The tech industry has witnessed significant developments this week, with breakthroughs in artificial intelligence, shifts in autonomous vehicle technology, and changing consumer trust. Let's dive into the key stories that made headlines.

DeepSeek, an AI startup, has been making waves with its R1 "reasoning" model, which reportedly performs as well as OpenAI's o1 model on key benchmarks. This development has led Wall Street analysts and technologists to question whether the U.S. can maintain its lead in the AI race and whether the demand for AI chips will sustain. With its AI models going viral, DeepSeek has become a major player in the AI landscape.

In another significant development, Elon Musk admitted that he was wrong about Tesla's self-driving car capabilities. After years of promising that Tesla vehicles had the hardware needed to support full self-driving capabilities, Musk revealed that many cars will need an upgrade before they can support the unsupervised self-driving software the automaker is still developing. This admission marks a significant shift in the autonomous vehicle industry.

Meanwhile, a new report from Common Sense Media has found that American teens have lost trust in Big Tech companies like Google, Apple, Meta, TikTok, and Microsoft. The survey of over 1,000 teens revealed low levels of trust in these companies, with nearly half of teens saying they had little or no trust that the companies would make responsible decisions about how they use AI. This decline in trust could have significant implications for the tech industry.

In other news, Waymo has announced that it will begin testing its driverless robotaxis on the Los Angeles freeway system without a human safety operator behind the wheel. This move marks a significant step forward in the development of autonomous vehicles.

Facebook, meanwhile, is looking to its past for inspiration, with Mark Zuckerberg teasing a "return to OG Facebook" as part of his key goals for 2025. While the company didn't provide details on what changes are in store, it's clear that Meta needs to attract younger users to sustain itself for the next generation.

In a bid to provide an alternative to Amazon, Bookshop.org has launched its own e-book platform, allowing readers to buy e-books and support their favorite independent bookstores. This move could have significant implications for the e-book market.

Perplexity AI has submitted a revised proposal to merge with TikTok, which would give the U.S. government up to 50% ownership of the new entity. This development comes as Perplexity faces a lawsuit in federal court for allegedly violating another company's trademark.

Google, meanwhile, is issuing a "voluntary exit program" for Android, Chrome, and Pixel employees, according to an internal memo sent by Google SVP Rick Osterloh. This move comes less than a year after Google merged the separate teams into a single "Platform and Devices" division, overseen by Osterloh.

Finally, Meta AI has announced improvements to its cross-platform chatbot, which can now use Instagram and Facebook data to "remember" details from conversations and better tailor future responses to users. This development marks a significant step forward in the development of personalized AI chatbots.

As the tech industry continues to evolve, these developments are likely to have significant implications for consumers, businesses, and the industry as a whole. Stay tuned for further updates and analysis on these stories and more.