OpenAI CEO calls DeepSeek AI "impressive"

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Oleg Tkachenko

28.01.2025

OpenAI CEO calls DeepSeek AI — OpenAI CEO praises DeepSeek but defends high investment in compute power

OpenAI CEO Sam Altman on Monday acknowledged the "impressive" capabilities of DeepSeek's R1 AI model, a low-cost alternative to more resource-intensive systems like those developed by OpenAI.

Altman’s comments follow the Chinese startup’s growing influence in the AI landscape, particularly with its claim of achieving advanced performance at a fraction of the cost, reports Reuters.

DeepSeek first drew attention with its DeepSeek-V3 model, claiming it required less than $6 million in training costs using Nvidia’s lower-tier H800 chips. The newly released R1 model is reported to be 20 to 50 times cheaper to use than OpenAI’s o1 model, depending on the task, as noted in a statement on DeepSeek's official WeChat account.

Altman, posting on X, described the R1 model as a significant achievement. "DeepSeek's r1 is an impressive model, particularly around what they're able to deliver for the price," he stated. However, Altman reaffirmed OpenAI's commitment to pushing the boundaries of computational power, adding, "We believe more compute is more important now than ever before to succeed at our mission."

Nvidia's Record Market Value Loss

DeepSeek’s rise has sparked questions about the high-cost AI strategies of U.S. tech giants, which have invested billions in advanced AI systems reliant on cutting-edge computing power. These developments have rattled investor confidence, leading to a sharp decline in the share prices of major tech companies, including Nvidia.

On Monday, Nvidia experienced an unprecedented $593 billion loss in market value, marking the largest single-day loss ever recorded on Wall Street. The event underscores growing concerns over whether the U.S.’s focus on high-cost AI infrastructure can maintain its competitive edge as more cost-effective alternatives like DeepSeek emerge.

DeepSeek’s advancements challenge the industry’s prevailing assumptions about the necessity of massive investments in computational resources. As companies like OpenAI and Nvidia navigate this evolving landscape, the balance between efficiency and performance is poised to reshape the future of AI development.

Reminder, OpenAI and Japanese conglomerate SoftBank are committing $19 billion each to fund Stargate, a joint venture aimed at building state-of-the-art data centres for artificial intelligence across the U.S.

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OpenAI CEO calls DeepSeek AI "impressive"

Nvidia's Record Market Value Loss

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