OpenAI CEO Sam Altman has acknowledged the impressive capabilities of DeepSeek’s R1 reasoning model, admitting that the Chinese firm’s entry into the AI arena has narrowed OpenAI’s lead. While acknowledging this shift in the competitive landscape, Altman affirmed OpenAI’s commitment to continued innovation and development within the AI industry.
During a recent Reddit Ask Me Anything (AMA) session, Altman and other OpenAI executives candidly addressed various topics, including the company’s stance on open-source development. Altman expressed his personal belief that OpenAI has “been on the wrong side of history” regarding its open-source strategy for AI models. He acknowledged the need for a revised approach, though he noted that this view isn’t universally shared within OpenAI and isn’t currently the company’s top priority.
A laptop screen shows the home page for ChatGPT, OpenAI
As reported by TechCrunch, OpenAI initially embraced an open-source model but later shifted towards a more closed approach as the commercial potential of generative AI became evident. In response to a question about DeepSeek’s impact on OpenAI’s future plans, Altman conceded that the R1 model is “very good” and while OpenAI is confident in its ability to develop superior models, their competitive edge has diminished.
OpenAI’s Chief Product Officer, Kevin Weil, hinted at the possibility of open-sourcing older, less advanced models, though no specific models or timelines were mentioned. He confirmed the company’s willingness to consider this approach further. The emergence of DeepSeek has prompted OpenAI to re-evaluate its strategy. Following the recent release of its o3-mini model, the company is exploring increased transparency for its reasoning model, potentially allowing users to observe its “thought process,” a feature already available in DeepSeek’s R1 model.
Altman and Weil also addressed rumors of a ChatGPT price increase. Contrary to these speculations, Altman expressed a desire to make ChatGPT “cheaper” over time. Currently, the Pro subscription costs $200 per month, while the Plus tier is priced at $20 per month.
The AMA session also provided glimpses into OpenAI’s upcoming projects, including the next-generation o3 reasoning model, expected within weeks to months, and the highly anticipated GPT-5, though its release date remains undisclosed. An overhaul of the DALL-E 3 image generator, which hasn’t seen a major update in two years, is also on the horizon.
The executives also discussed OpenAI’s collaborations with the U.S. government, including the Stargate data center project. Responding to concerns about the potential use of OpenAI’s models for developing destructive weapons, specifically nuclear weapons, Weil expressed confidence in the researchers involved, stating his trust that they wouldn’t recklessly utilize model outputs for such calculations.
DeepSeek’s announcement of its R1 reasoning model, boasting comparable performance to OpenAI and Meta’s offerings at significantly lower operating costs, has sent ripples through the AI community. The free access for users and open-source availability for developers further solidify its competitive position.
Allegations of DeepSeek utilizing illegal data distillation techniques from OpenAI to train its models have surfaced, but analysts suggest the impact is already significant. Even former President Trump has labeled the situation a “wakeup call” for the American AI industry. Notably, Microsoft, a major OpenAI investor, has started supporting DeepSeek on its Azure cloud and GitHub platforms, aiming to democratize AI model access for its Copilot+ PCs.
In conclusion, while DeepSeek’s emergence has presented a formidable challenge, OpenAI remains committed to pushing the boundaries of AI innovation. The company’s willingness to re-evaluate its open-source strategy and focus on enhancing transparency signals a potential shift in its approach. The upcoming releases of new models and potential price reductions for ChatGPT further demonstrate OpenAI’s dedication to remaining a key player in the evolving AI landscape.
