- 🗼 Lighthouse — Newsletter by Future Works
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- Tech giants vs $900m upstart
Tech giants vs $900m upstart
The DeepSeek disruption, urgent global AI alert for leaders, and why cost-cutting could cost you more.
Hi there, welcome to your Lighthouse!
"If you want to build a ship, don't drum up the people to gather wood, divide the work, and give orders. Instead, teach them to yearn for the vast and endless sea.”
— Antoine de Saint-Exupéry, French writer and aviator.
In today's lineup:
Robots
Below the DeepSeek disruption
3 Gen AI success stories
You got a friend in SecurityPal
People
Ray Kurzweil on leading tomorrow's markets
First International Safety Report reveals industry blind spots
Love
The Jevons Paradox: Why cost-cutting could cost you more
The Innovation Bookshelf: A More Beautiful Question
Reading time: 5 min.
ROBOTS 🤖
Top Bites ⚡
Alibaba claims its new model beats DeepSeek and ChatGPT
Microsoft makes OpenAI’s o1 reasoning model free for all Copilot users
Comcast is rolling out ‘ultra-low lag’ tech that could fix the internet
New glowing molecule, invented by AI, would have taken 500 million years to evolve in nature.
Another OpenAI researcher quits—claims AI labs are taking a ‘very risky gamble’ with humanity amid the race toward AGI
Google pushes global agenda to educate workers, lawmakers on AI
DeepSeek’s AI: A breakthrough or a security red flag?
Tech leaders are getting a serious reality check. DeepSeek, a Chinese open-source model just matched ChatGPT's performance at a fraction of the cost. But there's more to this story than savings.

DeepSeek’s AI surprise have hit some tech giants harder than others
The strategic shift
DeepSeek proves smaller budgets can deliver big results
US tech giants are forced to rethink competition strategy
Now Zuckerberg and Satya Nadella are justifying their billion-dollar AI investments.
Open-source is challenging proprietary AI dominance
The catch? It's complicated
Chinese oversight and security concerns are mounting (Italy has already banned it)
OpenAI suggests potential IP issues
Questions about data privacy and Chinese oversight remain
Microsoft's solution? Hosting DeepSeek R1 on Azure with "rigorous security evaluations"
What this means for leaders like you
Embrace cost-effective innovation or prioritize established security? The real question isn't about DeepSeek's capabilities, it's about who controls tomorrow's AI industry.
Breaking Update! DeepSeek's reign might be short-lived. A new American AI player just changed the game.
Gen AI in Action 🌊
Three AI implementations, three new possibilities happening in different industries today:
1. The U.S. Air Force cut intelligence analysis time from days to hours, improving military readiness.
2. Volkswagen of America’s AI-powered virtual assistant reduced diagnostic time, service costs, and increased customer satisfaction.
3. Copel integrated AI with Google Cloud Cortex and enabled 95% faster data access across 50,000 employees.
Tool Spotlight 🔧
SecurityPal is your sales cycle's new best friend
Security questionnaires blocking your biggest deals is a frustration you and I are both familiar with…
Why it's catching OpenAI and Figma’s attention:
Turns week-long security reviews into 24-hour turnarounds
Combines AI efficiency with expert human analysis
Handles entire compliance processes end-to-end
Companies using SecurityPal are seeing…
Dramatically accelerated enterprise sales cycles
Freed-up engineering resources
Stronger security practices through expert insights
Learn more here
PEOPLE 👥
Transformation Champion 🏆
Market leadership lessons from Ray Kurzweil's vision

Credit: The Guardian. Photograph: Winni Wintermeyer/Redux/eyevine
While everyone debates today's AI, Ray Kurzweil taught me to watch the exponential curves. He predicted our current AI boom in 1999—not by guessing, but by understanding how technologies compound.
While others ask whether to adopt AI, leaders are already preparing for AI that matches human intelligence by 2029.
Ready to lead the next wave of innovation? Read Kurzweil's full vision.
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ALERT 🚨 First Global AI Safety Report reveals critical risks for Tech & Ops leaders

While we rush to implement AI, the first International AI Safety Report just exposed critical vulnerabilities in our infrastructure. The stakes? Your entire operation.
The numbers that matter
41% of engineering tasks now run on AI systems
67% of cloud computing controlled by just three companies
28% of data center capacity consumed by AI alone
Your immediate risks
Potential cascade failures across shared AI models
Infrastructure capacity hitting critical limits
Microsoft's nuclear power deal signals what's coming
Three actions smart leaders are taking
Rebuilding infrastructure before hitting capacity walls
Implementing multi-layer protective monitoring
Redesigning workforce-AI integration systems
The question isn't if you'll need to address these risks, it's whether you'll do it before or after they impact your operations.
LOVE ❤️
LEAP Forward 🐸
The Jevons Paradox: Why cost-cutting could cost you more

A dead economist is taking over the Internet. As DeepSeek shakes up the market, Silicon Valley's biggest names are quoting William Stanley Jevons to keep investors calm. And they have a point: sometimes it costs more to save money.
Jevons paradox strikes again! As AI gets more efficient and accessible, we will see its use skyrocket, turning it into a commodity we just can't get enough of.
— Satya Nadella (@satyanadella)
5:48 AM • Jan 27, 2025
The winning strategy
Focus on value creation, not cost reduction
Build systems that can evolve with new capabilities
Invest in human-tech partnerships
The winners aren't the biggest cost-cutters, they're the ones turning efficiency into new market opportunities.
Want to turn this paradox into your advantage? Take a look at my last article.
The Innovation Bookshelf 📚
One book, handpicked from my conversations with friends, industry leaders, and tech innovators. Here's this week's pick:
A More beautiful question by Warren Berger

A masterclass in turning curiosity into breakthrough innovation.
Wisdom nuggets:
Great innovation starts with "Why," explores with "What if," and executes with "How"
The best leaders cultivate questioning environments, not answer-focused cultures
Innovation requires reframing problems through powerful questions
Perfect for: Leaders looking to spark innovation, solve complex problems, and build more creative teams.
In Culture 🤌
Semiconductor fund managers after seeing 4 memes about DeepSeek on X
— Trung Phan (@TrungTPhan)
4:26 AM • Jan 27, 2025

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Thanks for making every word worth writing! See you next week!
Much Love,
Matt and the Future Works team
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