Key Takeaways
- Chinese AI startup DeepSeek is reportedly using banned Nvidia (NVDA) Blackwell chips, some allegedly smuggled into China, for its next-generation AI models, prompting U.S. investigations into potential export control violations.
- U.S. MBA Mortgage Applications saw a significant 4.8% week-over-week increase, reversing a previous decline, even as the 30-year mortgage rate edged up to 6.33%.
- The U.S. Navy has partnered with Palantir (PLTR) in a $448 million initiative, "ShipOS," to modernize its shipbuilding supply chain and accelerate the construction of next-generation submarines.
- Paramount Group Inc. (PGRE) reaffirmed its board's recommendation for the Rithm Capital Corp. merger, rejecting a December 8th proposal from an alternative "Sponsor A" for $6.95 per share, citing lower price and terms compared to the existing $6.60 per share Rithm offer.
- Amazon (AMZN) is significantly expanding its same-day perishable grocery delivery service, now reaching over 2,300 cities and towns, with further growth anticipated in 2026.
AI Chip Controversy Heats Up with DeepSeek Allegations
Chinese AI firm DeepSeek is under scrutiny for allegedly utilizing banned Nvidia (NVDA) Blackwell chips in the development of its upcoming AI models. Reports indicate that some of these restricted chips may have been smuggled into China, a move that would circumvent stringent U.S. export controls aimed at limiting China's access to advanced semiconductor technology. The U.S. government is reportedly investigating these claims, which highlight ongoing challenges in enforcing technology restrictions and the persistent demand for high-performance AI hardware in the Chinese market.
DeepSeek has previously stated it used Nvidia's H800 chips, which were designed to comply with earlier export regulations. However, the advanced capabilities demonstrated by DeepSeek's latest models have fueled speculation that the company may have acquired more powerful, restricted components through indirect channels, possibly involving intermediaries in regions like Singapore.
Mortgage Applications Surge Amidst Stable Rates
In key economic news, U.S. MBA Mortgage Applications surged by 4.8% week-over-week for the period ending December 5, effectively reversing a prior -1.4% decline. This notable increase in application volume occurred despite a slight uptick in the average contract interest rate for 30-year fixed-rate mortgages, which rose marginally to 6.33% from 6.32% the previous week. The data suggests a renewed interest in the housing market, potentially driven by various underlying factors despite the consistent, albeit slightly higher, borrowing costs.
U.S. Navy Taps Palantir for Shipbuilding Modernization
The U.S. Navy has forged a significant partnership with data analytics firm Palantir Technologies (PLTR) to enhance its shipbuilding capabilities. Under the new "ShipOS" initiative, authorized for up to $448 million, Palantir will deploy its Foundry and Artificial Intelligence Platform (AIP) across the nation's Maritime Industrial Base. The collaboration aims to modernize the shipbuilding supply chain, identify bottlenecks, and accelerate the construction of critical next-generation vessels, including Virginia- and Columbia-class submarines, which have faced delays and cost overruns.
Paramount Group Rejects Higher Bid, Reaffirms Rithm Capital Merger
Paramount Group Inc. (PGRE) announced that its board of directors has reaffirmed its recommendation for shareholders to approve the previously proposed merger with Rithm Capital Corp.. This decision comes after the board rejected an unsolicited December 8th proposal from an entity identified as "Sponsor A," which offered to acquire Paramount shares for $6.95 per share. Despite the higher per-share price compared to Rithm Capital's $6.60 per share offer, the board determined that Sponsor A's proposal was "not reasonably likely to lead to a superior proposal" due to lower price and terms overall, as detailed in an SEC filing. Sponsor A's offer included a $1.56 billion equity financing plan for the acquisition.
Amazon Expands Same-Day Perishable Grocery Delivery
Amazon (AMZN) is making significant strides in its grocery delivery services, announcing a major expansion of its same-day perishable grocery delivery. The service now spans over 2,300 cities and towns, offering a wider reach for customers to receive fresh groceries within hours. The e-commerce giant anticipates additional growth in this sector throughout 2026, signaling a strategic focus on strengthening its position in the competitive online grocery market.
Shell Navigates Caspian Oil Venture Amidst Sanctions
Shell (SHEL) is reportedly seeking to dissolve its Caspian CPC oil venture with Russian energy giant Rosneft, though it is not looking to sell its stake in the Caspian Pipeline Consortium (CPC). Russian President Vladimir Putin recently issued a decree allowing for potential deals related to the Rosneft-Shell Caspian Ventures' 7.5% stake in the CPC, which exports a significant portion of Kazakhstan's crude oil. This development occurs in the context of international sanctions against Russian entities, adding complexity to the future of the joint venture.
Mollie Nears Deal for UK Fintech GoCardless
Blackstone-backed fintech firm Mollie is reportedly nearing a deal to acquire UK fintech company GoCardless. GoCardless, which was valued at $2.1 billion in 2022, specializes in direct debit and payment processing solutions. This potential acquisition highlights the ongoing consolidation within the fintech sector as companies seek to expand their services and market reach across Europe and beyond.
GE Aerospace Secures Orders for Naval Destroyers
GE Aerospace (GE) has secured new orders for its LM2500 marine gas turbines, which will power the U.S. Navy's next two Flight III Arleigh Burke-class destroyers. The company will supply eight LM2500 engines for these advanced naval vessels, continuing its long-standing role in providing propulsion systems for the U.S. Navy's fleet.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.