#29 AI Surpasses 98% of Humans with an IQ of 136

The façade of Western digital sovereignty is crumbling. While board members debate data security, quantum mathematics has found a way to run advanced AI on your smartphone. Meanwhile, the dire wolf has returned from extinction, and 136-IQ AI models are now outperforming 98% of humans on complex reasoning tasks.

This week, we explore how AI governance is reshaping civilization itself, examine breakthrough technologies that will democratize access to intelligence, and confront the existential questions that emerge when machines begin to think in abstract concepts rather than words.

Why does it matter? 
Stick with us and find out. Let’s keep riding this tech wave together, and don’t forget to follow us on socials for more.

Oh wait, before you start reading… We have a question.
We started this newsletter in English to be inclusive. However, we see a significant uptake in Dutch readers and activity on socials. Which led to asking ourselves the question, would you prefer the newsletter in English? Let us know 👇🏼

Cheers,
Patrick, Nikola & Aragorn 🚀

Europe's Hidden Cloud Dependencies

With growing unease about American tech dominance, European companies are increasingly seeking "sovereign cloud" solutions to protect their information.

This isn't merely theoretical. A recent map revealed that the Netherlands stands alone among Western European nations in its widespread municipal adoption of Microsoft Cloud services. While Dutch citizens enjoy highly efficient digital government services, they do so at the potential cost of data sovereignty.

"People in the Netherlands have no idea how good we have it," Aragorn noted. "Everything here is really well done. Even the IT at our governmental organizations, though it seems ancient, is still light years ahead of the rest of Europe."

The push for European alternatives faces significant hurdles. As Patrick observed, "It's not so easy. European alternatives aren't always there, and they don't always have the quality." We are currently witnessing how geopolitical tensions are reshaping market positioning.

Why does it matter?
The debate over data sovereignty extends far beyond technical considerations. It represents a fundamental reshaping of the global digital landscape along geopolitical lines. Organizations must recognize that technology purchasing decisions are increasingly political acts with strategic implications. The question isn't simply where your data resides, but which legal frameworks, value systems, and power structures you're empowering through your technology choices.

The 1.5-8 Bit Revolution: AI That Fits in Your Pocket

Microsoft has quietly introduced a revolutionary architecture for large language models that could fundamentally transform AI accessibility. This breakthrough allows models to run using 1.5-8 bit mathematics instead of the traditional 32-bit or 16-bit systems.

The technical details sound arcane but the implications are profound: these models run 41 times more efficiently while requiring significantly less memory. The performance gap is minimal and constantly shrinking.

"This means that AI will be much, much, much sooner available on your smartphone or laptop," Aragorn explained. "We can run these models locally, so it will be safer, you won't have to be afraid that your data is getting hacked, and you can still benefit from all the benefits."

This mathematical breakthrough represents a paradigm shift comparable to DeepSeek's earlier optimization innovations. Together, these approaches offer complementary ways to dramatically reduce computational requirements for advanced AI.

Why does it matter?
The ability to run sophisticated AI models locally without cloud dependencies will democratize access to intelligence in unprecedented ways. From expanding digital inclusion for the elderly to enabling AI applications in areas with limited connectivity, this breakthrough removes critical barriers to adoption. Organizations planning AI strategies need to recognize that the distinction between cloud and local deployment is rapidly dissolving, creating opportunities for new types of applications that weren't previously feasible.

o3's 136 IQ: When AI Outsmarts 98% of Humans

OpenAI's latest model o3 has achieved an IQ of 136 on the Mensa IQ test, placing it above 98% of the human population in reasoning ability. This represents a significant leap forward in AI's capacity to solve complex problems.

What makes o3 particularly remarkable is its reasoning approach. Rather than simply processing information sequentially, it creates abstract internal concepts before translating them back to human language. When asked about plants suitable for a garden, it demonstrates contextual understanding of location, climate, and personal preferences without being explicitly told.

Most notably, o3 appears to have minimal guardrails compared to previous models. While it includes disclaimers like "this is not medical advice," it then proceeds to provide detailed information that earlier models would have refused to share. In Aragorn's experience, o3's medical reasoning proved as accurate as his doctor's diagnosis.

"Some of the stuff that it outputs, some of the things it says and writes, just blow my brain," Aragorn noted. "Although it might not be great at math and some basic logic, it has access to this massive wealth of data and can go online to verify what it thinks. It compensates so much for its lack of pure simple reasoning ability that it can do these incredible things."

Why does it matter?
We're entering an era where AI can outperform the vast majority of humans on complex reasoning tasks. This has profound implications for knowledge work, decision making, and our understanding of human cognitive uniqueness. Organizations need to recognize that AI is rapidly transitioning from tool to collaborator to potential leader in intellectual domains. The questions of when to defer to AI judgment and how to integrate it into decision-making structures will become increasingly pressing as these systems continue their exponential improvement.

The Resurrection: Bringing Back Extinct Species

Scientists have successfully resurrected the dire wolf, an extinct species, through genetic manipulation. This Jurassic Park-like achievement represents the convergence of AI-enabled protein folding understanding and advanced gene editing capabilities.

While this breakthrough opens exciting possibilities for restoring lost biodiversity, it raises profound ecological and ethical questions. As Aragorn noted, introducing even a single species back into an ecosystem can trigger cascading effects that are impossible to fully predict.

"When they returned wolves to Yellowstone Park, the transformation was something nobody expected," Aragorn explained. "The wolves changed how rivers flowed because they changed how the deer migrated. So the point is that the impact of such a thing in an ecosystem can be massive with just one single species."

