Global News Podcast - Nvidia shares sink as Chinese AI app spooks markets

Episode Date: January 28, 2025

The US chipmaker Nvidia has suffered the biggest single-day loss in US market history, as investors respond to the development of a low-cost AI chatbot by a Chinese company. Also: the diplomacy of renaming a submarine.

This BBC podcast is supported by ads outside the UK. When a body is discovered 10 miles out to sea, it sparks a mind-blowing police investigation. There's a man living in the Icedress in the name of a deceased. He's one of the most wanted men in the world. This isn't really happening. Officers are finding large sums of money. It's a tale of murder, skullduggery, and international intrigue. So who really is he? I'm Sam Mullins, and this is Sea of

Lies from CBC's Uncover, available now. This is the Global News Podcast from the BBC World Service. I'm Janet Jalil and in the early hours of Tuesday, the 28th of January, these are our main stories. US tech shares have fallen sharply on Wall Street in response to Chinese advances in AI, threatening the dominance of big American firms. The United Nations says there's no doubt Rwandan troops are supporting M23 rebels who are seizing the Congolese city of Goma. Holocaust survivors have marked the 80th anniversary of the liberation of the Nazi death camp at Auschwitz.

Also in this podcast, HMS Agincourt would instead be known as HMS Achilles. We'll tell you why the changing of the name of a British submarine has caused an outcry. We begin in the world of big tech and artificial intelligence where the emergence of what's said to be a low-cost AI Chinese chatbot has caused shockwaves. Shares in Western tech giants fell sharply in value on Monday with the AI chipmaker Nvidia one of the hardest hit. Half a trillion dollars was wiped off its value after a Chinese startup DeepSeek stunned its American competitors with the success of its AI app, reportedly made at a fraction of the cost of rivals like chat GPT. Despite only being launched this month, it's become the top rated free application on Apple's App Store in the United States.

This is despite the US restricting the sale to China of the advanced chip technology that powers AI. Stephanie Hare is a technology author and explains why this matters to all of us. Right now we've got really a competition between the two global superpowers, the United States and China, for what is being arguably pitched as the battle for the technology of the 21st century. So it will matter for companies, it will matter for productivity, it will matter for growth. So even if you're in the United Kingdom or I'm talking to you from Germany tonight, you might be thinking, what does that have to do with me? Well, these are low growth

countries. So everybody is looking for the next big thing that's going to get them some economic growth so that we can pay for everything that we need, education, healthcare, etc. Whoever wins the race for AI will define that. Well, our AI correspondent Mark Cieslak told us more about this new app. There's been a lot of discussion about the huge amount of investment in the AI space in the last few years. Microsoft has said that it's going to spend $80 billion on AI infrastructure. And Meta, that's the company that owns Facebook and Instagram, they're saying they're going to spend between 60 and 65 billion on AI infrastructure. Now that's on things like data centers, these are

what's required for AI operations to make the tech actually work. Now DeepSeek are saying that it's cost them six million dollars to train. Million, not billion. Yeah, six million dollars to train and develop its model. But can we trust this claim from DeepSeek? And if so, is it surprising given that the Biden administration introduced export control to try to stop advanced technology being sold to Chinese companies? There's a lot of industry experts who are sceptical about that six million dollar number. That being said, this looks like, face value, this looks like necessity being the mother of invention. It looks like a Chinese hedge fund, a hedge fund

high flyer has been running this project, this DeepSeek project, almost as a weekend project, a side project. He had access to a large number of NVIDIA GPUs before this ban came in and he's managed to make use of these chips as well as lower powered chips. And working with a number of engineers, they've managed to create an AI model which does very much the same thing as OpenAI's AI models, for instance, but at a much, much reduced cost. But the big question is, what does this all mean for American companies that thought they were leading in the AI race?

