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DeepSeek Aided Chinese Military, U.S. Warns

Chinese artificial intelligence company DeepSeek has provided user data to China’s government and military while using shell companies to circumvent US semiconductor export restrictions, a senior State Department official told Reuters.

“We understand that DeepSeek has willingly provided and will likely continue to provide support to China’s military and intelligence operations,” the official said in an interview.

The Hangzhou-based company has access to substantial quantities of advanced Nvidia H100 chips despite US export controls, according to the official, who spoke on condition of anonymity. The company procured the chips after the United States banned Nvidia from selling the advanced processors to China, using Southeast Asian shell companies to obtain semiconductors that cannot be legally shipped to China.

You can read more on the matter here.

What’s going on?

• Smith Dangles Coastal Pipeline Proposal “Within Weeks” (theDeepDive)

• Border agency investigating dozens of cases of potential Iranian officials allowed into Canada (CTV)

• Liberals, Conservatives Pass ‘One Canadian Economy Act’ Despite Environmental, Indigenous Opposition (theDeepDive)

• Federal deficit estimated to hit $46 billion in 2024-25: PBO (FP)

• Could EU Be Swapping Critical Minerals For Canada’s Seat In Its Defense Inner Circle? (theDeepDive)

• Google urges CRTC to use restraint with Online Streaming Act (TS)

• Carney commits Canada to biggest increase in military spending since Second World War, doubling budget by 2035 (Globe)

• Congo Extends Cobalt Export Ban 3 Months to Combat Oversupply (theDeepDive)

• North American and European leaders agree on 5% defence spending target (FT)

• New York to Build First Nuclear Plant in Decades (theDeepDive)

• Sales of new homes tanked in May, pushing supply up to a 3-year high (CNBC)

What’s the latest?

• Markets: Canada’s S&P/TSX index fell 155.81 points to 26,562.81 amid broad-based losses. In the U.S., markets were mixed: the Dow dropped 96.42 points, while the S&P 500 and Nasdaq posted small gains. The Canadian dollar weakened slightly to 72.77 cents US. Oil prices rose to US$65.50 per barrel, and gold climbed to US$3,338.10 an ounce.

• Politics: Canada has pledged to spend 5% of GDP on defence by 2035, joining all 32 NATO allies in a major shift in military investment. This will mean an estimated $150 billion annually, with 3.5% allocated to core defence (jets, weapons) and 1.5% to related areas like infrastructure and critical minerals. Prime Minister Mark Carney says much of the spending aligns with existing initiatives and won’t immediately require trade-offs, though future concessions may be needed. U.S. President Trump, who long pushed for higher spending, called the move a “big win” for NATO and the West.

• Layoffs: Bumble will lay off 30% of its workforce—about 240 jobs—as it revamps the platform to combat declining user engagement, particularly among Gen Z. The move follows similar cuts at rival Match. Despite a 22% stock jump, Bumble’s market value has dropped from $15 billion to just over $500 million since its 2021 IPO. The company raised its Q2 revenue forecast and expects to save $40 million annually, which it plans to reinvest in product and tech development.

• Decathlon: Decathlon will close five GTA stores—in Brampton, Burlington, Markham, Scarborough, and Vaughan—this summer as part of a shift in its retail strategy. The company plans to explore smaller-format stores, expand same-day shipping, and pursue wholesale partnerships. Decathlon Canada says it remains committed to serving customers online and through its 15 other stores nationwide. Affected employees will be supported and encouraged to apply for roles in other locations.

• OpenAI: OpenAI CEO Sam Altman confirmed he spoke with Microsoft CEO Satya Nadella on Monday about their partnership's future. Microsoft, a major investor in OpenAI, is reportedly reconsidering the terms of its stake, with talks at risk of pausing over unresolved issues. Altman acknowledged tensions but described the relationship as largely positive. He also praised former President Donald Trump for grasping AI's global importance, referencing the $500B "Stargate" AI infrastructure initiative.

Premier American Uranium Buys Nuclear Fuels in $100M Deal

The stock market and stuff

• Tesla Faces Fatal Crash Lawsuit as Robotaxi Service Launches (theDeepDive)

• Shell denies takeover talks with UK rival BP (FT)

• Oil Prices Plunge Amid Israel-Iran Ceasefire (theDeepDive)

• J.P. Morgan Asset Management launches its largest active ETF (Reuters)

• Door-Lock Defect That Can Trap Passengers Forces Massive Ford Mustang Mach-E Recall (theDeepDive)

In the juniors

• OceanaGold Extends Strike Length at Wharekirauponga (JMN)

• Baselode Energy To Combine With Forum In Merger Of Equals (theDeepDive)

• Goliath Resources Significantly Upsizes Fully Funded 2025 Drill Program From 40,000 Up To 60,000 Meters Based On Newly Identified Widespread Abundant Visible Gold In Multiple Drill Holes At The Surebet High-Grade Gold Discovery, Golddigger Property (JMN)

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