OpenAI CEO Sam Altman commended Chinese AI firm DeepSeek’s R1 model on Monday, calling it “impressive.” However, he also stated that OpenAI will “deliver much better models” and expressed satisfaction that the company had a new competition.
DeepSeek grabbed worldwide notice last month with their research paper revealing DeepSeek-V3, which trained using $6 million in computational resources. DeepSeek demonstrated cost-effective computing strategies by making use of Nvidia H800 CPUs with restricted capabilities.
DeepSeek just released its R1 model, which consumes electricity that is twenty to fifty times cheaper than OpenAI’s o1 model, depending on the workload, according to their official WeChat page.
Altman added in the X article that “Deepseek’s r1 is an impressive model, particularly in terms of what they can deliver for the price.”
Deepseek’s r1 is an excellent device, especially considering what they can give for the price.
We will surely deliver many better models, and it is quite exciting to have a new competitor! We’ll pull up some releases.
— Sam Altman (@sama), January 28, 2025.
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He also mentioned OpenAI’s key focus on research progress and the need for additional computational capacity. He stressed that ever-increasing computational capabilities is his organization’s fundamental necessity for meeting its mission objectives.
Nvidia is now under increased pressure as low-cost alternatives enter the market. Last Monday, Nvidia’s market value fell by $593 billion, causing Wall Street’s worst single-day financial calamity.
Trump describes DeepSeek as a wonderful development and a wake-up call for US industries.
According to an NBC story, President Donald Trump advised that American tech companies tighten their focus while speaking in Florida on Monday. He went on: “The release of DeepSeek AI from a Chinese company should be a wake-up call for our industries that we need to be laser-focused on competing.”
The low-cost model soared to number one in Apple’s app store throughout the weekend, threatening U.S. tech supremacy, while Trump professed his optimism in America’s capacity tomaintains its competitive advantage.
He also saw a silver lining in DeepSeek’s low-cost approach, describing it as “very much a positive development” for innovation. According to him, tech companies might save money and “come up with, hopefully, the same solution.”
