Source:

  • Reuters, Published on February 10th, 2025.

By Mike Scott

Summary

  • DeepSeek challenges assumptions about AI market and raises new ESG and investment risks
  • Efficiency gains significant – similar results being achieved with less computing power
  • Disruption fuels doubts over Big Tech’s long-term AI leadership and market valuations
  • China’s lean AI model also casts doubt on costly U.S.-backed Stargate project
  • Analysts see DeepSeek as a counter to U.S. tariffs, intensifying geopolitical tensions

February 10 – The launch by Chinese company DeepSeek, opens new tab of its R1 reasoning model last month caused chaos in U.S. markets. At the same time, it shone a spotlight on a host of new risks and challenged market assumptions about how AI will develop.

The shock has since been overshadowed by President Trump’s tariff wars, opens new tab, but DeepSeek is set to have lasting and significant implications, observers say. It is also a timely reminder of why companies and investors need to consider ESG risks, and other factors such as geopolitics, in their investment strategies.

“The DeepSeek saga is a fascinating inflection point in AI’s trajectory, raising ESG questions that extend beyond energy and market concentration,” Peter Huang, co-founder of Openware AI, said in an emailed response to questions.

DeepSeek put the cat among the pigeons by announcing that it had developed its model for around $6 million, a thousandth of the cost of some other AI models, while also using far fewer chips and much less energy.

Camden Woollven, group head of AI product marketing at IT governance and compliance group GRC International, said in an email that “smaller companies and developers who couldn’t compete before can now get in the game …. It’s like we’re seeing a democratisation of AI development. And the efficiency gains are significant as they’re achieving similar results with much less computing power, which has huge implications for both costs and environmental impact.”

The impact on AI stocks and companies associated with the sector was severe. Chipmaker Nvidia lost almost $600 billion in market capitalisation after the DeepSeek announcement on fears that demand for its chips would be lower, but there was also a 20-30% drop in some energy stocks, said Stephen Deadman, UK associate partner at consultancy Sia.

As Reuters reported, power producers were among the biggest winners in the S&P 500 last year, buoyed by expectations of ballooning demand from data centres to scale artificial intelligence technologies, yet they saw the biggest-ever one-day drops after the DeepSeek announcement.

One reason for the massive sell-off was the timing – no-one was expecting such a breakthrough, nor for it to come from China. But DeepSeek also upended the prevailing narrative of how AI would develop, and who the winners would be.

Tom Vazdar, professor of cybersecurity and AI at Open Institute of Technology (OPIT), pointed out in an email that it called into question the premise behind the Stargate Project,, opens new tab a $500 billion joint venture by OpenAI, SoftBank and Oracle to build AI infrastructure in the U.S., which was announced with great fanfare by Donald Trump just days before DeepSeek’s announcement.

“Stargate has been premised on the notion that breakthroughs in AI require massive compute and expensive, proprietary infrastructure,” Vazdar said in an email.

There are also dangers in markets being dominated by such a small group of tech companies. As Abbie Llewellyn-Waters, Investment manager at Jupiter Asset Management, pointed out in a research note, the “Magnificent Seven” tech stocks had accounted for nearly 60% of the index’s gains over the previous two years. The group of mega-caps comprised more than a third of the S&P 500’s total value in December 2024.

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Times of Malta: Malta-based OPIT launches innovative AI tool for students, academic staff
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
Sep 22, 2025 5 min read

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The launch was officially unveiled during an event held at Microsoft Italia in Milan, titled AI Agents and the Future of Higher Education.

A tech-focused higher education institution based and accredited in Malta has developed a new AI assistant designed to support both students and faculty.

In a statement, the Open Institute of Technology (OPIT), announced the launch of the OPIT AI Copilot.

With the Fall Term starting on September 15, OPIT said it has already launched beta testing with faculty champions and is currently piloting full-course integrations.

Students who will be part of the pilot-phase will be able to prompt the entire OPIT – Open Institute of Technology knowledge base, personalized to their own progress.

The platform was developed entirely in-house to fully personalize the experience for the students, and also make it a real-life playground for in-class projects. It is among the first custom-built AI agents to be deployed by an accredited European higher education institution.

The launch was officially unveiled during an event held at Microsoft Italia in Milan, titled AI Agents and the Future of Higher Education

The gathering brought together academics and technology leaders from prominent European Institutions, such as Instituto de Empresa (IE University), OPIT itself and the Royal College of Arts, to explore how artificial intelligence is reshaping the university experience.

