Sponsored by Power Nickel

Perplexity AI Integrates China’s DeepSeek R1

US-based Perplexity AI has added DeepSeek’s R1 advanced reasoning model to its AI-powered search platform, becoming the first in the US to integrate the open-source Chinese-developed model to enhance its own platform’s capabilities.

With the integration, users can now explore vast amounts of data with greater depth and accuracy, as R1 enhances the platform’s ability to understand context and relationships between different pieces of information.

You can read more on the matter here.

What’s going on?

• Bank of Canada Cuts Rates 25 Basis Points To 3% (theDeepDive)

• Ads on X targeting Canadian politicians amidst increasing disinformation online (CTV)

• Protesters Attack Western Embassies in Congo Capital (theDeepDive)

• Alibaba releases AI model it says surpasses DeepSeek (Reuters)

• Taxpayer Group Takes CRA to Court Over Capital Gains Tax (theDeepDive)

• US drops classified documents case against Trump associates, court filing shows (Reuters)

• Canadian Government Ready With Aid For Tariff Aftermath (theDeepDive)

• Nigeria’s Gasoline Imports Plunge as Dangote Refinery Hits Trade (Bloomberg)

• DeepSeek Says Its New AI Model Tops Industry Leaders in Image Creation (theDeepDive)

• Dozens killed in India's Kumbh festival stampede (Reuters)

• DeepSeek Limits New Signups: Cyberattack or Infrastructure Cracks? (theDeepDive)

What’s the latest?

• Wealth Fund: Norway’s sovereign wealth fund posted a record profit of 2.5 trillion kroner ($222.4 billion) in 2024, driven by a 13% return on investments, largely fueled by a tech stock rally. The fund, valued at 19.7 trillion kroner, holds stakes in over 8,000 companies, including Apple, Microsoft, Nvidia, and Amazon. A recent tech sell-off, triggered by China’s DeepSeek AI breakthrough, caused Nvidia—where the fund holds a 1.3% stake—to drop 17% on Monday. Despite the volatility, Norges Bank Investment Management sees the rise of cheaper AI models as a positive for global adoption.

• Treasury Yields: U.S. Treasury yields declined on Wednesday as investors awaited the Federal Reserve’s first interest rate decision of 2025, with the 10-year yield at 4.53% and the 2-year yield at 4.203%. Traders expect the Fed to keep rates steady at 4.25%-4.5%, with a nearly 100% probability of no change. Fed Chair Jerome Powell’s press conference at 2:30 p.m. ET will be closely watched for policy signals. President Trump has called for immediate rate cuts, but former Kansas City Fed President Esther George emphasized the Fed’s focus on long-term price stability over political pressure.

• ECB: The European Central Bank (ECB) is expected to cut interest rates by 25 basis points on Thursday, bringing its key deposit facility rate to 2.75%. Markets anticipate further cuts in March, June, and year-end, lowering the rate to 2%. The ECB’s easing stance diverges from the Federal Reserve, which is expected to hold rates steady, potentially strengthening the U.S. dollar and pressuring the euro.

• AI: Alibaba released its Qwen 2.5-Max AI model, claiming it outperforms DeepSeek-V3, GPT-4o, and Llama-3.1-405B. The launch follows DeepSeek’s rapid rise, which has pressured both global and domestic AI competitors. DeepSeek’s open-source V2 model sparked a price war in China, leading Alibaba, Baidu, and Tencent to slash AI service costs. DeepSeek’s lean research-focused structure contrasts with China’s large tech firms, as it prioritizes AGI development over commercial pricing strategies.

• Mortgage: Mortgage applications fell 2% last week, with refinance applications dropping 7% and purchase applications declining 0.4% from the previous week. The average 30-year fixed mortgage rate remained at 7.02%, with points increasing to 0.63. Mortgage rates are 24 basis points higher than a year ago, limiting refinancing opportunities. Despite weak demand, FHA purchase loan applications rose 2%, and experts anticipate a gradual pickup in activity if rates stabilize and inventory improves.

The engagement bubble

The stock market and stuff

• Alamos Gold Obtains Approvals For New 104,000 Ounce A Year Mine (theDeepDive)

• Trump Media launches FinTech services brand amid crypto boom (Globe)

• Gold stockpiling in New York leads to London shortage (FT)

• Trump Plans To Impose Tariffs On Copper, Steel, Aluminum: What Could The Fallout Be? (theDeepDive)

In the juniors

• MAG Silver Guides To Production Decline In 2025 (theDeepDive)

• Goliath Resources Secures $10 Million Investment From McEwen Mining (theDeepDive)

• Galiano Gold Issues Production Guidance With Midpoint Of 140,000 Ounces For 2025 (theDeepDive)

FULL DISCLOSURE: Power Nickel is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Power Nickel. The author has been compensated to cover Power Nickel on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.