Chinese startup DeepSeek has gained rapid prominence in the AI industry, with its free AI assistant surpassing ChatGPTon Apple’s U.S. App Store. The company trained its R1 model using Nvidia’s lower-capability H800 chips for under $6 million, triggering concerns among U.S. AI firms about competition.
Despite the buzz, AI experts at top U.S. labs remain skeptical, though OpenAI CEO Sam Altman acknowledged the model’s impressive cost-efficiency. Nvidia welcomed the development as proof of demand for its chips. Meanwhile, Snowflake decided to add DeepSeek’s models to its AI marketplace after customer demand, despite initial concerns over its Chinese origins.
