To start off the new year, DeepSeek – a company based in China – made a significant impact on the generative AI sector by introducing a model that outperformed OpenAI’s top reasoning model across various domains such as mathematics, science, programming, and even did so at a significantly lower development cost.
Sam Altman, CEO of OpenAI, expressed admiration for DeepSeek’s R1 model, highlighting its impressive performance, particularly in terms of the value it provides relative to its cost. Yet, Altman confidently asserted that his company will maintain its leading position in the AI industry.
Certainly, we’ll provide superior models, and it’s exciting indeed to welcome a fresh competitor into the arena! Let’s prepare for some upcoming announcements.”
Or more informally:
“For sure, we’re going to bring better models, and having a new rival is invigorating! Let’s get ready to make some announcements soon.
During a chat with Bloomberg, OpenAI CEO Sam Altman provided some intriguing perspectives on DeepSeek’s role within the AI sector, as reported by BartChart. In essence, these are his views:
The DeepSeek group is extremely skilled and accomplished quite a bit. However, I’m not convinced they discovered something significantly more efficient than what we have.
New findings indicate that DeepSeek’s claimed cost-effective model could potentially be misleading. It appears that this Chinese company allegedly invested around 1.6 billion dollars and procured approximately 50,000 NVIDIA graphics processing units (GPUs).
From a distance, it seems another report points out a striking resemblance between DeepSeek’s output and that of OpenAI models, including ChatGPT’s tone, to the tune of 74.2%. This could suggest they utilized a distillation method developed by competing firms as a way to reduce training expenses, aligning with allegations that they may have employed copyrighted content from Microsoft and OpenAI for their model’s education.
It’s well-known that AI can be quite costly due to its high demand for computing power and cooling needs, particularly as it grows more complex. The arrival of DeepSeek’s remarkably affordable AI model has sparked curiosity among investors, leading them to ponder the massive financial investments made in this resource-intensive technology.
In 2023, OpenAI faced the brink of bankruptcy with forecasts predicting a staggering $5 billion loss by December 2024. However, Microsoft, NVIDIA, SoftBank, and other significant investors united in a funding round to prevent its collapse, boosting its market worth to an impressive $150 billion.
More recently, the company behind ChatGPT successfully secured additional funding from SoftBank, adding $40 billion to their coffers. This new infusion has boosted their market value to a staggering $300 billion. Yet, this financial success comes with increasing pressure as they are now required to transition into a profit-driven organization. If they fail to do so, there’s a risk of external meddling and potential hostile acquisitions, especially considering the escalating tensions in their significant collaboration with Microsoft.
For now, Sam Altman, CEO of OpenAI, expresses high confidence that his team has figured out the methods for constructing and refining AGI (artificial general intelligence). This belief leads him to suggest that their current goal is to pursue and attain superintelligence.
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2025-07-21 14:09