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The CEO of OpenAI has called for the US tech industry to ramp up investments in AI infrastructure after a Chinese startup unveiled a powerful AI model developed at a fraction of the cost.
Some shit you should know before you read: Last week, Chinese AI startup DeepSeek launched its R1 model, a high-performing AI system that has shocked the industry by being developed for just $5.6 million—a fraction of the billions of dollars spent by US companies like OpenAI, Google, and Meta on similar models. Unlike its American counterparts, which rely on massive infrastructure and cutting-edge chips, DeepSeek used only 2,000 Nvidia H800 chips, which are older and less advanced, to train its model efficiently. This breakthrough has raised significant concerns about whether China is closing the AI gap with the US, potentially challenging America’s technological dominance.
What’s going on now: While speaking in Washington, DC, to US lawmakers, OpenAI CEO Sam Altman stressed the need for continued US investment in AI, particularly through large-scale projects like Stargate, a new $500 billion AI infrastructure initiative backed by OpenAI, Oracle, and SoftBank. Altman also downplayed the significance of DeepSeek’s R1 model, arguing that its impact has been “wildly overstated” despite its efficiency. He acknowledged that DeepSeek did “a couple of really nice things,” but insisted that cutting-edge AI development still requires massive computing power and infrastructure.
Altman’s comments about DeepSeek are a notable reversal from his earlier recognition of the model, when he initially called it “impressive” and acknowledged its ability to deliver strong performance at a low cost. Venture capitalist Marc Andreessen has also raised concerns about DeepSeek’s breakthrough, calling it “AI’s Sputnik moment” and suggesting that the US is falling behind the AI race.
This all comes as US officials have openly stated that whoever wins the AI race will become the world’s indisputable superpower, with both President Trump and former President Biden stressing the need for America to maintain its technological dominance over China. Trump recently called DeepSeek’s AI breakthrough a “wake-up call,” while Biden’s administration had previously advocated for massive AI infrastructure investments to keep the US ahead in artificial intelligence.
