OpenAI: Sam Altman Praises China's DeepSeek Achievement

Sam Altman, the CEO of OpenAI, recently praised DeepSeek’s R1 model, a Chinese startup specializing in artificial intelligence, calling it “impressive.” This recognition comes after DeepSeek revealed that training its R1 model cost less than 6 million dollars, a fraction of the cost of equivalent models in the United States. However, this development could be fatal to the crypto market.

OpenAI: Sam Altman praises DeepSeek’s initiative

DeepSeek has attracted global attention by demonstrating that its R1 model could be trained profitably using less powerful Nvidia H800 chips. This approach has raised questions about the massive investments made by American tech companies in AI. Notably, Nvidia, which suffered a record loss of 593 billion dollars in market value in a single day.

Sam Altman expressed his enthusiasm for this new competition, stating that it was “invigorating” and that OpenAI would continue to develop even better models. Furthermore, he emphasized the growing importance of computing power to succeed in OpenAI’s mission, adding that the world would use a lot of AI and would be amazed by next-generation models.

The rise of DeepSeek has been referred to as the “Sputnik moment of AI” by Marc Andreessen. This comparison refers to the launch of the Sputnik satellite by the Soviet Union in 1957, which sparked a space race between the United States and the USSR. Similarly, the emergence of DeepSeek could mark the beginning of a new era of intense competition in the AI field.

The flip side

The rise of DeepSeek and its R1 model could have catastrophic repercussions on the crypto industry in the future. The recent drop in bitcoin this Monday, January 27 is a striking example! It was fueled by investors’ fears regarding the growing technological dominance of Chinese AI startups, questioning the stability and viability of investments in cryptocurrencies. If this trend continues, it could lead to increased volatility and a lasting loss of confidence in the crypto market, posing major challenges for traders and investors. As confirmed by Ryan Lee, chief analyst at Bitget:

The broader impact of these developments intertwines with existing macroeconomic pressures, including decisions on U.S. interest rates and the FOMC meeting, which amplifies volatility in the cryptocurrency market. The recent drop in bitcoin of over 5% is related to the combination of these factors. As history shows, technological advances and their impact on the market often stabilize when ecosystems adapt.

The rise of DeepSeek in the field of AI represents a significant technological advancement, but it also poses significant challenges for the crypto industry. Increased volatility and loss of investor confidence could transform the global financial landscape in unpredictable and complex ways.