The breakthrough of the latest language model by the Chinese company DeepSeek has raised concerns among investors about whether American companies can maintain their leadership in the AI sector. More importantly, it has demonstrated that high performance can be achieved at a significantly lower cost. Both former President Donald Trump and OpenAI’s CEO Sam Altman acknowledged DeepSeek’s accomplishments but emphasized the United States’ ability to surpass such milestones.
U.S. Leaders React to DeepSeek’s Model
Speaking in Florida, Trump stated that he had recently studied the progress made by DeepSeek, which developed a modern language model using substantially fewer hardware and material resources than its American counterparts. Trump noted that such advancements are ultimately beneficial for the U.S., explaining, “We will be able to achieve similar results while spending less and still meeting our goals.”
At a recent meeting with Chinese political leaders, Trump reportedly received praise for American scientific achievements. He expressed confidence that if Chinese companies could create affordable AI technology, American companies would soon adapt and follow suit.
OpenAI’s Sam Altman also commented on DeepSeek’s R1 model through the social media platform X, describing it as “impressive in terms of performance and cost ratio.” Altman added optimistically, “We will obviously be able to offer significantly better models. Having a new competitor is truly inspiring. We will speed up the release of some models.”
Industry Leaders Commend DeepSeek
Nvidia joined the conversation, highlighting DeepSeek’s ability to achieve such high performance under the constraints of U.S. export restrictions and with a limited budget. In a statement, Nvidia remarked, “DeepSeek’s work demonstrates how new models can be developed without violating export controls.”
Although Nvidia experienced a drop in market capitalization following DeepSeek’s success, the company remains optimistic. Representatives noted that developing reasoning-capable AI would still require significant quantities of Nvidia GPUs and high-speed telecommunications solutions.
Former Intel CEO Patrick Gelsinger also commended DeepSeek’s achievements and highlighted the growing impact of open-source software in AI development. He mentioned that, although precise details of DeepSeek’s expenses remain unclear, evidence suggests their costs were 10 to 50 times lower than OpenAI’s comparable models.
Gelsinger revealed that engineers at his startup, Gloo, are already utilizing DeepSeek’s R1 model for their Kallm chatbot, despite having access to OpenAI’s o1 model. Looking ahead, Gloo plans to develop and adopt its own open-source language model. “Open is winning,” Gelsinger remarked. “DeepSeek will revolutionize the increasingly closed AI ecosystem.” He likened computing advancements to the behavior of gases: as software becomes cheaper, the market for its application expands.
DeepSeek’s breakthrough challenges assumptions about AI development and costs, sparking discussions among global industry leaders, notes NIX Solutions. Yet, we’ll keep you updated as more integrations and responses emerge in this evolving landscape.