Microsoft v DeepSeek

Hi ZipLawyer! Today’s Memo:

🤖 Microsoft v DeepSeek
📊 Interest Rate news
🇪🇺 EU to ban Russian aluminum
💸 Mishcon, Macfarlanes, NRF lead on Fintech deal
⚖️ Lewis Silkin advises on insurance claim

Deep Seek Drama

Microsoft and OpenAI are investigating whether Chinese AI startup DeepSeek secretly tapped into OpenAI’s data. Microsoft’s security team flagged unusual activity via OpenAI’s API, sparking concerns of unauthorised access. The timing is curious. DeepSeek’s new AI model, R1, claims to rival U.S. models at a fraction of the cost, spooking investors and wiping nearly $1 trillion off AI stocks. U.S. officials are now asking whether China’s AI ambitions are being built on OpenAI’s work, reigniting tensions over tech security.

Interest Rates Action

Sweden’s Riksbank is expected to cut interest rates to 2.25%, while the Bank of Canada eyes a drop to 3%. The Fed, however, is likely to sit tight—for now. But with traders hanging on every word from Chair Jerome Powell, a hint at a March cut could send markets moving. Meanwhile, the European Central Bank faces pressure to ease policy more aggressively as U.S. tariffs and political jitters cloud the economic horizon.

Aluminium Ban

The EU is gearing up to ban Russian aluminum imports, tightening sanctions ahead of the third anniversary of Russia’s invasion of Ukraine. Under the plan, 275,000 metric tons could still enter under a quota system for a year before a full ban kicks in. The package also targets Russian banks, shipping, and military-related exports. Hungary may try to play spoiler, but pressure is mounting after the U.S. and UK imposed similar restrictions last year. Now, all eyes are on whether the EU’s member states will unite to push it through.

Mishcon, Macfarlanes, NRF lead on Fintech deal