The received wisdom, if you like, of how much it costs to develop and run AI now has to be completely rethought. Or on the surface, it looks like it has to be rethought, because there's a lot of this that's still unknown. We need to spend a lot more time interrogating this software. We need to spend a lot more time figuring out how useful this particular software is. Because for instance, so far all the reporting is saying that it's really, really good at doing particular tasks. It's really good with maths problems, it's really good with science problems. But if you start asking

it about issues, if you ask its chat bot about issues that the Chinese government is uncomfortable with, it will either not respond or it will very quickly try to change the subject. So that's a big question mark over how useful a thing is if it's shot through a lens which is beneficial to one particular government in the world. Mark Sieslak. Heavy artillery and gunfire were heard throughout the day on Monday in parts of Goma, the biggest city in the eastern Democratic Republic of Congo. Rebels from the Rwandan-backed M23 group say they're now in control of Goma, which is a vital trading and transport hub and home to up to two million people. But the Congolese army says it still has control of key sites including the airport.

Thousands of inmates are reported to have escaped from the main prison in Goma and there is panic among residents who are trapped in their homes. There is gunshots all over the city, everywhere. We're hearing even nearby our houses. I could see through my window some of our soldiers riding on motorbikes with guns. This means that the rebels are not controlling the whole city. The water has been cut off, electricity has been cut off, Banks have closed so it is difficult to move around. There have been anti-Rwandan protests in another eastern city, Bukavu, and the Congolese capital Kinshasa. With international pressure mounting to end the fighting, Kenya has announced that the Congolese and Rwandan presidents have agreed to attend a summit in the next couple of days.

The Kenyan president, William Buto, gave this update at a news conference. From where I sit, a possibility of a military solution to the challenges that face eastern DRC. Engagement, dialogue, consultations is the only viable way out of the situation in DRC. Our reporter in Kinshasa, Emry Makumeno, told me more about what he's been hearing about the situation in Goma on the ground. The government, first of all, here in Kinshasa, where I am, has confirmed the presence of empty entity in Goma. They've said that to avoid any bloodshedding they have asked the population to stay indoor and avoid

looting. And in Goma it's been very difficult to talk to people because as we speak the internet has been shut down and as you heard there in various parts of the city you have still soldiers roaming the streets and gunshots here and there so what we know is that the rebels have not seized all of the Goma you still have pockets of resistance from the Patriots the Wasalendo that's how they are called who are resisting the complete fall of Goma life has been very difficult because people haven't gone out so there is no water there is no electricity there is is an internet blackout of this afternoon, so the situation is still very, very volatile.

And are we just talking about rebels or are Rwandan government troops involved as has been alleged by Congo in the past? The Congolese government says that the M23 is heavily supported by the Rwandan government, backing them with ammunition with between 3,000 to 4,000 troops. That has been corroborated by the group of experts from the UN about the Rwanda, has vehemently been rejecting those allegations. So it's not very clear. But the M23, these are Congolese from Tucci origin. They've been claiming some discriminations against them. Even that claim has been rejected by the Congolese government.

Emry Makoumenou in the Democratic Republic of Congo. Hamas says more than 300,000 displaced Palestinians have returned to the devastated northern part of Gaza since Monday morning. Streams of people, many of them families clutching all their belongings, have been making the journey from the south on foot. The Israeli government made their return conditional on the release of a civilian hostage, Abel Yehud. Hamas says she's due to be freed this week. Our Middle East correspondent Lucy Williamson in Jerusalem heard from some of the Palestinians who've returned to northern Gaza. The war made nomads of Gaza's people. Today, they began the journey home. Hundreds of thousands walking north with bags, blankets and children.

Whole lives piled teetering on carts and lorries. For 15 months, home was a place Ghazans carried inside them, whatever else they carried, whatever they lost. Rizek Al Qasas was walking home slowly at his infant granddaughter's pace, survivors, old and young. I collected her father in pieces from Khan Yunis. Thank God, I'm crying from happiness.

I don't want anything except to enter my land, even if I only eat mud." More than half a million people were displaced from northern Gaza during the war, blocked from returning by Israeli forces positioned along a strip of land dividing Gaza in two. Today, after Israel and Hamas agreed an additional prisoner exchange, those forces withdrew. In their place, familiar faces manned the crossing point welcoming friends and relatives home. But the home many returned to was rubble, a vast concrete desert, burying shops, businesses and

homes. My feeling is indescribable. We will see the same destruction that we have seen here. There isbable. We will see the same destruction that we have seen here. There is no alternative. We're going from emptiness to emptiness." Satellite images suggest three-quarters of Gaza City's buildings have been damaged or destroyed. Hamas officials have called for 130,000 emergency tents to shelter people. Gaza's displaced, still homeless, even after coming home. This truce is slowly taking hold, but talks on extending it into a permanent ceasefire haven't yet begun. The road back home is open for Gazans, but the path ahead is unclear.

