AI developers at leading U.S. firms have expressed admiration for the DeepSeek AI models' sudden rise to fame. However, they are also attempting to debunk the idea that a Chinese newcomer's inexpensive alternative has outperformed their own multi-billion dollar technology.
On Monday, Chinese startup DeepSeek caused a stir in the stock market and surpassed OpenAI's ChatGPT in Apple's App Store in the U.S. with its free AI assistant. The company claimed to have trained its model on Nvidia's H800 processor chips at a cost of under $6 million.
According to sources familiar with the matter, while some AI experts praised DeepSeek's team and cutting-edge research, they remained undisturbed by the competition. OpenAI CEO Sam Altman acknowledged the impressive capabilities of DeepSeek's R1 model and the value it delivers for its price point.
Despite DeepSeek's modest budget, industry leaders admired the company's decision to release its models as open source, allowing others to utilize or modify them. However, concerns have been raised about DeepSeek potentially facing a shortage of chips to meet the growing demand due to its free release strategy generating significant buzz.
Moreover, the release of DeepSeek's models sheds light on the potential of open source AI technology as a cost-effective alternative to the more proprietary and expensive solutions offered by companies like OpenAI. Some AI experts highlighted the profound impact of DeepSeek R1 being open source, describing it as a valuable contribution to the global community.
Venture capitalist Marc Andreessen commended DeepSeek for its groundbreaking achievements, labeling the R1 model as remarkable and a generous gift to the world. The recognition garnered by DeepSeek's models highlights the significance of open source AI technology as a viable option in the industry.
Meanwhile, U.S. AI developers are racing to analyze DeepSeek's V3 model, with Nvidia acknowledging the increased demand for its chips. Software maker Snowflake recently decided to include DeepSeek models in its AI model marketplace following customer interest, with cautious considerations given to hosting Chinese-developed AI technology.
Overall, the industry is closely monitoring the developments, with many anticipating further revelations as American tech giants prepare to release their quarterly earnings in the coming weeks.
