Pat Gelsinger Shifts Focus from OpenAI to DeepSeek

DeepSeek has just secured a significant endorsement with Pat Gelsinger, the former CEO, announcing that he is transitioning his startup from OpenAI to DeepSeek.

DeepSeek has surprised the tech and AI sectors by introducing an AI model that competes with the best offerings from OpenAI but at a much lower cost, ranging from $3 to $5 million. Remarkably, the Chinese startup achieved this using Nvidia H800 chips, which are designed to comply with U.S. export restrictions. This ultimately means that the H800 provides less performance compared to Nvidia's top-of-the-line chips.

The rapid rise of DeepSeek raises many questions about the AI market, including whether American companies are overvalued and if the AI bubble is on the verge of bursting. Additionally, there are doubts regarding the effectiveness of U.S. sanctions on Chinese technology firms, especially since DeepSeek thrived using less powerful chips.

Aside from these technological and political discussions, DeepSeek is accumulating a growing fanbase, including industry veterans like Gelsinger. He recently highlighted the transformative potential of DeepSeek's technology through a post on X.

Gelsinger articulated three important lessons from computing history that DeepSeek embodies:

1. Computing obeys the gas law: Lowering costs dramatically will broaden market access. The industry may underestimate how this will make AI more widely available.
2. Engineering thrives on constraints: Chinese engineers faced challenges and found innovative solutions despite limited resources.
3. Open Wins: DeepSeek could help shift the current trend toward closed models in foundational AI, promoting a more open ecosystem.

In a revealing interview with TechCrunch, Gelsinger discussed how his startup, Gloo, is adopting DeepSeek's R1 model instead of paying for OpenAI's o1 model.

"My Gloo engineers are using R1 today," Gelsinger shared. "While they have access to o1, they are more inclined to utilize R1 now."

He believes that DeepSeek will lead to more affordable AI solutions that can be integrated into a variety of devices. Gelsinger expressed his desire for enhanced AI capabilities in personal gadgets. "I want improved AI in my Oura Ring. I want better AI in my hearing aid. I want more AI in my smartphone and better AI integrated into devices like voice recognition in my electric vehicle," he stated.

If Gelsinger's statements reflect the broader sentiment in the tech industry, it seems that DeepSeek may have a far-reaching impact that could surpass what many critics anticipate.

DeepSeek, Gelsinger, AI