DeepSeek shocked the AI world this week. Here's how tech CEOs reacted:
Microsoft CEO Satya Nadella commented on its "real innovations." OpenAI's Sam Altman described it as "clearly a great model." Apple CEO Tim Cook said "innovation that drives efficiency is a good thing." And Palantir's Alex Karp said it shows the importance of "an all-country effort." The tech CEOs were all talking about China's DeepSeek, which burst out of obscurity and into the center of the tech universe this week.
DeepSeek's Impact on the Tech Industry
In the past few days, those execs and many of their peers have addressed questions about the startup lab's new artificial intelligence model, which has stunned experts and was reportedly much more cost effective to create than competitive models in the U.S.
DeepSeek's mobile app shot up to the top of the charts on Apple's App Store early in the week and remained in the lead spot as of Friday, ahead of OpenAI's ChatGPT. Reports that its new R1 model, which rivals OpenAI's o1, cost just $6 million to create sent shares of chipmakers Nvidia and Broadcom down 17% on Monday, wiping out a combined $800 billion in market cap.
In the midst of the discussion, the G7 Competition Authorities and Policymakers Summit laid out a framework to ensure fair competition in AI markets.
Reactions from Tech Leaders
The timing was stark. DeepSeek's rollout landed just as tech earnings season was about to begin, with Meta, Microsoft, Tesla, and Apple all reporting between Wednesday and Thursday, and a week into President Donald Trump's second term in office.
There's been plenty of debate online about the significance of DeepSeek's rollout and whether the financial achievement is real. A new report from research firm SemiAnalysis estimated DeepSeek's costs at "well higher than $500M over the company history."
Insights from Industry Leaders
For leaders of U.S. tech companies, the unifying aspect is the need to beat chief adversary China in the defining technology of the future. Cook, Zuckerberg, Nadella, and other CEOs shared their perspectives on DeepSeek's impact on the industry and the ongoing competition in the AI space.
LinkedIn co-founder Reid Hoffman and OpenAI CEO Sam Altman emphasized the importance of innovation and competition in driving advancements in AI technology. Altman called R1 a "great model" and highlighted the need for democratic AI to succeed in the global market.
Looking Ahead
Despite the challenges posed by DeepSeek's rapid rise, tech CEOs remain optimistic about the future of AI and the opportunities it presents for innovation and growth. As the industry continues to evolve, the competition among tech giants is expected to intensify, driving further advancements in artificial intelligence.
Watch: Nvidia's future in focus
