DeepSeek AI Shakes Up the Tech World – How Industry Leaders Reacted
The Chinese AI research lab DeepSeek has made waves this week, rising to the top of Apple’s App Store and becoming a hot topic in the tech industry. The company’s latest artificial intelligence model, called R1, has prompted responses from key figures across tech, sparking discussions about its potential impact.
In recent days, CEOs from top firms such as OpenAI, Apple, Microsoft, and Palantir have commented on DeepSeek’s significance during their earnings calls and in public statements. Palantir’s CEO, Alex Karp, emphasized the urgency for the U.S. to compete globally in AI, saying, “We need an all-nation effort to stay ahead.” Meanwhile, OpenAI’s CEO, Sam Altman, praised DeepSeek’s R1 model as “clearly a great innovation.”
Microsoft’s CEO, Satya Nadella, acknowledged the technological advancements coming out of DeepSeek, highlighting its cost-effective development. Apple’s Tim Cook also responded, stating that innovations that drive efficiency are ultimately beneficial.
DeepSeek’s mobile app, which uses the R1 AI model, quickly surged to the top of Apple’s App Store, overtaking OpenAI’s ChatGPT. The news that DeepSeek’s model was developed for only $6 million, a fraction of the cost of other competitive models, has raised eyebrows in the industry. This development led to a sharp drop in shares for major chipmakers like Nvidia and Broadcom, wiping out billions of dollars in market value.
The timing of DeepSeek’s release couldn’t have been more striking, coinciding with tech earnings reports from Meta, Microsoft, Tesla, and Apple, and just a week into President Donald Trump’s second term in office. Trump has prioritized AI dominance, especially against China, and recently launched the Stargate project, calling on major U.S. companies to invest heavily in AI infrastructure.
However, there’s still skepticism about DeepSeek’s financial claims. SemiAnalysis, a research firm, estimates that DeepSeek has likely spent over $500 million in its entire history, far exceeding initial reports of their low-cost success.
In an interview with CNBC, Karp of Palantir reflected on the larger implications of AI, stressing that while technology can drive progress, it can also be dangerous in the wrong hands. “We must recognize this and work even harder as a nation,” he urged.
Apple’s Tim Cook was asked whether DeepSeek’s advancements might affect the company’s margins, but he gave a reserved response, noting that innovation and efficiency are positives, while maintaining that Apple’s integration of hardware and software will continue to serve them well.
Meta’s Mark Zuckerberg, on the other hand, noted the complexity of the AI landscape, suggesting that while DeepSeek’s model is notable, the broader trends in AI infrastructure and capital expenditures remain unchanged. Meta plans to invest $60-65 billion in its AI infrastructure for 2025.
On Microsoft’s earnings call, Nadella pointed out that DeepSeek R1 will soon be accessible through Microsoft’s Copilot+ PCs and GPUs on Windows. He also touched on the ongoing evolution of AI, emphasizing that “bending the curve” and driving progress is key. Nadella believes DeepSeek has made meaningful contributions but sees similar advancements happening across the industry.
Reid Hoffman, LinkedIn co-founder and OpenAI investor, echoed these sentiments, adding that DeepSeek’s rise could push American companies to accelerate their AI plans, but it’s not cause for panic. "Competition is good," Hoffman remarked, while introducing his latest AI venture, Manas AI, which aims to accelerate drug discovery.
Sam Altman, at a public event in Washington, D.C., expressed that DeepSeek’s success is a “wake-up call” for the U.S. AI ecosystem, aligning with Trump’s concerns about the need for democratic AI models to win the race. Altman also noted that competition, while fierce, is motivating. “We will deliver much better models,” he posted on social media earlier this week.
With DeepSeek's rapid rise, it's clear that AI competition is intensifying, with both Chinese and American companies ramping up their efforts. The future of AI remains an open battleground, and all eyes are on what comes next.
