{"id":646,"date":"2025-01-28T14:20:13","date_gmt":"2025-01-28T15:20:13","guid":{"rendered":"https:\/\/howtobigisland.com\/?p=646"},"modified":"2025-01-28T16:57:26","modified_gmt":"2025-01-28T16:57:26","slug":"silicon-valley-leaders-from-sam-altman-to-satya-nadella-react-to-their-new-rival-deepseek","status":"publish","type":"post","link":"https:\/\/howtobigisland.com\/index.php\/2025\/01\/28\/silicon-valley-leaders-from-sam-altman-to-satya-nadella-react-to-their-new-rival-deepseek\/","title":{"rendered":"Silicon Valley leaders from Sam Altman to Satya Nadella react to their new rival DeepSeek"},"content":{"rendered":"<figure><img loading=\"lazy\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" height=\"2000\" width=\"3000\" alt=\"DeepSeek Logo.\" class=\"lazyload\" data-src=\"https:\/\/howtobigisland.com\/wp-content\/uploads\/2025\/01\/679808f3196626c40985374b-scaled.jpg\"><figcaption>DeepSeek, a small Chinese startup, said it built AI models using less capital and inferior Nvidia chips.<\/p>\n<p class=\"copyright\">Dado Ruvic\/REUTERS<\/p>\n<\/figcaption><\/figure>\n<ul class=\"summary-list\">\n<li>Business leaders are reacting to DeepSeek’s rise, which sent US tech stocks tumbling.<\/li>\n<li>Intel’s former CEO said DeepSeek would expand the AI market instead of diminishing it.<\/li>\n<li>Meta promised a new “leading state of the art” AI model and pledged more investment.<\/li>\n<\/ul>\n<p>Tech leaders and their companies have reacted with admiration and insights\u00a0after AI company\u00a0<a target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/what-is-deepseek-r1-china-ai-2025-1\" rel=\"noopener\">DeepSeek<\/a>\u00a0launched its flagship\u00a0<a target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/china-startup-deepseek-openai-america-ai-2025-1\" rel=\"noopener\">large language model,<\/a><a target=\"_blank\" class=\"\" href=\"https:\/\/www.businessinsider.com\/china-startup-deepseek-openai-america-ai-2025-1\" rel=\"noopener\"> R1<\/a>.<\/p>\n<p>Just days after DeepSeek launched, the app <a target=\"_blank\" class=\"\" href=\"https:\/\/www.businessinsider.com\/deepseek-vs-chatgpt-ai-chatbot-comparison-openai-2025-1\" rel=\"noopener\">dethroned ChatGPT<\/a> with the most downloads<strong> <\/strong>on <a target=\"_blank\" class=\"\" href=\"https:\/\/www.businessinsider.com\/deepseek-number-one-app-apple-store-openai-chatgpt-2025-1\" rel=\"noopener\">Apple’s Top Free Apps<\/a> chart, rivaling systems by OpenAI, Google, and Meta despite being developed at what the startup said was a<strong> <\/strong>fraction of the cost.<\/p>\n<p>The rise of the Chinese AI startup founded by quant hedge fund manager <a target=\"_blank\" class=\"\" href=\"https:\/\/www.businessinsider.com\/who-is-deepseek-founder-liang-wenfeng\" rel=\"noopener\">Liang Wenfeng<\/a> was followed by <a target=\"_blank\" class=\"\" href=\"https:\/\/markets.businessinsider.com\/news\/stocks\/deepseek-ai-tech-stocks-selloff-chatgpt-china-artificial-intelligence-chips-2025-1\" rel=\"noopener\">a sharp sell-off<\/a> of<strong> <\/strong>major AI and chip companies in the US tech markets on Monday.<\/p>\n<p>Nvidia, a leader in AI hardware, saw its stock plunge by over 17% \u2014 erasing hundreds of billions from its market cap \u2014 amid concern about <a target=\"_blank\" class=\"\" href=\"https:\/\/www.businessinsider.com\/deepseek-demo-chinese-ai-model-math-reasoning-2025-1\" rel=\"noopener\">DeepSeek’s ability<\/a> to achieve competitive results with less advanced and significantly cheaper hardware.<\/p>\n<p>Here’s how Silicon Valley leaders have responded to DeepSeek so far.<\/p>\n<h2 id=\"f2196fe7-2b8f-417a-9764-ad045c3b45b3\" data-toc-id=\"f2196fe7-2b8f-417a-9764-ad045c3b45b3\">Satya Nadella<\/h2>\n<p id=\"f2196fe7-2b8f-417a-9764-ad045c3b45b3\">Nadella, Microsoft’s CEO, posted on LinkedIn on Monday that “<a target=\"_blank\" class=\"\" href=\"https:\/\/www.linkedin.com\/posts\/satyanadella_jevons-paradox-wikipedia-activity-7289521182721093633-5gJ5\/\" rel=\"noopener\">Jevons paradox<\/a> is at play again,” referencing the concept that greater efficiency in production often fuels higher demand. “As AI becomes more efficient and accessible, its adoption will soar, transforming it into an indispensable commodity,” he added.