Lucy Williamson reporting. Well, our diplomatic correspondent Paul Adams has been assessing the long road back to the reconstruction and governance of Gaza. For displaced Gazans returning to the north looking to rebuild their lives, the future is full of uncertainty. If their houses still stand, the chances are they'll be occupied by relatives, friends or even strangers. Those without homes will do what they've done for the past 15 months, live in tents or among the ruins. Aid agencies are bracing themselves for a series of monumental challenges. Sam Rose works for UNRWA, the UN agency responsible for Palestinian refugees. With the advent of the ceasefire and the hostage deal, aid is flowing at levels we've not seen since the start of the conflict.

So we're able to meet the bare minimums in terms of food, water, blankets, hygiene, ice. But beyond that, this is a long, long road. With the very fabric of life in Gaza turned upside down, schools, hospitals and other institutions reduced to rubble and entire neighbourhoods obliterated, it's hard to see how this tiny overcrowded place can be rehabilitated anytime soon. Donald Trump has suggested that Jordan and Egypt take in refugees temporarily or permanently, an idea swiftly rejected by the two countries in question. But even if Gaza is not reoccupied as Israeli hardliners would like, what future does this ravaged

strip of land have? If physical and political reconstruction don't begin soon, giving Gazans a glimpse of a better future, then some of those who can afford it will go, leaving the poorest and most vulnerable to fend for themselves in a blighted, ungovernable place. Paul Adams, well so far since the ceasefire deal between Israel and Hamas seven women have been freed this month. Up until Monday it wasn't clear how many of the remaining hostages due to be released in this first phase were still alive but Israel says it's now received confirmation from Hamas as another one of our correspondents in Jerusalem Nick Beek

explains. The Israeli government today, they gave an update. They said that of the 26 hostages due to be released in the rest of this first initial phase, 18 of them are surviving and eight of them have died. Now that is a figure that has been in the Israeli media for a fair few weeks now. So this was the expectation. The Israeli government saying they're in contact with all of the families.

So this is the bleak reality of the situation that people are looking at. And in the next couple of days, if this ceasefire holds, it is precarious, but it does seem to be holding for now, three more hostages will be released on Thursday and another three at the weekend. And of course, at the same time, there will be this exchange of Palestinian prisoners currently in Israeli jail. Nick Beek, next to Serbia. As we record this podcast, thousands of students are spending the night on the streets of the capital Belgrade as part of their latest protest over the deadly collapse of a train station roof in November. On Monday the students blockaded one of the main traffic junctions in the city, saying they intended to stay there for 24 hours.

The roof collapse in the city of Novi Sad two months ago killed 15 people and the protesters blame rampant government corruption which they say led to poor construction. President Alexander Vucic has accused protest leaders of being funded by foreign powers to destabilise his government. Jovana Gajorjewski from the BBC Serbian Service was at the scene of the blockade and she told me what the protesters were demanding from the government. The students are now demanding the release of all documents as well as criminal prosecution

of officials who they believe might be responsible for the disaster. And so far several people including some government officials have been arrested, but the government denies corruption allegations and the blame for loss of lives. However, in today's address, the president of Serbia, Aleksandar Vucic, said that he's ready to go through reconstruction of the government and as he said replace about 50% of ministers hoping to meet the request. One of the requests is also pardoning students and professors who've been charged during the course of the protests that have been shaking Serbia for the past three months and in today's address the president of Serbia protests that have been shaking Serbia for the past three months. And in today's address, the president of Serbia said that he's also ready to meet that request.

So it seems that these protests, which have been going on for months now, have had some effect that the government is bowing to pressure. And there have been a number of arrests, haven't there? But clearly the students feel that this is not enough. Is there frustration shared by the wider population? The protests which started in Novi Sad, a city in the north of Serbia where the canopy collapse have spread, not only to the capital, but also to all major cities in Serbia, as well as to a dozen of towns. There are daily protest actions that are supported by ordinary citizens. So every day there are protests all over Serbia for 15 minutes at

11.55 which is the time when the canopy collapsed in honour to the 15 victims. Jovana Georgievski in Belgrade. Still to come, we'll tell you why Coca-Cola has recalled some of its canned and bottled drinks from a number of European countries. When a body is discovered 10 miles out to sea, it sparks a mind-blowing police investigation. There's a man living in this address in the name of a deceased. He's one of the most wanted men in the world. This isn't really happening.

