Kohl’s Hopes New CEO

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In today edition we will talk about

• Chinese AI Startup DeepSeek Shocks Markets, U.S. Tech Stocks Tumble

• Kohl’s Hopes New CEO Can Revive Struggling Sales

• French AI Chatbot "Lucie" Pulled Offline After Embarrassing Mistakes

Chinese AI Startup DeepSeek Shocks Markets, U.S. Tech Stocks Tumble

DeepSeek's low-cost AI model sparks investor fears, sending Nvidia and others plummeting.

Chinese AI startup DeepSeek has shaken global markets with its groundbreaking AI model, R1, which offers ChatGPT-like capabilities at a fraction of the cost. This unexpected advancement challenges U.S. tech dominance, sending shockwaves through the stock market.

On Monday, tech-heavy stocks plunged:

• Nvidia lost nearly 17%, shedding $589 billion in market value—the largest single-day loss ever.

• Meta, Alphabet, and other tech firms saw sharp declines, with competitors like Broadcom and Oracle also tumbling.

DeepSeek achieved this feat using just $5.6 million in computing power, compared to the billions spent by U.S. companies like OpenAI and Google. Investors now worry about overspending in U.S. AI efforts and the competitive edge of American firms.

The news also hit energy companies and cryptocurrencies hard. Natural gas futures fell 5.9%, while companies powering AI, like Constellation Energy, dropped over 20%.

While the breakthrough is impressive, experts caution that DeepSeek's claims are unverified, and its model hasn’t been proven for large-scale industrial use. The race to dominate AI continues, but U.S. companies still hold strong advantages.

Kohl’s Hopes New CEO Can Revive Struggling Sales

After 11 quarters of declining sales, Kohl’s faces challenges to win back customers.

Kohl’s, the largest U.S. department store chain, has brought in a new CEO, Ashley Buchanan, to tackle years of declining sales and lost customer trust. The retailer has struggled with poor decisions, rising competition from online sellers, and the impact of inflation and COVID-19.

Previous CEO Tom Kingsbury alienated loyal customers by removing private-label brands, fine jewelry, and petite clothing, replacing them with Sephora and Babies “R” Us. While Sephora performed well, it wasn’t enough to offset losses in other categories.

Kingsbury acknowledged the store's struggles and began reversing some changes before stepping down. Buchanan now faces the challenge of reconnecting with core shoppers and redefining Kohl’s appeal in a highly competitive retail market.

Retail experts warn that once customers leave, they may not return, making this a critical moment for the struggling chain to rebuild its image and offerings.

French AI Chatbot "Lucie" Pulled Offline After Embarrassing Mistakes

Backed by the French government, Lucie faced ridicule for absurd answers and is now under revision.

The French AI chatbot Lucie, supported by President Macron's France 2030 program, was taken offline shortly after launch due to bizarre errors like claiming cows lay eggs and giving incorrect math answers.

Developers admitted the chatbot was released too early and promised to improve it before relaunching a beta version privately. Lucie was intended to promote the French language in AI but instead became a target of online mockery.

This setback comes as France prepares to host the Artificial Intelligence Action Summit in February, where global leaders will discuss advancements in AI.

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