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.”
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.
— Sam Altman (@sama) January 28, 2025
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.