmoil and Uncertainty
In a significant development that has sent ripples through the artificial intelligence industry, OpenAI faces a substantial crisis as a vast majority of its employees have threatened to leave the company. This mass discontent among the workforce stems from the ousting of former CEO Sam Altman, leading to a potential exodus of talent to Microsoft. This situation underscores a deep-seated unrest within the company's ranks, challenging the stability of one of Silicon Valley's most promising AI ventures.
The board's statement on Friday bluntly stated that new leadership was "necessary" for the company's future endeavours. Altman's removal from both his executive role and the company board underscores the seriousness of the board's concerns.
The crux of this unrest lies in the employees' demand for the resignation of the current board and the reinstatement of Altman as CEO.
Over 700 employees, including Ilya Sutskever, OpenAI's chief scientist and a board member, have signed a letter conveying their lack of confidence in the current leadership.
The letter explicitly states, "Your actions have made it obvious that you are incapable of overseeing OpenAI. We are unable to work for or with people that lack competence, judgement, and care for our mission and employees."
This collective stance brings to light significant internal strife and questions the board's decision-making and leadership capabilities.
“Everyone thinks you can hire someone to do this." "That fails 100% of the time."
Altman and Brockman showed their support by sharing Sutskever’s post with affectionate heart emojis, while onlookers observed the unfolding drama within the Silicon Valley boardroom with amazement.
The sentiments of OpenAI employees were openly expressed online, where a significant number rallied behind Altman, declaring,
“OpenAI is nothing without its people.”
In a development shared by Brockman on X, three prominent researchers who departed OpenAI following Altman's dismissal have decided to move to Microsoft. These include former research director Jakub Pachocki, ex-head of preparedness Aleksander Madry, and past researcher Szymon Sidor.
The U.S. and China are battling for AI dominance as Stargate’s $500B initiative drives U.S. investment, while China’s DeepSeek disrupts with cost-efficient AI, surpassing ChatGPT on Apple’s App Store. A “large-scale malicious attack” hit DeepSeek, highlighting fierce competition and security risks.
The AI race is on: Trump’s $500B “Stargate” with OpenAI, Oracle, NVIDIA, & SoftBank triggers a surge in power demand. Goldman’s Brian Singer forecasts data centers consuming 3–4% of global power by 2030. Meanwhile, Elon Musk and Sam Altman’s feud fuels the drama.
As 2025 begins, 2024’s AI breakthroughs stand out, but so do the cyber threats that accompanied them. From AI-powered phishing to deepfakes and cloud breaches, the year highlighted the delicate balance between innovation and security risks.
The Pacific tech war intensifies as Trump's return to power amplifies U.S. export bans, targeting China’s AI progress. ByteDance, Nvidia's largest Chinese buyer, counters with bold strategies like crafting AI chips and expanding abroad. A fragmented 2025 looms, redefining tech and geopolitics.