OpenAI Chief Altman Praises Low-cost DeepSeek

Tue Jan 28 2025
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Key points

  • DeepSeek became top-rated free application on Apple’s US App Store
  • $5.6 million has been spent to set up AI model  
  • DeepSeek was developed by a startup based in China

ISLAMABAD: OpenAI chief executive Sam Altman has praised the recent debut of Chinese rival DeepSeek’s latest artificial intelligence model, saying that it was “invigorating to have a new competitor.”

In a social media post, Altman called DeepSeek’s R1 “an impressive model, particularly around what they’re able to deliver for the price.”

The chatbot developed by DeepSeek, a startup based in the eastern Chinese city of Hangzhou, has apparently shown the ability to match the capacity of US AI pace-setters for a fraction of the investments made by American companies.

Low-cost Chinese AI model

Sam Altman made the statement as United States (US) chip-maker Nvidia led a rout in tech stocks Monday after the emergence of a low-cost Chinese generative AI model that could threaten American dominance in the fast-growing industry.

According to AFP, shares in Nvidia, whose semiconductors power the AI industry, fell nearly 17 per cent on Wall Street, erasing nearly $600 billion of its market value.

The tech-rich Nasdaq index finished down more than three per cent.

DeepSeek, whose chatbot became the top-rated free application on Apple’s US App Store, said it spent only $5.6 million developing its model — peanuts when compared with the billions US tech giants have poured into AI.

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