This technology extends beyond resurrection. Scientists are now creating entirely new biological entities designed to solve specific problems, such as organisms that can consume ocean plastics naturally. These aren't merely extinct species brought back—they're novel lifeforms engineered for specific purposes.

Why does it matter?
The ability to resurrect extinct species and create new biological entities represents a fundamental shift in humanity's relationship with nature. It transforms us from observers and manipulators to architects and creators of the living world. This power brings immense responsibility and complex ethical questions that transcend scientific understanding. Organizations working in biotechnology must recognize that public acceptance will depend not just on scientific rigor but on developing ethical frameworks that acknowledge the profound implications of these capabilities.

Google Agent Space: The Corporate AI Control Center

Google has entered the agent race with Google Agent Space, a platform that could fundamentally restructure how organizations deploy AI. Unlike traditional implementations, Agent Space creates a secure environment where companies can build and deploy custom AI agents specifically tailored to their needs.

What sets this platform apart is its unprecedented flexibility. Companies aren't limited to Google's Gemini models—they can integrate third-party AI, including models from Meta, OpenAI, or specialized systems from enterprise providers like ServiceNow and Salesforce. This open ecosystem approach allows organizations to leverage the best capabilities from across the AI landscape.

Most significantly, Google has introduced an agent-to-agent protocol for interoperability. This follows similar moves from Anthropic, signaling an industry-wide push toward standardized communication between AI systems. The platform also includes a no-code agent designer, making sophisticated agent creation accessible without specialized technical expertise.

Why does it matter?
As we transition from the era of chat interfaces to autonomous agents, platforms like Google Agent Space will accelerate enterprise adoption by addressing key concerns around security, customization, and integration. The introduction of agent-to-agent protocols hints at a future where AI systems communicate with each other as readily as they do with humans. Organizations should recognize that we're moving rapidly from individual AI tools toward coordinated AI ecosystems that can transform entire business processes.

The End of Democracy As We Know It

"For most people, it's completely unimaginable that democracy and capitalism could come to an end because we've lived it our entire lives," Aragorn observed. "But results from the past are not a guarantee for the future."

The progress in political development and economic systems has essentially flatlined throughout the industrial revolutions because growth and improvement were found in other areas. Now, we're facing pressures that require fundamental reconsideration of our governance structures.

AI introduces fascinating possibilities for reimagining democratic governance. Drawing on ancient Greek philosophy, Aragorn notes that Plato, Socrates, and Aristotle all believed that true democracy couldn't have elected officials, as they inevitably lead to corruption through charisma and wealth advantages.

Future systems might leverage AI personality cloning to create perfect digital representatives of citizens selected by lottery for governance roles. Alternatively, AI could analyze collective data to make decisions aligned with collective interests without the distortions of elections.

Why does it matter?
The question isn't whether existing systems will change, but what will replace them. Organizations must prepare for a world where the fundamental assumptions of democratic capitalism are in flux. Those who can navigate this transition period, understanding both the historical patterns and technological possibilities, will be best positioned to thrive in whatever systems emerge. The convergence of AI, decentralized technologies, and political upheaval creates unique opportunities to reimagine governance from first principles.

The Massive Underestimation of AI's Impact on Jobs

A new report from Americans for Responsible Innovation confirms what many have feared: economists are dramatically underestimating AI's workforce disruption potential. Unlike previous technological revolutions, AI's flexibility means it can adapt to replace new jobs as quickly as they're created.

This adaptability becomes evident in robotics deployment. Figure's humanoid robots required six months of training for their first use case but only one month for the second, with training times continuing to decrease exponentially. This means even newly created jobs will be candidates for automation.

"Because of its flexibility, AI is no technology like previous technologies," Aragorn explained. "It's not a spinning jenny or a weaving machine that can be used to specifically replace one type of work. For future jobs, the new jobs that become necessary will also be replaced by AI and robots."

The shift is already visible in corporate structures. Today's AI pioneers operate with a fraction of the employees traditional tech giants required. Companies with a few hundred employees now serve hundreds of millions of users, creating unprecedented value with minimal human labor.

Why does it matter?
The fundamental relationship between economic value and human labor is breaking down. Organizations and societies must prepare for a future where employment cannot serve as the primary distribution mechanism for resources and meaning. This transition demands both practical workforce strategies and deeper philosophical consideration of purpose in a post-scarcity world. Companies that recognize this shift early can design more resilient structures and potentially shape what comes next.

Looking Ahead: Finding Purpose Beyond Labor

If the job losses predicted above materialize, what will give human life meaning? Contrary to fears about purposelessness, history suggests we naturally fill available time with meaningful pursuits.

"Rather than do more work because we have more time, if we don't need to work anymore, we're going to do more fun stuff, more cool stuff, more passionate stuff," Aragorn suggested. "We're going to spend more time on philosophy. We're going to meditate more."

Archaeological evidence suggests ancient hunter-gatherers spent only 4-8 hours weekly on food collection. The rest of their time went to art, architecture, and cultural development—building pyramids that would take generations to complete, motivated not by payment but by shared purpose.

The transition won't be easy, particularly for those whose identities are deeply tied to work. But as Patrick noted, "Many years ago, people also had a purpose. Without having a desk job somewhere in an office building next to a highway."

Why does it matter?
As we confront AI's impact on employment, the question of purpose becomes central. Organizations have an opportunity to help shape this transition by fostering cultures that value contribution beyond economic productivity. Those that can help people find meaning in a world of abundance rather than scarcity will be essential in building stable, flourishing communities. The future may look more like our distant past than our recent history—with technology creating space for truly human pursuits.

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