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OpenAI CEO Sam Altman praised Chinese AI startup DeepSeek’s R1 model on Monday, describing it as “impressive.” However, he also added that OpenAI will “deliver much better models” and appreciated the fact that the company has a new competitor.

DeepSeek drew worldwide attention last month with its research paper describing DeepSeek-V3, which achieved training through $6 million worth of computational resources. DeepSeek demonstrated cost-effective computing practices through its use of Nvidia H800 chips with limited capabilities.

During the past week, DeepSeek revealed its R1 model, which uses power that is twenty to fifty times cheaper than OpenAI’s o1 model, depending on the task, according to their official WeChat.

Altman said in the X post that “Deepseek’s r1 is an impressive model, particularly around what they’re able to deliver for the price.”

deepseek's r1 is an impressive model, particularly around what they're able to deliver for the price.

we will obviously deliver much better models and also it's legit invigorating to have a new competitor! we will pull up some releases.

— Sam Altman (@sama) January 28, 2025

He also noted OpenAI’s primary interest in research progression and its need for more computational capabilities. He emphasized that ever-increasing computational capability represents his organization’s primary requirement for delivering on its mission objectives.

Nvidia now operates under greater pressure as cost-effective alternatives begin to appear in the market. Recently, Wall Street witnessed its greatest single-day financial disaster when Nvidia lost $593 billion in market value last Monday.

Trump says DeepSeek is a positive development and a wake-up call for US industries

According to an NBC report President Donald Trump suggested that American tech firms sharpen their focus while addressing in Florida on Monday. He said, “The release of DeepSeek AI from a Chinese company should be a wake-up call for our industries that we need to be laser-focused on competing.”

The low cost model surged to number one on Apple’s app store during the weekend, threatening U.S. tech supremacy while Trump expressed his faith in America’s capability to maintain its competitive advantage.

He also pointed out a silver lining in DeepSeek’s low-cost approach, calling it “very much a positive development” for innovation. According to him, tech firms could save budgetary resources and “come up with, hopefully, the same solution.”

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