Kevin Xu, founder and CIO of Interconnected Capital, says that DeepSeek's UE8M0 FP8 format could lead to software-led development of AI in China as compared to the traditional Nvidia and hardware-led progression.

Tsim Sha Tsui

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Apple continues to face challenges in expanding its AI capabilities in China, particularly due to the lack of a domestic AI model partner. While Chinese brands like Huawei and Xiaomi are strengthening their ecosystems, Apple's ecosystem in China remains comparatively limited. 

A notable development in China's AI race is DeepSeek's release of its 3.1 model, which introduced a new data format compatible with locally produced AI chips. This announcement led to a surge in stock prices for Chinese chipmakers and suggests a shift toward a software-led AI strategy in China, moving away from the hardware-centric approach dominated by Nvidia.

DeepSeek's software-led AI approach reshapes global AI race

Apple is still working on finding a partner to get AI into that market. I want to know how it stacks up in that sense, taking on the Chinese market without this key component. I think it's going to be very difficult. I think iPhone has a decent stronghold in the China market. I think according to the last quarterly report from Apple, the greater China business segment actually grew by 4% on a pretty large base. So I think the Apple fans in China will continue to probably be Apple fans. But will their share grow without AI, particularly without a leading model partner domestically to really enhance Apple's own AI capability is going to be a very difficult proposition. I think earlier this year, there were fairly reliable rumors that Alibaba will be the partner for Apple when it comes to AI model partnership. But that hasn't really translated into the product itself or new features at all. Meanwhile, you have Huawei racing ahead with its flagship iPhone or its flagship smartphone. Xiaomi is doing the same. And I think one thing that is uniquely challenging for Apple as far as the ecosystem play, not just a smartphone play, is that some of these leading Chinese brands now have a much larger ecosystem where Huawei users can also not only have its phone connected to their only equivalent of an iPad, but also smart appliances and also Huawei powered EVs. Xiaomi users can do the same thing, while the ecosystem within China and I will say in the United States as well for Apple products is relatively weak compared to that scenario. So it's going to be difficult. And without a local AI model partner, it's going to be even more difficult for Apple to, I think, grow its share meaningfully compared to other brands in greater China. Now as there is this huge race in AI domestically in China as well, is it going to be the deep six or is it going to be Nvidia? I think those are two kind of layers in the stack. And I recently wrote a post on what I think may be the real deep-seek moment that just came a couple of weeks ago when deep-seek released its new 3.1 version model. Now what is interesting about this release isn't actually released itself, but a rather cryptic comment that the deep-seek team appended right at the bottom of the announcement post explaining how a new data format that it is using for its model will be supported by domestically made Chinese AI chips, which are all, of course, in one way or another competing with Nvidia for market share in China. That sent the Chinese stock market into quite a frenzy those couple of days. Cambricon, which is a chip, which is a fabulous GPU designer, had multiple double-digit growth days of its stock price before coming down to earth a little bit. You had other similar companies like MorseThread and the SMIC, which is the National Championship Fabrication Facility, all going up after that cryptic comment was posted. You're really seeing, I think, an interesting structural shift in this AI race, where the Chinese version or the Chinese take on artificial intelligence may be more software-led, and that leader is the deep-seek AI model, when up to this point, Emily, every single thing in AI has been primarily hardware-led and primarily Nvidia-led. Nvidia's product, which has been racing ahead with performance gains and more TCO, is the reason why open AI can do what it does, which is why Anthropic can do what it does, but it's entirely led by Nvidia's capability. But deep-seek's comments and evolution could potentially be another way to evolve AI in China that is software-led, that is AI model-led, where the hardware makers are coalescing around what deep-seek needs to make deep-seek successful, which will change the entire fabric of this competition.

Multiple drones were shot down over Poland's airspace during a Russian attack on Ukraine overnight in what the country's central command called "an act of aggression."

Warsaw

Ukraine Invasion

Poland and allies down Russian drones in 'act of aggression'

Two Brazilian Supreme Court justices voted to convict former President Jair Bolsonaro of leading a criminal conspiracy to overturn the 2022 election, as they cast the first votes in the final phase of the ex-president's trial.

Brasilia

Two Brazil Supreme Court justices vote to convict Bolsonaro

Nepal’s prime minister has stepped down with at least 22 people dead, the country’s parliament in flames and its main airport shut down during a violent revolt. The unrest started over a social media ban and grew into a broader anti-corruption protest.

Kathmandu

Nepal’s parliament set on fire, PM resigns as protests spiral

U.S. President Donald Trump can't escape questions about Jeffrey Epstein as a congressional committee released a suggestive personal note to Epstein allegedly from Trump, for the convicted sex offender’s 50th birthday.

Washington

White House denies alleged Trump letter to Epstein is authentic

Israel's military said it "conducted a precise strike targeting the senior leadership of the Hamas terrorist organization," amid reports of large explosions in Qatar's capital city, Doha.

Doha

Hamas says none of its leadership killed in Israeli strike on Doha

French President Emmanuel Macron has named loyalist Sebastien Lecornu, a one-time conservative protégé who rallied behind his 2017 presidential run, as prime minister. Analysts say France is in the midst of a complicated political crisis.

