Alphabet sharply lowered today after report that the EU is set to bring charges against the company.

Orders reporting that EU regulators are investigating whether Google violated the Digital Markets Act by discriminating against competitors.

Deer Jibosa has a deeper look in today's tech check. Hi, Dee.

Hey, good morning, Morgan. So a few years ago, investors might have ignored these antitrust headlines

because of the long process of appeals and largely toothless penalties. Less so is the case today,

though, as the lawsuits pile up especially for Alphabet and as the consequences really become

a lot more material. The European DMA allows fines of up to 10% of a company's global annual revenue.

Now, most of Mega Cap Tech is lower today and can't help but notice the stark contrast from Chinese tech.

The K-Web basket is up more than 3% on today's session and up nearly 22% from the January 27th deep seek sell-off here that turned into

a real boom for Chinese names.

Now it raised the idea that the biggest winners may not be the ones building the most powerful

AI, but the ones who figure out how to scale it smartly, cost effectively, and at the right

time.

China is now very much in that game,

thanks to a new method of model building called distillation.

Here's how it works.

A leading tech company like OpenAI or Google

invests years and millions of dollars

developing a top tier AI model from scratch.

They feed it massive amounts of data,

harness huge amounts of compute, and then they

fine-tune it into one of the most advanced models on the market. Then a smaller team swoops in.

...