Hey AI Enthusiasts!

Welcome to this week’s edition of AI Weekly Brief, where we highlight the latest breakthroughs, regulatory moves, and market dynamics reshaping the world of artificial intelligence. In today’s newsletter, we cover how one U.S. state is clamping down on Chinese-backed apps, a new strategic joint venture in Japan, and fresh product updates from OpenAI as it responds to DeepSeek’s disruptive challenge.

In today’s insights:

• OpenAI’s New o3‑Mini Series: OpenAI launches its latest o3‑mini and o3‑mini‑high reasoning models—integrated into ChatGPT and the API. These models deliver faster, more efficient performance on STEM tasks, and for the first time, free users can now access advanced reasoning features via the “Reason” button.

• Texas Bans Chinese-Backed Apps: Texas Governor Greg Abbott prohibits the use of DeepSeek, RedNote, and Lemon8 on state-issued devices, aiming to protect critical infrastructure from potential data risks linked to Chinese companies.

• Japan AI Joint Venture: SoftBank and OpenAI announce a strategic joint venture in Japan to deliver AI-powered services to businesses and government agencies, bolstering international collaboration and innovation.

• Earnings Under the Microscope: Investors are closely watching upcoming earnings from tech giants like Amazon and Alphabet as DeepSeek’s cost-efficient AI model reshapes market expectations and forces a reexamination of AI infrastructure spending.

• More AI Hits: A quick look at additional breakthroughs, including OpenAI’s deep research enhancements and emerging regulatory and market responses in the AI landscape.

_{Read time: 5 minutes.}

OpenAI
OpenAI Launches New o3‑Mini and o3‑Mini‑High Reasoning Models

Overview: In a direct response to the disruptive performance of Chinese startup DeepSeek’s R1 model, OpenAI has officially launched the o3‑mini reasoning models. According to announcements made on January 31, OpenAI o3‑mini is now available to all ChatGPT users—with free users receiving rate-limited access (via the new ‘Reason’ feature) and paid subscribers enjoying increased limits. In addition, OpenAI has introduced o3‑mini‑high, a variant designed for even higher accuracy in tasks such as coding, math, and science.

Early benchmarks show that while o3‑mini (using medium reasoning effort) offers a balanced trade-off between speed and precision, the premium o3‑mini‑high variant pushes performance further on advanced tasks.

Key Points:

• Speed & Efficiency: o3‑mini responds 24% faster than its predecessor (o1‑mini) while maintaining similar performance on STEM tasks.

• Usage Tiers: Free users can now experiment with reasoning models for the first time, while Plus, Team, and Pro subscribers get access with higher message limits (up to 150 messages per day); Pro users enjoy unlimited queries.

• Enhanced Capabilities: Benchmark tests indicate that o3‑mini-high, available for paid users, outperforms other variants on coding and reasoning tasks, closing the gap with DeepSeek’s R1.

• Developer Integration: The new models support advanced features such as function calling, structured outputs, and integration with search tools. They’re also available via Microsoft Azure OpenAI Service and GitHub Copilot.

👉 read more here: OpenAI

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🤯 Texas becomes the first U.S. state to ban DeepSeek and RedNote from government-issued devices.

Overview: Texas Governor Greg Abbott has issued an order prohibiting the use of the Chinese-backed AI app DeepSeek—as well as the popular social media alternative RedNote and Lemon8—on state-issued devices. The move is designed to protect critical state infrastructure from potential data-harvesting by foreign actors. According to the order, the apps are seen as risks due to data being stored in China and the legal requirement for Chinese companies to comply with government requests for information. This decision comes on the heels of DeepSeek’s explosive market debut, which even triggered a temporary $1 trillion sell-off in tech stocks last week.

Key Points:

• The ban aims to block any infiltration via AI and social media apps.

• DeepSeek, which debuted on January 15, has already raised significant security concerns.

• Texas becomes the first state to take such decisive regulatory action on government devices.

👉 Read more here

 🚨 U.S. tech earnings come under scrutiny amid DeepSeek’s disruptive entry.

Overview: Market watchers are keenly anticipating the quarterly earnings reports from Amazon and Alphabet as investors evaluate how DeepSeek’s low-cost, efficient AI platform is shifting competitive dynamics. Last week’s debut of DeepSeek’s R1 model has forced many executives to reexamine their AI and cloud investment strategies. Although some tech leaders remain confident in their spending plans, analysts note that the new pricing and efficiency benchmarks could pressure existing profit margins across the industry.

Key Points:

• DeepSeek’s efficiency has ignited debates over whether U.S. tech firms are overinvesting in high-cost AI infrastructure.

• The upcoming earnings calls will be closely watched for any indications of revised capital expenditures.

• This development is expected to influence both company margins and overall market sentiment in the tech sector.

👉 Read more here

🗞️ More Updates

🚨 SoftBank and OpenAI unveil a new AI joint venture in Japan.

Overview: In a significant development for the global AI ecosystem, SoftBank Group CEO Masayoshi Son announced that SoftBank and OpenAI have agreed to form a joint venture in Japan. This strategic alliance is set to provide AI-powered services to Japanese businesses and government agencies while leveraging advanced cloud services from partners like Microsoft Azure. The collaboration underscores the growing trend of international cooperation to bolster AI innovation and competitiveness.

Key Points:

• The joint venture will expand access to advanced AI tools in Japan.

• It marks another example of tech giants joining forces on the global stage.

• The partnership comes as part of a broader strategy to enhance AI development and adoption.

👉 Read more here

OpenAI’s Deep Research Breakthrough: OpenAI has unveiled a new deep research feature for ChatGPT that autonomously plans and executes multi-step research tasks. The tool generates process summaries with citations, enhancing the depth and reliability of complex responses for Pro users.

Intel Faces Challenges Competing with Nvidia in AI Chip Market: Intel is encountering significant hurdles in its efforts to rival Nvidia in the AI chip sector. Despite Nvidia’s recent market value decline due to technological advancements by Chinese startup DeepSeek, Intel’s decision not to commercialize its Falcon Shores chip and weak demand for its Gaudi AI accelerator chip highlight the difficulties it faces in this competitive landscape.

Thank you for reading this week’s AI Weekly Brief. We hope you found the insights valuable and engaging. If you have any questions, feedback, or topics you’d like us to cover in future editions, please don’t hesitate to reach out. Your input is invaluable to us. We look forward to bringing you more exciting AI news next week.