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🔓 Wednesday’s AI Report:

1. 🌪️ DeepSeek is back…but not fully

2. 🗣️ In partnership with Hume

3. 🔥 Microsoft denies AI cutbacks?

4. 🪖 Google starting AI coding war?

5. 💼 In partnership with Innovating with AI

6. ⚙️ Trending AI Tools

7. 🏗️ Practical AI Applications

8. 📑 Recommended Resources

Read Time: 5 minutes

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📈 AI STOCK TRACKER

US tech stocks experienced notable declines, with the Nasdaq Composite falling 1.4%, as major companies like Tesla (which experienced an 8.39% drop due to a 45% decline in European car sales last month) and NVIDIA (which fell by 2.8% over concerns about potential increased export restrictions to China) faced significant losses.

LATEST IN AI

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🌪️ DeepSeek is back…but not fully

🚨 Our Report — DeepSeek (the 20-month-old Chinese startup that rocked Silicon Valley in January with the arrival of its open-source, AI reasoning model, R1, which cost less to make and performed better than some of OpenAI’s reasoning models) has reopened access to its API—which allows developers to integrate the model into their own applications—after a 3-week pause, as it struggled to cope with a more-than-anticpated demand for its services.

🔓 Key Points:

• Although DeepSeek has reopened access to its API, according to an internal message, DeepSeek has cautioned that “server resources will remain constrained during the daytime.”

• This means that users accessing the API might experience speed and storage issues during the day, as the server doesn’t have enough power to handle the workload that DeepSeek is anticipating.

• Hitting capacity after it launched was unexpected, especially after it was forced to stop user registrations due to a “large-scale malicious attack,” leading to many countries and companies banning the model.

🔐 Relevance — The same day that DeepSeek reopened its API, its direct Chinese rival, Alibaba, launched a preview of its latest reasoning model—QwQ-Max—which it also plans to open-source, and comes after Chinese-based, TikTok owner, ByteDance, announced it was testing a self-developed deep reasoning AI model, highlighting the intensifying competition between Chinese AI firms, and also within Silicon Valley, as OpenAI recently admitted that DeepSeek had “lessened OpenAI’s technological lead”, and said it would consider “open-sourcing its technology in the future.”

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TOGETHER WITH HUME

Create with Octave TTS – the first text-to-speech system powered by a language model

Unlike conventional AI voices that simply read words aloud, OCTAVE TTS understands the meaning behind them. Built on a state-of-the-art language model, it brings unprecedented natural expression to AI voice generation.

With OCTAVE, you'll benefit from:

• Context-aware expression that adapts pitch, tempo, and emphasis to match emotional intent

• Real-time voice creation for any character or persona you can describe

• Simple expression control through natural instructions like "whisper with intrigue" or "speak triumphantly"

• Consistent emotion and character across long-form content like audiobooks and podcasts

Start easily:

1. Sign up for Hume

2. Upload your script or video

3. Describe your ideal voice ("wise historian" or "energized coach coach")

4. Add performance directions ("speak excitedly" or "yell fearfully")

5. Generate variations to find the ideal clip

6. Export and share!

Try OCTAVE's speech-language model and experience an AI voice that truly understands what it's saying.

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🔥 Microsoft denies AI cutbacks?

🚨 Our Report — Yesterday, reports emerged that Microsoft had cancelled two of its leases with US-based data centers and pulled out of several yet-to-be-signed ones, significantly reducing the capacity needed to power its AI projects, which sparked concern within the AI industry over whether the AI boom was starting to waver, however Microsoft has since denied these reports.

🔓 Key Points:

• Analysts’ routine checks had indicated that Microsoft canceled two data center leases because it had overestimated the demand for AI capacity and was, therefore, in an “oversupply position.”

• After the news broke, Microsoft issued a statement denying this, stating that it plans to continue to invest in AI infrastructure “as we continue to grow at a record pace to meet customer demand.”

• It went on to explain that while it might “strategically pace or adjust infrastructure,” it is “strongly refuting any change” to its data center strategy, which included an $80B focus on data centers this year alone.

🔐 Relevance — It’s worth noting that—as we reported earlier this week—it looks like Microsoft might not be OpenAI’s biggest provider of computing power needs and data center support for much longer, as OpenAI builds stronger ties with Japanese tech giant, Softbank, so while Microsoft has vehemently denied the oversupply assumtions, some might say, “there’s no smoke without fire.”

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🪖 Google starting AI coding war?

• Google has released a no-cost version of its AI coding assistant tool—Gemini Code Assist—which was initially designed for Enterprises but is now available, globally, for any developer to use.

• The tool (powered by Google’s latest model, Gemini 2.0) will help student developers, hobbyists, freelancers, and startups “more conveniently learn, create code snippets, debug, and modify their existing applications.”

• This move could be a dig at Microsoft's GitHub CoPilot (a rival AI coding tool) as Google is giving users 90x the usage capacity and 5x the number of requests that the no-cost HitHub Colilot plan is giving.

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TOGETHER WITH INNOVATING WITH AI

💼 Start your career as an AI Consultant

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 600 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

1. Refound: Become the leader your team is waiting for with AI Coaching built on insights from 100,000 leaders ⭐⭐⭐⭐⭐ / 5 (Product Hunt)

2. Content Goblin creates listicle content, including subheadings and images

3. WithoutBG cuts out backgrounds with AI precision

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 27th 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: AlphaSense
Value: $4B
Funding raised: $1.4B (Series F)

AlphaSense, which has over 2,000 clients (including most of the S&P 500 and 70% of the top asset management firms), uses AI to conduct market intelligence research from over 10,000 business data sources, with AI tools that can identify macro and micro insights, track industry trends, and scan company transcripts to identify sentiment.

PODCASTS

How to use Claude 3.7 Sonnet: The world’s 1st hybrid AI model

After Anthropic released its newest model—Claude 3.7 Sonnet—earlier this week, this podcast episode goes into detail about how to use the world’s first hybrid AI model.

QUICK HITS

• Research reveals that 52% of workers are worried about AI

• Perplexity launches $50M seed and pre-seed VC fund

• Anthropic’s hybrid AI model inexpensive to make?

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Until next time, Martin, Liam, and Amanda.

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