<\/p>\n<p id=\"f2196fe7-2b8f-417a-9764-ad045c3b45b3\">Earlier last week at the World Economic Forum in Davos, Nadella also said that other tech companies “should take the developments out of China very, very seriously.”<\/p>\n<h2 id=\"641a6916-509b-40d7-9e70-e45b9bdcaa54\" data-toc-id=\"641a6916-509b-40d7-9e70-e45b9bdcaa54\">Marc Andreessen<\/h2>\n<p id=\"641a6916-509b-40d7-9e70-e45b9bdcaa54\">Andreessen, cofounder of Andreessen Horowitz, praised DeepSeek’s R1 model and called it “one of the most amazing and impressive breakthroughs” and “a profound gift to the world” in an X post on Friday. On Sunday, the Silicon Valley venture capitalist \u2014 who has been advising President Trump on tech policy \u2014 went on to call Deepseek R1 “AI’s Sputnik moment.”<\/p>\n<div id=\"1738015110800\" data-styles=\"default-width\" data-embed-type=\"twitter\" data-script=\"https:\/\/platform.twitter.com\/widgets.js\" class=\"\" data-type=\"embed\">\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Deepseek R1 is AI’s Sputnik moment.<\/p>\n<p>\u2014 Marc Andreessen \ud83c\uddfa\ud83c\uddf8 (@pmarca) <a href=\"https:\/\/twitter.com\/pmarca\/status\/1883640142591853011?ref_src=twsrc%5Etfw\">January 26, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<h2 id=\"8399d5e2-f2ac-471d-bedf-14de037d3490\" data-toc-id=\"8399d5e2-f2ac-471d-bedf-14de037d3490\">Pat Gelsinger<\/h2>\n<p id=\"8399d5e2-f2ac-471d-bedf-14de037d3490\">Gelsinger, the former CEO of Intel, challenged the market’s reaction to DeepSeek’s advancements, particularly the sell-off of AI chip stocks. He said the market is “getting it wrong” and suggested that the company’s “dramatically cheaper” AI models could expand the market for AI applications rather than diminish it.<\/p>\n<p id=\"8399d5e2-f2ac-471d-bedf-14de037d3490\">Gelsinger also credited DeepSeek’s Chinese engineers, who “had limited resources, and they had to find creative solutions.”<\/p>\n<div id=\"1738015110800\" data-styles=\"default-width\" data-embed-type=\"twitter\" data-script=\"https:\/\/platform.twitter.com\/widgets.js\" class=\"\" data-type=\"embed\">\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Wisdom is learning the lessons we thought we already knew. DeepSeek reminds us of three important learnings from computing history:<br \/>1) Computing obeys the gas law. Making it dramatically cheaper will expand the market for it. The markets are getting it wrong, this will make AI\u2026<\/p>\n<p>\u2014 Pat Gelsinger (@PGelsinger) <a href=\"https:\/\/twitter.com\/PGelsinger\/status\/1883896837427585035?ref_src=twsrc%5Etfw\">January 27, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<h2 id=\"aa84824d-2460-49ab-b239-a67f867d2a4a\" data-toc-id=\"aa84824d-2460-49ab-b239-a67f867d2a4a\">Yann LeCun<\/h2>\n<p>LeCun, chief AI scientist for Meta’s Fundamental AI Research division, challenged the perception that China is surpassing the US in AI in a LinkedIn post, arguing that the correct reading is that “<a target=\"_blank\" class=\"\" href=\"https:\/\/www.businessinsider.com\/meta-ai-yann-lecun-deepseek-open-source-openai-2025-1\" rel=\"noopener\">open source models<\/a> are surpassing proprietary ones.”<\/p>\n<p>He commented that DeepSeek “came up with new ideas and built them on top of other people’s work.”<\/p>\n<h2 id=\"85ab8702-d059-47bd-947c-ebb5c061664c\" data-toc-id=\"85ab8702-d059-47bd-947c-ebb5c061664c\">Mark Zuckerberg<\/h2>\n<p>Though Zuckerberg did not directly respond to DeepSeek’s rise, the Meta CEO\u00a0<a target=\"_blank\" href=\"https:\/\/www.facebook.com\/photo\/?fbid=10116307989350411&set=a.612287952871\" rel=\"noopener\">posted on Facebook<\/a>\u00a0on Friday promising that a new version of Facebook’s open-source AI model family Llama would become “the leading state of the art model” upon release.<\/p>\n<p>Llama is an AI model designed for natural language processing tasks like text generation, translation, and summarization, which is promoted as open-source like DeepSeek.