Sam Altman’s old AI comment goes viral as China’s DeepSeek rises

A Chinese AI startup has stunned the tech world by unveiling a chatbot, DeepSeek R1, which outperformed major AI models at a fraction of the cost. While leading AI models in the U.S. cost millions to train, DeepSeek’s model trained at just $6 million. The news has rattled the AI community, especially after a resurfaced video of Sam Altman, the CEO of OpenAI, made waves.

In the video, Altman dismissed the possibility of AI startups competing with the tech giants, claiming, “It’s totally hopeless to compete with us on training foundation models.”

The video, filmed during an event in India in 2023, shows Altman responding to a question about how a small, smart team could build something substantial in AI with a $10 million budget. His confident remark about the hopelessness of such ventures has now gained renewed attention following DeepSeek’s surprising success.

Arnaud Bertrand, an entrepreneur, reshared the video on social media, calling Altman’s comment “pretty hilarious in retrospect.” The post quickly went viral, sparking debates and reactions. One user commented, “Things would make sense if he added within two years.” Another chimed in, “Funny how ‘totally hopeless’ turned into real competition in just over a year. The AI space is moving fast—centralized control is breaking down, but who defines the future of AI governance?”

Some saw Altman’s comment as a reflection of the fast-paced nature of AI advancements. A user even suggested that OpenAI, under Altman’s leadership, had created artificial scarcity in the AI field. They argued that if OpenAI had been an open-source organization, the DeepSeek moment would have occurred much earlier.

In response to the new competition, Altman took to X, acknowledging DeepSeek’s impressive model and its ability to deliver at a lower cost. He expressed excitement about the new competitor, saying, “We will obviously deliver much better models… it’s legit invigorating to have a new competitor!” He also reaffirmed OpenAI’s commitment to its research roadmap, emphasizing that more computing power would be crucial in the future of AI.

Altman’s comments highlight a central tension in the AI space: the rapid evolution of technology and the growing challenge for established companies to maintain their dominance. Despite DeepSeek’s success, Altman remains confident in OpenAI’s position, promising more advanced models and a future where AI will be central to global industries.

This saga underscores the accelerating pace of innovation in the AI world, where yesterday’s dismissals become today’s competition. As the field expands, the question of who controls the future of AI remains a matter of intense debate. With DeepSeek challenging established norms, the landscape for AI startups has fundamentally shifted, leaving Altman’s once-dismissive comment in the rearview mirror.