Companies

Pat Gelsinger Shifts Focus from OpenAI to DeepSeek

Published January 29, 2025

DeepSeek has made waves in the tech industry by securing the support of former CEO Pat Gelsinger, who recently announced that his startup would transition from using OpenAI to DeepSeek.

DeepSeek surprised many when it introduced an AI model that rivals those of OpenAI but comes at a significantly reduced cost, estimated between $3 to $5 million. The startup, based in China, utilized Nvidia's H800 chips, which are specifically crafted to meet US export regulations. While the H800 chips provide less performance compared to Nvidia’s top-tier offerings, they have still managed to deliver impressive results.

This achievement has sparked various discussions about the AI landscape, including whether American companies are overhyped and if the anticipated AI bubble may be close to bursting. Additionally, questions arise regarding the effectiveness of US sanctions on Chinese tech, particularly as DeepSeek has thrived using less advanced hardware.

Beyond the technological and political implications, DeepSeek is quickly gaining traction among users and supporters, including Gelsinger. He expressed his enthusiasm for DeepSeek's advancements on social media, highlighting how it reinforces lessons learned from the history of computing.

  1. First, reducing costs effectively expands the market. Access to affordable AI will lead to broader adoption.
  2. Second, engineering thrives on constraints. The challenges faced by Chinese engineers fostered innovative solutions.
  3. Lastly, openness leads to progress. DeepSeek may help shift the current trend of increasingly closed foundational AI models.

In a conversation with TechCrunch, Gelsinger stated that his startup, Gloo, would now be utilizing DeepSeek’s R1 model instead of incurring costs with OpenAI’s o1 model. He said, “My Gloo engineers are running R1 today,” emphasizing that the team can only access OpenAI’s offering through their APIs.

Gelsinger believes DeepSeek will pave the way for more cost-effective AI solutions that can be seamlessly integrated into a wider range of devices. He elaborated, “I want better AI in my Oura Ring. I want better AI in my hearing aid. I want more AI in my phone. I want better AI in my embedded devices, like the voice recognition in my EV.”

Gelsinger's strong endorsement indicates that DeepSeek's influence on the tech and AI sector could be more significant than many skeptics expect.

AI, DeepSeek, PatGelsinger