April 20, 2025 1:22 pm
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
Global Outcry Against Atrocities on Hindus in Bangladesh; Protests Erupt in Netherlands
Aamir Khan Predicts India Would Go ‘Ballistic’ if Laapataa Ladies Wins Oscar
Chris and Morgane Stapleton Donate $1M for LA Wildfire Relief
Global Rights Group Urges Action for Bangladesh’s Religious and Ethnic Minorities
Xi Jinping Calls for Renewed Crackdown on Corruption in Communist Party and Military
World Leaders React to Trump’s Tariff Imposition
Related Posts
Trade Tensions Escalate Between India and Bangladesh Over Yarn Imports and Transshipment Facilities
Oldest Active American Astronaut Returns to Earth on His 70th Birthday
At Least 79 Soldiers Killed in al-Qaeda Affiliate Attack in Benin
India Criticizes Pakistan’s Misuse of OIC Platform Ahead of PM Modi’s Saudi Visit
Bangladesh Qualifies for ICC Women’s Cricket World Cup 2025 After Dramatic Finish
Bangladesh Qualifies for ICC Women’s Cricket World Cup 2025 After Dramatic Finish
More News

Israel Ready for Permanent Ceasefire in Gaza

Israel has expressed its willingness to establish a permanent ceasefire in the besieged Gaza Strip. On Tuesday, Israeli Foreign Minister Gideon Sa’ar announced this during a briefing with international media in Jerusalem. However, he emphasized that Israel’s conditions for the ceasefire include the release of all Israeli hostages held by Hamas and the complete disarmament […]

Harry Potter Sword Replicas Recalled in Japan Over Weapon Law Concerns

TOKYO – Realistic replicas of the Godric Gryffindor Sword, a key artifact from the Harry Potter series, have been recalled in Japan after authorities deemed them potentially in violation of the country’s strict sword and firearms control laws. The 85cm-long replicas, sold for 30,000 yen ($268) at The Making of Harry Potter studio park in […]

The Melting Borders of High Mountains: Climate Change’s Profound Impact

Glaciers, the frozen giants atop mountain ranges, are retreating at alarming rates. The effects of their disappearance ripple across ecosystems, economies, and even international borders, redefining landscapes and human relationships with nature. On an autumn day at the Hochjochferner Glacier, straddling Austria and Italy at 3,000 meters above sea level, the impact of global warming […]

US Might Acquire Greenland

The United States is moving towards taking control of Greenland, said US President Donald Trump. He further claimed that the residents of Greenland want to be with America. Trump made these remarks while traveling on the presidential aircraft, Air Force One, on Saturday (January 25). Even before taking office as president, Trump had expressed his […]

Nearly 1,000 North Korean Soldiers Killed in Ukraine War

Nearly 1,000 North Korean soldiers have reportedly been killed in the ongoing Ukraine war, according to Western officials. They were killed while fighting against Ukrainian forces in Russia’s border region of Kursk, British media outlet BBC reported on Wednesday, January 22. Russia began its invasion of Ukraine in February 2022. To strengthen its military, Pyongyang […]

Khamenei: The US Could Not Have Stopped Iran from Developing Nuclear Weapons

Iran’s Supreme Leader, Ayatollah Ali Khamenei, has stated that if Iran wanted to develop nuclear weapons, the United States would not have been able to prevent it. He also dismissed the idea of engaging in nuclear talks with the US. According to Al Jazeera, Khamenei said that even if nuclear negotiations took place, US sanctions […]

Michael Jackson Biopic May Be Split Into Two Movies, Release Delayed

Antoine Fuqua’s highly anticipated Michael biopic about pop legend Michael Jackson may now be released as two separate films, potentially delaying its original release date of October 3, 2025. The $155 million Lionsgate and Universal Pictures project wrapped filming in May 2024, but the script — written by John Logan — is currently undergoing revisions […]

Judge Rejects Trump’s Appeal to Overturn Hush Money Conviction

Judge Rejects Trump’s Bid to Overturn Hush Money Conviction, Citing Presidential Immunity Ruling NEW YORK – A New York judge on Monday ruled that former President Donald Trump’s felony conviction in the hush money case should not be dismissed, rejecting arguments that the Supreme Court’s decision on presidential immunity applies to his case. In a […]

27 Bangladeshis Arrested in Overnight Raids in Kerala

Twenty-seven Bangladeshi nationals have been arrested for illegally staying in the port city of Kochi in the southernmost state of Kerala. The Anti-Terrorism Squad of the Indian Central Government Police and members of the state police arrested the Bangladeshis in an overnight operation on Thursday (January 30). Indian news agency ANI confirmed this information in […]

US Senator Gary Peters to Visit Dhaka on Tuesday for High-Level Meetings

US Democratic Senator Gary Charles Peters is set to arrive in Dhaka past midnight on Tuesday for a one-day visit aimed at strengthening bilateral ties between the United States and Bangladesh. During his visit, the 67-year-old senator will hold separate meetings with the chiefs of the three armed forces—Army, Navy, and Air Force—as well as […]