OpenAI CEO Sam Altman called the hyped AI model DeepSeek-R1 “impressive,” given its capabilities for its cost.

deepseek's r1 is an impressive model, particularly around what they're able to deliver for the price.

we will obviously deliver much better models and also it's legit invigorating to have a new competitor! we will pull up some releases.
— Sam Altman (@sama) January 28, 2025

“Obviously, we will deliver much better models. Also, it’s great to have a new competitor! We’re accelerating a few releases,” he added.

Altman emphasized that OpenAI will continue following its roadmap, noting that access to large-scale computing remains critical.

“The world will want to use a lot of AI and will be shocked by the next-generation models,” said the ChatGPT developer.

Nvidia’s Market Reaction

Earlier, Nvidia’s stock saw a double-digit decline following the launch of DeepSeek-R1. The model offered comparable performance to leading AI networks at a much lower cost, raising doubts about the necessity of billion-dollar investments in GPUs.

Nvidia representatives acknowledged DeepSeek’s innovation:

“DeepSeek’s work demonstrates how Test Time Scaling can create new neural networks using widely available models and computing resources that fully comply with export controls,” the company stated.

During trading on January 27, Nvidia shares fell by 17%—one of the largest single-day drops in years.

Nvidia Defends GPU Demand

Amid concerns over declining demand for GPUs, Nvidia tried to counter the argument:

“These developments still require a significant number of our GPUs and high-performance networks,” company representatives emphasized.

Trump’s Response

President Donald Trump weighed in, stating that DeepSeek’s technology should serve as a wake-up call for American companies.

US President Donald Trump said that Chinese startup DeepSeek's technology should be a 'wakeup call' for American companies.https://t.co/cUawAYPQ5G pic.twitter.com/taeMtenJtQ
— Sky News (@SkyNews) January 28, 2025

Earlier, experts cautioned against overhyping DeepSeek.