Officers are finding large sums of money. It's a tale of murder, skullduggery and international intrigue. So who really is he? I'm Sam Mullins and this is Sea of Lies from CBC's Uncovered. Available now. Eighty years after they were freed from the Nazi death camp Auschwitz-Birkenau, some of the few remaining survivors returned there on Monday to mark Holocaust Memorial Day. The 50 survivors, some of them wearing blue and white striped scarves reminiscent of the uniforms they were once forced to wear,

braved freezing temperatures to attend the commemorations in southern Poland. More than 6 million Jews were systematically murdered by the Nazis along with more than 3 million Soviet prisoners of war, nearly 2 million non-Jewish Poles, hundreds of thousands of Roma, Serbs, disabled people, and many thousands of others, including members of the LGBT community. Jessica Parker sent this report from Auschwitz which contains distressing details.

Music composed by people who died or survived Auschwitz today echoed through a vast tent erected over the main gate into Auschwitz-Birkenau. The same gates where decades ago men, women and children were taken to their death and with the music were the personal stories. 86 year old Tova Friedman was born in Poland and transported to Auschwitz with her mother in 1944 when she was just five years old. I stood and watched helplessly as little girls from the nearby barrack were marched away crying to the gas chamber. They were very young as I was. Six or seven. They too became ashes. became ashes. Is my barrack next? I silently wondered. The Holocaust led to millions of lives being cut brutally short because of a

racist ideological mission to wipe out Europe's Jewish population and other groups deemed inferior or undesirable by the Nazis. Members of the Polish resistance and Roma community, as well as Soviet prisoners of war, also died at Auschwitz. In the audience were presidents, prime ministers and royalty, among them King Charles. Earlier he spoke at the Jewish Community Centre in Krakow. As the number of Holocaust survivors regrettably diminishes with the passage of time,

the responsibility of remembrance rests far heavier on our shoulders and on those of generations yet unborn. The act of remembering the evils of the past remains a vital task and in so doing we inform our present and shape our future. Prisoners were starved and worked to death through slave labour. Disease from tuberculosis to dysentery were allowed to rage. Medical experiments were carried out on children and the gas chambers at one point were killing 12,000 people a day. 94 year old Marla Tribbick came to today's event a Polish-born British survivor who was liberated from another camp, Bergen

Belson by the British. It's very important for me that this big commemoration is taking place and that and well I hope it this will never be forgotten by anyone. Liberation for Auschwitz came when the Red Army approached from the east as the Nazis plans for European expansion crumbled. About 7,000 prisoners remained, tens of thousands of others had already been forcibly evacuated by the Nazis out of Auschwitz on brutal death marches. Now 80 years on there is still a commitment by a dwindling number of

survivors to keep their own memories alive and as best they can the stories of those who never lived to tell them. That report from Auschwitz by Jessica Parker. India says it's agreed with China to resume direct flights between the two countries. They stopped during the pandemic and never restarted after their troops clashed on a disputed part of their border. Here's our Asia Pacific editor, Mickey Bristow. It seems extraordinary that for five years there have been no direct flights between the world's two most populous nations, with a combined population of nearly three billion.

There used to be around 500 a month. They stopped in 2020 when Covid led to grounded planes everywhere. A deadly clash between Chinese and Indian soldiers on their border that same year complicated diplomatic ties. And flights didn't restart. Favless had to go through a third country. Warmer ties means direct air links will now resume. Miki Bristo, Coca-Cola has recalled some of its canned and bottled drinks in a number of European countries after high levels of chlorate were found. The recall was issued in Belgium, Britain, France, Germany, Luxembourg and the Netherlands. It concerns the brands Coke, Sprite, Panta and some of the company's other

beverages. The use of chlorate as a pesticide is no longer allowed in the European Union but it can be found in drinking water as a by-product of chlorine disinfectants used in water treatment and food processing. Andrew Peach spoke to Eddie Hammerman, brand expert and managing director of the Ten Group, and asked him how a crisis like this could impact such a big brand. It sounds like in this case they discovered the issue, which I think they're in a better position because they're in more control of the narrative and they can therefore be on the front foot. There are other cases where they could be alerted by third party. And in that case, if the news gets out before they have a considered response, then that could be more of an issue.