Paris

France's Macron names loyalist Lecornu as new PM

Videos circulating online reveal a luminous flying object hitting the vessel. No crew members were harmed. Activists part of the flotilla say they will not be deterred by the attack, and that their mission will continue as planned.

Middle East Conflict

Flotilla for Gaza ship struck by drone off Tunisia, organizers say

The Bureau of Labor Statistics said the U.S. labor market added 911,000 fewer jobs between April 2024 and March 2025. CBS News MoneyWatch correspondent Kelly O'Grady breaks it down.

U.S. jobs growth revised down by 911,000

A Michigan judge has dropped criminal charges against 15 people who were accused of trying to falsely certify Donald Trump as the winner of the 2020 presidential election. CBS News' Shanelle Kaul has the latest.

Michigan

Judge tosses case against 15 accused fake Trump electors in 2020

Israel says it carried out a strike targeting Hamas leaders. One Israeli official says it happened in Doha, Qatar. CBS News' Ramy Inocencio reports.

Israel targets Hamas leadership in Doha strike

The Trump administration launched a new immigration enforcement operation in Chicago, saying the latest federal crackdown in a US city would target the "worst of the worst criminals." But activists in the city remain defiant and say they will resist efforts by ICE to snatch people off the streets.

Chicago

Activists defiant as Trump launches ICE raids in Chicago

Norway's Labour Party has won four more years in government after seeing off a surge in support for the right. But exit polls predict it will only have a small majority, and its future may depend on how it navigates Norway's relationship with the rest of the world.

Oslo

Norway’s PM Stoere claims victory in general election

Officials in Nepal say at least 16 people are dead and dozens more injured after police opened fire on protesters. Tens of thousands, mostly young people, rallied in the capital Kathmandu against the government's ban on platforms including Facebook, X, and YouTube.

Multiple fatalities as Nepal police fire on protesters

France's Prime Minister François Bayrou overwhelmingly lost a confidence vote Monday after nine months in office. CBS News correspondent Shanelle Kaul has more.

French PM François Bayrou ousted after losing confidence vote

The U.S. Supreme Court allowed the Trump administration to continue its sweeping immigration stops in the Los Angeles area after they were briefly halted. CBS News immigration reporter Camilo Montoya-Galvez has more.

Supreme Court allows L.A. immigration stops to continue

Two Palestinian gunmen opened fire at a bus stop on the outskirts of Jerusalem on Monday (September 8), killing six people in what police described as "a terrorist attack," one of the deadliest in the city in the past few years.

Jerusalem

Palestinian gunmen kill six at Jerusalem bus stop

U.S. President Donald Trump said he was ready to hit Russia with a second phase of sanctions after its largest air attack on Ukraine in nearly four years of war. The assault on Saturday caused serious damage in Ukraine's capital, including to one of its most important government buildings.

Trump considering second phase of sanctions on Russia

A drone launched by Yemen’s Houthi rebels struck southern Israel Sunday, hitting Ramon International Airport near Eilat and forcing a shutdown of airspace in the region.

Ilan and Asaf Ramon International Airport

Yemen’s Houthi rebels strike Israel's Ramon International Airport

Protests have erupted in Chicago after U.S. President Donald Trump threatened a federal crackdown, including sending National Guard troops and expanding deportations.

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Russia's largest overnight air attack of the war set the main building of the Ukrainian government in Kyiv on fire and killed at least four people, including an infant, Ukrainian officials said.

Kyiv

Russia launches biggest air attack of the war on Ukraine

Problems with a cable likely caused a Lisbon funicular railway popular with tourists to hurtle down a hill, killing at least 16 people and injuring another 22 when it crashed into a building, according to a preliminary report.

Lisbon

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U.S. indie director Jim Jarmusch unexpectedly won the coveted Golden Lion at the Venice Film Festival on Saturday with "Father Mother Sister Brother", a three-part meditation on the uneasy ties between parents and their adult children.

Venice

U.S. independent director Jim Jarmusch wins Venice top prize

Japanese Prime Minister Shigeru Ishiba said on Sunday (September 7) he has decided to resign, caving to ruling party pressure on him to take responsibility for a series of election losses amid voter anger over rising living costs.

Tokyo

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South Korea announced the deal on Sunday. The immigration raid was part of a criminal investigation targeting a major economic project of a key U.S. ally.

Savannah

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Chicago officials agree that a federal crackdown on immigration is imminent. Saturday kicked off a week-long celebration of Mexican Independence Day.

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Wall Street took hits on the market after hiring slumped in August. The economy added 22,000 jobs, far below expectations, fueling fresh concerns about a slowdown.

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The United States is not talking about regime change in Venezuela, President Donald Trump said on Friday, as the United States ordered an additional 10 stealth fighter jets to a military buildup in the Caribbean.

Caracas

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The Israeli military told Palestinians in Gaza City to leave for the south before bombing a high-rise tower as its forces advance deeper into the enclave's largest urban area.

Tel Aviv-Yafo

Israel tells Palestinians to leave as it pushes into Gaza City

US President Donald Trump's threats to deploy National Guard troops to Chicago, Baltimore, and New Orleans have ignited resistance from local leaders and residents, who argue the deployments serve as intimidation rather than crime prevention.

DeepSeek's software-led AI approach reshapes global AI race

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Rise of AI