How a Chinese AI Startup Just Shook the Tech Market Amid Security Concerns

Energy News Beat

January 27, 2025 – The tech landscape was rocked today as shares of several major U.S. tech companies plummeted due to the introduction of DeepSeek, a Chinese AI startup whose chatbot rivals established American models but at a significantly lower cost. However, alongside its technological prowess, DeepSeek has raised significant security and privacy concerns.

Here’s how DeepSeek achieved its cost efficiency:

  • The company used approximately 2,000 Nvidia H800 chips, which are less powerful than those typically used by U.S. companies, spending less than $6 million on development.
  • With a “mixture of experts” approach, DeepSeek optimized its AI for performance without the need for extensive computational resources.
  • The model was developed in just two months, demonstrating DeepSeek’s ability to innovate quickly.

Market Reaction

This breakthrough led to a notable market shake-up, with these top stocks taking a hit:

  1. Nvidia (NVDA): Down by 17%, due to worries about the demand for its high-end AI chips.

     

  2. Microsoft (MSFT): Declined by around 2%, with investors questioning the ROI on its AI investments.

     

  3. Alphabet (GOOGL): Saw a 4% drop, as concerns mounted over its AI strategy’s competitiveness.

     

  4. ASML Holding (ASML): Experienced an 5.75% decrease, highlighting broader concerns in the semiconductor sector.

     

Security and Privacy Concerns

Despite its technological achievements, DeepSeek has already encountered several security issues:

  • DeepSeek has been hit with what they describe as “large-scale malicious attacks,” leading to temporary restrictions on new user registrations. This has raised alarms about the platform’s security infrastructure.
  • There are accusations on social media that DeepSeek could compromise users’ digital security and privacy, with claims that the Chinese government might have access to user data.
  • Past reports have highlighted vulnerabilities in DeepSeek’s system, including prompt injection attacks that could allow unauthorized access to user accounts.
  • DeepSeek’s privacy policy indicates that they collect extensive user data, including keystroke patterns, which could be used for profiling or surveillance.

At the end of the day, DeepSeek’s rise not only challenges the economic models of AI development but also introduces a new layer of complexity regarding data security and privacy in AI. The tech industry is now compelled to address both the competitive threat and the security implications of this new player. As the market digests these developments, the focus will likely shift towards enhancing security measures and reevaluating data privacy policies in AI technologies.

Source: Nathan’s Newsletter on Substack; We recommend following, and subscribing.

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Germany to receive third Plaquemines LNG cargo

Energy News BeatPlaquemines LNG

The 2021-built 174,000-cbm, Isabella, was on Tuesday anchored in the North Sea, offshore Wilhelmshaven and Brunsbüttel, where DET’s FSRU-based facilities are located, its AIS data provided by VesselsValue shows.

This LNG carrier, which is owned by Greece’s Maran Gas and chartered by Norway’s Equinor, left the Plaquemines LNG facility some two weeks ago.

Data by Niedersachsen Ports shows that Isabella is expected to dock at the FSRU-based LNG terminal in Wilhelmshaven on Tuesday and depart two days after it unloads the shipment.

The 170,000-cbm FSRU Hoegh Esperanza, owned by Norway’s Hoegh Evi and chartered by the German government, serves DET’s first Wilhelmshaven facility.

Earlier this month, this FSRU welcomed the first commissioning LNG cargo from Venture Global’s Plaquemines plant onoard Venture Global’s 174,000-cbm newbuild carrier, Venture Bayou.

Germany’s EnBW bought this LNG cargo from Venture Global.

Venture Global said this shipment marked over 60 LNG cargoes sent from the company into Germany since 2022.

The second commissioning LNG cargo from the Plaquemines plant was recently delivered onboard Venture Global’s 174,000-cbm newbuild carrier, Venture Gator, to Brunsbüttel, the home of the 170,000-cbm FSRU Hoegh Gannet.

Besides these shipments, Venture Global sent Plaquemines LNG cargoes onboard LNG carriers Flex Rainbow, Umm Ghuwailina, and BW Lilac, their AIS data shows.

The data shows that all of these vessels appear to be heading to Europe, including France and the Netherlands.

In addition, the LNG carrier Diamond Gas Metropolis was docked at the Plaquemines LNG facility on Tuesday.

Plaquemines LNG is the eighth US LNG export facility.

Venture Global said in its recent IPO statement it is targeting a COD (commercial operations date) for the Plaquemines project in the third quarter of 2026 for Phase 1 and the second quarter of 2027 for Phase 2.

The full project, including the second stage, will have a capacity of 20 mtpa coming from 36 modular units, configured in 18 blocks.

Each train has a capacity of 0.626 mtpa.

Source: Lngprime.com

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An on-site natural gas plant will help power Stargate’s first data center, public filings show

Energy News Beat

ENB Pub Note: The numbers that the Stargate data centers for power consumption are staggering. This is going to bring several key points to the front of the discussions. The first will be microgrids. The AI data center in Abilene will have an on-site natural gas power plant capable of producing 360 MW. And secondly, only states that support natural gas and pipelines will get the economic growth for new data center build-outs. Do not look for New York or California to get new Data Centers. – Just Sayin.

