DeepSeek Claims Theoretically Daily Cost-Profit Ratio of 545%
Chinese AI startup DeepSeek has revealed cost and revenue estimates for its V3 and R1 models, claiming a theoretical cost-profit ratio of 545% per day. While actual revenue is lower, this marks the first time the company has shared profit margin details. DeepSeek’s claim that it trained its models using less than $6 million in Nvidia H800 chips has already shaken AI stocks, raising doubts about U.S. firms’ billion-dollar chip investments. With a projected $200 million annual revenue, DeepSeek’s efficiency may challenge the dominant AI cost structures in the West.
Alibaba Open-Sources AI Video Models, Escalating Global Competition
Alibaba has made its latest AI video generation models, part of its Wan2.1 series, free to use, intensifying competition with OpenAI and other rivals. The Chinese tech giant is open-sourcing four models via Alibaba Cloud’s Model Scope and Hugging Face, making them accessible to researchers and businesses worldwide. Alibaba’s stock has surged 66% in 2025, fueled by strong financial performance, its growing AI influence, and increased support from President Xi Jinping for China’s private sector.
Foxconn Expands Beyond Apple with New EV and Tech HQ in China
Foxconn has begun constructing a global headquarters for its New Business Development Group in Zhengzhou, marking a major step in its expansion into EVs, batteries, semiconductors, and robotics. The $137 million facility, spanning 70,000 square meters, signals Foxconn’s push to diversify beyond Apple manufacturing. Since 2019, Foxconn has been aggressively investing in emerging technologies, positioning itself as a key player in the future of mobility and digital industries.
Intel Delays $28B Ohio Chip Plants to 2030 Amid Cost Cuts
Intel has pushed back the completion of its $28 billion chip fabrication plants in Ohio, with the first factory now expected by 2030—five years later than planned. The struggling chipmaker cited the need to align with market demand and manage capital responsibly. The second plant will follow in 2032. Intel has been slashing costs, including layoffs and dividend suspensions, as it seeks to recover from financial strain caused by its pivot to contract manufacturing.
IBM Shuts Down Key China Entity After 32 Years
IBM is closing IBM (China) Investment Company Limited, a major entity overseeing local R&D operations since 1992. The move follows last year’s layoffs of over 1,000 employees at its China Development and Systems Labs. IBM stated the entity had “completed its mission” but assured that IBM (China) Company Limited will continue supporting clients in AI and hybrid cloud. Despite the closure, IBM remains active in the country through its Hong Kong-based parent company.
Meta Apologizes for Violent Instagram Reels Amid Moderation Shift
Meta has apologized for an “error” that caused violent and graphic content to flood some Instagram Reels feeds, even for users with the highest sensitivity settings. The issue, which Meta claims is now fixed, raised concerns about the company’s content moderation policies. The incident follows Meta’s recent decision to shift its AI-powered moderation systems away from broadly scanning for violations, focusing instead on high-severity issues like terrorism and fraud. CEO Mark Zuckerberg has also eased restrictions on political content, a move seen as an effort to rebuild ties with former President Trump and U.S. policymakers.
FBI Says North Korea Stole $1.5B in Crypto from ByBit
The FBI has attributed a $1.5 billion cryptocurrency heist at exchange ByBit to North Korea, linking it to the hacking group “TraderTraitor.” The stolen assets, initially in ether, are being rapidly converted into bitcoin and dispersed across multiple blockchains for laundering and eventual fiat conversion. ByBit confirmed an attacker gained control of an ether wallet, transferring funds to an unknown address. The exchange, serving over 60 million users, is the latest victim of North Korea’s ongoing cyber theft operations, which have become a key source of funding for the regime.
