OpenAI CEO Sam Altman labeled the R1 AI model from Chinese startup DeepSeek as “impressive” because of its budget-friendly approach. OpenAI requires additional computing power to achieve its success according to CEO Sam Altman.
DeepSeek-V3 model achieved its training milestones using less than $6 million worth of computing power through the deployment of Nvidia’s H800 chips with reduced capabilities.
The recently released DeepSeek-R1 model shows users can save between 20 to 50 times more money than OpenAI’s o1 model costs depending on the operation.
In a series of tweets on X (formerly Twitter), Sam Altman said: “DeepSeek’s R1 is an impressive model, particularly around what they’re able to deliver for the price.” Altman further stated, “But mostly we are excited to continue to execute on our research roadmap and believe more compute is more important now than ever before to succeed at our mission.”
The affordable innovation from DeepSeek initiated discussions regarding the extensive AI funding activities of U.S. tech corporations. The startup’s achievement has created questions about why tech giants should continue to pledge billions for AI research.
Liang Wenfeng’s viral tweet humorously compares OpenAI and DeepSeek in an Olympic-style rivalry. It suggests OpenAI relies on complex tech and vast resources, while DeepSeek achieves similar results with fewer resources. The tweet questions whether huge AI budgets are truly necessary in light of DeepSeek’s cost-efficient models.
The stock market experienced a downturn because investors conducted share sales targeting technology companies especially Nvidia alongside its peer companies. Nvidia experienced its biggest single-day market value decline in Wall Street history after its shares lost $593 billion on Monday.
DeepSeek’s nontraditional approach to industry standards drives experts to question how performance relates to cost which changes their understanding of these matters.
Also Read: DeepSeek AI Startup Limits Signups Amid Global Demand Surge