Developers have filed permits to operate natural gas turbines at Stargate’s site in Abilene, Texas, with a combined capacity of 360 MW, sufficient to power 90,000 homes but only a small fraction of the power needed for Stargate’s data centers. The turbines, intended for primary and backup power, will not supply the local grid and are part of Project Ludicrous, a $1.1 billion data center project by AI cloud startup Crusoe. The project is expected to cost half a billion dollars, and the turbines will be sourced from GE Vernova and Solar Turbines. The site also has diesel-fired backup generators and plans to incorporate renewable resources in the future.The entire Stargate project is estimated to require about 15 gigawatts of power, spread across multiple locations, with some sites potentially needing up to 5 GW each. The Abilene site, located on land owned by Lancium, currently has a 200 MW substation, with plans to increase capacity fivefold by 2025. The growing demand for AI infrastructure is significantly increasing electricity demand in the US, with data center electricity use potentially tripling by 2028. The launch of DeepSeek, a more cost-effective and efficient Chinese AI model, has raised questions about AI infrastructure spending in the US.

Key takeaways:

  • Developers filed permits to operate natural gas turbines with a combined capacity of 360 MW at Stargate’s site in Abilene, Texas, which is enough to power 90,000 homes.
  • The natural gas plant is expected to cost half a billion dollars and will provide primary and backup power for data centers and computing, with power generated onsite only.
  • The entire Stargate project is estimated to require about 15 gigawatts of power, with the 360.5 MW from Project Ludicrous making up less than 1% of the total power needed.
  • The race to develop AI infrastructure has significantly increased electricity demand in the US, with data center electricity use potentially tripling by 2028.

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Dying German government musters majority for solar panel restrictions

Energy News BeatGerman government

 

A majority of German parties agreed on Monday to adopt fixes to the country’s energy policy framework, including cuts to solar subsidies during negative price periods.

The remains of Germany’s coalition government – the centre-left SPD and the Greens – is unable to command a majority in parliament, leaving it reliant on support from other parties.

But the government found a deal with the the centre-right CDU to tweak the country’s power laws, in the last full working week of the German parliament before 8 February elections.

The agreed changes will strip government subsidies from owners of solar panels when prices become negative – when electricity supply exceeds demand and threatens to overhwhelm the grid, which can occur during particularly sunny periods.

“There is… a functioning majority beyond the AfD in the German Bundestag” for the measures, said the SPD’s Verena Hubertz. Chancellor-in-waiting Friedrich Merz from the CDU described “reasonable” discussions with the government.

The deal also includes a plan to translate the EU’s new CO2 tariff, known as CBAM, into German law. There are centre-right calls to limit the law’s scope – so its implementation in Germany will come as relief to Brussels.

Other aspects cover restrictions on wind turbine permitting, the extension of special permits for power plants that generate both electricity and heat, and measures to boost the country’s lagging smart meter rollout.

Industry association BDEW said the compromise was “good news for the energy transition.”

It may also be good news for Germany’s political culture, showing that agreement across the party divide is still possible. In a similar episode before Christmas, CDU leader Merz had intervened to push through the abolishment of a controversial gas tariff.

[DC/OM]

Source: Euractiv.com

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Arriva adds to bulker orderbook in China

Energy News Beat

Norway’s Arriva Shipping has continued its fleet renewal drive with a fresh battery hybrid bulker newbuilding order in China.

The Sindre Matre-led company has contracted Jiangsu Soho Marine Heavy Industry to see the 8,000 dwt vessel delivered in the third quarter of 2026.

The newbuild will be a sister vessel of the company’s Nor Viking (pictured), delivered in 2022, and another unit ordered at Dayang Offshore Equipment in 2023, with delivery expected in the first half of 2025.

The vessel will feature a 2 MW battery hybrid system and reduce emissions and energy use while meeting strict environmental regulations and customer demands for efficient logistics, the company noted.

“This investment aligns with our goal of modernising the fleet and reducing our carbon footprint,” said Arriva chief executive Matre.

Founded in 1972 by Johannes Matre, the company is located with a head office in Ølensvåg and branch offices in Stavanger and Gdansk. The short sea shipping player owns and operates eight self-discharging bulkers ranging from 2,000 dwt to 8,000 dwt, in addition to five to 10 chartered vessels that mainly operate in Northern Europe.

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OKI’s AI-driven technology to classify ships using underwater sounds

Energy News Beat

Japanese information and telecommunication expert OKI has developed a ship classification AI system technology which automatically classifies ship types through deep learning of underwater sounds.

This technology makes it possible to continuously and automatically acquire ship classification data, even in environments such as busy ports with high ship traffic and at night, when visual identification using cameras is difficult.

Internal verification experiments by OKI have demonstrated that the system can classify ships with 90% or better accuracy, even with only small amounts of learning data extracted from ship sound data.

Drawing on its long history of research into underwater acoustic products, the company has developed systems that analyze the characteristics of sounds received by underwater microphones.

