- 🗼 Lighthouse — Newsletter by Future Works
- Posts
- China closes innovation gap
China closes innovation gap
China's R&D spending surged 550%, Reed Hastings joins Anthropic, and Claude's hidden instructions leaked.
Hi there, welcome to your Lighthouse!
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 ⚡
Hidden AI instructions reveal how Anthropic controls Claude 4
Capgemini, SAP, Mistral AI team up on artificial intelligence
The AI data center race is getting way more complicated
Claude's AI voice mode is finally rolling out - for free.
OpenAI aims to offer AI access through ‘Ambient computer layer,’ without screens
Anthropic CEO Dario Amodei says AI companies like his may need to be taxed to offset a coming employment crisis:
He worries that entry-level white-collar jobs could be replaced within 1–5 years.
“Even if our company stopped… all the other companies would continue. And if they
— vitrupo (@vitrupo)
11:00 AM • May 30, 2025
Gen AI in action 🌊
3 ways AI is creating human-centered value.
Dentsu reduced media insights time by 90% using Azure AI Foundry for predictive analytics and budget optimization.
Hiscox cut insurance risk quoting from three days to minutes with BigQuery and Vertex AI underwriting models.
EY improved AI accessibility by involving neurodivergent technologists in development, serving 20% of the workforce.
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:
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.
Analyze team perceptions: use AI to understand how different team members might interpret your communications and decisions
Surface hidden dynamics: deploy sentiment analysis on team communications to uncover unspoken concerns and stress patterns
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.

China shamelessly copies and steals, yet they relentlessly out-innovate every bloated Western-dominated industry for peanuts😂
A thread on mind-blowing Chinese innovations that'll make you squirm🧵
— John Code (@Johncodemode)
1:11 PM • Mar 22, 2025
THANK YOU!
Lighthouse takes us many hours to create, and we don’t run ads or charge anything. We are dedicated to making it the best AI transformation newsletter possible.
We just ask for one thing: tell one friend about Lighthouse today!
Want daily AI & Innovation insights? Connect with me on LinkedIn.
Got suggestions? Just reply to this email!
Much Love,
Matt and the Future Works team
Reply