<\/p>\n<p>Pledging more than 1.3 million GPUs of computing power by the end of the year, he wrote that Meta is “planning to invest $60-65B in capex this year while also growing our AI teams significantly” and that the company has additional capital to continue investing over the next few years.<\/p>\n<p>Meta did not immediately respond to a request for comment.<\/p>\n<h2 id=\"d9534c52-ddd4-4e90-b39f-881fcc216011\" data-toc-id=\"d9534c52-ddd4-4e90-b39f-881fcc216011\">Nvidia<\/h2>\n<p>In a statement, a spokesperson for Nvidia told Business Insider that DeepSeek is an “excellent AI advancement and a perfect example of Test Time Scaling,” illustrating how to leverage “widely available models and compute that is fully export control compliant.” The spokesperson added that to make inference work, it “requires significant numbers of NVIDIA GPUs and high-performance networking.”<\/p>\n<p>Jensen Huang, Nvidia’s CEO, has not directly responded to DeepSeek thus far.<\/p>\n<h2 id=\"11277b7f-cae2-4b27-8f39-8a41a87f276d\" data-toc-id=\"11277b7f-cae2-4b27-8f39-8a41a87f276d\">Sam Altman<\/h2>\n<p>OpenAI CEO Sam Altman <a target=\"_blank\" class=\"\" href=\"https:\/\/x.com\/sama\/status\/1884066337103962416\" rel=\"noopener\">wrote<\/a> on X on Monday that DeepSeek’s R1 model is “impressive,” especially because of its price point.<\/p>\n<p>The Chinese AI lab recently rolled out new models that researchers say are just as good as <a target=\"_blank\" rel=\"noopener\" class=\"\" href=\"https:\/\/www.businessinsider.com\/openai-ai-adjusted-earnings-groupon-wework-accounting-2024-10\"><u>OpenAI<\/u><\/a>‘s 01 model. <\/p>\n<p><a target=\"_blank\" class=\"\" href=\"https:\/\/www.businessinsider.com\/sam-altman-openai-release-better-models-in-response-to-deepseek-2025-1\" rel=\"noopener\">Altman embraced the new competition<\/a> and said OpenAI will continue to deliver better models. The CEO said “more compute is more important now than ever to succeed” and said he is looking forward to bringing “AGI and beyond” to the world.<\/p>\n<p>“We will obviously deliver much better models and also it’s legit invigorating to have a new competitor! We will pull up some releases,” the OpenAI boss added.<\/p>\n<div class=\"read-original\">Read the original article on <a href=\"https:\/\/www.businessinsider.com\/nvidia-meta-react-chinese-deep-seek-ai-stocks-2025-1\">Business Insider<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>DeepSeek, a small Chinese startup, said it built AI models using less capital and inferior Nvidia chips. Dado Ruvic\/REUTERS Business leaders are reacting to DeepSeek’s rise, which sent US tech stocks tumbling. Intel’s former CEO said DeepSeek would expand the AI market instead of diminishing it. Meta promised a new “leading state of the art” […]<\/p>\n","protected":false},"author":1,"featured_media":648,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/howtobigisland.com\/index.php\/wp-json\/wp\/v2\/posts\/646"}],"collection":[{"href":"https:\/\/howtobigisland.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/howtobigisland.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/howtobigisland.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/howtobigisland.com\/index.php\/wp-json\/wp\/v2\/comments?post=646"}],"version-history":[{"count":2,"href":"https:\/\/howtobigisland.com\/index.php\/wp-json\/wp\/v2\/posts\/646\/revisions"}],"predecessor-version":[{"id":649,"href":"https:\/\/howtobigisland.com\/index.php\/wp-json\/wp\/v2\/posts\/646\/revisions\/649"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/howtobigisland.com\/index.php\/wp-json\/wp\/v2\/media\/648"}],"wp:attachment":[{"href":"https:\/\/howtobigisland.com\/index.php\/wp-json\/wp\/v2\/media?parent=646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/howtobigisland.com\/index.php\/wp-json\/wp\/v2\/categories?post=646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/howtobigisland.com\/index.php\/wp-json\/wp\/v2\/tags?post=646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}