AI Startup DeepSeek Impresses OpenAI with Affordable Model

Key Points:

* OpenAI acknowledges the capabilities of DeepSeek's R1 AI model.
* OpenAI emphasizes the importance of substantial computing power.
* DeepSeek-R1 offers significant cost advantages compared to OpenAI's o1 model.
* DeepSeek's emergence has raised questions about the investment strategies of US tech companies.

OpenAI Perspective:

OpenAI CEO Sam Altman praised DeepSeek's R1 model, highlighting its value proposition. However, he maintained that OpenAI remains focused on its research roadmap and believes that enhanced computing capabilities are crucial for its success.

DeepSeek-R1 Affordability:

DeepSeek's R1 model boasts a cost advantage of 20 to 50 times compared to OpenAI's o1 model for various tasks. This has generated significant attention and raised concerns about the investment decisions of US tech giants.

Nvidia's Market Impact:

The emergence of DeepSeek has had a notable impact on the market. Nvidia experienced a significant one-day loss of $593 billion in market value, the largest single-day drop for any company on Wall Street.