DeepSeek, the Chinese AI startup founded in 2023 by Liang Wengfen, has recently sparked interest in the tech world after unveiling its R1 AI model powered by V3. According to benchmarks, the AI model surpasses OpenAI’s o1 reasoning model across math, science, and coding. More interestingly, the model was trained with $6 million, reportedly a fraction of the development cost for proprietary models.
Following the buzz and hype building around DeepSeek, key players in the industry have taken to the media and social media to share their thoughts about the breakthrough, including OpenAI CEO Sam Altman. According to Altman:
“DeepSeek’s R1 is an impressive model, particularly around what they’re able to deliver for the price. We will obviously deliver much better models and also it’s legit invigorating to have a new competitor! We will pull up some releases.”
deepseek’s r1 is an impressive model, particularly around what they’re able to deliver for the price.we will obviously deliver much better models and also it’s legit invigorating to have a new competitor! we will pull up some releases.January 28, 2025
While Sam Altman praised DeepSeek’s efforts, entrepreneur Arnaud Bertrand highlighted OpenAI’s executive comments from a Q&A session after a ‘Conversations’ presentation to India VCs in 2023. At the time, Altman seemingly dismissed competition from startup AI companies, especially those with limited financial resources of up to $10 million (via Tom’s Hardware).
According to Sam Altman:
“Look, the way this works is we’re going to tell you it’s totally hopeless to compete with us on training foundation models. You shouldn’t try, and it’s your job to try anyway, and I believe both of those things. I think it is pretty hopeless.”
Admittedly, generative AI advances cost a ton. Last year, Sam Altman described an audacious AI dream that would “take $7 trillion and many years to build 36 semiconductor plants and additional data centers” to fulfill, prompting TSMC executives to reportedly brand the CEO a “podcasting bro.”
Read more: OpenAI and Microsoft ironically accuse DeepSeek of copyright infringement
This happens as OpenAI and SoftBank unveiled a $500 billion Stargate project to facilitate the construction of data centers to bolster sophisticated AI advances. Last year, rumors hitting the windmill suggested OpenAI was on the verge of bankruptcy, with projections of making $5 billion in losses within 12 months.
Consequently, the ChatGPT maker has introduced a new $200 monthly subscription Pro Plan, which, according to Altman, “can think harder for the hardest problems.” ChatGPT Pro’s launch seems like a move by OpenAI to diversify its revenue streams amid financial struggles.
