Some Zeros Missing: OpenAI CEO on Rival DeepSeek’s ‘Low-Cost’ Claim
In a recent visit to India, Sam Altman, the CEO of ChatGPT maker OpenAI, raised eyebrows when he expressed his skepticism about China’s DeepSeek’s claim of building its AI model at a low cost of just $6 million. Altman’s remarks came amidst growing concerns about the accuracy of DeepSeek’s cost estimate, with industry analysts estimating the company’s total hardware investment to be significantly higher.
DeepSeek, a Chinese AI company, has been making headlines with its claim of developing an AI model at a fraction of the cost of its competitors. The company’s CEO had stated that it had spent just $6 million on hardware to build its AI model, which is a significant departure from the billions of dollars spent by other companies in the industry.
However, OpenAI’s CEO, Sam Altman, was not convinced by DeepSeek’s claim. In an interview, Altman expressed his skepticism about the cost number, saying, “I was extremely sceptical of the cost number. It was like, there are some zeros missing.” This comment suggests that Altman believes DeepSeek’s cost estimate is unrealistic and that there may be more to the story than what is being reported.
Industry analysts have also been critical of DeepSeek’s claim, estimating that the company’s total hardware investment would be significantly higher than the $6 million claimed. According to these estimates, DeepSeek’s total hardware investment could be as high as $500 million or more, which would be a far cry from the $6 million claimed.
So, what could be driving DeepSeek’s claim of a low-cost AI model? One possible explanation is that the company is trying to gain a competitive advantage by highlighting its cost-effectiveness. By claiming to have built its AI model at a low cost, DeepSeek may be trying to position itself as a more affordable option for companies looking to adopt AI technology.
Another possibility is that DeepSeek is trying to mask the true cost of its AI model by hiding the costs of other expenses, such as research and development, marketing, and personnel. By only disclosing the cost of hardware, DeepSeek may be trying to create a false narrative about the cost-effectiveness of its AI model.
OpenAI’s CEO, Sam Altman, has been vocal about his concerns about DeepSeek’s claim. In his interview, he also highlighted the importance of transparency in the AI industry, saying, “Transparency is crucial in the AI industry. We need to know how these models are being built, and we need to know the cost. We can’t just take people’s words for it.”
Altman’s concerns about DeepSeek’s claim are not unfounded. The AI industry is plagued by a lack of transparency, with many companies keeping their cost structures and research methods secret. This lack of transparency can make it difficult for companies to make informed decisions about which AI models to adopt and how to use them effectively.
In conclusion, OpenAI’s CEO, Sam Altman, has expressed his skepticism about DeepSeek’s claim of building an AI model at a low cost of just $6 million. Industry analysts have also estimated that DeepSeek’s total hardware investment would be significantly higher than the claimed cost. Altman’s concerns highlight the need for transparency in the AI industry, and it remains to be seen whether DeepSeek will provide more information about its cost structure and research methods.
