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🔓 Wednesday’s AI Report:
⬇️ DeepSeek downfall… already?
🔏 In partnership with Incogni
📢 OpenAI’s big government move
🤗 Hugging Face copy R1 breakthrough?
💼 In partnership with Innovating with AI
⚙️ Trending AI Tools
🏗️ Practical AI Applications
📑 Recommended Resources
Read Time: 5 minutes
❗Quick Note: In yesterday’s newsletter, we mistakenly reported that NVIDIA lost $6B, following the disruption caused by DeepSeek, when in actual fact, it was $600B.
We apologize for this oversight and any confusion that it caused.
Rest assured all facts included in the newsletter will be double-checked, going forward.
📈 AI STOCK TRACKER
AI and tech stock rebounded after the bloodbath on Monday. Investors are buying the dip in names like NVIDIA, TSM, and AMD. The rest of the week will provide more information on whether this is a buy-the-dip moment or a sustained reversal for the AI sector.
LATEST IN AI
🚨 Our Report — Following the disruption and chaos that Chinese AI start-up, DeepSeek, brought to the US stock markets yesterday—with its open, cheaper, more efficient, but equally as effective chatbot, R1—there seems to have been a slight u-turn for the app that pushed OpenAI’s ChatGPT from the top spot in the Apple store, caused major losses for US tech firms and investors, and shocked the world with its rapid virality.
🔓 Key Points:
David Sacks, Trump’s AI and crypto “czar,” and OpenAI have confirmed there’s evidence that DeepSeek used OpenAI’s AI models to train R1, a process that violates OpenAI’s terms of service and equates to theft.
The US National Security Council is reportedly reviewing the security implications of using DeepSeek’s models, and the US Navy has banned the use of DeepSeek’s AI, citing “security and ethical concerns.”
Plus, Italy has filed a complaint related to how it handles data relating to GDPR laws as it feels “the data of many is at risk” and has highlighted that there are no details about how DeepSeek protects minors using its services.
🔐 Relevance — DeepSeek does state, in its policies, that the app is “not intended for users under the age of 18,” but it doesn’t seem to enforce this rule, instead, it simply suggests that users between 14 and 18 should read the privacy policy with an adult, and this discovery comes after DeepSeek was also forced to temporarily stop users from registering after they discovered a malicious attack, which all makes us question just how safe and reliable is this model, and does a cheaper model come at the cost of ethics and safety?
TOGETHER WITH INCOGNI
You’ve likely received a sketchy phonecall, text, or email asking for $$$. It might've been easy to spot, but with deepfakes and AI, scams are getting trickier.
Scammers use your personal data, often bought legally from data brokers who sell your number, DOB, SSN, and more. Incogni scrubs your data from the web, taking on 200+ data brokers on your behalf.
Unlike others, Incogni deletes your info from all broker types, including people search sites where anyone can get your details for a few bucks.
‼️Plus: AI Tool Report readers get an exclusive 55% off all annual plans with the code AITOOL
🚨 Our Report — OpenAI is launching ChatGPT Gov, a special version of ChatGPT designed specifically for US government agencies to give them a secure and easy way to access and use OpenAI’s frontier models.
🔓 Key Points:
ChatGPT Gov will come with ChatGPT Enterprise features, like access to its GPT-4o model and the ability to store and share chats, build custom GPTs, and manage security & privacy via an admin console.
Agencies can deploy ChatGPT Gov into their own Microsoft Azure cloud environments (although Microsoft is no longer OpenAI’s exclusive cloud provider) to make it easier to manage security and privacy requirements.
This comes after OpenAI revealed that over 90,000 users across 3,500 federal and local government agencies use ChatGPT, and have sent more than 18M messages since 2024, to support their work.
🔐 Relevance — OpenAI believes that the tool (which they are also reportedly launching in the UK) will enable agencies “to more easily manage their own security, privacy, and compliance requirements, such as stringent cybersecurity frameworks” and “will expedite internal authorization of OpenAI’s tools for the handling of non-public sensitive data,” which will help improve public health, infrastructure, and national security and “maintain America’s global leadership in AI.”
Although questions are being asked about DeepSeek’s R1 model, the developer platform, Hugging Face, is reportedly attempting to replicate an open version of the model and its reasoning capabilities.
R1 shocked the world and AI industry after it emerged that it was built using old NVIDIA chips, at a fraction of the cost of other models like OpenAI’s ChatGPT took to develop, but performed equally as well.
In pursuit of “open knowledge,” Hugging Face aims to create ‘Open-R1’, a fully open-source duplicate of R1, and make all of its components—including the data used to train it—available to the AI community.
TOGETHER WITH INNOVATING WITH AI
The AI consulting market is about to grow by a factor of 8X – from $6.9B to $54.7B in 2032.
But how does an AI enthusiast become an AI consultant?
How well you answer that question makes the difference between just “having AI ideas” and being handsomely compensated for your contribution to an organization’s AI transformation.
Thankfully, you don’t have to go it alone – our friends at Innovating with AI have welcomed 300 new students into The AI Consultancy Project, their new program that trains you to build a business as an AI consultant.
Some of the highlights current students are excited about:
The tools and frameworks to find clients and deliver top-notch services
A 6-month plan to build a 6-figure AI consulting business
Students getting their first AI client in as little as 3 days
And as a reader of The AI Report, you get early access to the next enrollment cycle.
TRENDING AI TOOLS
PRACTICAL AI
Prompt InspirationAfter typing this prompt, you will get guidelines for managing legal compliance in international markets across different jurisdictions. P.S. Use the Prompt Engineer GPT by The AI Report to 10x your prompts. | Provide guidelines for managing legal compliance across multiple jurisdictions or international markets |
LIVE Q&A
❓ Who: Automation expert Grant Hushek, who founded GrantBot Process & Consulting, which has built a ‘Call-to-Content’ feature that uses AI to turn meeting transcripts into LinkedIn-ready posts—automatically.
(P.S AI Report readers can try Call-to-Content for nothing: Just submit a meeting transcript here, and you’ll get 3 LinkedIn posts, delivered straight into your inbox)
⌚ When: Tomorrow, Thursday 30th January, at 8 AM EST
🎓 Where: Skool
🙋♂️ What: Tomorrow, and every Thursday, AI automation expert, Grant Hushek, will be going Live, on Skool, to answer all your burning questions—big or small—about AI and automation.
‼️For more information about this, and our future Live AI Q&A sessions, visit us at Skool.
RECOMMENDED RESOURCES
STARTUPS
Name: Owkin
Value: $1B
Funding raised: $304M
Owkin is an AI biotechnology company that uses machine learning to collect and compile insights from global research and then trains AI models on this, and data from 30 academic hospitals, to improve predictions for cancer patients.
PODCASTS
In this podcast, the CEO of Crescendo—which provides automated customer service experiences—discusses how AI is reshaping customer service and blending seamlessly with humans to create next-level customer experiences.
QUICK HITS
ASK THE EXPERTS
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Until next time, Martin, Liam, and Amanda.
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