Future+ Fridays | Issue49

1. Deepseek, the Chinese competitor to Chatgpt, at the centre of this week's debate

What's happening: The AI battle is heating up. DeepSeek, a cutting-edge Chinese LLM developed at a highly cost-effective $6 million (compared to ChatGPT’s half-billion-dollar investment), shook the tech world, triggering a 17% drop in Nvidia's stock value in just one day. Its emergence raises critical questions: Could DeepSeek face a ban in the U.S., and where exactly is our data headed?

TLDR:

• DeepSeek R1 is a competitor to ChatGPT, built using open-source technology — allowing free access and fostering community-driven development — at a fraction of typical AI development costs.

• Due to low development cost, the launch led tech investors to question the high valuations of U.S. AI companies and raised concerns about the future of the industry.

• A major cyberattack targeted DeepSeek shortly after its debut, underscoring the geopolitical implications.

• The open-source success of DeepSeek is reigniting conversations about innovation outside of major corporations.

• DeepSeek has raised privacy concerns, especially that the data is saved in China and the potential for government access.

• Following TikTok's ongoing legal battles over its ban, questions have arisen about whether DeepSeek might face similar challenges.

• In other AI news, the U.S. Copyright Office has issued new guidelines stating that AI-generated content cannot be copyrighted on its own, while still protecting the rights of human creators who use AI as part of their creative process.

Why it matters: DeepSeek’s rapid success challenges assumptions about AI development costs, signalling that innovation isn’t exclusive to billion-dollar tech giants. This shift could democratise AI development globally, lowering barriers for startups and smaller players. However, privacy concerns and intensifying international competition for AI supremacy remain key issues. Whether the future will lean toward collaboration or geopolitical rivalry has significant economic and security implications.

2. Alo Yoga refreshes its metaverse experience with new features

What's happening: Alo Yoga has refreshed its digital sanctuary on Roblox, originally launched in 2022, the Sanctuary was Alo Yoga's first foray into the metaverse and has since attracted over 117 million visits.

If you are a regular reader of the newsletter, you will already know that many brands have also ventured into platforms such as Roblox, Fortnite, and Zepeto to create branded virtual worlds, connecting with gamers through events, exclusive digital items, and interactive storytelling. These initiatives reflect a growing trend where digital engagement in gaming spaces plays a key role in modern brand strategies.

TLDR:

• Alo Yoga’s Roblox Sanctuary, first launched in 2022, has been refreshed with new interactive features designed to promote wellness and mindfulness.

• The updated experience includes dynamic running challenges, interactive gym areas, cold plunge zones, and immersive Alo Moves meditation and yoga content.

• Players can unlock exclusive virtual rewards, including Alo gear, by scanning NFC-enabled stickers displayed on store windows at Alo’s 150 retail locations worldwide.

• More than 117 million users have engaged with Alo’s Roblox experience, prompting the brand to continue expanding its metaverse presence.

• Alo’s collaboration with Sawhorse and POAP Studio brings in new digital collectibles that create stronger connections between in-store and online experiences.

• New avatar customisation options include both paid and free items, like Alo-branded yoga mats, trucker hats, and Alo’s signature sneakers and duffle bags.

Why it matters: Alo Yoga's refreshed Sanctuary highlights how wellness brands can leverage virtual spaces to promote movement, mindfulness, and participation. The introduction of NFC-based rewards, such as exclusive offers or experiences, deepens the connection between digital and physical retail, creating a gamified shopping journey that seamlessly bridges real-life interactions and virtual worlds. Similarly, gaming platforms are becoming pivotal in shaping new consumer experiences, by providing wellness and lifestyle brands an opportunity to engage with younger audiences through immersive and interactive environments.

3. Louis Vuitton partners with Formula 1 as the title sponsor of the Australian Grand Prix

What's happening: As we discussed in a previous newsletter, LVMH has signed a 10-year Global Partnership with Formula 1, starting in 2025. As part of this exciting partnership, Louis Vuitton, whose narrative includes ‘Travel’ since first established, will become an official partner and the title sponsor of the Australian Grand Prix.

TLDR:

• LVMH joined Formula 1 as a Global Partner for a 10-year period starting in 2025.

• Louis Vuitton will become the title partner for the first race of the season in Melbourne – the Formula 1 Louis Vuitton Australian Grand Prix 2025.

• Louis Vuitton's Asnières atelier is crafting 24 bespoke trophy trunks for the 2025 race season. Each, adorned with the signature monogram, features a locally inspired "V" colour scheme on a classic brown backdrop.

