March 31, 2025 6:49 am
Full News

Rise of Chinese AI Start-Up DeepSeek Challenges Japan’s Energy Projections

TOKYO, Jan 31 (Reuters) – Just weeks after Japan unveiled a landmark energy plan anticipating a surge in artificial intelligence (AI) demand, the unexpected rise of Chinese start-up DeepSeek has prompted a reevaluation of future power needs.

In 2024, Tokyo shifted its long-held forecasts, projecting electricity generation to rise between 10% and 20% by 2040, driven by increased AI-driven usage from data centres and microchip makers. However, DeepSeek’s energy-efficient AI models have sparked a broad rethink among analysts.

“It would be risky (for Japan) not to take this seriously,” said Professor Andrew DeWit from Rikkyo University’s Department of Economic Policy Studies in Tokyo.

DeepSeek launched a free AI assistant last week that uses less data at a fraction of the cost of incumbent services. By Jan 27, it had overtaken US rival ChatGPT in downloads from Apple’s App Store, causing a global sell-off in tech shares. Power producers also faced setbacks as investors weighed DeepSeek’s energy-efficient models.

While analysts debate DeepSeek’s impact, an alternative view suggests its success could lower the barrier to entry in a sector dominated by Silicon Valley giants, potentially increasing overall electricity demand from new AI entrants.

This presents a challenge for Japan, which produces just 13% of its energy domestically. If AI proves cheaper to develop, it could accelerate its mass introduction, leading to higher power demand, according to Yuriy Humber, chief executive of K.K. Yuri Group, an energy research firm in Tokyo.

“Japanese officials have taken their time to adjust power demand forecasts even though the AI boom was apparent two years ago. I expect they will monitor the new developments carefully,” he said.

The Trade Ministry, which oversees long-term energy planning, did not immediately respond to requests for comment. Tepco, Japan’s largest power company by sales, is monitoring DeepSeek’s impact but has yet to assess its full effects.

Japan’s grid monitor revised its outlook in 2024, predicting an overall increase in electricity demand, largely driven by new power needs from data centres and chip plants. Senior officials have cited AI-related energy needs as a reason to restart nuclear reactors, a sensitive topic in a country still haunted by the 2011 Fukushima disaster.

Ms. Mika Ohbayashi, director at Renewable Energy Institute in Tokyo, indicated DeepSeek’s emergence suggests AI may demand less power. She criticized the government’s linkage of AI energy needs to nuclear power promotion, advocating for more renewable energy development instead.

Professor DeWit highlighted Japan’s historical missteps in energy preparation, urging policymakers to take this issue seriously.

“Japan was a chip leader at the time and they figured they were going to become No. 1, and they built out the power system. And, of course, as they entered the 90s as the bubble collapsed, that power demand did not eventuate,” DeWit said. “They’ve had a bitter learning. So it behoves the policymakers to take this seriously.”

Related News
Ariana Grande Reflects on an Eventful Year
Biden Administration Tried to Assassinate Putin, Claims US Journalist
G7 Reaffirms Support for Ukraine as Zelenskyy Aims to End War in 2025
Abu Dhabi Boosts Film Rebate to 50% to Draw Global Productions
Rizwana Hasan Calls for Renewed Bangladesh-India Relations Amid Political Stalemate
Iran Agrees to Indirect Talks with the United States
Related Posts
Devastating Earthquake Leads to Severe Humanitarian Crisis in Myanmar
Trump Furious with Putin Over Ceasefire Negotiations
Tensions Escalate Between the US and Iran Over Nuclear Talks
Trump Hints at Possibility of Seeking Third Term
NGO Government in Bangladesh and why?
Syrian President Announces Interim Government
More News

Quentin Tarantino’s Pulp Fiction Leaving Netflix Soon

Quentin Tarantino’s critically acclaimed masterpiece Pulp Fiction is set to leave Netflix on March 21, 2025, so fans will need to catch it before it’s gone. Released in 1994, Pulp Fiction is widely considered Tarantino’s best movie. The film weaves together four interconnected stories of crime and violence in Los Angeles, featuring an all-star cast […]

Professor Yunus, the Banker of the Poor and his Nobel Prize

Shamima Chowdhury Professor Dr. Mohammed Yunus received his Nobel Peace Prize in 2006 and afterwards he floated his political party the ‘Nagorik Shakti’ or People’s Power. But as response was very poor, rather negative, he had to abandon it. But after 18 years of meticulous design, he could capture the coveted post of the head […]

Australian Open WinCinears Three In Three

Yanik Cinema played the first two finals in the Grand Slam last year. Both won – Australian Open and Taylor Fritz after defeating Danil Medvedev and US Open. Today, he played the third Grand Slam final in his career, winning Alexander Javerev 4-5, 6-7 (3), 3-1 games this year’s Australian Open. The first three finals […]

Krrish 4 Delayed to 2026 Due to Rs. 700 Crore Budget Hurdle

The much-anticipated superhero saga Krrish 4, starring Hrithik Roshan, has once again been delayed, this time due to budget constraints. The film, which was initially set to begin production in the second half of 2025, will now be pushed to 2026, according to exclusive sources. The movie requires an estimated budget of Rs. 700 crores, […]

Chinese Social Apps Xiaohongshu and Lemon8 Take Over iPhone Download Charts Amid TikTok Ban

A pair of Chinese-made social apps, Xiaohongshu and Lemon8, have surged to the top two positions on Apple Inc’s iPhone download charts in the US as users seek alternatives to TikTok ahead of an imminent ban. ByteDance Ltd’s TikTok faces a deadline of January 19 to find a US buyer to continue operating in the […]

Bangladeshi Legendary Actress Suborna Mustafa Harassed at Airport

Many artists and cultural figures from Bangladesh are reportedly facing the wrath of the government, including Nobel laureate Dr. Muhammad Yunus. They are being harassed under the guise of their supposed affiliation with the Awami League. Even attempts to travel abroad are being obstructed. On Saturday, November 30, legendary Bangladeshi actress Suborna Mustafa was detained […]

Megan Fox Breaks Up with MGK After Finding Texts with Other Women

Megan Fox has broken up with Machine Gun Kelly (MGK) after she found text messages between him and other women. Megan, known for her role in Teenage Mutant Ninja Turtles, became suspicious during their Thanksgiving trip. She decided to check his phone and discovered the messages, which led her to end the relationship. A source […]

Trump to Buy Tesla Car in Support of Musk

U.S. President Donald Trump has announced that he will buy a new Tesla car to show his support for his advisor and Tesla CEO, Elon Musk. According to AFP, Trump posted on his social media platform, Truth Social, right after midnight, stating, “Republicans, conservatives, and all great Americans, Elon Musk is making an extraordinary effort […]

Pakistan PM Shehbaz Vows to Eradicate TTP for Socio-Economic Growth

Prime Minister Shehbaz Sharif declared on Friday that the government is resolute in its mission to eliminate the outlawed Tehreek-i-Taliban Pakistan (TTP) for the sake of Pakistan’s socio-economic advancement.Recently, Pakistan has seen a rise in terror incidents, particularly in Khyber Pakhtunkhwa and Balochistan, following the collapse of a tentative ceasefire with the TTP. In 2024, […]

Beyonce Makes Rare Appearance at Mufasa Premiere with Daughter

Beyonce and Jay-Z made a rare appearance on the red carpet at the Mufasa: The Lion King movie premiere in Los Angeles. They posed for photos with their daughter, Blue Ivy, and Beyonce’s mother, Tina Knowles. Blue Ivy, who is 12 years old, has a big role in the movie. She voices Kiara, Simba’s daughter, […]