But they will have a plan in place for things like this. I would say that brands globally, product recalls happen all the time. In most cases they are not damaging to the customer, but sometimes they are. In this case, Coca-Cola says it doesn't sound like there's a serious health issue, but clearly it's not a good thing for them. And there will be some reputational damage, but there are certain things that brands can do in cases like this where they can minimize the reputational damage. They can, they need to really rebuild that consumer confidence and they could ultimately emerge stronger if they do it right.

So this is really interesting. So first of all, it might be that the issue is picked up by the company's own processes, which seems to have happened here. It might be that it's flagged by a consumer, which is more difficult. What does the machinery of an enormous organisation like Coca-Cola then do? Before it starts thinking about its reputation, what does it do to actually identify exactly where the issue is and how to stop it getting any worse? So I think in many different cases, but I think you've highlighted the fact that the first step is make sure that the issue is fixed. The first thing you need to do before, even before you go out, is highlight to the regulators.

There'll be a regulatory process, but also then clear comms. And that needs to be open, transparent, clear, which it sounds like they're doing now. And it's not easy. I mean, I'm looking at the, they've issued a batch codes. I don't know if as a consumer you've ever looked at the codes on a product of a can of anything or food. They're not usually not, but I suppose they're there. No, exactly. They're there for a reason, but most consumers don't have a look at the batch codes. I imagine if it went to a distributor,

they would know what to look for and they could highlight them. But for most consumers it's not easy. So they might not even know they're consuming the product. What they will have to do next is prioritise the consumer safety. That's the first thing they will do. Regulatory, there's an issue. But also they'll lose trust if they don't and they need to prove that the issue is fixed. Brand expert Eddie Hammerman. The British Navy has announced it's changing the name of one of its new nuclear submarines

from HMS Agincourt to HMS Achilles. There were reported concerns that the original name might offend France, a key NATO ally but also a historic rival. Agincourt was a famous English military victory over the French 600 years ago. The British Navy said the change had been discussed for more than a year and was approved by King Charles. Here's our defence correspondent Jonathan Beale. Ostensibly, it's the Royal Navy's Ships, Names and Badging Committee which decides what a vessel's called, then approved by the monarch.

But politicians have intervened in the past. It was the former defence secretary Gavin Williamson who first announced that the seventh astute class submarine, now under construction, will be named HMS Agincourt. Recalling the famous battle in 1415 in which Henry V's army, outnumbered but including the much feared Longbowmen, defeated the French. A victory immortalised by Shakespeare's words and on film. Once more! And to the breach! Dear friends, once more or closer! Sir Gavin might not have been worried about ruffling a few French feathers, but others

were. The Navy announced a change of name. HMS Agincourt would instead be known as HMS Achilles. A change that followed newspaper reports of concerns within the M.O.D. that naming a submarine after a key ally's humiliating loss might offend. Even though earlier naval vessels have borne the same name. Another former Conservative defence secretary, Grant Shapps, has called the U-turn sacrilege and woke nonsense. Renaming a vessel is rare but not unprecedented. Superstitious sailors sometimes view changing a name unlucky.

Jonathan Bale. And that's all from us for now, but there will be a new edition of the Global News podcast later. If you want to comment on this podcast or the topics covered, you can send us an email. The address is globalpodcast at bbc.co.uk. This edition was mixed by Caroline Driscoll, the producer is Liam McShepery, the editor is Karen Martin. I'm Jonathan Jaleel, until next time, goodbye. When a body is discovered 10 miles out to sea, it sparks a mind-blowing police investigation.

There's a man living in the Icedress, in the name of a deceased. He's one of the most wanted men in the world. This isn't really happening. Officers are finding large sums of money. It's a tale of murder, skullduggery, and international intrigue. So who really is he?

I'm Sam Mullins, and this is Sea of Lies from CBC's Uncovered, available now.