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 ⚡

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.

Got a minute to make Lighthouse better?

We'd love to know what you think. Just 2 quick questions to help us deliver exactly what you need. Got more ideas? Share them here.

Rate Lighthouse's impact

Login or Subscribe to participate in polls.

How's the length?

Login or Subscribe to participate in polls.

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

  1. Rebuilding infrastructure before hitting capacity walls

  2. Implementing multi-layer protective monitoring

  3. 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.

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 🤌

Know someone who's both fascinated and freaked out by AI? Share this newsletter. They'll thank you later!

THANK YOU!

Want daily AI & Innovation insights?  Connect with me on LinkedIn.

Got suggestions? Just reply to this email!

Thanks for making every word worth writing! See you next week!

Much Love,
Matt and the Future Works team

Reply

or to participate.