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Former Intel CEO Pat Gelsinger is already using DeepSeek instead of OpenAI at his startup, Gloo | TechCrunch

Jan 28, 2025 - techcrunch.com
DeepSeek's new open-source AI reasoning model, R1, has disrupted the tech industry by offering high performance at a significantly lower cost, leading to a sell-off of Nvidia's stock and a surge in its consumer app's popularity. Trained using 2,000 Nvidia H800 GPUs over two months for $5.5 million, R1 matches the performance of the world's most advanced reasoning models, which typically require billions in investment. Pat Gelsinger, former Intel CEO and current chairman of Gloo, praised DeepSeek for demonstrating that lower costs lead to wider adoption, ingenuity thrives under constraints, and open-source models can reset the closed nature of foundational AI work. Gloo plans to integrate R1 into its AI service, Kallm, instead of using OpenAI's offerings.

The tech industry's reaction to DeepSeek's model has been mixed, with some questioning the cost and performance claims, while others anticipate that upcoming models from competitors like OpenAI will restore the status quo. Gelsinger dismisses these concerns, emphasizing that DeepSeek's approach shows AI advancement through engineering creativity rather than increased hardware power. He acknowledges the irony of a Chinese developer highlighting the benefits of open ecosystems, which challenges Western tech norms. Despite concerns about privacy and censorship, Gelsinger remains optimistic about the potential for affordable, high-quality AI to become ubiquitous across various devices and applications.

Key takeaways:

  • DeepSeek's open source AI model, R1, has caused significant market reactions, including a sell-off of Nvidia stock and a surge in its consumer app's popularity.
  • DeepSeek trained R1 using Nvidia's H800 GPUs at a significantly lower cost, challenging the trend of increasing AI training expenses.
  • Pat Gelsinger, former CEO of Intel, praised DeepSeek for its cost-effective approach and announced Gloo's adoption of R1 for its AI services.
  • There is skepticism and controversy surrounding DeepSeek's claims, with some questioning the cost and performance metrics, and concerns about its development in China.
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