This week’s Week In Review: Nvidia rebounds after a historic $600 billion market cap drop, the UK government continues to faces backlash over AI copyright reforms, and Chinese AI startup DeepSeek disrupts global markets.
Nvidia Rebounds 9 percent After Historic $600B Market Cap Drop
Nvidia stock surged nearly 9 percent Tuesday, rebounding from a record $600 billion market cap loss triggered by concerns over Chinese AI firm DeepSeek’s low-cost model. Investors feared DeepSeek’s cheaper AI training methods, which use fewer Nvidia chips, could signal overspending by U.S. firms. Wall Street analysts have questioned DeepSeek’s cost claims, noting its reliance on Meta’s open-source AI. Despite the sell-off, analysts expect AI investment to remain strong and Nvidia’s long-term demand to remain intact.
UK Labour Government Faces AI Copyright Setback in House of Lords
The UK Labour government suffered an early defeat on AI copyright reforms as the House of Lords voted 145-126 to strengthen protections against AI firms using copyrighted content without consent. The amendments, led by Baroness Kidron, challenge the government’s push for an AI-friendly copyright framework. The setback comes weeks after PM Keir Starmer’s AI action plan, which aims to boost AI investment and job creation.
Chinese AI App DeepSeek Causes US Tech Stock Plunge
DeepSeek, a Chinese startup chatbot, surged to the top of the Apple Store’s US download charts on Monday, leading to a $1 trillion decline in US tech stock valuations. The app’s creators assert that their model was built at a significantly lower cost than industry leaders like OpenAI by utilising fewer advanced chips. Chipmaker Nvidia was among the hardest hit, losing $600 billion in market value amid the upheaval.
Perplexity AI Revives TikTok Bid
Perplexity AI, an AI-driven search firm backed by Nvidia and Jeff Bezos, has revived its bid for TikTok’s US business. The latest offer, reported by the Associated Press, includes a provision allowing the US government to own up to 50 percent of the merged entity—aligning with Donald Trump’s conditions for TikTok’s continued US operation. This bid updates Perplexity’s earlier proposal to ByteDance, TikTok’s parent company, before a potential ban was set to take effect in the US.
L’Oréal Partners with IBM to Use AI for Personalised Cosmetics
L’Oréal has teamed up with IBM to leverage generative AI for personalised beauty products. The company’s 4,000 researchers will use IBM’s AI to enhance product development, reformulation, and production efficiency. The partnership aims to improve inclusivity, sustainability, and personalisation while supporting L’Oréal’s goal of using mostly renewable ingredients by 2030. IBM’s AI will analyse vast datasets to accelerate innovation and optimise production.
Tech Giants Report Earnings Amid AI Stock Turmoil
Microsoft, Meta, Apple and Tesla released earnings this week as AI stocks faced volatility following Chinese AI firm DeepSeek’s breakthrough. Microsoft exceeded expectations but saw a 6.2 percent stock drop due to weaker Azure growth. Meta’s stock rose 5 percent despite a cautious revenue outlook, prioritising AI over the metaverse. Tesla missed estimates but gained 3 percent as Elon Musk announced ‘robotaxi’ launches. Apple reported 4% revenue growth but missed iPhone sales expectations, with China sales dropping 11.1 percent.
Debate Continues – UK Copyright Changes Over AI Concerns
Artists and MPs have criticised UK government plans to introduce a copyright exception for text and data mining, warning it could harm the creative industries. The proposed changes would allow AI developers to mine content more freely while creators must opt out to retain rights. Critics, including Paul McCartney, Kate Bush and Kevin Bacon, argue this undermines copyright protections. A petition signed by 40,000 people urges the government to reconsider, fearing a loss of artistic creativity.
Microsoft Suspects DeepSeek of Misusing OpenAI Data
Microsoft has flagged potential data misuse by Chinese AI firm DeepSeek, alleging it extracted large amounts of information via OpenAI’s API. The claim follows DeepSeek’s launch of R1, an AI model said to rival US tech giants at a fraction of the cost. The controversy contributed to a $1 trillion AI stock sell-off. OpenAI is investigating, while Trump’s AI expert David Sacks claims DeepSeek improperly used OpenAI’s outputs to develop its technology.
ONAR Unveils AI Marketing Platform ‘Cortex’ Under New Tech Incubator
ONAR has launched ONAR Labs, a technology incubator, and its first product, Cortex, an AI-powered marketing platform. Previously used internally, Cortex will be available as a subscription service, offering AI-driven analytics, forecasting, and attribution modelling. The platform integrates with major ad networks, including Google, Meta, and TikTok.
Publicis Media Acquires Dysrupt to Boost AI-Driven Performance Marketing
Publicis Media has acquired Los Angeles-based Dysrupt, strengthening its performance marketing capabilities with AI-powered tools. Dysrupt’s proprietary solution, IAS, integrates AI to optimise media, creative, and measurement, including assessing generative AI-produced ads. The platform also offers a cookieless measurement system, Momentum, to help marketers navigate privacy shifts. The acquisition aligns with Publicis’ push into AI-driven marketing, following major deals in influencer and commerce marketing.
Google EMEA President Says AI Is Likely To ‘Improve Employability’
Matt Brittin, Head of Google EMEA, went on Channel 4 News to speak about the impact of AI on employment in the UK, saying the tech is likely to create, as opposed to take, jobs in the country. Google has announced a partnership with the UK trade union ‘Community’ to help workers navigate the impact of artificial intelligence. The initiative is part of a series of pilot programmes aimed at understanding how AI can be integrated into various industries. Brittin, Google’s outgoing EMEA chief, acknowledged AI’s transformative impact, emphasising the need for collaboration between technology firms and labour groups to ensure workers are equipped for the evolving job market.
OpenAI Seeks to Block Indian Media Giants from AI Copyright Case
OpenAI has moved to prevent India’s largest media groups from joining a copyright lawsuit over AI training data. The case, initially filed by news agency ANI, accuses OpenAI of using copyrighted content without permission. OpenAI argues it only shares public information and that Indian courts lack jurisdiction. The legal battle, which could set AI copyright precedents in India, is set for a February hearing.
AI Job Automation Could Widen UK Inequality Without Government Action, Report Warns
A report by the Institute for the Future of Work warns that AI-driven job automation could deepen inequality in the UK unless the government steps in to support workers and small businesses. A survey of 5,000 employees revealed widespread anxiety over AI’s impact, highlighting the need for more policies to balance AI progress with job security.
Vatican Warns of AI Risks in New Ethical Guidelines
The Vatican has issued ethical guidelines on AI, warning against its weaponisation, misinformation risks, and impact on human relationships. The document stresses AI should complement, not replace, human intelligence, and was released amid China’s DeepSeek AI breakthrough. The Vatican urged global oversight to prevent AI abuses in warfare, healthcare, and education.