DeepSeek AI Thrusts Us Into a Golden Age of Human Innovation

Working to help leaders understand the principal importance of human behavior in their operations and to harness it for increased productivity and alpha has been my life’s work for the last three decades. However, today’s economy and the coming decade, literally feel like the start of the game I have been waiting to play my entire career with my client network of market makers and capital allocators driving impact in the world and their portfolio.

In the last 48 hours, a signal to the market got sent by DeepSeek AI’s surprising and rapid emergence from obscurity to #1 across all the app stores has validated the importance of building a resilient operating system for your people running the day-to-day operations inside of your portfolio.

Human Resilient Operating Systems for a Disruptive Economy

The rapid rise of DeepSeek, a Chinese AI startup that shattered records this month with its open-source, cost-efficient AI model, DeepSeek-R1, is a wake-up call for wealth managers, family offices, and private equity leaders. Developed for under $6 million in two months and rivaling OpenAI’s ChatGPT (developed over 10 years for $500B) in performance, DeepSeek-R1 has commoditized large language model (LLM) intelligence at an unprecedented scale. For venture capital and private equity managers, this innovation signals a seismic shift in the market landscape while in the short term a complete repricing (-$1T+ lost yesterday) of the previous status quo.

But beneath the headlines lies a deeper challenge: cognitive overload. The pace of technological disruption, combined with an endless stream of breakthroughs like DeepSeek, is overwhelming for even the most seasoned decision-makers. As investors and leaders, we must ask: How can our teams and portfolio companies thrive in an environment where the only constant is change?

The Disrupt or Die Mandate

DeepSeek’s breakthrough is not just a story about AI; it’s about the democratization of innovation. By open-sourcing its high-performing model, DeepSeek has made cutting-edge AI accessible to small businesses and lean startups that once lacked the resources to compete with industry giants. This move has unleashed a wave of experimentation and creativity, challenging traditional business models and reshaping markets. With infinite innovation now fully commoditized, the portfolio of the future has one sustainable differentiator left for value creation and that is the customer experience. As my friend and partner Chris J Snook says in his book Digital Sense "The Customer IS the Asset" and “Technology Just IS…”

For family offices and private equity firms, this is both a challenge and an opportunity. The disruptive new economy demands more than financial capital — it requires systems that cultivate adaptability, curiosity, and lifelong learning across your teams and portfolio companies. The days of static playbooks are over. Your success will be defined by how well you navigate this era of relentless innovation.

Building a Resilient Operating Playbook

To remain competitive, investors must ensure that their operations and portfolio companies are equipped to thrive in this disruptive landscape. Here are three pillars to consider as you evaluate the human side of your business architecture in the golden age of innovative portfolio management:

1. Cultivate a Community of Lifelong Learners

The speed of innovation means that yesterday’s knowledge is quickly outdated. Building a culture that values continuous learning and experimentation is no longer optional—it’s essential. Encourage your teams to explore new technologies like DeepSeek’s open-source AI and integrate them into their operations. Equip them with the tools and time to stay ahead of the curve, fostering a mindset of curiosity and growth.

Action Step: Invest in ongoing education programs, innovation labs, and cross-functional training that empower your teams to experiment and innovate without fear of failure.

2. Encourage Curiosity and Experimentation

DeepSeek’s success highlights the value of efficient, creative problem-solving over brute computational power. The same principle applies to your operating playbook. The ability to adapt and iterate quickly will separate winners from losers in the disruptive economy.

Action Step: Create systems that reward experimentation and calculated risk-taking. Pilot new tools like AI-driven customer insights or operational efficiencies within controlled environments to test their impact.

3. Invest in Infrastructure for the Economy of Tomorrow

DeepSeek is a reminder that the future isn’t just coming—it’s already here. Wealth managers and family offices must take the lead in building infrastructure that supports their people, processes, and portfolio companies in the face of disruption. This includes integrating scalable AI solutions, leveraging data for decision-making, and cultivating partnerships that align with the new economy.

Action Step: Prioritize investments in businesses and technologies that enable adaptability, such as AI, blockchain, and cybersecurity. Build systems that not only generate returns but also future-proof your portfolio.

Why This Matters

DeepSeek’s meteoric rise is more than a technology story — it’s a call to action. In this era of cognitive overload, leaders must create environments that empower their teams and companies to thrive amidst disruption. By cultivating lifelong learners, encouraging experimentation, and investing in forward-looking infrastructure, you can position your wealth, teams, and portfolio companies for sustained success.

The disruptive economy isn’t waiting for anyone. The question is: Will your organization adapt and lead, or will it fall behind?

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Sources

[1] DeepSeek Chinese AI chatbot sparks market turmoil for rivals [2] DeepSeek's latest model suggests AI expertise may surpass computing needs [3] What is DeepSeek? The Chinese OpenAI rival sparking chaos in tech markets [4] DeepSeek AI: What you need to know about the ChatGPT rival [5] DeepSeek’s AI Breakthrough: Global Impact on Tech Stocks [6] What is DeepSeek? China ChatGPT rival rattles Nvidia, AI stocks [7] AI Investment Potential Undeterred By DeepSeek News [8] Chinese AI Startup DeepSeek Shakes up Silicon Valley, Wall Street [9] How DeepSeek's origins explain its AI model overtaking US rivals [10] DeepSeek AI disruption will 'radically shift costs down' says Moor [11] What is DeepSeek? Here's a quick guide to the Chinese AI company [12} www.chrisjsnook.com Digital Sense (Wiley 2017) Snook, Chris J and Wright, Travis