Global AI Race Takes Dramatic Turn

PLUS: Tech updates from Elon Musk and Meta

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Today’s Insights:

  • DeepSeek shakes up global AI race

  • Altman invests big in lifespan-extending biotech

  • Elon Musk warns X is "barely breaking even"

  • Meta to invest up to $65B in AI for 2025

  • Perplexity AI assistant launches on Android

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🤖 DeepSeek shakes up global AI race ↗️LINK

  • What: DeepSeek R1, an open-source AI model from Hong Kong's High-Flyer Capital, matches OpenAI's top model at significantly lower costs, disrupting the competitive AI landscape. It’s the first major AI contender from China, raising eyebrows in Silicon Valley.

  • Why: Unlike U.S. giants relying on massive GPU investments, DeepSeek emphasizes efficiency and open-source development. Western leaders, like Yann LeCun and Marc Andreessen, praised it, while Meta’s Mark Zuckerberg promised a new AI model and massive infrastructure to stay competitive.

  • Impact: DeepSeek's rise intensifies the AI race, questioning current U.S. strategies of high-cost scaling. As Meta and others double down on hardware-heavy plans, the future dominance of AI could pivot toward more cost-effective and collaborative approaches.

🧬 Altman invests big in lifespan-extending biotech ↗️LINK

  • What: Retro Biosciences, a biotech startup focused on extending human lifespan by at least 10 years, is raising $1 billion in Series A funding. Backed by OpenAI CEO Sam Altman, who previously provided $180 million in seed funding, the startup is advancing drug trials for diseases like Alzheimer’s.

  • Why: By leveraging AI models developed with OpenAI, Retro aims to reprogram regular cells into stem cells and accelerate drug discovery. Its goal is to launch transformative therapies within this decade.

  • Impact: Retro Biosciences adds to a growing wave of billionaire-backed longevity ventures, signaling increased interest in addressing age-related diseases and redefining health in aging populations.

💸 Elon Musk warns X is "barely breaking even ↗️LINK

  • What: Elon Musk told X (formerly Twitter) staff that the company is "barely breaking even," citing stagnant user growth and unimpressive revenue. Banks holding $13 billion in debt from Musk’s acquisition are struggling to offload it without losses.

  • Why: Economic shifts and Musk’s prolonged legal battle reduced investor confidence, with equity stakes losing up to 78% of value. While Musk remains optimistic about future cash flow and AI integration, X faces $1 billion in annual loan interest.

  • Impact: X's financial woes highlight challenges in Musk's vision of transforming it into a comprehensive platform. Investor uncertainty and mounting debt could stall its evolution into a profitable, multifunctional service.

💰 Meta to invest up to $65B in AI for 2025 ↗️LINK

  • What: Meta Platforms plans to invest $60–65 billion in AI infrastructure in 2025, CEO Mark Zuckerberg announced. This includes launching the Llama 4 model, expanding AI-powered products, and building a massive data center to support its growth.

  • Why: The move aims to position Meta as a leader in AI, competing with OpenAI, Google, and others. It follows a wave of major AI spending, including OpenAI’s $500 billion Stargate venture and Microsoft’s planned $80 billion data center investments.

  • Impact: Meta’s massive expenditure highlights the intensifying race in AI innovation. With its open-source Llama models and ambitious R&D goals, Meta could shape the AI landscape while pushing rivals to scale up their investments further.

📱 Perplexity AI assistant launches on Android ↗️LINK

  • What: Perplexity’s AI assistant is now available on Android, offering features like task management, object identification, and real-time web search. The app supports 15 languages and keeps context across tasks, enabling seamless actions like booking tables or providing directions.

  • Why: Unlike competitors, Perplexity leverages its search engine for smarter responses and real-time updates. It aims to become an indispensable daily tool, integrating with apps like Uber and OpenTable while addressing bugs like inconsistent restaurant booking.

  • Impact: Facing stiff competition from ChatGPT, Google Gemini, and Apple’s Siri, Perplexity’s focus on versatility and user experience could give it an edge. If it delivers consistently, it may reshape how users view AI assistants.

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