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Nvidia’s stock was sold off, and its consumer app shot to the top of app stores thanks to DeepSeek’s new open-source AI reasoning model, R1.

Last month, DeepSeek claimed to have trained a model at a cost of around $5.5 million utilizing a data center with about 2,000 Nvidia H800 GPUs in just two months. It released a study last week demonstrating that the performance of its most recent model was comparable to that of the world’s most sophisticated reasoning models. Data centers are now spending billions on Nvidia’s faster, more costly AI chips that are required to train these models.

The reaction across the tech industry to DeepSeek’s high-performance, lower-cost model has been fantastic. Pat Gelsinger, posting in X, “Thank you DeepSeek team.” 

Gelsinger the former CEO of Intel, a hardware engineer, and present chairman of his own IPO-bound startup, also Gloo, as a messaging and engagement platform for churches. He left Intel in December after four years and an attempt at chasing Nvidia with Intel’s alternative AI GPUs.

According to Gelsinger, DeepSeek ought to serve as a reminder to the tech sector of its three key takeaways: Wider adoption results from decreased prices; creativity thrives in the face of limitations. He wrote 

“Open Wins. DeepSeek will help reset the increasingly closed world of foundational AI model work,”.

“R1 is so impressive that Gloo has already decided not to adopt and pay for OpenAI,” Gloo is developing Kallm, which also provides a chatbot along with additional features.

 He also added 

“My Gloo engineers are running R1 today,”. “They could’ve run o1 — well, they can only access o1, through the APIs.” 

Rather, in two weeks, Gloo hopes to have rebuilt Kallm from scratch and said “with our own foundational model that’s all open source,”. “That’s exciting.”

According to him, DeepSeek will make AI so accessible that it won’t only be present everywhere. There will be good AI everywhere. He also said

“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 shows his happy reaction was perhaps it might look odd to others and less thrilled.

The reasoning foundational models now have higher-performing rates come up within affordable rates.

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Avijit Sah is a digital marketing expert specializing in SEO, social media, and content strategy. With a passion for helping businesses grow online, Avijit Sah uses data-driven tactics to boost visibility and engagement. Follow Avijit for the latest digital marketing tips and insights.

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