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With AI development costs skyrocketing, DeepSeek AI is proving that bigger budgets don't always mean better models. This fast-rising Chinese startup is shaking up the industry with its R1 model, trained in just 55 days, and delivers OpenAI-level performance at a mere fraction of the cost.
The ripple effects on the tech world and the economy are impossible to ignore. Now, competitors are being forced to rethink their strategies, raising a ton of questions about the sustainability of some of AI’s biggest players.
Make no mistake: the buzz is real.
Companies like Perplexity and Amazon Web Services (AWS) have wasted no time integrating R1 into their products, proving that DeepSeek is not being taken lightly.
DeepSeek’s overnight rise to prominence isn’t just another overblown AI headline. It’s a signal that AI is rapidly becoming a commodity, challenging the AI moats we’ve seen develop in recent years.
In issue 30 of The Grip, we break down everything you need to know about the DeepSeek drama, its impact on the AI market, and whether marketers should actually care about any of this.
Other stories from this issue include:
👉 The Microsoft 365 Copilot Launch was a Total Disaster
👉 Google Shares Insight On SEO For AI Overviews
👉 Perplexity AI Updates Its Offer for TikTok US
👉 DeepSeek AI Joins Perplexity AI Challenging U.S. AI Dominance
👉 Novo Nordisk Wins FDA Approval for Ozempic in Kidney Disease
All this and more in issue 30 of The Grip!
I Can’t Believe That’s a Keyword
Using Semrush, we hunt down bizarre (and totally real) search queries and try to answer them.
This Week’s Keyword: Is Yoga Evil?
Avg. Monthly Search Volume: 320
Answer: If yoga is evil, does that make my wife a witch? 🧙🏻♀️
Top Stories We’re Tracking
Essential marketing and healthcare headlines of the week.
What Is China’s DeepSeek and Why Is It Freaking Out the AI World?
DeepSeek AI, a Chinese AI startup founded in 2023, has disrupted the global AI market by developing advanced, efficient generative AI models at a fraction of the cost of its U.S. competitors. These models, like the DeepSeek R1, are large language models (LLMs) designed to rival OpenAI’s GPT series, offering high performance while being open-source and cost-effective.
Ok, now that we got the origin story out of the way (again), we can dive into the action:
What Makes DeepSeek Different From Other Models?
Unlike ChatGPT and Meta's LLaMA, which are mostly closed-off and expensive to train, DeepSeek’s models are fully open-source, allegedly built with fewer resources, and far more cost-efficient. They’re also designed to “think out loud” using chain-of-thought reasoning, making their responses more structured and transparent. It basically shows you how it got to an answer instead of just giving you one.
How Did DeepSeek Pull This Off?
DeepSeek used “distillation” - a method where smaller AI models learn from the outputs of larger ones to train their models more efficiently.
OpenAI is pouting and making allegations that DeepSeek used ChatGPT data in this distillation process, which DeepSeek denies. Wait… the company that built a fortune off scraping the internet without permission is now crying theft? Pot, meet kettle.
Why is Everyone Freaking Out?
NVIDIA aka the company that has profited the most from the AI boom, saw its stock plummet by 17% earlier this week. They're worried because DeepSeek has allegedly demonstrated that high-end AI models can be trained with significantly less hardware, potentially reducing demand for gobs of NVIDIA’s expensive GPUs.
Google, Meta, and OpenAI are feeling the pressure as DeepSeek’s efficiency threatens their efforts with a cheaper, open-source alternative. This comes at a time when OpenAI, the frontier AI leader, tries to introduce higher-priced products as it struggles to turn a profit.
And, of course, the U.S. government as a whole isn't happy because it has spent years trying to slow China’s technological advancements, but DeepSeek’s rise shows that China is might be catching up quickly. Recent government investments in AI may be overestimated in value if DeepSeek has truly made AI development far more cost-effective.
Should Marketers Care?
Yes, but not because they need to switch AI models. DeepSeek’s rise highlights a bigger shift: generative AI is becoming a commodity. It’s not some exclusive tool or inherent competitive advantage; it’s everywhere, in everything, and will get cheaper, especially since most people don't want to pay for it.
That’s why Jensen "Leather Lord" Huang's quote: “AI is not going to take your job. The person who uses AI will. Use AI as fast as you can, so that you can stay gainfully employed” was nothing more than a cute soundbite that bedroom gurus on LinkedIn milked for "likes."
The reality? Everyone will use AI, whether they want to or not. It’s embedded in everything from our iPhones to our bird feeders and of course, our business tools. The idea that "using AI" is what gives someone an edge is outdated. Is it important and useful? Of course. But the real differentiator is and will always be strategy.
📄 Read Article (Source: Yahoo Finance)
The Microsoft 365 Copilot Launch was a Total Disaster
Microsoft recently increased the price of its Microsoft 365 subscriptions by 30%, rebranding the product as Microsoft 365 Copilot and attributing the hike to the integration of AI features. However, the rollout has been widely criticized for poor communication, lackluster implementation of AI tools, and forcing customers to pay more for features that many find unnecessary or underwhelming. Didn't we just say that most people don't want to pay for this?
