In a week marked by significant developments across the tech and retail sectors, DeepSeek, a leading Chinese technology company, has made headlines with the announcement of an AI model update poised to surpass competitors such as OpenAI's GPT-4o and Meta's Llama. This move comes amid rising tensions over data usage, as OpenAI investigates potential unauthorized data exports to DeepSeek. Meanwhile, the retail landscape in the UK faces shifts, with WH Smith reporting declining sales in its high street stores and exploring the sale of its legacy retail business. In contrast, Dutch chip equipment maker ASML has posted robust growth figures, with its share price surging by 11% following substantial new bookings. Additionally, the UK government has committed to a £65 million investment to expand electric vehicle infrastructure. These events encapsulate a dynamic interplay of innovation and challenges across industries.
DeepSeek's announcement of its AI model update marks a significant stride in the competitive landscape of artificial intelligence. By releasing this update on the first day of the Lunar New Year, DeepSeek signals its intent to dominate its domestic market. However, OpenAI has raised concerns over data security, launching an investigation into whether DeepSeek accessed data without authorization. This inquiry highlights the broader industry trend where AI hyperscalers demand extensive computing power for training models, driving a boom in the U.S. stock market.
In the UK retail sector, WH Smith faces a challenging period as it reports a 3% decline in like-for-like sales in its high street stores over 21 weeks ending January 25. The company's parent is actively seeking buyers for its legacy retail division, potentially leading to the disappearance of WH Smith from British town centers. Despite these difficulties, WH Smith's travel division shows promise with a 7% increase in revenue and improved performance in North America. The company concludes the Christmas trading period with a "clean stock position" and is on track to achieve annual cost savings of £11 million.
ASML's recent achievements underscore its critical role in the semiconductor industry. The Dutch company remains unmatched in producing equipment for manufacturing advanced chips, including those with four-nanometre transistors supplied by Taiwan's TSMC for Nvidia. ASML's share price climbed by 11% following the announcement of €7 billion (£5.9 billion) in new bookings during the last quarter of 2024. The company projects a growth forecast of 30-35% by 2025, driven by the increasing demand for AI technologies.
"The growth in artificial intelligence is the key driver for growth in our industry. It has created a shift in the market dynamics that is not benefiting all of our customers equally, which creates both opportunities and risks as reflected in our 2025 revenue range." – Christophe Fouquet, ASML's chief executive.
The UK's commitment to advancing electric vehicle infrastructure sees a £65 million investment directed towards Connected Kerb. This initiative aims to accelerate the rollout of public charge points across the UK, aligning with broader environmental goals and supporting sustainable transportation.
Meanwhile, Dowlais, a car parts manufacturer, has agreed to a £1.2 billion takeover by American Axle & Manufacturing (AAM), signaling further consolidation within the automotive industry. This acquisition highlights the strategic moves companies are making to enhance their global presence and capabilities in an evolving market.
In parallel, UK Chancellor Rachel Reeves has voiced support for expanding infrastructure at Heathrow Airport with a third runway. This development is expected to bolster economic growth and create new opportunities for businesses and individuals alike.
"Without economic growth, we cannot improve the living standards of ordinary working people, because growth isn’t simply about lines on a graph. It’s about the pounds in people’s pockets, the vibrancy of our high streets and the thriving businesses that create wealth, jobs and new opportunities for us, for our children and grandchildren." – Rachel Reeves.