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Hello WKND AI Warriors!

China’s DeepSeek R1 matches OpenAI’s o1 model.

Also, OpenAI claps back by releasing o3-mini model.

Plus, OpenAI launches ChatGPT Gov for the US government.

Oh yeah, and Anthropic’s CEO predicts AI will double human lifespan by 2030.

So, grab your beverage of choice.

Here’s your weekly dose of AI news.

Today’s newsletter includes:

• 🎓 AI COURSES OF THE WEEK

• 📰 AI NEWS RECAP

• 🤿 AI DEEP DIVE

• 🛠️ AI TOOL OF THE WEEK

• ⚙️ GPT OF THE WEEK

• 📝 AI PROMPT OF THE WEEK

• 🎨 AI IMAGE OF THE WEEK

📰 AI NEWS RECAP

DeepSeek, DeepSeek, DeepSeek

Why is it such a big deal?

But first ... what is it?

Its China's latest AI model that...

📉 Caused NVIDIA to lose $600B in one day

The biggest single day loss in US stock market history

How did we get here?

In 2022-23, the US restricted AI chip exports to China

To prevent them from achieving AGI/ASI first

𝗪𝗵𝘆?

The AI arms race is winner takes all

Experts warn achieving Artificial General Intelligence (AGI)

Will lead to achieving Artificial Super Intelligence (ASI)

And ASI will have 'god-like' powers

Sounds out of a sci-fi movie, but a valid concern

𝗦𝗲𝗽𝘁𝗲𝗺𝗯𝗲𝗿 𝟮𝟬𝟮𝟱

☑️ OpenAI announces 'o1 Preview' model

Moving beyond the simple chat bot, it can reason

𝗗𝗲𝗰𝗲𝗺𝗯𝗲𝗿 𝟮𝟬𝟮𝟱

☑️ OpenAI announces their new 'Pro' plan for $200/mo

☑️ Unlimited access to o1

☑️ Preview access to 'Operator'

Moving beyond reasoning, it can execute tasks

𝗝𝗮𝗻𝘂𝗮𝗿𝘆 𝟮𝟬𝟮𝟱

☑️ China releases DeepSeek R1

☑️ The model performs equal to or better than o1

☑️ The model took only $6MM to train

☑️ The model is open source

☑️ The model is FREE

Causing OpenAI to make its new $200/mo model free

𝗪𝗵𝘆 𝗱𝗶𝗱 𝗡𝗩𝗜𝗗𝗜𝗔'𝘀 𝘀𝘁𝗼𝗰𝗸 𝘁𝗮𝗻𝗸?

DeepSeek was built cheaper with less, and older, AI chips

Imagine building a Ferrari with Toyota parts

Causing the market to overreact that the demand for NVIDIA's AI chips was no longer needed

𝗪𝗵𝗶𝗰𝗵 𝗹𝗲𝗮𝗱𝘀 𝘂𝘀 𝘁𝗼 ... 𝗝𝗲𝘃𝗼𝗻𝘀 𝗣𝗮𝗿𝗮𝗱𝗼𝘅

As efficiency increases, consumption increases

Not decreases

Imagine adding traffic lanes to a highway

Traffic tends to increase. Not decrease

𝗦𝗼, 𝗵𝗼𝘄 𝗱𝗶𝗱 𝗖𝗵𝗶𝗻𝗮 𝗯𝘂𝗶𝗹𝗱 𝗗𝗲𝗲𝗽𝗦𝗲𝗲𝗸 𝗥𝟭?

Many speculated they stole OpenAI's tech

Others state they used model 'distillation'

Imagine a student (small model)

Learning from a teacher (large model)

The student 'distilled' its knowledge from the teacher

Also, DeepSeek R1 matches o1 which is 7-10 months old

While OpenAI has more advanced models up their sleeve

Case in point

OpenAI just deployed o3-mini which already beats DeepSeek R1's performance

𝗠𝘆 𝗧𝗮𝗸𝗲 🤔 

Competition is good because it drives innovation and drives down cost, which allows for adoption

The market overreacted with its selloff of NVIDIA

And we still need Project Stargate's $500B AI data centers

NVIDIA isn't going anywhere, and lower cost models means more people and companies will use AI

Which will require more chips (and data centers) not less

DeepSeek's R1 model matches OpenAI's performance at fraction of cost using novel training methods. The Chinese company's breakthrough in reinforcement learning and efficient architecture delivers reasoning level results while using only 50,000 chips compared to OpenAI's estimated millions.

White House launches national security review of DeepSeek's AI capabilities. Officials express concern over the Chinese company's rapid advances in reasoning models and potential access to restricted US chip technology through third parties.

Trump announces 35% tariff on TSMC chips to protect US semiconductor industry. The policy aims to accelerate domestic chip production for AI development while putting pressure on Taiwan's leading manufacturer.

OpenAI introduces ChatGPT Gov for secure government communications. The specialized model features enhanced privacy controls, audit trails, and compliance features for federal, state and local agency use.

OpenAI launches o3-mini with faster reasoning and lower costs. The model responds 24% faster than o1-mini while offering enhanced math capabilities and a new "reasoning effort" control feature for free ChatGPT users.

Anthropic CEO predicts AI will double human lifespans by 2030. Dario Amodei believes AI systems will accelerate medical breakthroughs, potentially curing most cancers and genetic diseases while revolutionizing drug discovery.

LinkedIn cofounder launches $24.6M AI drug discovery startup with Microsoft. Manas AI uses advanced molecular docking and computational chemistry to accelerate cancer treatments, with initial focus on aggressive forms like prostate and breast cancer.

Grok 3 accidentally leaks to users, showing major improvements in reasoning. Early testers report the model outperforms OpenAI's o1 on complex riddles before access was revoked, suggesting xAI's massive Memphis data center is paying off.

Alibaba's Qwen 2.5 challenges Western AI with PC control capabilities. The new model family beats GPT-4 and Gemini on benchmarks while demonstrating ability to operate phones and computers, though with some limitations on sensitive topics.

🤿 AI DEEP DIVE

OpenAI released its latest AI reasoning model, o3-mini.

YES, it outperforms China’s new DeepSeek R1 model!

o3-mini performs well in logic puzzles, mathematical reasoning, and moral dilemmas, though it struggles with ambiguous or unconventional prompts.

When enabled, its web search capability enhances accuracy.

As an optimized, lightweight alternative to larger models, o3-mini balances performance and efficiency.

Positioning itself as a go-to choice for AI-powered problem-solving.

🛠️ AI TOOL OF THE WEEK

Qodex: An AI-powered API testing and documentation platform that automates quality assurance with zero-code test creation.

Designed for developers, it streamlines testing, detects issues in real-time, and ensures seamless API functionality with continuous monitoring and self-bug fixing capabilities.

Send your tool here to be featured next week!

⚙️ GPT OF THE WEEK

Descript: Making videos with AI has never been easier.

Bring your ideas to life.

Give ‘Descript’ a try today!

📝 AI PROMPT OF THE WEEK

Copy and paste this into your favorite chatbot.

As a data analyst, evaluate our sales data for the past quarter. Summarize major trends, identify outliers, and propose two data-driven recommendations.

Try your prompt here.

🎨 AI IMAGE OF THE WEEK

Copy and paste this into your favorite image generator.

New Year’s Day Full Moon Event Image. Warmth. Simple. Love. Concentric. Countryside. Real-life.

Not paying for Midjourney or DALL-E 3?
Click here for Microsoft’s FREE image creator.

Send your image here to be featured next week!

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