The wake up call

Did your alarm clock just go off? Are you still snoozing or are you already building?

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This week, it's like we've all had a sudden awakening. A giant leap in the AI universe has shaken the foundations of Big Tech and Wall Street alike, thanks to DeepSeek R1.

This multimodal AI model didn't just surprise our tight-knit community of enthusiasts—it sent ripples across the globe. Just think of NVIDIA witnesses a staggering $600 billion loss in market cap. But why actually?

DeepSeek R1's Groundbreaking Moment:

DeepSeek, a name that was rather unknown until now, is hitting headlines with its R1 model. The R1 isn't your typical update; it seamlessly integrates text, audio, video, and data into a powerhouse that rivals and, in some cases, outperforms the GPT-4 and Claude 3.5 models.

But brilliance of DeepSeek R1 actually lies in its revolutionary training approach, achieving unmatched contextual understanding while consuming remarkably less computational power. When it only needs a lean 2K GPUs instead of the usual 100K or something — no wonder NVIDIA's stock took a hit!

What sets DeepSeek apart is its novel architecture, e.g. leveraging 'expert systems' that are activated on demand or reading full phrases instead of word by word. Not only training is much cheaper, also operations and API usage, which opens a road for a lot of interesting new business solutions.

And we’re still not finished! The model is Open-source and commercially licensed which threatens every expensive model today.

This raises a formidable question—why didn't the big players think of this sooner? The model is also open-source and commercially licensed, setting a new standard and threatening the inflated E-commerce models.

Implications for the Titans:

• NVIDIA faces a dual challenge: decreased high-power GPU demand might hit, albeit with a potential upswing from diversified needs and future specialized AI hardware.

• Meta must re-evaluate its R&D focus, as DeepSeek R1 surpasses its offerings, possibly outshining Meta's metaverse ambitions.

• OpenAI is directly in the crosshairs and must evolve beyond its current capabilities, considering DeepSeek's unparalleled multimodal prowess.

And for users?

For us users, DeepSeek R1 represents a leap forward in AI accessibility and utility. Its efficiency could lower costs for AI-powered services and innovation in AI solutions from new kids on the block that now built on that. 

However, concerns about data privacy, ethical AI  and regulation use will likely intensify as DeepSeek R1's adoption grows. Also it intensifies the race in AI leadership and dominance between the US and China. Which is why Marc Adreessen is dubbing it „AI's Sputnik moment“.

In summary, DeepSeek R1 has set a new benchmark in AI, forcing Big Tech to adapt and to do it fast. It’s been a wake up call.

Speaking of wake up calls…

… I experienced one quite close to home on the automation front with n8n. As an automation enthusiast n8n really blew my mind this week. Balancing my love for streamlined processes and avoiding shiny object syndrome, I've mostly relied on Zapier and dabbled in Make for a fresh perspective. Yet, n8n introduced a captivating way of developing workflows, it’s kind of like painting a canvas.

Building a personal agentic AI assistant and a chatbot with n8n was not just fun but eye-opening. Seeing AI models integrate expressions seamlessly within workflows has opened new horizons. I'll be diving deeper and sharing insights in the upcoming editions.

Lesson from this week: Occasionally there are events that make you (and all the others) not only doing one or three steps forward but jump the equivalent of 100+ steps in one go.

Keep you eyes open, stay curious.

News & Reads or “What those notorious AI Agents have been up to this week”

OpenAI Introduces 'Operator' AI Agent: OpenAI has launched "Operator," an AI agent capable of performing online tasks such as booking travel and ordering groceries by interacting with web elements. Initially available to ChatGPT Pro users in the U.S., Operator aims to automate various daily and professional tasks. OpenAI (more on this soon)

Zapier let’s you build AI teammates with Zapier Agents: Jumping on the train Zapier also introduced their agent builder. Agents can be built with just a few prompts and clicks in minutes and let you delegate real work to AI. I’ve tried it and found it very easy, which means you don’t have to wait a long time for an detailed update here. Zapier Agents

ServiceNow Unveils AI Agent Orchestrator: ServiceNow has announced its new AI Agent Orchestrator and AI Agent Studio, marking a significant shift from basic generative AI assistance to comprehensive, end-to-end task automation. This development aims to enhance enterprise workflows by enabling coordination between agents and helping customers develop tailored solutions. venturebeat.com

AI Agent Participates in Boardroom Discussions at Davos: At the 2025 World Economic Forum in Davos, Mihir Shukla, CEO of Automation Anywhere, showcased an AI agent that outperformed experienced personnel in boardroom settings, highlighting a shift from AI hype to practical applications. businessinsider.com

Yoshua Bengio Warns of Autonomous AI Risks: Let’s stay at WEF Davos where AI pioneer Yoshua Bengio expressed concerns about the potential dangers of autonomous AI agents. He emphasized the need for strict regulations and safety measures before deploying such systems. businessinsider.com

Australian Businesses Testing Agentic AI: According to Deloitte's research, 26% of Australian companies have begun experimenting with "agentic AI" to perform tasks autonomously. Despite rapid adoption, regulatory uncertainties pose challenges to broad-scale implementation. theaustralian.com.au

Tech Industry's Focus on AI Agents: Tech companies are increasingly promoting AI "agents" capable of performing actions, potentially replacing roles in customer service and software development. Salesforce's Agentforce 2.0 exemplifies this trend, though analysts caution that such AI agents are not yet advanced enough to fully replace human labor. New York Magazine

Ok, now it’s your turn:

Keep building.
Fabian