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Musk is struggling to get Twitter’s financials to work. Will he succeed?

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Twitter

Elon Musk has been tweeting a lot recently, and in many of his tweets he is trying to brag about his new expensive toy: Twitter. It is $44 billion Dollar expensive, to be precise, and Musk is keen to get engagement figures on the platform to increase. He is even more eager to get people to sign up and pay $8 a month to buy the Twitter blue check mark. Well, it is not necessarily going as he intended, as many users are migrating to other platforms, to the extent that some of those other platforms have temporarily suspended new signups due to overload.

Musk is fighting hard to get Twitter to generate revenue, even though he wants to reduce the role of advertisement in generating income. And there are several reasons why he wants to generate positive cash flow from Twitter very quickly.

The first reason has to do with the amount of debts that Twitter currently owes to creditors. Before the acquisition took place, Musk already owned more than 9 percent of Twitter’s shares, so he only had to buy the rest in his acquisition deal which he could not back out of. In order to partially finance the deal, he had to sell $15.5 billion worth of shares in Tesla, whose share CFDs you can trade with a renowned broker like easymarkets.com.

Institutional and individual investors

The rest of the money came from different sources. Investment funds and institutional investors like Qatar Holding, which is under the control of Qatar’s sovereign wealth fund, the Qatar Investment Authority, contributed with funds. Individual investors like Alwaleed Bin Tala and Larry Ellison, the co-founder of software company Oracle, also contributed. The latter wrote a $1 billion cheque to buy shares in the social media company.

Loans

Yet, Musk is probably not worried about the money raised from investors. He is rather concerned about the loans raised to complete the payment of $44 billion. Loans from banks amounted to $13.5 to fund the purchase. Those banks include Japanese banks Mitsubishi UFJ Financial Group and Mizuho, Barclays and the French banks Societe Generale and BNP Paribas, among others.

Those loans have interest payments attached to them, and in such a high interest rate environment, this debt service periodic payment is likely to be huge. According to some estimates, those payments could amount to $1 billion per year. No wonder Musk is tweeting and trying to hype up the platform.

What the future holds for Twitter

At the end of last year, and based on publicly available documents, Twitter already owed more than $4 billion in long term debt – and that is before the acquisition. In the first half of 2022, it seems that the company operated at a loss. Bringing the company back to the private sphere will also close an available avenue for funding in case troubles begin to brew (if they haven’t begun to do so already).

Risks are mounting, and it is unlikely that subscriptions will compensate for the drop in revenues from advertisement, due not only to Musk’s intentions to reduce reliance on ads, but also due to many companies holding back on using the platform for promoting their products and services. Whether Musk will be able to achieve a turnaround is yet to be seen. Even if he does, it will have to be a really big and impressive one. Musk should perhaps tweet less and focus on strategy more.

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Tech

DeepSeek: China’s open-source AI research lab taking on OpenAI

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An image of the DeepSeek AI lab showcasing technological advancements

China’s AI research landscape witnessed a significant breakthrough with the unveiling of DeepSeek-R1, an open-source AI model from DeepSeek, a pioneering lab established by Chinese entrepreneur Liang Wenfeng. Positioned as a challenger to global AI leaders like OpenAI, DeepSeek-R1 excels in mathematical reasoning, code generation, and cost efficiency, marking a pivotal shift in the field.

What is DeepSeek?

DeepSeek emerged from Fire-Flyer, the deep-learning division of High-Flyer, a Chinese quantitative hedge fund. Founded in 2015, High-Flyer built its reputation by leveraging AI in financial analytics. In 2023, Liang Wenfeng, High-Flyer’s founder, redirected resources to create DeepSeek, focusing on advancing AI research.

Operating independently from Chinese tech giants like Baidu and Alibaba, DeepSeek prioritizes scientific exploration over immediate profits. Liang noted, “Basic science research rarely offers high returns on investment,” reflecting his commitment to long-term innovation.

DeepSeek-R1: Redefining AI efficiency

DeepSeek-R1, the lab’s flagship model, demonstrates robust reasoning abilities, surpassing several industry benchmarks. Unlike traditional models relying on supervised fine-tuning, DeepSeek-R1-Zero utilized reinforcement learning (RL) for training. The refined DeepSeek-R1 version enhances readability and language consistency, matching OpenAI’s cutting-edge performance in reasoning tasks.

Key innovations, such as multi-head latent attention (MLA) and a mix-of-experts approach, allow DeepSeek-R1 to operate with just a fraction of the computing power needed for comparable models. For instance, its computational needs are reportedly one-tenth of Meta’s Llama 3.1, a breakthrough highlighted by industry analysts.

A new wave of talent

DeepSeek’s team comprises fresh graduates from leading Chinese institutions like Tsinghua and Peking University. Despite limited industry experience, these researchers bring academic rigor and a collaborative spirit to tackle complex AI challenges. Their collective goal is to overcome technological barriers and elevate China’s global AI standing.

Navigating US restrictions

DeepSeek’s advancements come amid U.S. export restrictions on advanced AI chips. The 2022 embargo limited Chinese firms’ access to hardware like Nvidia’s H100 chips, crucial for AI development. Although DeepSeek started with a stockpile of 10,000 H100s, the restrictions pushed the lab to rethink AI architecture and optimize resource efficiency.

