Since the beginning of this year, the Chinese startup DeepSeek has rapidly gained attention in the AI market. The company has developed low-cost, high-performance AI models, significantly impacting competitors such as OpenAI.
DeepSeek’s "DeepSeek-R1" model offers performance comparable to OpenAI’s GPT-4 while keeping development costs approximately one-tenth of OpenAI’s equivalent models. This exceptional cost-performance ratio has made it particularly attractive to small and medium-sized enterprises (SMEs) and startups.
Additionally, DeepSeek has adopted an open-source strategy, making its models freely available to promote the democratization of AI technology. This approach has enabled developers to leverage DeepSeek’s technology and foster an ecosystem where new AI applications can be built with ease.
As a result, the traditional notion that "high performance equals high cost" in the AI market is beginning to collapse, signaling another wave of transformation. The emergence of low-cost, high-performance AI models has forced major AI companies, including OpenAI, to reconsider their strategies. To stay competitive, OpenAI is accelerating the development of GPT-4.5 and GPT-5, likely releasing these next-generation models with higher intelligence and multimodal capabilities without significant delays.
As competition in the AI market intensifies, the rivalry between OpenAI and DeepSeek is expected to play a major role in shaping the next phase of technological innovation. With the growing adoption of open-source AI technology, the industry may soon witness an era where more advanced AI is made available at lower costs. As the AI market continues to evolve, OpenAI’s next strategic moves will be closely watched.
Reference: Announcement
Image: Quote from the announcement
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