DeepSeek releases disruptor upgrade?

Wednesday’s AI Report

• 1. 💣 DeepSeek releases disruptor upgrade?
• 2. 💼 In partnership with Innovating with AI
• 3. 🖼️ OpenAI replaces DALL-E!
• 4. 🧠 Google next to release reasoning model 
• 5. 🔒 In partnership with Incogni
• 6. ⚙️ Trending AI Tools
• 7. 🏗️ Practical AI Applications
• 8. 📑 Recommended Resources

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DeepSeek releases disruptor upgrade?

🚨 Our Report 

Chinese AI start-up, DeepSeek, has released a major upgrade to the AI model behind R1—its advanced reasoning model which was released in January and matched/exceeded the performance of OpenAI’s reasoning models—called V3-0324, which reportedly features “significant improvements” to its predecessor, across several benchmarks.

🔓 Key Points

• The latest update includes improvements in its reasoning, coding abilities, and Chinese writing and search proficiency, with “enhanced report analysis,” which highlights DeepSeek’s rapid pace of improvement.

• Reportedly, the improvements bring R1 up to the same performance standard as OpenAI’s GPT-4o and Anthropic’s Claude 2 models, but it runs with less computational power, making it significantly cheaper.

• While training AI models has always been expensive, with the likes of OpenAI and Google allocating huge budgets to it and forming key partnerships to help fund it, DeepSeek has shown there’s an alternative way.

🔐 Relevance 

When R1 was released in January, it sparked a massive decline across most US tech stocks—with NVIDIA experiencing the biggest single-day loss in history—making analysts question whether DeepSeek’s latest upgrade might trigger something similar, although since it launched, R1 has been banned from US federal devices (after R1 was linked to a Chinese state-run company) and the Trump administration is reportedly considering restricting public access amid reports that “threat actors are already exploiting DeepSeek to deliver malicious software and infect devices.”

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🚨 Our Report

OpenAI has integrated an upgraded AI image generator directly into ChatGPT and text-to-video model, Sora (called “Images in ChatGPT”), effectively replacing its original text-to-image model, DALL-E, which marks the first major update to ChatGPT’s image-generation capabilities in over a year.

🔓 Key Points

• ‘Images in ChatGPT’ is powered by OpenAI’s reasoning model, GPT-4o, so it has better world knowledge and contextual understanding, meaning it can create/modify more accurate and detailed images and photos.

• Although it will “think” for longer before creating an image, it will understand contextual prompts and it will also produce coherent and accurate text within images, something AI image generators struggle with.

• OpenAI has openly confirmed that to power the new image generator, it trained it on “publicly available data” and proprietary data from its partnerships with companies like Shutterstock.

🔐 Relevance

Although many AI companies, including OpenAI, usually prefer to keep what data they used to train their AI models close to their chests, OpenAI has chosen to reveal its training data sources because it wants to respect “artists’ rights,” and has confirmed it has “policies in place” that prevent it from generating images that “directly mimic any living artists’ work,” as they continue to battle several ongoing copyright lawsuits.

• Google has become the latest to announce a family of AI reasoning models—Gemini 2.5—that can “think” before they answer a question, starting with Gemini 2.5 Pro which it believes is its “most intelligent model yet”

• Alongside the launch of Gemini 2.5 Pro, Google also confirmed that any new AI model it now releases will have reasoning capabilities, and will fact-check and think through problems before replying.

• Although it did release a “thinking” version of Gemini last year, Gemini 2.5 represents a bigger attempt at beating its rivals (including OpenAI, DeepSeek, and Anthropic) which have already released reasoning models.

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Prompt Inspiration

After typing this prompt, you will get suggestions for a website interface and features that will improve the user experience and help you reach your business goals.

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We often get asked what our favorite AI tools are and how we use them…

This week, we’d like to introduce you to Gamma.

Gamma is a design tool that uses AI to create presentations, documents, and web pages without the need for complex design skills. 

How does it differ from Canva?

Gamma uses natural language prompts to create effective, interactive design assets that are on-brand. It has built-in analytics and customizable templates and also integrates with everyday tools like Google Drive, Slack, and Squarespace.

➕ Top 3 positives

• Intuitive, easy-to-use interface

• Built-in performance analytics

• Real-time collaboration features for seamless teamwork

➖ Top 3 negatives

• Complex pricing structure

• It can be difficult to use the advanced AI features

• No public API access

Use case

We like to use Gamma to create pitch decks: We input the key points and it automatically creates a clean, professional, branded presentation template with a slide structure and appealing visuals. Although it also generates concise text points for each slide, because the design is taken care of, we can focus more on refining our key messaging.

We have a library of AI-powered tools—like Gamma—that come personally tested and recommended by us.

STARTUPS

Name: Deepnote
Value: $80M— $120M
Funding raised: $23.8M (Series A)

Deepnote is an AI-powered digital notebook and collaboration platform—used by companies such as Webflow, Gusto, and Coca-Cola—that has an AI assistant that gives users code suggestions and explanations, and allows data science teams to connect their data, make real-time collaborative edits, and share their notes with others

PODCASTS

The $17M Startup That’s Reshaping Web Interactions

This podcast episode explores the groundbreaking AI agentic startup—Browser Use—and unpacks how AI agents function, the role of web scraping, and the evolving landscape of AI agent optimization, highlighting how Browser Use could transform how AI interacts with websites.

QUICK HITS

• Microsoft adds ‘deep reasoning’ Copilot AI

• Earth AI’s algorithms find unknown, critical minerals

• Apple will use Maps ‘Look Around’ photos to train AI

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