Innovative strategies behind DeepSeek

Faced with hardware limitations, DeepSeek adopted efficiency-focused strategies to refine its model architecture:

  • Custom communication schemes: Streamlined data exchanges to reduce memory use.
  • Memory optimization: Minimized field sizes for enhanced efficiency.
  • Mix-of-models approach: Combined smaller models for superior results.

These techniques have set DeepSeek apart as a leader in resource-efficient AI research.

Global impact through open sourcing

DeepSeek’s decision to open-source its models under an MIT license signals a democratization of AI research. By providing access to its advanced models and training techniques, the lab invites global developers to refine and expand its technology. This move not only challenges Western AI dominance but also reinforces DeepSeek’s position as a forward-thinking pioneer in the field.

As DeepSeek continues to push boundaries, it symbolizes a new era of Chinese innovation, blending efficiency with open collaboration to reshape the global AI landscape.

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Gadgets

Samsung Galaxy S25 Ultra and iPhone 16 Pro Max: A comparative look at prices and specs in India

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Samsung Galaxy S25 Ultra with car crash detection feature

Samsung has introduced its latest high-end flagship, the Galaxy S25 Ultra, in India, igniting a new chapter in its ongoing rivalry with Apple’s iPhone 16 Pro Max. Both phones represent the pinnacle of smartphone technology, but they come at distinct price points and offer different specifications that cater to various user preferences.

Price comparison in India

The Galaxy S25 Ultra is available in three variants: the base model with 256GB of storage is priced at Rs 1,29,999; the 512GB model at Rs 1,49,999; and the 1TB version at Rs 1,65,999. These variants are offered in four color options: Titanium Silver Blue, Titanium Gray, Titanium White, and Titanium Black.

In contrast, the iPhone 16 Pro Max starts at Rs 1,44,900 for the 256GB model, with the 512GB and 1TB versions priced at Rs 1,64,900 and Rs 1,84,900, respectively. Samsung’s offerings are notably less expensive across similar storage options, with the 1TB model being nearly Rs 19,000 cheaper than its Apple counterpart.

Specifications face-off

The Samsung Galaxy S25 Ultra boasts a 6.9-inch display, slightly larger than its predecessor, and features a more contemporary design with rounded edges. Despite its larger size, it maintains a lightweight feel at only 218 grams and includes a robust 5,000mAh battery. The camera setup has been significantly upgraded, featuring a 200-megapixel primary sensor paired with a 50-megapixel ultra-wide and a 50-megapixel telephoto lens. It is powered by the Snapdragon 8 Elite for Galaxy, enhancing both efficiency and performance.

The iPhone 16 Pro Max, also with a 6.9-inch display, utilizes Apple’s Super Retina XDR technology with Always-On and ProMotion features for a superior viewing experience. It includes a new gold color option and a novel Camera Control button, adding functionality exclusive to the Pro models. The device is equipped with the A18 Pro chipset and features a redesigned camera system with a 48-megapixel primary sensor and advanced video recording capabilities.

Performance and functionality

Both the Galaxy S25 Ultra and the iPhone 16 Pro Max are designed to offer top-tier performance. Samsung’s flagship includes 12GB of RAM, compared to the iPhone’s 8GB, potentially offering a smoother multitasking experience. The iPhone, however, continues to impress with its integration of hardware and software, leading to efficient performance in real-life usage scenarios.

This detailed examination highlights the strengths of each device, allowing consumers to make an informed decision based on their specific needs and preferences. Whether prioritizing camera technology, display features, or price, the Samsung Galaxy S25 Ultra and iPhone 16 Pro Max cater to all facets of premium smartphone requirements.

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Gadgets

Oppo Find N5 set to launch with 50W wireless charging and IPX9 water resistance

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Oppo Find N5 being tested underwater to showcase its IPX9 water resistance rating.

Oppo has officially confirmed that its latest innovation, the Find N5, will support 50W wireless charging and feature an IPX9 water resistance rating. The announcement comes as part of a series of teases highlighting the capabilities of this next-generation foldable smartphone, set to launch in February.

According to recent leaks, the Find N5 will be the first smartphone to incorporate the Qualcomm Snapdragon 8 Elite SoC, signaling significant performance enhancements. Pete Lau, Oppo’s Chief Product Officer, has touted the device as the “thinnest foldable phone,” positioning it against leading competitors like the latest iPhone in terms of sleek design.

Zhou Yibao, head of the Oppo Find series, shared insights via Weibo about the Find N5’s advanced features. The device not only matches the wireless charging speeds of newly released models like the Oppo Find X8 Pro and OnePlus 13 but also integrates seamlessly with in-car systems from major electric vehicle brands such as BYD and NIO.

In a compelling demonstration of its durability, a recent video posted by Yibao showed the Find N5 being submerged underwater, showcasing its capability to withstand significant water exposure, evidenced by its IPX9 rating. This test included recording underwater videos, highlighting the phone’s versatile camera capabilities in extreme conditions.

The Find N5 also sports a refined design with slimmer borders and a larger overall form factor compared to its predecessors, which could attract users looking for a sleek yet robust foldable phone.

As anticipation builds, Oppo has begun sharing images of the Find N5, revealing a foldable design as thin as a USB-C port when opened. This device promises to merge aesthetic appeal with functional excellence, setting a new benchmark in the evolving foldable phone market.

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