The rapid appearance of the Chinese AI startup DeepSeek has left a significant impression globally, particularly after they published a research paper stating that their R1 model outperforms established AI models such as OpenAI’s o3 model on multiple benchmarks, all while requiring less investment in development costs.
Following its launch, there were allegations that DeepSeek had illegally utilized OpenAI’s data for training their cost-effective model. Sam Altman, CEO of ChatGPT’s maker, acknowledged the impressive nature of DeepSeek’s R1 AI model but stated that OpenAI was more capable of producing superior models due to its focus on reaching the highly sought-after AGI benchmark.
Conversely, Satya Nadella, CEO of Microsoft, praised the AI model called DeepSeek as “extremely impressive” and encouraged major players in the AI sector to view these advancements from China with a high level of importance and caution.
As an analyst, I found it noteworthy that the cost-efficient and open-source AI model developed by DeepSeek had become a matter of concern for Microsoft. This concern led to the establishment of a virtual war room by our CEO, Satya Nadella, using Microsoft Teams, in order to delve deeper into the rapid success of this Chinese startup overnight.
While speaking to Bloomberg Businessweek, Satya Nadella indicated:
So far, OpenAI has outpaced others significantly. The DeepSeek model, especially its R1 variant, is the first one I’ve encountered that has shown promising results.
Approximately 100 employees at Microsoft were assigned to thoroughly examine the research paper of DeepSeek, focusing particularly on its model’s security aspects. As expressed by Asha Sharma, Microsoft’s AI platform lead, it was as if they didn’t rest during this process.
After about two days, it appeared that the information presented in DeepSeek’s research paper was accurate. Ideally, a company would promptly return to redesign their strategies to challenge the latest AI contender, but this wasn’t the case with Microsoft.
According to reports, Satya Nadella directed his team to deploy DeepSeek’s R1 AI model on Microsoft’s cloud platform, offering this model alongside similar products from competitors such as OpenAI for customers to purchase. In Nadella’s words, the moments leading up to the installation of R1 were, “Let’s make it available.
In essence, this situation highlights Microsoft’s massive partnership with OpenAI, suggesting that their loyalty might not lie with OpenAI’s costly AI solutions and technology. Rather, Satya Nadella seems to prioritize making any AI models or products available to clients through Microsoft’s cloud platform.
No matter which AI model or service a client selects from Microsoft’s diverse offerings within Azure, the company will continue to receive payment for its cybersecurity, cloud computing, and data storage solutions.
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2025-05-16 18:39