<div id="readability-page-1"> <p><img src="https://imageproxy.pbkrs.com/https://m.foolcdn.com/media/dubs/images/email-header-breakfast-news.max-800x600.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="800" height="161" original-src="https://imageproxy.pbkrs.com/https://m.foolcdn.com/media/dubs/images/email-header-breakfast-news.max-800x600.png"/></p> <h2>Breakfast News: AI Model Showdown</h2>  <h3>January 29, 2025</h3>  <div><table> <thead> <tr> <th colspan="2">Tuesday's Markets</th> </tr> </thead> <tbody> <tr> <td><strong>S&amp;P 500</strong><br/>6,068 <span> (+0.92%)</span></td> </tr> <tr> <td><strong>Nasdaq</strong><br/>19,734 <span>(+2.03%)</span></td> </tr> <tr> <td><strong>Dow</strong><br/>44,850 <span>(+0.31%)</span></td> </tr> <tr> <td><strong>Bitcoin</strong><br/>$101,153 <span>(-0.16%)</span></td> </tr> </tbody> </table></div> <div><p><img src="https://imageproxy.pbkrs.com/https://braze-images.com/appboy/communication/assets/image_assets/images/679a10007bbc89006511c8eb/original.png/query-MTczODE0OTg4Nw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1024" height="1024" original-src="https://imageproxy.pbkrs.com/https://braze-images.com/appboy/communication/assets/image_assets/images/679a10007bbc89006511c8eb/original.png/query-MTczODE0OTg4Nw"/></p><p>Source: Image created by JesterAI.</p> </div> <h2>1. DeepSeek Scrutiny</h2> <div> <p><strong>Microsoft</strong> <span>(MSFT<span> 2.91%</span>)</span> and OpenAI are reportedly investigating suspicions DeepSeek built its new AI app by the back door. Bloomberg says Microsoft experts observed individuals &#34;exfiltrating a large amount of data&#34; from the OpenAI API.</p> <ul> <li><strong>Why it matters:</strong> If true, maybe billion-dollar spend really is needed to build next-generation AI technology. Investors will keenly await further news here.</li> <li><strong>That's not all, folks: Alibaba</strong> <span>(BABA<span> 6.71%</span>)</span> launched its latest Qwen 2.5-Max AI model Wednesday, claiming it outperforms DeepSeek, GPT-4, and Llama-3.1. Unlike Monday's decline, Nasdaq futures are little changed this morning.</li> </ul> </div> <h2>2. ASML Smashes Forecasts</h2> <div> <p><em>Stock Advisor </em>recommendation <strong>ASML Holding</strong> <span>(ASML<span> -0.98%</span>)</span> posted Q4 results ahead of expectations, after its stock price suffered in the wake of the DeepSeek sell-off. Net bookings soared 169% to 7.1 billion euros ($7.4 billion), crashing through the expected 4 billion euros.</p> <ul> <li><strong>&#34;Artificial intelligence is the key driver for growth in our industry&#34;:</strong> CEO Christophe Fouquet said the shift in market dynamics &#34;creates both opportunities and risks.&#34;</li> <li><strong>Another record year for sales:</strong> Annual net sales hit 28.3 billion euros ($29.5 billion), while 2.7 billion euros ($2.8 billion) in quarterly net profit beat the predicted 2.6 billion euros.</li> </ul> </div> <h2>3. Mag 7 Earnings Begin After the Closing Bell</h2> <div> <div> <p><em>Hidden Gems</em> rec <strong>Tesla</strong> <span>(TSLA<span> 0.24%</span>)</span> reported a quarterly record of 495,570 vehicle deliveries ahead of Q4 earnings, and expects 20% to 30% more vehicles in 2025. More affordable models expected in the second half could be key.</p> <ul> <li><strong>&#34;2024 was a pivotal year for Reality Labs&#34;:</strong> In an internal memo seen by Business Insider, CTO Andrew Bosworth at <em>Rule Breakers</em> recommendation <strong>Meta Platforms</strong> <span>(META<span> 2.19%</span>)</span>, said the Wearables and Metaverse division &#34;beat nearly all of last year's aggressive sales and user goals.&#34; Watch for next-generation Llama 4 AI plans, based on 100,000 <strong>Nvidia</strong> <span>(NVDA<span> 8.93%</span>)</span> H100 chips.</li> <li><strong>Azure revenue expected to grow 31-32% in Q2:</strong> Microsoft is expected to report revenue of $25.8 billion from its intelligent cloud business, home to its Azure platform. Management is looking for $10 billion in annual revenue run rate in Q2.</li> </ul> </div> </div> <h2>4. CrowdStrike Soars on Perfect Score</h2> <div> <div> <p><strong>CrowdStrike</strong> <span>(CRWD<span> 9.35%</span>)</span> stock jumped 9.4% Tuesday to reach an all-time high, after the cybersecurity company hit a perfect score on the latest SE Labs ransomware test.</p> <ul> <li><strong>&#34;Ransomware Payments Exceed $1 Billion in 2023&#34;:</strong> A report from Chainalysis shows the upwards trend continuing after a dip in 2022.</li> <li><strong>Cyber stocks rise:</strong> <strong>Cloudflare</strong> <span>(NET<span> 10.68%</span>)</span>, <strong>Zscaler</strong> <span>(ZS<span> 7.03%</span>)</span> and <strong>Palo Alto Networks</strong> <span>(PANW<span> 1.92%</span>)</span> all gained, after cyberattacks on DeepSeek halted registrations.</li> </ul> </div> </div> <h2>5. Next Up: No Change at the Fed?</h2> <div> <div> <p>The Federal Reserve's latest two-day meeting concludes today, with the CME FedWatch tool showing a 99.5% probability of no further interest rate cut.</p> <ul> <li><strong>&#34;I'll demand that interest rates drop immediately&#34;:</strong> President Trump wants quick cuts, but does not have authority over the Fed's decision.</li> <li><strong>Growth vs inflation:</strong> Cuts should give business and stocks a boost, but could push inflation back up again.</li> </ul> </div> </div> <h2>6. Foolish Fun</h2> <p>How do you use LLMs as part of your investment research? For example, do you have a go-to prompt to find out certain risks or opportunities for a business? Discuss with friends and family, or become a member to hear what your fellow Fools are saying!</p>                                                                                             </div>

OpenAI

ASML

<p>In the latest market update, the S&P 500 rose by 0.92%, while the Nasdaq increased by 2.03%. Microsoft and OpenAI are investigating DeepSeek for potential data misuse. ASML exceeded Q4 forecasts with a 169% rise in net bookings. Tesla reported record vehicle deliveries, and CrowdStrike's stock surged after achieving a perfect score in a ransomware test. The Federal Reserve is expected to maintain interest rates, despite calls for cuts from President Trump. Investors are keenly watching developments in AI and cybersecurity sectors.</p>

- Microsoft and OpenAI are investigating DeepSeek for potential data exfiltration from the OpenAI API, which could impact future AI investments.  
- ASML exceeded Q4 expectations with a 169% increase in net bookings, driven by AI growth, while Tesla reported record vehicle deliveries and anticipates further growth in 2025.  
- The Federal Reserve is expected to maintain interest rates, with President Trump advocating for cuts to stimulate growth, despite concerns about inflation.