DeepSeek Faces Global Scrutiny, Trump Eyes Nvidia Restrictions, and Intel Secures $2.2B Grant

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In this edition of the Silicon Brief, we're diving into the latest developments in AI chips and data centers. The U.S. Commerce Department is currently investigating DeepSeek's use of AI chips, raising questions about data privacy and security. Meanwhile, the Trump Administration is considering imposing restrictions on the sale of Nvidia chips to China, which could have significant implications for the global tech industry.

Additionally, the UK is scrutinizing the DeepSeek AI App for potential security risks, while Italy has already taken action by blocking the app over privacy concerns. These regulatory actions highlight the growing focus on ensuring that AI technologies are developed and deployed responsibly, with an emphasis on protecting user data and maintaining national security.

Arkansas has passed House Bill 1071 to update the Frank Broyles Publicity Rights Protection Act, enhancing protections against AI-generated media. The U.S. Copyright Office has released the second part of its report, concluding that copyright protection applies only to works with sufficient human authorship, and does not recommend changes to current copyright laws for AI-generated outputs. The Indian government, led by Union IT Minister Ashwini Vaishnaw, has announced plans to create a generative AI model. This initiative will leverage the India AI Compute Facility and aims to establish AI data centers in Odisha.

US has revised its export rules, removing Switzerland from the list of countries allowed unrestricted access to AI chips, impacting Swiss imports for research and industry. Dario Amodei, CEO of Anthropic, discusses how US export controls are affecting Chinese AI company DeepSeek, despite its recent advancements.

DeepSeek is under scrutiny by the Italian Data Protection Authority for data privacy concerns following a complaint from Euroconsumers. The UK government is investigating the DeepSeek AI app for potential national security risks. The U.S. Commerce Department is probing DeepSeek for potentially using restricted U.S. AI chips.

C3 AI has been recognized as an 'Awardable' vendor in the Department of Defense's Tradewinds Solutions Marketplace, highlighting its AI solutions for defense operations. David Sacks claims there is substantial evidence that DeepSeek used OpenAI's models for training its AI, raising security concerns in the U.S. The UAE's EDGE plans to invest $10 million for a 30% stake in Israeli startup Thirdeye Systems, specializing in AI-based systems for drone threat detection. U.S. officials are examining the national security concerns related to the Chinese AI app DeepSeek, highlighting potential threats to intellectual property and competition with U.S. AI firms. Token Security, an Israeli company, has raised $20 million in Series A funding to improve security for non-human identities in enterprises, addressing cyberattack threats on automated systems.

Perplexity AI has updated its merger proposal with TikTok's parent company, ByteDance, to form a new U.S. holding company. Elham Tabassi has been appointed as the director of the Artificial Intelligence and Emerging Technology Initiative at the Brookings Institution. Intel Corporation has been awarded $2.2 billion in federal grants from the U.S. Department of Commerce to enhance semiconductor production.

Figure AI has announced a new initiative to create a Center for the Advancement of Humanoid Safety, focusing on certifying robots to industrial safety standards and enhancing their interaction with human workers. Meta has introduced updates to its Meta AI chatbot, enabling it to remember user preferences and use data from Facebook and Instagram for personalized interactions. A report indicates that DeepSeek's AI chatbot does not respond to 85% of prompts on sensitive topics related to China, such as the Tiananmen Square protests and Taiwan.

Perplexity, an AI startup, is being sued by Perplexity Solved Solutions for allegedly infringing on its trademark. The lawsuit seeks to prevent Perplexity from using the brand name and demands damages. Dario Amodei, CEO of Anthropic, is attempting to avoid a deposition in a copyright lawsuit against OpenAI, according to the Authors Guild. The lawsuit involves authors like John Grisham and George R.R. Martin and is set to conclude discovery in April 2025. Chinese AI company DeepSeek faces a trademark issue in the US as Delson Group claims prior use of the same trademark for AI chatbot products. In 2024, securities class action filings increased, with a notable rise in AI-related cases from seven to 15, according to a report by Cornerstone Research and Stanford Law School.