This week’s developments show that AI’s future is being shaped not just by models and hype — but by open-source competition, financial scrutiny, and real-world applications in science and manufacturing. Today’s edition spotlights a global shuffle in AI strategy and investor sentiment.
Here are our key takeaways:
A major Chinese startup releases a powerful open-source AI model — underscoring China’s push to democratize AI.
U.S. stock markets enter a cautious phase as investors await clues about real profits from AI companies.
In East China, Zhejiang’s Qiantang District unveils a new “AI-Plus” pharmaceutical hub, using AI to accelerate drug innovation and manufacturing.
Join us at AI Tangle as we untangle this week's happenings in AI!
JOIN US AT AI-GO-TO MARKET ON DECEMBER 3
AI for GTM is a one-day working session built for marketing, revenue, and operations professionals who need results, not rhetoric. On Wednesday, Dec 3, in Durham, NC, you’ll learn from real operators: Greg Boone (Walk West), Marc Sirkin (ex-Third Door Media), and Mark Hinkle (Peripety Labs / All Things AI) as they show how to wire AI into your go-to-market motion for pipeline, conversion, retention, and efficiency.
Bring your laptop. Leave with outcomes.
zDate: Wednesday, December 3, 2025
Time: 9:00 A.M. – 5:00 P.M.
Location: Durham Armory, Durham, North Carolina
THE BIG AI STORY
China’s DeepSeek releases a powerful open-source AI model — and the global AI race shifts again
In a bold statement of ambition, Chinese company DeepSeek unveiled a new open-source AI model just as global attention is focused on proprietary systems like Gemini 3. The release underscores a growing push by Chinese firms to build accessible, cost-effective alternatives — a strategy aimed at reducing dependence on Western compute and cloud infrastructure.
Why this matters:
Open-source models from China could decouple many global AI efforts from major Western cloud providers and chip vendors — lowering entry barriers for startups worldwide.
As more developers gain access to high-performance models at minimal cost, the landscape for building AI apps becomes more competitive and democratized.
For enterprises, open-source alternatives may offer better control, cost-efficiency, and geopolitical resilience — especially important in regions with trade or regulatory uncertainty.
Big takeaway: The AI race is no longer monopolized by a few elite labs — open-source waves from China are reshaping global AI accessibility and competition.
3 QUICK HITS
With tech markets hovering, investors are now watching AI companies closely for real signs of profit, not just growth potential. A Reuters analysis warns the next earnings season could be a turning point for AI valuations — and not necessarily a positive one. Cloud-heavy, compute-intensive firms may feel the squeeze before they deliver on futuristic promises.
In East China, the provincial government green-lit an “AI-Plus” initiative in the Qiantang District focusing on biomedical engineering and drug discovery — using AI to accelerate testing, streamline manufacturing, and improve research throughput. The plan signals a growing trend: applying AI not just to software but to high-stakes real-world problems in health and manufacturing.
Beyond just DeepSeek, multiple AI players globally are ramping up efforts to open-source their models — a trend that could decentralize model ownership, enable local compute solutions, and spark innovation across smaller markets. As compute barriers drop, expect a surge in niche, region-specific AI applications that aren’t tied to major cloud ecosystems.
3 AI TOOLS
Antigravity (by Google) — The new AI-first IDE from Google, released alongside Gemini 3, is designed to let developers delegate coding tasks to AI agents and build more complex systems with less manual labor.
Open-source model packages on GitHub/Hugging Face — Developers worldwide can now access DeepSeek’s new open-source model for free, lowering the bar for building AI apps globally.
Luma Labs’ new Dream Machine generates ultra-realistic video from text, images, or motion cues — and early demos show Hollywood-level camera movements, lighting, and physics. It’s positioned as a direct competitor to Sora and Runway, but more creator-friendly.
MORE FROM THE ARTIFICIALLY INTELLIGENT ENTERPRISE NETWORK
🎙️ AI Confidential Podcast - Are LLMs Dead?
🎯 The Artificially Intelligent Enterprise - Google Gemini 3 and the Two-Platform AI Market
🔮 AI Lesson - Use ChatGPT Connectors to Work Smarter Across Systems
🎯 The AI Marketing Advantage - Agentic Marketing Gets Real — Meet MoAI, the All-in-One AI Ad & Creative Suite
💡 AI CIO - Fresh Minds Outsmart the Experts
📚 AIOS - This is an evolving project. I started with a 14-day free AI email course to get smart on AI. But the next evolution will be a ChatGPT Super-user Course and a course on How to Build AI Agents.
AI EXTRA READ
The AI Engineer Awakening: How Agentic Systems Are Quietly Becoming the New Workforce (4-min read)
A breakthrough long-form feature exploring how autonomous AI agents are beginning to chain tasks, collaborate, self-correct, and complete end-to-end workflows — from software development to logistics. Researchers argue this is the most important shift since GPT-4, and early results suggest AI agents may reshape labor economics faster than predicted.
OPEN-SOURCE SPOTLIGHT
If you’re building with LLMs, this is one resource you don’t want to miss. The awesome-llm-apps repository is quickly becoming one of the most comprehensive collections of real-world LLM applications — from AI agents to RAG systems — built with OpenAI, Anthropic, Gemini, and leading open-source models.
It’s recently been updated with a significant number of new examples and use cases, and the project is now on its way to 100,000 GitHub stars.
Check it out, star it, and save it for your next build.
Your AI Sherpa,
Mark R. Hinkle
Publisher, The AIE Network
Connect with me on LinkedIn
Follow Me on Twitter
