OpenAI CEO Sam Altman praised Chinese firm DeepSeek’s most recent AI model on tuesday, DeepSeek-R1, as “impressive,” despite the fact that the low-cost competitor is upending international markets and sending US tech stocks plunging.
Altman used X to discuss the emergence of DeepSeek’s models, which are posing a threat to OpenAI and other industry titans.
“DeepSeek’s R1 is an impressive model, particularly around what they’re able to deliver for the price,” Altman wrote. “We will obviously deliver much better models … but mostly we are excited to continue to execute on our research roadmap.”
The comments are made at a time when DeepSeek’s new AI assistant—powered by its V3 and R1 models—has surpassed OpenAI’s ChatGPT to become the most popular free app on Apple’s US App Store.
US tech stocks nosedive
Markets are trembling as a result of DeepSeek’s achievement; on Monday, investors worldwide dumped tech equities out of concern that the AI landscape will change.
According to LSEG statistics, Nvidia Corp., whose cutting-edge processors power the majority of cutting-edge AI models, saw its shares fall by about 17%, wiping out $593 billion in market capitalization—the worst single-day loss for any Wall Street business.
Other significant participants in the AI ecosystem also suffered, as the Nasdaq Composite fell 3.1%. Alphabet Inc.’s stock dropped 4.2%, Microsoft Corp. dropped 2.1%, and Broadcom Inc. lost 17.4%.
Trump reacts
DeepSeek was a “wake up call” for American companies, according to US President Donald Trump, who recently promoted a $500 billion joint venture to develop AI infrastructure in the US.
“Hopefully, 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 to win,” Trump told a Republican congressional retreat in Miami.
“I would say that could be a positive,” Trump said. “So instead of spending billions and billions, you’ll spend less, and you’ll come up with hopefully the same solution.”
Based in Hangzhou According to DeepSeek, for a fraction of the price, its R1 and V3 devices are just as capable as or better than the best US options. A firm report claims that DeepSeek-V3 training used less than $6 million in processing power, which is much less than the industry standard.
Additionally, DeepSeek has praised the cost-effectiveness of their models, claiming that, depending on the job, R1 is 20–50 times less expensive than OpenAI’s GPT-4 model.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
