China closes innovation gap

China's R&D spending surged 550%, Reed Hastings joins Anthropic, and Claude's hidden instructions leaked.

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Claude 4's hidden instructions surface as Reed Hastings joins Anthropic's board with AI governance warnings. China's R&D spending surged 550% since 2000, now trailing U.S. investment by just $61 billion. Chinese tech firms generate 31% revenue internationally while Capgemini and SAP double down on European AI partnerships. Are you preparing for multipolar innovation or betting on fading Western dominance?

In today's lineup:

Robots

  • Top Bites: The latest AI leaps

  • China narrows the innovation gap against U.S.

  • 3 AI for people stories

  • Regain control with AnythingLLM 

People

  • Netflix's co-founder on AI governance

Love

  • How AI can make you a more compassionate leader

  • Transformative reads: The Creative Act: A Way of Being

Reading time: 5 min. 

ROBOTS 🤖

How are robotics and AI changing industries? We break down the latest news, tools, and innovations for you.

Top bites ⚡

Gen AI in action 🌊

3 ways AI is creating human-centered value.

China's $723B R&D surge creates new rules for global competition

An analysis from Venture Capitalist reveals China's R&D spending surged from 4% to 26% of global investment since 2000. It's a staggering 550% jump that positions China just $61 billion behind U.S. spending at $723 billion in 2023.

HSBC reports that Chinese companies expanding globally are outperforming major benchmarks, with IT sector firms generating 31.4% of revenue internationally.

Takeaways for leaders:

  • Supply chain diversification is accelerating: Chinese alternatives gaining enterprise adoption due to data security and geopolitical concerns.

  • Innovation gap is closing: China's focus on AI, semiconductors, and renewables creates new competitive dynamics.

  • Market agility advantage: Early-stage Chinese firms adapt faster to policy changes than established Western multinationals.

Chinese firms pursuing global expansion report 27.1% improvement in overseas revenue contribution, with technology companies leading at 31.4% international revenue share.

Tool Spotlight 🔧

Your weekly dose of AI-powered tools delivering real results.

Unlock enterprise data without vendor lock-in with AnythingLLM

Your sensitive data sits trapped in external AI platforms. Your teams wait months for IT approvals. AnythingLLM solves both problems. Deploy enterprise AI that runs entirely on your infrastructure with no coding required and complete data control.

Executive benefits:

  • Immediate ROI: Transform existing documents into searchable AI knowledge bases

  • Zero data exposure: Everything runs locally or on your chosen cloud infrastructure

  • Rapid deployment: Desktop to enterprise in days, not quarters

  • Cost control: Eliminate per seat AI licensing fees across your organization 

Over 25,000 GitHub stars don't lie. Teams are ditching expensive AI consultants for a solution that puts control back in their hands.

3 more local AI solutions worth considering:

  • Alice App: Automate executive tasks while keeping data private.

  • LibreChat: Deploy ChatGPT-level AI organization-wide without licensing fees.

  • OpenWebUI: Enterprise AI setup in 30 minutes with zero IT complexity.

PEOPLE 👥

Meet the innovators turning bold ideas into real-world impact.

Transformation Champion 🏆

Netflix Co-Founder implies AI needs the same governance rigor we applied to global streaming

Reed Hastings, who scaled Netflix into a global entertainment powerhouse, just joined Anthropic's board with a stark warning about AI governance. Having navigated the complexities of transforming how billions consume content, he's applying those hard-won lessons to AI development.

"When your organization adopts AI solutions, are you considering only the immediate business benefits or the long-term societal impact?" Hastings challenged business leaders.

His recent $50 million commitment to AI and Humanity research at Bowdoin College underscores his belief that companies must proactively address AI's effects on work, relationships, and education—not reactively manage damage control.

LOVE ❤️

Practical wisdom, growth tactics, and a must-read book that will challenge the way you think.

How AI can make you a more compassionate leader

AI can make workplaces mechanical or foster deeper connection. The difference is how you deploy it to enhance your human leadership qualities.

  1. Analyze team perceptions: use AI to understand how different team members might interpret your communications and decisions

  2. Surface hidden dynamics: deploy sentiment analysis on team communications to uncover unspoken concerns and stress patterns

  3. Rehearse critical conversations: practice difficult scenarios with AI coaching before high-stakes meetings or terminations

AI amplifies existing compassion but cannot replace authentic connection. Use it for intelligence gathering and practice, but lead actual conversations yourself. The goal is becoming more human, not more artificial. Read more here.

Transformative Reads 📚

One book, handpicked from my conversations with friends, industry leaders, and tech innovators:

Rick Rubin reveals how creativity transforms from occasional output to strategic advantage by cultivating a mindset that drives innovation, breakthrough problem-solving, and competitive differentiation across all business functions.

Perfect for: executives and innovation leaders seeking sustainable creative practices that unlock organizational potential beyond traditional productivity metrics.

In Culture 🤌

Here's something to laugh about this week.

THANK YOU!

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Much Love,
Matt and the Future Works team

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