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‘Our advantage may not last,’ US tech investors fear amid emergence of China’s Deepseek

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The emergence of the DeepSeek chatbot has sent Silicon Valley into a frenzy, with calls to go faster on advancing artificial intelligence and beat communist-led China before it is too late.

California tech investors have usually kept their involvement in politics low key, generally supporting centrist politicians who don’t get in the way of their innovations and business plans.

But the AI revolution, and the potential ability of China to pose a direct threat to US dominance, has unnerved tech investors, who are now calling on the Donald Trump-led US government to help them take the battle to their Chinese rivals.

“It’s a huge geopolitical competition, and China’s running at it super hard,” warned Facebook titan Mark Zuckerberg on the Joe Rogan podcast.

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He noted that DeepSeek is “a very advanced model” and that it censors historical events like Tiananmen Square, arguing that “we should want the American model to win.”

Google, though not specifically mentioning DeepSeek, on Wednesday said the United States must take urgent action to maintain its narrow lead in artificial intelligence technology or risk losing its strategic advantage.

“America holds the lead in the AI race — but our advantage may not last,” it warned, calling for government help in AI chip production, streamlining regulations and beefing up cybersecurity against national adversaries.

The emergence of DeepSeek’s lower cost breakthrough particularly threatens US-based AI leaders like OpenAI and Anthropic, which have invested billions in developing leading AI models.

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OpenAI raised alarms Tuesday about Chinese companies attempting to copy their advanced AI models through distillation techniques, announcing plans to deepen collaboration with US authorities.

OpenAI investor Josh Kushner criticized so-called “pro-America technologists” who praise what he claims is Chinese AI built with misappropriated US technology.

Palmer Luckey, a Trump-supporting tech entrepreneur, suggested DeepSeek’s success was being amplified to undermine Trump’s policies.

– ‘Fall behind’ –

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Despite US government efforts to maintain AI supremacy through export controls on advanced chips, DeepSeek has found ways to achieve comparable results using authorized, less sophisticated Nvidia semiconductors.

The app’s popularity has soared, topping Apple’s download charts, with US companies already incorporating its programming interface into their services.

Perplexity, an AI-assisted search engine startup, has begun using the technology while claiming that it keeps user data within the US.

The tech community can count on Washington, where concern about China has achieved rare bipartisan consensus.

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Last year, Republicans and Democrats passed a law ordering the divestment of TikTok, a subsidiary of the Chinese group ByteDance.

“If America falls behind China on AI, we will fall behind everywhere: economically, militarily, scientifically, educationally, everywhere,” the US Senate’s top Democrat Chuck Schumer said Tuesday.

“China’s innovation with DeepSeek is jarring, but it’s nothing compared to what will happen if China beats the US on the ultimate goal of AGI, artificial general intelligence. We cannot, we must not allow that to happen.”

Representative Mark Green, a senior Republican said “let’s set the record straight — DeepSeek R1 is another digital arm of the Chinese Communist Party.”

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However, some argue this aggressive approach may backfire, given Silicon Valley’s reliance on Chinese talent.

Nvidia researcher Zhiding Yu highlighted this concern on X, noting how a Chinese intern from his team joined DeepSeek in 2023.

“If we keep cooking up geo-political agendas and creating hostile opinions to Chinese researchers, we will shoot ourselves in the foot and lose even more competitiveness.”

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Economy

UK Moves Against Chemical in Gel Nail Products Over Reproductive Health Concerns

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The United Kingdom has introduced new restrictions on a chemical commonly used in some gel nail polishes amid concerns over its potential impact on fertility and reproductive health.

The restriction targets trimethylbenzoyl diphenylphosphine oxide, commonly known as TPO, a photoinitiator that enables gel polish to harden when exposed to UV light and helps improve its durability and colour retention.

Under the new rules, which took effect on Saturday across England, Wales and Scotland, manufacturers are no longer permitted to place new TPO-containing cosmetic products on the UK market.

However, beauty salons have been given until February 14, 2027, to stop using existing products containing the chemical, meaning customers could still encounter TPO-based gel polishes during the transition period.

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The move follows concerns arising from animal studies that have linked TPO exposure to possible reproductive and fertility problems. The European Union introduced a similar prohibition in September 2025.

The restrictions have nevertheless attracted debate within the cosmetics industry. The Cosmetic, Toiletry and Perfumery Association has maintained that the concentration of TPO used in nail products is significantly lower than levels associated with harmful effects.

The UK decision is therefore expected to intensify discussions within the beauty industry over whether precautionary restrictions should take priority where potential reproductive risks remain under investigation.

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Economy

Nigerian Stock Market Crashes For 8th Straight Session As Investors Lose Whopping N5.45tn

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Investors in the Nigerian stock market recorded a cumulative loss of N5.45 trillion as the equities market extended its bearish run to an eighth consecutive session at the close of trading session on Thursday night, August 20..

Equities listed on the Nigerian Exchange Limited, NGX, have continued to experience significant declines since Tuesday, August 11, 2026 but last week, investors on the NGX lost N3.8 trillion in four consecutive bearish sessions.

From Monday to Thursday this week, stocks on the NGX have lost a total of N1.65 trillion meaning that the combined losses recorded over the last eight trading sessions amounted to N5.45 trillion, wiping out previous gains in the market.

The market extended its bearish run on Thursday as investors lost N440 billion, driven by continued profit-taking in large- and mid-cap stocks.

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Market capitalisation declined by 0.30 per cent, or N440 billion, from N155.417 trillion at the opening of trading to N154.977 trillion at the close.

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Economy

See Dollar to Naira exchange rate today August 21,2026

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The Naira yesterday depreciated to N1,405 per dollar in the parallel market from N1,400 per dollar on Wednesday.

But the naira appreciated to N1,347.5 per dollar in the Nigerian Foreign Exchange Market, NFEM.

Data from the Central Bank of Nigeria, CBN, showed that the indicative exchange rate for the naira fell to N1,347.5 per dollar from N1,351 per dollar on Wednesday, indicating N3.5 appreciation for the naira.

Consequently, the margin between the parallel and official markets widened to N57.5 per dollar from N49 per dollar on Wednesday.

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The interbank turnover at NFEM rose by 0.22 percent to N371.8 million yesterday from N370.98 million the previous day.

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