Aside from earning more, Microsoft can inflate its Copilot usage numbers for optics - a win/win for them, really.
This move raises broader concerns about the sustainability of heavy AI investments by companies like Microsoft, which already face pressure from shareholders to justify unprofitable ventures. The significant price increase, combined with lackluster AI functionality and poor customer communication, risks alienating customers and fueling skepticism about the value of AI-driven enhancements in subscription services.
📄 Read Article (Source: ZDNET)
Google Shares Insight On SEO For AI Overviews
Google’s John Mueller discussed the evolving role of SEO in the age of AI search, emphasizing that while SEO is changing, it remains essential. He highlighted the continued importance of technical SEO, particularly for AI-driven search models, and urged marketers to move beyond simply chasing clicks. Instead, he encouraged a shift toward providing real value, aligning SEO with broader marketing strategies rather than treating it as a siloed traffic driver.
Industry experts echoed this sentiment, stressing that SEOs need to embrace full-funnel marketing and adapt to changing user behaviors. As AI search prioritizes direct answers over website visits, traditional tactics focused solely on rankings and clicks are becoming less effective.
📄 Read Article (Source: Search Engine Journal)
Perplexity AI Updates Its Offer for TikTok US
The battle for TikTok's U.S. operations is intensifying, with Perplexity AI revising its takeover bid to align with Trump’s vision. Their latest proposal suggests the U.S. government could own up to 50% of TikTok U.S. following a future IPO, echoing Trump’s earlier comments on government involvement in the app’s future.
Several key players, including Oracle, Microsoft, Elon Musk, and investor-led consortiums featuring MrBeast and Kevin O’Leary, are also in the mix. However, a deal must not only comply with the sell-off bill but also address China’s refusal to sell TikTok’s prized algorithm. With the April deadline approaching, the fate of TikTok U.S. remains uncertain.
📄 Read Article (Source: Social Media Today)
DeepSeek Joins Perplexity AI Challenging U.S. AI Dominance
DeepSeek AI, a Chinese open-source AI model, is making waves as major international AI companies, including U.S.-based Perplexity AI, begin integrating its technology. Perplexity AI has incorporated DeepSeek’s R1 reasoning model to enhance its AI-powered search capabilities, allowing for deeper web searches with improved accuracy and efficiency. Utilizing a Mixture-of-Experts (MoE) architecture, R1 reduces computational costs while performing on par with models like OpenAI’s GPT-4o, making it a cost-effective alternative.
With all data processing kept on U.S. and EU servers, Perplexity ensures compliance with Western security standards. DeepSeek’s expansion challenges U.S. AI dominance and highlights a growing trend of global AI collaboration, paving the way for more open-source innovation.
📄 Read Article (Source: Forbes)
Novo Nordisk Wins FDA Approval for Ozempic in Kidney Disease
The FDA has expanded Ozempic’s approval to include reducing the risk of kidney disease progression, kidney failure, and cardiovascular death in Type 2 diabetes patients with chronic kidney disease. This makes Ozempic the first GLP-1 receptor agonist approved for CKD, further solidifying its position as the most broadly indicated drug in its class. The approval follows strong phase 3b FLOW trial data showing a 24% reduction in kidney-related risks and additional benefits in cardiovascular health and overall mortality.
With CKD affecting 37 million U.S. adults, Novo Nordisk continues to expand Ozempic’s reach while also exploring new indications for semaglutide, including heart failure and Alzheimer’s disease. The company’s GLP-1 franchise, encompassing Ozempic, Rybelsus, and Wegovy, remains a dominant force in the market, generating billions in sales and maintaining steady supply despite ongoing high demand.
📄 Read Article (Source: Fierce Pharma)
Our Latest Podcasts
Recent episodes of the podcasts that we produce.
Revolutionizing Agriculture One Seed at a Time with Ponsi Trivisvavet from Inari Agriculture
The global food system faces an unprecedented challenge: producing 50% more food by 2050 using today's available land.
On the AWS Health Innovation Podcast, Yin He, Principal of Business Development for Healthcare & Life Sciences Startups, explores this critical issue with Ponsi Trivisvavet, CEO of Inari - Conseils en agriculture urbaine.
Learn how this innovative company is revolutionizing agriculture through AI-powered predictive design and advanced multiplex gene editing to create more efficient, sustainable crops.
What We’re Listening To
New music that has been inspiring us.
Vincent's Pick: make 2nite - FLOAT 014
My first DJ mix of the year brings all the energy you'll need for the next 11 months. Picking up where FLOAT #013 left off, this new mix pulls weaves together another collection of deep underground house - but this time, it's turned up to 11. Dare I say this just might be my favorite deep house mix I’ve made to date? If you're looking for pick-me-up, FLOAT 014 won't disappoint.
Sal's Pick: As Long As It Leads to Me - Fly By Midnight
The perfect driving song is hard to find, but when it comes along, it transforms every late-night drive. As Long As It Leads to Me by Fly By Midnight has quickly become my go-to whenever I am behind the wheel. Its soft indie punk vibes create a sense of calm and let me get lost in my thoughts. My playlists are constantly evolving but something tells me this one is here to stay.
Thanks for reading! See you next week! 👋
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