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Sam Altman: OpenAI will release "better models" in response to DeepSeek

Jan 28, 2025 - businessinsider.com
Tech giants are reacting to China's DeepSeek, a new AI model that has disrupted the industry with its low-cost efficiency. OpenAI CEO Sam Altman acknowledged DeepSeek's impressive capabilities and announced plans to accelerate the release of superior models. Despite DeepSeek's challenge to AI's chip spending, Altman emphasized the importance of stockpiling computing power to develop advanced AI models. The emergence of DeepSeek has caused significant market upheaval, with tech stocks plummeting and Nvidia losing substantial value.

In response to DeepSeek's impact, US tech companies are increasing investments in AI infrastructure. Meta plans to boost its AI spending to $60-65 billion, while OpenAI and SoftBank have launched a $500 billion data center initiative. DeepSeek claims to have trained its R1 model on a modest budget, questioning the necessity of massive AI infrastructure spending. Despite the market turmoil, Altman remains optimistic about the future demand for AI and the potential of next-generation models.

Key takeaways:

  • Tech giants are responding to China's DeepSeek AI model, which has disrupted the industry and global markets.
  • OpenAI CEO Sam Altman plans to accelerate the release of better models and continue stockpiling computing power despite DeepSeek's low-cost model.
  • DeepSeek's R1 model, trained on a $6 million budget, challenges the necessity of massive AI infrastructure spending.
  • Despite market turmoil, tech companies like Meta and OpenAI are increasing investments in AI infrastructure.
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