China’s AI Showdown Just Got Hotter

China’s AI Showdown Just Got Hotter 

Baidu [BIDU] has launched its new artificial intelligence (AI) model, Ernie X1, which excels in tasks including complex calculations and logical deduction, according to a statement. The move follows the rapid rise of rival DeepSeek R1. Baidu also upgraded its flagship Ernie 4.5 model and made all chatbot tiers free, Bloombergnoted. The company faces increasing competition from ByteDance and open-source models like Alibaba’s [BABA] Qwen.

Alphabet Takes on Starlink

Alphabet [GOOGL] is spinning out Taara, its laser-based internet venture, from its X “moonshot” incubator, with a view to competing with Elon Musk’s Starlink, the Financial Times has detailed. Originally part of the defunct Loon project, Taara uses laser beams to deliver high-speed internet to hard-to-reach areas. The system transmits data at 20 Gbps over 20km, extending fiber networks with minimal infrastructure.

Telcos’ Reinvention Push

At the Mobile World Congress technology conference in Barcelona, telecom giants revealed how they are embracing AI, satellite internet and smart cities to shed their “dumb pipes” image, CNBC reported. For instance, KDDI [KDDIY] outlined its Takanawa Gateway City project and Starlink partnership, while MTN [MTNOY] highlighted its push into fintech. The sector is betting on 5G, 6G and new revenue streams to stay relevant.

D-Wave Surges

“Our mission is unwavering: to help organizations realize the benefits of quantum computing now,” D-Wave Quantum [QBTS] CEO Alan Baratz said following Q4 results, as quoted by Sherwood News. “With record bookings, a record cash position, and an unequivocal demonstration of our quantum system outperforming classical on a real-world problem, our progress toward achieving that mission is clear.” Read OPTO’s breakdown of the quantum stocks currently leading the pack.

Tech Earnings to Watch this Week

Earnings season may be running out of steam, but several key tech stocks report this week. Electric vehicle makers NIO [NIO] and XPeng [XPEV] will provide a snapshot of China’s auto market, while investors will be watching Tencent [TCEHY] closely. AI and chips remain in focus with Micron [MU] and Luminar [LAZR]. Also reporting are Lithium Argentina [LAR], SNDL [SNDL] and Ouster [OUST]. 

Green Energy Stocks Wither

The S&P Global Clean Energy Transition Index, which tracks major clean energy stocks, has dropped 16% over the past year. Investors had hoped for a rebound as interest rates stabilized, but setbacks like Trump’s move to freeze Inflation Reduction Act funding and withdraw from the Paris climate agreement have dampened sentiment, pushing stocks back to levels last seen five years ago, the Financial Times outlined. 

Is Oracle Closing in On a TikTok Takeover?

According to a report in Politico, the software stock [ORCL] is ramping up discussions with the White House on a deal to take over TikTok’s US operations, though concerns persist over the role of its Chinese founders; one source described the discussions as being in advanced stages. OPTO recently unpacked the stock’s prospects in light of its close involvement in another major government-led project.