January 28, 2025: Microsoft Probing DeepSeek-Linked Group, Apple-SpaceX Link Up, More

Published Jan 29, 2025, 4:32 AM

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News when you wanted with Bloomberg News Now, I'm Doug Krisner. Microsoft and open ai are investigating whether a group linked to the Chinese AI startup deep Seek obtained data from open ais technology without authorization. We are told the group allegedly used open AI's API to exfiltrate a large amount of data. Earlier today, White House AI Zar David Sachs told Fox News there is substantial evidence that deep Seek distilled knowledge from open AI's models.

Deep Seek now as a model that's comparable to open ai. Open ai is on the next model, but again they're only maybe three or four months ahead. We just can't afford to get distracted by things that don't matter, and I think there's going to be a refocusing by OURI industry.

That's AISR David Sachs. Apple is secretly working with SpaceX and T Mobile to add support for the Starlink network to the latest iPhone software. Now, Starlink allows users to send text via satellite when out of cellular range. We are told the companies have been testing iPhones with the Starlink service, and T Mobile has begun allowing customers to sign up for an early version of the service. We go to Washington next, where the White House began offering buyouts worth seven months of salary to all federal employees who opt to leave their jobs by February sixth. This is all part of President Trump's overhaul of the federal government. Separately, today, a federal judge temporarily halted the President's order to freeze federal grant funding. This was issued after a lawsuit filed by a coalition of nonprofit organizations. New York Senator Chuck Schumer was highly critical of the freeze.

In an instant with no precedent, no justification, no legal grounds, Donald Trump has shut off billions, perhaps trillions of dollars that help American families every single day.

That is New York Senate Chuck Schumer.

Now.

The original White House memo sparked widespread confusion and panic about its broad scope. It said direct assistance payments to individuals would continue and that Medicare and Social Security benefits would not be affected. However, it did not list other specific carve outs, and at the same time, US universities are trying to interpret the directive. It could disrupt higher education funding, especially for scientific research. Now, some universities like The University of Chicago and Harvard have already started to prepare by cautioning faculty about purchasing equipment or starting new experiments. Others, like the University of Texas at Austin, are not pausing research. Tomorrow, the FED will issue its first policy decision of the year, and Bloomberg Economics is expecting the committee to hold the FED Fund's rate steady in a target range of four and a quarter to four and a half percent. Steve Skanke is chief investment strategist at Keel Point. He says policy makers may also need to address the pressures of AI.

What's remarkable is, almost without exception, and irrespective of industry or sector that our clients are working in or investing in otherwise or where they have their own businesses, they are using AI in increasing increasingly different ways. And some of it they're not spending very much on. But as they get into it, try and see how it works, see what a different it makes in their work, planning, processing, customer outreach.

Keel Points Steve Skanky There you can stay with Bloomberg for our special coverage of tomorrow's FED decision. It kicks off at one thirty pm Wall Street time on both Bloomberg Radio and TV. Earnings will be coming in tomorrow after the closing bell from a couple of the big Mac seven companies. We have a preview from Bloomberg's tom Busby.

Microsoft, Meta, and Tesla all reporting their latest quarterly results. Revenue at Microsoft expected to grow eleven percent, its lowest increase in a year and a half. Meta expected to post a seventeen percent spike in revenue. Want to boost in advertising, investors will want to know more about its plans to spend sixty five billion to grow out its AI strategy. And Tesla expected to report weaker gross margins after slashing prices on vehicles and because of unfavorable exchange rates, but investors eager to hear a timeline for its long awaited lower priced vehicle. Tom busby Bloomberg Radio.

Robert F. Kennedy Junior will face his confirmation hearing tomorrow as designee for Health and Human Services Secretary. We have a preview from Bloomberg Sammy Morris in Washington.

In prepared testimony for the Senate Committee seen by Bloomberg News, Kennedy says he's neither anti vaccine nor anti industry and he says all of his children are vaccinated. Back in twenty twenty three, though he linked vaccines to autism, something scientists dispute.

Do believe that autism does come from.

Vaccines, but today he says he believes vaccines should be left up to the parent, not mandated. His cousin, Caroline Kennedy has a plea for Senators, something her son posted on x I urge the Senate to reject his nomination. RFK Junior also changed his stance on abortion after former Vice President Mike Pence opposed his nomination. In Washington, Amy Morris Bloomberg Radio, and.

That is news when you want it with Bloomberg News. Now, I'm Doug Chrisner, and this is Bloomberg