• Louis Vuitton will display trackside signage and play a central role in ceremonial events such as podium presentations and the opening ceremony, a first for the brand in a sporting event.

• The brand previously collaborated with Formula 1 through a Trophy Trunk partnership at the Monaco Grand Prix (2021-2024).

• This partnership reflects the increasing trend of luxury brands collaborating with global sports events to broaden their cultural relevance as they strive for innovation and excellence.

• LVMH aims to leverage the collaboration to engage Formula 1’s rapidly growing global fanbase, which has been boosted by the success of Drive to Survive and expansion into new markets.

• In recent years, the French luxury brand has collaborated with major sporting events such as the FIFA World Cup, Ballon d’Or, Rugby World Cup, Australian Open, and most recently, the 2024 Olympic and Paralympic Games.

Why it matters: By linking with Formula 1, Louis Vuitton is stepping into the fast lane of sports marketing, positioning itself alongside cutting-edge technology and high-performance competition. The move proves the merging of industries such as fashion, entertainment, and sports, with brands aiming to provide immersive, unforgettable experiences. For Formula 1, this partnership enhances its luxury appeal and global prestige, while Louis Vuitton’s presence at races worldwide creates new branding opportunities and strengthens its connection to dynamic, affluent audiences.

4. Whatnot blends live shopping and community to reshape e-commerce

What's happening: Whatnot, a fast-growing live-shopping platform that turns online shopping into a mix of live auctions and community entertainment, is now valued at $5 billion after a $265 million funding boost.

TLDR:

• Whatnot combines live auctions, streaming, and community shopping.

• It was founded by Grant LaFontaine and Logan Head, the platform raised $265 million in a Series E round led by Greycroft, DST Global, and Avra.

• Initially focused on collectibles, it now spans 140+ categories across nine markets.

• Sellers, primarily independent resellers, move inventory fast while building connections with buyers. Some brands, like Staud and Dolls Kill, also use the platform to sell excess stock.

• On average, Whatnot buyers spend 4.5 times more and make 10x the transactions compared to traditional marketplaces. Gross merchandise value exceeded $3 billion in 2024.

• Enhanced trust features include seller eligibility checks for high-value categories, proactive customer support, and a referral program to grow the user base.

• Live-stream shopping, successful in Asia, is still slow however is gaining traction in the West, with TikTok Shop which has seen early adoption.

Why it matters: Whatnot is reshaping online retail by combining marketplace convenience with interactive, entertainment-driven experiences. For brands, this creates new opportunities to clear excess inventory, connect with consumers in a more personal way, and showcase products in real-time through live demos. Unlike traditional advertising or static online listings, live-stream shopping fosters trust and community engagement, leading to higher conversion rates and repeat transactions. As social commerce expands, Whatnot’s model could inspire more brands to adopt similar strategies, blending physical and digital retail for a richer, more interactive shopping experience. This could pave the way for innovations like immersive Web3 shopping experiences or brand-hosted virtual events.

5. The launch of the first crypto tower in Dubai

What's happening: DMCC and REIT Development have launched the "Crypto Tower" in Jumeirah Lakes Towers (JLT), Dubai—a 17-storey development designed to support blockchain, DeFi, and Web3 companies within DMCC's growing innovation ecosystem.

TLDR:

• The tower will offer over 150,000 square feet of leasable space, including nine floors of advanced offices designed to attract both crypto startups and established blockchain companies.

• Three dedicated floors will focus on supporting blockchain incubators, venture capital firms, and investment companies, fostering a highly collaborative and growth-oriented business environment.

• One entire floor will be set aside for AI innovation, powered by Chatoshi.ai, enabling the integration of artificial intelligence in building services, tenant support, and day-to-day operations.

• Blockchain technology will be embedded into building management with on-chain voting, smart contracts, and automated resource-sharing, reducing administrative complexity while enhancing transparency and trust.

• The tower will feature luxury amenities such as an NFT art gallery, a car dealership, and a secure 5,000-square-foot vault for valuables like gold, cash, and crypto cold wallets.

• Completion is expected by Q1 2027, with the development set to position Dubai as a global hub for blockchain, Web3, and advanced tech innovation.

Why it matters: Innovation is becoming more embedded in everyday life, and the Crypto Tower illustrates how advanced technology can be fully integrated into physical infrastructure. The building itself is a living demonstration of how blockchain, artificial intelligence, and finance can seamlessly converge. Blockchain will power core services such as resource management, tenant interactions, and even decision-making processes. This approach offers a blueprint for modern business ecosystems and puts a clear emphasis on collaboration.