The newly developed technology uses AI deep learning to automatically classify ships based on their underwater sounds. This system technology creates deep learning models from sounds recorded by underwater microphones installed in the sea, then automatically classifies ships based on their frequency characteristics.

This allows the classification of ships without relying on human skill levels. Since it requires less human labour than before, it can also address the growing labour-saving demand in recent years.

Deep learning models typically require large amounts of learning data to accurately identify sound types. However, the amount of publicly available underwater sound data is limited.

This is solved by data augmentation which artificially creates variations for actual ship sound data, and semi-supervised learning, which trains the model using ship sound information from partial data. This way OKI’s solution enables classification through the use of only small amounts of learning data.

“Going forward, we will seek co-creation partners to gather field data and conduct practical verification with a view to commercializing this technology,” said Yoichi Kato, senior executive officer of OKI.

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d’Amico boosts owned fleet with LR1 purchase option

Energy News Beat

EuropeTankers

Milan-listed product tanker owner and operator d’Amico International Shipping (DIS) has snapped up another leased vessel.

The Carlos di Mottola-led company has declared a purchase option on the 2019-built LR1 Cielo di Houston costing about $26.5m.

The Hyundai Mipo Vietnam-built 74,999 dwt unit has been on bareboat charter from Tokyo Century Corporation, which picked up the tanker upon its delivery for a reported $38.6m.

D’Amico’s Irish-based tankers business will take over ownership of the vessel, currently worth around $48.5m, in September.

DIS has exercised purchase options on multiple tankers since 2023, including the MR High Leader, last October. The company’s fleet stands at 33 product carriers, of which 27 are owned. D’Amico also has four LR1 newbuildings lined up at Jiangsu New Yangzi Shipbuilding for delivery in 2027.

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Penta-Ocean hires Seatrium for construction of offshore wind heavy lift vessel

Energy News Beat

Singapore shipyard group Seatrium has been awarded a contract from Japan-based Penta-Ocean Construction (POC) to construct a heavy lift vessel set to operate in the Japanese offshore wind market.

This will be the fifth and largest vessel to be added to POC’s fleet, enabling them to undertake larger wind turbine projects. The vessel will be fitted with a 5,000-tonne fully-revolving crane.

POC is keen to expand its business in the offshore wind sector. It currently owns a range of self-propelling trailing suction hoppers and cutter suction dredgers, for marine construction works, as well as two turbine installation vessels equipped with an 800-tonne and a 1,600-tonne lifting capacity crane respectively.

In Singapore, POC is the main contractor for several marine and land projects such as the Pasir Panjang Terminal Phase 3 and 4 development, Tuas Mega Port, LTA projects and ION Orchard.

“This innovative vessel is essential for the installation of the increasingly heavy monopile foundations required for the next generation of larger wind turbines. We are confident that this vessel will make a significant contribution to the development of offshore wind in Japan, enhancing our efforts towards a sustainable energy future,” said Tetsunori Ohshimo, head of offshore wind construction at POC.

“This project is significant to us on various fronts, as it marks our maiden collaboration with Penta-Ocean and our foray into the Japanese offshore wind market,” added William Gu, EVP of Seatrium Energy International.

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Icon Offshore to become Lianson Fleet Group

Energy News Beat

AsiaOffshore

Malaysian OSV owner Icon Offshore has secured shareholders’ approval to change its name to Lianson Fleet Group (LFG) as it sets sights on significant fleet expansion.

Last year, the Bursa Malaysia listed firm with around 20 OSVs struck a deal that will see it adding 40 vessels, the majority of which from Yinson’s founder and chairman Lim Han Weng and its Liannex Corp, while the remaining vessels will come from Yinson’s businesses.

The transaction has also been approved and is expected to close by early February this year.

The move “will mark a significant milestone for LFG, aligning with its long-term strategic goals to strengthen its asset base and enhance its overall capabilities in offshore marine, energy and transportation services,” the company said, adding that the proposed name change to LFG underscored its dedication towards reinforcing its market presence to better align with its expanded business activities.

“The group seeks to strengthen its brand recognition and enhance its position as a prominent force within the dynamic offshore marine, energy and transportation services sector,” the company noted.

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CMB.TECH banks $46.5m from triple sale

Energy News Beat

Antwerp-based owner and operator CMB.TECH has offloaded three of its vessels, securing a profit of $46.52m.

The Saverys family-led group is shipping out the 2007-built suezmax tanker Cap Lara in a deal that will bring in a capital gain of $18.77m.

The 2007 Samsung-built 158,826 dwt will be delivered to an undisclosed buyer in the first quarter of 2025.

The company has also wrapped up the sale of the 2012-built VLCC Alsace at a profit of about $27.5m which will be booked in Q1 this year. S&P databases show the scrubbed-fitted vessel was sold to French energy major TotalEnergies for $72m.

Meanwhile, the group’s crew transfer vessel operator Windcat is letting go of its 2007-built Windcat 6 after 18 years of service. The sale will generate a profit of $0.25m and change hands at the end of January 2025.

New York and Brussels-listed CMB.TECH owns and operates a diversified fleet of more than 160 ships, including tankers, bulkers, containerships, offshore wind vessels and tugs.

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