Why Elon Musk Isn’t Convinced by DeepSeek’s Low-Cost AI Breakthrough

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Elon Musk has finally spoken on the Chinese AI startup DeepSeek and his response is far from glowing. Musk expressed his doubts about the rapid rise of the new chatbot in the AI space through social media.

DeepSeek has been making waves with its impressive AI model named R1. It has gained attention for being low-cost as well as high-performance tool. Many tech leaders including Salesforce CEO Marc Benioff celebrated the breakthrough calling it proof that the true value of AI lies in data and not in expensive hardware. Musk seems not to be convinced and responded with a blunt “Lmao, no.”

The criticisms of Musk extend beyond the performance of R1 and one key point of contention is the claim of DeepSeek of using 10,000 Nvidia A100 GPUs to train its model. Alongside Alexandr Wang, the CEO of Scale AI, Musk suggests that DeepSeek is likely using far more GPUs and possibly up to 50,000 Nvidia H100 units. It cannot openly admit due to US export restrictions on advanced chips.

Other leaders in the tech industry including Microsoft’s Satya Nadella and OpenAI’s Sam Altman have expressed admiration for the achievement of DeepSeek. Nadella pointed out that cheaper AI models could help in accelerating global adoption and Altman admitted that the new model was impressive considering the price.

The response of Musk has now raised a question whether he has justified his doubts or it is just his stance that is driven by competition. Musk has his own AI venture named xAI and it lately launched Grok AI. Musk may simply be looking to maintain his edge in the AI space. However, one thing is clear that the low-cost AI model of DeepSeek has certainly captured the attention of the industry.

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