📱 DeepSeek becomes #1, beating ChatGPT

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☀️ On this day: On January 27, 2010, Apple CEO Steve Jobs unveiled the iPad at the Yerba Buena Center for the Arts in San Francisco. This groundbreaking tablet bridged the gap between smartphones and laptops, with its sleek design and innovative functionality influencing the future of personal computing.

What’s happening:

• 📱 DeepSeek becomes #1 free app, beating ChatGPT

• 💥 Microsoft 365 Copilot launch: A total disaster

• 🤝 Perplexity proposes TikTok merger with U.S. stake

• 💰 Banks to sell Musk’s X debt at a discount

• 🎥 Netflix wins the streaming wars, but at a cost

• + 📊 Daily poll and results

• + 📈 Trending tools and resources

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Hand-picked news:

📱 DeepSeek becomes #1 free app, beating ChatGPT ↗️LINK

• What: Chinese AI startup DeepSeek’s chatbot surpassed ChatGPT as the top free app on Apple’s US App Store. Its R1 reasoning model, launched on January 20, matches industry benchmarks at a fraction of the cost and compute, using only 2,000 Nvidia chips versus the 16,000 typically required for leading models.

• Why: DeepSeek’s efficient approach challenges the compute-heavy strategies of Nvidia, OpenAI, and Microsoft. It underscores the possibility of creating competitive AI models without relying on massive chip investments, raising questions about the $500B poured into data centers by tech giants.

• Impact: Nvidia shares dropped over 12% pre-market, with Microsoft and other key players also seeing declines. If DeepSeek’s claims hold, it could reshape the economics of AI development and threaten the dominance of traditional US-based AI firms.

💥 Microsoft 365 Copilot launch: A total disaster ↗️LINK

• What: Microsoft rebranded its Office 365 app as Microsoft 365 Copilot, adding AI features and implementing a 30% subscription price increase without warning. The rollout has faced overwhelming backlash from its 84 million subscribers globally.

• Why: Customers criticize the sudden price hike and underwhelming AI functionality, with many citing poor communication and lack of consultation. The rebranding failed to address user concerns, reminiscent of Microsoft’s flawed Recall feature rollout.

• Impact: Negative reactions across forums suggest damaged trust and potential cancellations. Microsoft risks alienating loyal users and must address concerns to recover from this reputational misstep.

🤝 Perplexity proposes TikTok merger with U.S. stake ↗️LINK

• What: Perplexity AI has revised its proposal to merge with TikTok U.S., creating a new entity called "NewCo." The plan allows the U.S. government to own up to 50% of the company post-IPO, excluding TikTok’s core recommendation algorithm, which ByteDance would retain.

• Why: The merger aims to address U.S. national security concerns tied to TikTok’s Chinese ownership while allowing ByteDance to maintain partial control. Perplexity hopes the structure of a merger, rather than a sale, will increase the proposal’s appeal.

• Impact: If accepted, the deal could resolve TikTok’s regulatory challenges in the U.S. while reshaping its ownership and governance. With multiple parties reportedly negotiating TikTok’s future, the next steps remain uncertain.

💰 Banks to sell Musk’s X debt at a discount ↗️LINK

• What: Morgan Stanley and other banks plan to sell $13 billion in debt tied to Elon Musk's purchase of X at a discounted rate of 90-95 cents on the dollar. Originally used to finance Musk's $44 billion acquisition, the debt has lingered amid market volatility and X's financial instability.

• Why: X has faced challenges since Musk's takeover, including stagnant user growth, unimpressive revenue, and advertiser departures over concerns about platform content. Musk has acknowledged these issues but emphasized X’s influence on public discourse.

• Impact: Discounted debt sales reflect ongoing skepticism about X’s financial recovery. Controversies surrounding Musk, including perceived political gestures, may further deter advertisers, complicating X’s path to profitability and stability.

🎥 Netflix wins the streaming wars, but at a cost ↗️LINK

• What: Netflix has cemented its place as the leader in streaming, boasting 302 million subscribers and a slate of blockbuster originals, live sports, and reality shows. However, a new $2.50 price hike for its ad-free plan, now $17.99, has drawn attention to its growing costs for consumers.

• Why: With unmatched cultural influence and high engagement rates, Netflix raises prices simply because it can. It’s testing how much users are willing to pay while pushing subscribers toward its more profitable ad-supported plans.

• Impact: As Netflix solidifies its dominance, it increasingly mirrors the cable bundles it once disrupted. Viewers benefit from diverse content but face rising costs, signaling a shift back to expensive, all-in-one entertainment models.

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Today’s Poll:

Vote and find out about the result tomorrow.

Yesterday’s Poll Result:

Does the rise of DeepSeek signal a shift in global AI leadership toward China?

• A) Yes – This could mark a turning point - 61% 🏆

• B) No – The U.S. and its allies will maintain leadership - 39%

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