The OPIT AI Copilot has been trained on the institute’s complete academic archive, a collection created over the past three years that includes 131 courses, more than 3,500 hours of recorded lectures, 7,500 study resources, 320 certified assessments, and thousands of exercises and original learning documents.

Unlike generic AI tools, the Copilot is deeply integrated with OPIT’s learning management system, allowing it to track each student’s progress and provide tailored support.

This integration means the assistant can reference relevant sources within the learning environment, adapt to the student’s stage of study, and ensure that unreleased course content remains inaccessible.

A mobile app is also scheduled for release this autumn, that will allow students to download exercise and access other tools.

During examinations, the Copilot automatically switches to what the institute calls an “anti-cheating mode”, restricting itself to general research support rather than providing direct answers.

For OPIT’s international community of 500 students from nearly 100 countries, many of whom balance studies with full-time work, the ability to access personalised assistance at any time of day is a key advantage.

“Eighty-five per cent of students are already using large language models in some way to study,” said OPIT founder and director Riccardo Ocleppo. “We wanted to go further by creating a solution tailored to our own community, reflecting the real experiences of remote learners and working professionals.”

Tool aims to cut correction time by 30%

The Copilot will also reduce administrative burdens for faculty. It can help grade assignments, generate new educational materials, and create rubrics that allow teachers to cut correction time by as much as 30 per cent.

According to OPIT, this will free up staff to dedicate more time to teaching and direct student engagement.

At the Milan event, Rector Francesco Profumo underlined the broader implications of AI in higher education. “We are in the midst of a deep transformation, where AI is no longer just a tool: it is an environment that radically changes how we learn, teach, and create,” he said.

“But it is not a shortcut. It is a cultural, ethical, and pedagogical challenge, and to meet it we must have the courage to rethink traditional models and build bridges between human and artificial intelligence.”

OPIT was joined on stage by representatives from other leading institutions, including Danielle Barrios O’Neill of the Royal College of Art, who spoke about the role of AI in art and creativity, and Francisco Machin of IE University, who discussed applications in business and management education.

OPIT student Asya Mantovani, also employed at a leading technology and consulting firm in Italy,  gave a first-hand account of balancing professional life with online study.

The assistant has been in development for the past eight months, involving a team of OPIT professors, researchers, and engineers.

Ocleppo stressed that OPIT intends to make its AI innovations available beyond its own institution. “We want to put technology at the service of higher education,” he said.

“Our goal is to develop solutions not only for our own students, but also to share with global institutions eager to innovate the learning experience in a future that is approaching very quickly.”

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E-book: AI Agents in Education
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
Sep 15, 2025 3 min read

From personalization to productivity: AI at the heart of the educational experience.

Click this link to read and download the e-book.

At its core, teaching is a simple endeavour. The experienced and learned pass on their knowledge and wisdom to new generations. Nothing has changed in that regard. What has changed is how new technologies emerge to facilitate that passing on of knowledge. The printing press, computers, the internet – all have transformed how educators teach and how students learn.

Artificial intelligence (AI) is the next game-changer in the educational space.

Specifically, AI agents have emerged as tools that utilize all of AI’s core strengths, such as data gathering and analysis, pattern identification, and information condensing. Those strengths have been refined, first into simple chatbots capable of providing answers, and now into agents capable of adapting how they learn and adjusting to the environment in which they’re placed. This adaptability, in particular, makes AI agents vital in the educational realm.

The reasons why are simple. AI agents can collect, analyse, and condense massive amounts of educational material across multiple subject areas. More importantly, they can deliver that information to students while observing how the students engage with the material presented. Those observations open the door for tweaks. An AI agent learns alongside their student. Only, the agent’s learning focuses on how it can adapt its delivery to account for a student’s strengths, weaknesses, interests, and existing knowledge.

Think of an AI agent like having a tutor – one who eschews set lesson plans in favour of an adaptive approach designed and tweaked constantly for each specific student.

In this eBook, the Open Institute of Technology (OPIT) will take you on a journey through the world of AI agents as they pertain to education. You will learn what these agents are, how they work, and what they’re capable of achieving in the educational sector. We also explore best practices and key approaches, focusing on how educators can use AI agents to the benefit of their students. Finally, we will discuss other AI tools that both complement and enhance an AI agent’s capabilities, ensuring you deliver the best possible educational experience to your students.

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