AI Innovators, Gather Round

DeepSeek’s rapid rise in the AI industry has hit a roadblock as the Chinese startup faces a cyberattack amid soaring user adoption. Meanwhile, its disruptive presence continues to rattle markets, with Nvidia and other major tech stocks taking a hit. In the media space, ABC News has agreed to AI protections for writers, ensuring safeguards in its latest contract negotiations. At the same time, Meta AI is expanding its personalization capabilities by leveraging Facebook and Instagram data to refine user interactions.

Let’s Dive In ! 🥽

In today’s knowledge-packed edition: 

• Introducing the First-Ever AI Command Center - Now Open to the Public

• DeepSeek hit by cyberattack as users flock to Chinese AI startup

• What is DeepSeek, and why is it causing Nvidia and other stocks to slump?

• ABC News Agrees to AI Protections for Writers in Latest Contract

• Meta AI can now use your Facebook and Instagram data to personalize its responses

• Top 5 AI CRM Tools to Supercharge Your Customer Relationships

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🥷DeepSeek Hit by Cyberattack as Users Flock to Chinese AI Startup

Chinese AI startup DeepSeek temporarily limited new user registrations following a cyberattack, just as its AI assistant surged in popularity, becoming the top-rated free app on Apple’s U.S. App Store. 

Earlier, its website also experienced outages, marking its longest downtime in 90 days. DeepSeek’s low-cost, data-efficient AI model has shaken Silicon Valley, raising concerns over U.S. AI dominanceand the effectiveness of Washington’s chip export bans. 

The startup claims it trained its DeepSeek-V3 model using Nvidia’s H800 chips for under $6 million, sparking debate over China’s growing AI capabilities. Meanwhile, DeepSeek’s rise contributed to plummeting tech stocks, including Nvidia and Oracle, as investors reacted to its disruptive potential.

🤔What is DeepSeek, and Why Is It Causing Nvidia and Other Stocks to Slump?

Chinese AI startup DeepSeek has shaken up the AI industry, delivering ChatGPT-level performance at a fraction of the cost—just $6 million compared to the billions spent by OpenAI, Google, and other U.S. tech giants. 

This breakthrough has rattled investors, fueling concerns that AI development could be far cheaper and more efficient than previously thought. The impact? A $600 billion drop in Nvidia’s market value—the largest single-day loss in U.S. stock market history—alongside steep declines for other AI and energy stocks.

Beyond its low-cost, high-efficiency approach, DeepSeek’s use of export-controlled Nvidia H800 chips has raised questions about the effectiveness of U.S. sanctions on China’s AI capabilities. 

Meanwhile, its data collection policies, which store user information on Chinese servers, are drawing concerns similar to those around TikTok’s national security risks.

With Wall Street scrambling to reassess the future of AI investments, analysts remain divided: Is DeepSeek an actual threat to U.S. AI dominance, or is the market overreacting?

🪬ABC News Agrees to AI Protections for Writers in Latest Contract

ABC News’ unionized writers, represented by the Writers Guild of America East (WGAE), have ratified a three-year contract that includes new safeguards against generative AI in the newsroom. Under the agreement, AI cannot be used to lay off staff, and management must give advance notice if AI systems become a required part of employees’ jobs. Additionally, ABC News must negotiate AI’s impact with the union and hold semi-annual meetings to review its usage.

Beyond AI protections, the contract includes minimum annual pay raises of 3.5%, a 17% salary increase for desk assistants in year one, enhanced health benefits, and paid parental leave for temporary employees. It also introduces Juneteenth as a recognized holiday and requires crediting writers whose work is repurposed on streaming platforms.

The WGAE called these AI protections “groundbreaking”, emphasizing the importance of journalists being safeguarded in their workplaces as AI adoption expands.

📊Meta AI Can Now Use Your Facebook and Instagram Data to Personalize Its Responses

Meta is rolling out new memory features for Meta AI on Facebook, Messenger, and WhatsApp in the U.S. and Canada, allowing the chatbot to remember user preferences like dietary restrictions, travel interests, and hobbies. 

This means if a user previously mentioned being vegan, Meta AI will factor that into future meal suggestions. Users can delete stored memories at any time, and memory won’t apply in group chats.

Additionally, Meta AI will now pull data from across Meta’s platforms, including Facebook profile details and Instagram activity, to offer personalized recommendations. 

Meta CEO Mark Zuckerberg highlighted how this helps with creative tasks, like generating bedtime stories tailored to users’ interests.

However, the update comes with controversy—users cannot opt out of this data collection, raising concerns given Meta’s history with privacy issues. 

While Meta is promoting these changes as enhancing user experience, skepticism remains about how the company handles personal data.

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