Aug 20, 2025 5 min read Daily Rundown

🛎️ Sand Empire

More Stories: AI Rewires Lending, DeepSeek Drops V3.1

Good Morning, AI Enthusiasts!

New versions drop, new rules emerge, and what looked solid a quarter ago now feels like scaffolding for something else entirely.

LLM

The Turing Laureate Who Thinks Big AI Got Dumb

📌 What’s happening: Richard Sutton—reinforcement learning pioneer, “Bitter Lesson” prophet, and Turing Award winner—says today’s AI boom is off track. Instead of piling tokens into trillion-param LLMs, Sutton pushes Oak (Options and Knowledge): agents that learn by doing, not by memorizing the internet. His recipe: continual learning, world models, planning, and reward-driven abstraction.

🧠 How this hits reality: LLMs are front-loaded with static knowledge; Sutton’s Oak starts empty, builds from scratch, and never stops learning. That means less catastrophic forgetting, more generalizable skills. For labs betting billions on GPU-fuelled pretraining, his critique is existential: they’re optimizing for demos, not durable intelligence.

🛎️ Key takeaway: Sutton’s not just throwing shade—he’s saying the LLM empire is architected on sand, while real intelligence demands roots that grow, not weights that bloat.

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BANKING

Casca AI Rewires Small-Bank Lending

📌 What’s happening: Casca just pulled in $29M Series A to scale its AI-native loan origination platform. The pitch: process loans 10x faster than fintechs, 30x faster than banks, while cutting 20 hours of grunt work per officer. Local banks suddenly get fintech speed without fintech burn.

🧠 How this hits reality: This isn’t “AI for efficiency”—it’s a moat-breaker. By automating credit checks, document intake, and even customer conversations, Casca hands community banks the weapons they need to keep borrowers from defecting to JPMorgan or Stripe Capital. The back-office bottleneck—where most banks quietly bleed customers—just got industrially crushed.

🛎️ Key takeaway: Casca isn’t selling software—it’s arming small banks with fintech-grade artillery. And once borrowers taste instant credit, nobody’s waiting three weeks again.

NEW LAUNCH

DeepSeek Drops V3.1

📌 What’s happening: DeepSeek just pushed V3.1 live: bigger context, same mystery box. No benchmarks, no routing system, no multimodal flex — just “look, it reads more tokens now.” Meanwhile GPT-5 and Claude 4.1 are shipping orchestration layers, hybrid reasoning, and enterprise-grade 200K–1M windows.

🧠 How this hits reality: For founders and operators, this isn’t a playbook rewrite — it’s a lagging feature check. Teams betting on DeepSeek won’t get the agentic tooling, safety rails, or enterprise integrations rivals already normalized. Translation: if you’re deploying at scale, you’re still buying OpenAI or Anthropic licenses while DeepSeek plays catch-up.

🛎️ Key takeaway: DeepSeek isn’t redefining the curve — it’s studying last semester’s syllabus.

QUICK HITS

Meta launches an AI-powered translation and lip-syncing feature for creators on Instagram and Facebook, starting with English and Spanish.
DeepSeek-R1 is losing momentum in India as it struggles with a lack of local language support, operational complexity, and intense competition.
A majority of Californians are concerned about the future of AI and believe the technology is progressing too quickly, a new poll finds.
A new study suggests doctors' ability to spot colon abnormalities declines after using AI assistance, raising concerns about over-reliance on the technology.
The AI talent race is splitting, with big tech buying top experts while startups prioritize recruiting for cultural fit and adaptability.

TRENDING

Daily AI Launches

April launched a voice AI executive assistant for hands-free management of your email and calendar.
ElevenLabs released its Eleven Music API for integrating high-quality AI music into any product or workflow.
Chance AI launched an Android app that acts as a visual agent, using your camera to provide meaningful insights about the world.
AutonomyAI launched Fei, an autonomous AI engineer that writes production-grade code following your team's existing codebase and standards.

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