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🔓 Wednesday’s AI Report:

1. 🚨 $1M fine for using DeepSeek?

2. 📃 In partnership with Substrata

3. 🏛️ Musk ally “pushes forward” with illegal AI

4. 🌏 OpenAI expands into Asia

5. 🔍 In partnership with EleventhAI

6. ⚙️ Trending AI Tools

7. 🏗️ Practical AI Applications

8. 📑 Recommended Resources

Read Time: 5 minutes

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📈 AI STOCK TRACKER

AI and tech stocks bounced back on Tuesday as investors saw value after large declines to start the week. Names like AMD, GOOGL, and AAPL were among the top performers.

LATEST IN AI

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🚨 $1M fine for using DeepSeek?

🚨 Our Report — A proposed new bill—filed by Senator Josh Hawley—could make it illegal in the US to download the viral Chinese AI chatbot DeepSeek, with people facing huge fines or even jail time for using it.

🔓 Key Points:

• The bill—Decoupling America’s AI Capabilities from China—aims to prevent the import, export, collaboration, and utilization of Chinese AI products to protect the US against Beijing’s increasing global AI advancement.

• If passed, it would also prevent “US persons” from investing in Chinese AI firms, and those in violation of the law would face severe penalties—like fines of up to $1M or up to 20 years imprisonment. 

• Although ‘DeepSeek’ wasn’t specifically mentioned, the proposed legislation comes just a week after it caused US tech stocks to plummet when it became more popular than ChatGPT.

🔐 Relevance — Hawley argues that “every dollar and gig of data that flows into Chinese AI will be used against the United States,” so to ensure “American economic superiority,” China must be cut off “from American ingenuity”, subsequently “halting the subsidization of CCP innovation,” but others believe that this is a broad-term, reactionary bill that could stifle US innovation, implicate American businesses which are unknowingly using Chinese AI in their operations, and disrupt those which currently rely on Chinese-developed AI.

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TOGETHER WITH SUBSTRATA

How to Use Social Signal Intelligence to Secure B2B Deals 3X Faster

Complex deals are often affected by office politics, hierarchies, egos, emotions, attitudes, and power dynamics. Using Substrata can significantly increase the chances of securing B2B deals across many industries and categories.

Substrata has developed dozens of specialized AI models to help dealmakers navigate the subtle "social dance" between sellers and prospects:

• Analyze any prospect's LinkedIn profile to extract their natural personality structure and tendencies

• Monitor your prospects' fluctuating levels of interest (Signals)

• Analyze any thread or message to determine real sentiment and relative balance of power

• Simulate message drafts before sending them to eliminate potential risks or issues

• Optimize responses, follow-ups, and more

• Track your and your team's ongoing performance

Substrata uses Social Signal Processing (SSP), a specialized AI domain that deals with the detection, analysis, and synthesis of behavioral data from digitally mediated human-human interactions, such as B2B dealmaking and HR interviews. It encompasses both verbal and nonverbal data.

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🏛️ Musk ally “pushes forward” with illegal AI

🚨 Our Report — In a leaked meeting recording, Thomas Shedd—former Tesla engineer, Musk ally, and current director of the US Government’s Technology Transformation Services (TTS) department (which helps federal agencies improve their tech practices)—outlined his plans to integrate AI into government systems, some of which were flagged as illegal.

🔓 Key Points:

• Shedd suggested using AI to centralize employees’ personal data to make it more accessible, but when an employee suggested this would be “illegal” without consent, he still urged his team to “push forward.”

• During the meeting, Shedd also described his vision for an expansive (read: expensive) AI-driven transformation of the federal government, and outlined plans to run the office exactly like a “startup software company.”

• He envisions a series of “AI coding agents” that would be trained on “existing government contracts” to write the software "for many different agencies” to streamline processes, such as analyzing government contracts.

🔐 Relevance — Although some of Shedd's plans could already be underway—there have been “extensive code changes” to the Treasury Department payment system, which makes 95% of the government's payments—according to sources, the room's reaction to Shedd's plans was “unanimously negative” and has raised “red flags” among security experts, as they feel “automating the government isn’t the same automating a self-driving car,” and those “who aren’t experts in the domain, will find out how hard it really is.”

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🌏 OpenAI expands into Asia

• OpenAI is partnering with South Korean tech giant Kakao—which powers one of the region’s most popular messaging apps, KakaoTalk—to work on a localized AI product, and further expand into Asia.

• The collaboration will benefit Kakao, as it will be able to integrate ChatGPT into KakaoTalk to improve its capabilities, and it will allow Kakao employees to use ChatGPT Enterprise internally.

• This partnership—and the recently announced alliance with Japan tech giant, Softbank—will allow OpenAI to train its GPT models on Asian-language content, allowing it to do more business in Asian markets, on its own.

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TOGETHER WITH ELEVENTH AI

Find Out What AI & Automation Can Do for Your Business

Your time is too valuable to be spent on inefficiencies.

What if AI and automation could unlock huge time and cost savings, allowing your team to focus on strategic growth?

In just 3-5 weeks, Eleventh AI’s Audit provides you with:

• Actionable workflow improvements, powered by AI and automation

• An AI roadmap to identify and prioritize high-value efficiency opportunities

• An ROI analysis to forecast cost savings and productivity gains

Our AI audits have identified opportunities that have helped over 100 enterprises cut 80,000+ hours of manual work, without needing additional staff.

Curious about the reports we’ve made for others and if your business qualifies too?

TRENDING AI TOOLS

1. Incogni prevents spammers from stealing your info online, get 58% off annual plans, with code: AITOOL ⭐⭐⭐⭐⭐ / 5 (Trustpilot)

2. Martin is an AI PA that manages calendars, emails, to-do lists, and Slack

3. Newtn is an AI-powered content platform for optimizing SEO content

PRACTICAL AI

LIVE Q&A

❗Tomorrow: Live Q&A with AI Automation Expert, Grant Hushek

❓ 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 6th February, 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: Weaviate
Value: $200M
Funding raised: $50M

Weaviate provides the infrastructure for developers building AI recommendation systems and has made its software compatible with AWS, Google Cloud, and Snowflake.

PODCASTS

The quest for a reliable chatbot

In this podcast, a16z VC, Martin Casado, discusses the past, present, and future of AI agents and chatbots with Alan Nichol, co-founder and CEO of Rasa.

QUICK HITS

• US bill to make companies tell kids chatbots aren’t people

• FigureAI drops OpenAI in favor of in-house models

• Google deletes pledge not to use AI for weapons

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