DeepSeek's New SPCT Method Is Making Other AI Companies Sweat: Here’s Why Investors Should Pay Attention

Discover how revolutionary advancements in AI are reshaping the landscape and why your investment strategy needs to adapt.

Welcome to this edition of our newsletter, where we explore transformative innovations in artificial intelligence that are sparking significant industry shifts. As DeepSeek unveils its groundbreaking SPCT method, many are left pondering: How will this new technology alter the competitive landscape, and what opportunities does it present for savvy investors? Dive in with us to uncover valuable insights and implications for the future of AI investment.

🚀 DeepSeek Delivers Big

Hey tech enthusiasts! Quick snapshot of today's buzz:

• DeepSeek's latest game-changer: They've published a new research paper titled Inference-Time Scaling for Generalist Reward Modeling, introducing the innovative SPCT method (Self-Principled Critique Tuning) that aims to enhance AI's reward systems.

• Performance upgrade: The implementation of the SPCT method has led to a remarkable accuracy boost with DeepSeek-GRM-27B, soaring from 86.0% to 90.4% in Reward Bench accuracy, outperforming models like LLM-as-a-Judge. This indicates substantial advancements in optimizing reward modeling during inference time, tackling flexibility and accuracy challenges in complex tasks. Read more about this breakthrough here!

• In addition, the trend of an "AI cost collapse" is making waves, decreasing costs and making AI technology more accessible for startups and smaller businesses. This financial relief is set to fuel innovation and competition within the industry, potentially reshaping the market landscape. Learn about the implications here.

• Finally, let's not overlook the insights from former Niti Aayog chief Amitabh Kant, who is urging Indian startups to seize leadership in AI, drones, and electric vehicles (EVs). He highlights the need for India to focus on technological sovereignty and the importance of innovation for the country's future. You can read his thoughts on building a strong deeptech foundation for startups here.

Curious to know what these developments mean for the broader AI landscape? Stay tuned!

💸 The Cost of Innovation

Investors, take note! The phenomenon of AI cost collapse is reshaping the startup arena, making advanced technology more accessible than ever. With rapidly declining costs, driven by significant advancements in AI computing, software, and cloud infrastructure, startups can now innovate and bring competitive products to the market like never before. This transformation is crucial for those eager to stake their claim in the evolving tech landscape.

Cloud giants such as AWS and Microsoft are at the forefront, providing essential tools and scalable solutions that facilitate this newfound affordability. As the barriers to entry lower, we anticipate an environment where more startups are empowered to harness AI, potentially shaking traditional business models to their core. Industry leaders have acknowledged that this shift could lead to intensified competition and also raise vital questions about data privacy and regulatory challenges.

For a deeper dive into how this shift is not just a trend but a revolution in the tech startup ecosystem, check out the full story here.

Additionally, as emphasized by former Niti Aayog chief Amitabh Kant, there's an urgent call for startups to lead in deeptech sectors like AI and electric vehicles (EVs). He stresses the importance of achieving technological sovereignty to foster innovation at home. This aspect highlights the potential for Indian startups to leverage the declining costs to become leaders in AI and related fields. Read more about his insights here.

🌱 Innovate or Imitate?

PSA for Indian startups! With calls from industry leaders like former Niti Aayog chief Amitabh Kant, it's time to embrace your leadership role in AI and electric vehicles (EVs) to achieve technological sovereignty. India's startup ecosystem is thriving, with over 161,000 recognized startups in 2025, marking a significant leap in innovation and entrepreneurship since 2016.

As advancements in AI become more accessible due to the AI cost collapse, which is making technologies more affordable for small businesses, the opportunity for Indian startups to spearhead innovation is greater than ever. The decline in AI costs allows for a fertile ground where new ideas can flourish without the heavy financial burdens that previously hindered growth.

Will you join the ranks of innovators or follow suit? Dive deeper into the insights that can guide your decisions and strategies for a competitive edge in the ever-evolving landscape. Read more about the importance of leading in deeptech sectors like AI from Amitabh Kant here and explore how the shifting dynamics due to AI cost collapse are empowering startups here.