Hi there, and welcome back to another Insane Founder edition.

This week: A low-cost Chinese AI disruptor rattles the giants, retired CEOs make their return to tackle unfinished business, and Trump’s DEI rollback sparks debates on leadership’s future.

DeepSeek, a low-cost Chinese AI disruptor, has turned the tech world on its head. In just two months, it built an AI model for $6 million—pocket change compared to OpenAI’s billion-dollar budgets—and the fallout is shaking up the industry’s biggest players.

Why it matters: DeepSeek isn’t just cheap—it’s resourceful. Its success has exposed cracks in the towering empires of Nvidia, OpenAI, and Anthropic, forcing them to reconsider what “competitive advantage” really means. The psychological impact? It’s proof that doing more with less can topple even the most established giants.

What’s happening

The Jevons Paradox twist: Here’s the irony: DeepSeek’s efficiency could spark an AI boom. Lower costs mean more businesses can afford AI, driving overall demand for chips and infrastructure even higher—a paradox that could end up benefiting Nvidia and its peers in the long run.

What it means for leaders: DeepSeek is a wake-up call. It’s not just about having the best tech; it’s about agility, efficiency, and understanding where real value lies. U.S. firms may need to double down on application-layer innovation, where the transformative potential of AI truly lives.

For now, DeepSeek has proven one thing: being small, smart, and scrappy is sometimes all it takes to shake up an empire.

Learn more about DeepSeek

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Leadership is hard to leave behind. Nike’s Elliott Hill, Disney’s Bob Iger, and Footlocker’s Mary Dillon are just a few who’ve stepped out of retirement to lead their companies once more. The trend isn’t limited to legacy brands—it’s increasingly evident in the startup world, where founders like Reddit’s Steve Huffman and Twitter’s Jack Dorsey have re-entered their companies to navigate critical junctures.

What drives them back?

Stepping away offers time to recharge, but for many, the thrill of solving big challenges—and the identity tied to leadership—is irreplaceable. Hill, who retired after 30 years at Nike, embraced personal passions like mentoring and outdoor pursuits but admits, “I started thinking, ‘Is this really what the rest of my life will look like?’”

For founders, the pull is often tied to unfinished business. When Huffman returned to Reddit, it wasn’t just to steady the ship—it was to overhaul the product, rebuild trust, and reconnect the platform with its users. It’s a psychological tether: the connection to a company’s mission and the impact leaders believe only they can deliver.

The challenge of reinvention

Hill took over Nike at a time when its stock had fallen 60% from its peak and competition was growing fierce. In startups, leaders face similar high-stakes returns, often stepping back in to drive pivots or accelerate growth during downturns. These moments call for experience paired with adaptability—a balancing act between revisiting core values and reshaping them for modern needs.

Research has long shown that leadership shapes organizational identity and direction. Leaders who return bring institutional knowledge, but their ability to inspire change often hinges on their connection to people—employees, customers, and stakeholders. As Hill puts it, “Leadership isn’t just about execution; it’s about showing people the ‘why.’”

What it means for the next generation

For companies, having returning leaders often signals stability, but there’s a deeper lesson for startups: leadership is rarely linear. The value lies in adaptability, understanding what people need, and embracing moments of reinvention. Companies that lean into these principles often emerge stronger, not just in their business models but in how they connect with their teams and customers.

The takeaway? Whether leading global brands or startups, returning leaders leverage both experience and a human-centered approach to solve today’s challenges. They thrive not just by fixing problems but by aligning people, purpose, and progress—ensuring their companies aren’t just surviving but evolving.

President Trump’s executive order to end federal DEI programs—and discourage them in private companies—raises concerns about the future of corporate leadership. Companies like Target and Meta have scaled back DEI initiatives, risking a leadership pipeline that lacks diversity and stifles innovation.

Why it matters: Without DEI efforts, companies may struggle to connect with diverse markets and foster new ideas. Christie Smith, former DEI VP at Apple, warns this shift could leave corporations unprepared for future challenges, while research consistently shows that diverse organizations outperform their peers.

A generational divide: As some companies cut back, others like Microsoft and Costco double down, betting on the long-term benefits of inclusion. Gen Z and millennial employees increasingly prioritize companies committed to diversity, making DEI a competitive edge in talent retention.

The risk of regression: Critics worry this rollback could undo decades of progress for women and people of color in leadership. DEI strategist Paolo Gaudiano warns it could drive top talent to competitors.

Despite setbacks, DEI advocates remain hopeful. “Progress isn’t linear, but over time, equal opportunity expands,” says Pamela Coukos, CEO of Working IDEAL. Businesses that embrace diversity may gain the upper hand in innovation and talent.

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