TECH

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Leading AI firms, including OpenAI, Microsoft, and Meta, are turning to a technique known as "distillation" to build more cost-effective and efficient AI models. This shift, sparked by competition from China's DeepSeek, has intensified the global race for AI dominance while raising concerns about intellectual property and market stability. As a result, billions of dollars have been wiped from the market value of major U.S. tech firms.

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In a strategic move to capture the budget-conscious segment of the smartphone market, Apple has introduced the iPhone 16e, a cost-effective variant of its flagship iPhone 16. Priced at $599, the iPhone 16e is set to launch on February 28, with pre-orders commencing on February 21.

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Amazon has thrown its hat into the quantum computing race, unveiling 'Ocelot,' a prototype chip that could revolutionize error correction in quantum computing. The tech giant's announcement marks the third major development in the industry in recent months, following similar breakthroughs from Google and Microsoft.

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Apple has announced plans to establish a quarter-million-square-foot artificial intelligence server factory in Houston, Texas, by 2026. The facility, developed in partnership with Foxconn, will be dedicated to manufacturing servers for Apple Intelligence, the company's AI feature suite that powers email drafting and other automated tasks.

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The application of Artificial Intelligence (AI) software such as Microsoft’s Copilot and OpenAI’s ChatGPT has revolutionized modern workplaces, delivering record levels of efficiency and automation. However, research in recent months indicates that the tools enhance productivity but reduce employees’ critical thinking and problem-solving abilities simultaneously.

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Despite international attention, Chinese tech firms remain steadfast on their AI capabilities, fueled by the recent success of DeepSeek's R1 chatbot. The Hangzhou-based startup stunned the industry by developing a chatbot that rivals Western competitors in functionality while significantly reducing costs. But concerns about the app's handling of users' personal data have pushed countries including South Korea, Italy, Australia and some US states to ban or restrict its use.

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Meta announced Friday that it will build a 50,000-kilometer (31,000-mile) undersea cable connecting five continents to carry data, including for artificial intelligence development. The cable will link the US, South Africa, India, Brazil, and "other regions," the company said in a blog post.