Former Google CEO Eric Schmidt has described the rise of Chinese AI company DeepSeek as “a turning point” in the global artificial intelligence race. Speaking at a recent tech conference, Schmidt emphasized that China’s ability to compete with big tech firms using fewer resources showcases the need for the United States to intensify its open-source AI efforts.
“DeepSeek’s advancements highlight a significant shift in the AI landscape,” Schmidt said. “We must invest more in AI infrastructure and initiatives like Stargate, and encourage leading research labs to share their training methodologies.”
DeepSeek’s Rapid Ascension
Founded in 2023, DeepSeek made headlines in January 2025 with the release of its latest model, DeepSeek-R1. The model has garnered significant attention for its advanced reasoning capabilities, reportedly achieving performance comparable to leading AI systems like OpenAI’s ChatGPT, but at a fraction of the development cost.
The launch of DeepSeek-R1 sent shockwaves through the technology industry, causing a notable decline in the stock prices of major tech companies, including Microsoft, Meta, and Nvidia. Analysts attributed the market fluctuation to bargain hunting and sustained confidence in AI’s long-term profitability, despite DeepSeek’s disruptive entrance.
“Today’s recovery is to be anticipated given the magnitude of yesterday’s selloff,” said Cody Acree, chip industry analyst at Benchmark Company. “Everything was taken down en masse without much foresight into each company’s exposure.”
Reactions from Industry Leaders
While some have expressed doubts over DeepSeek’s cost claims, OpenAI CEO Sam Altman acknowledged the company’s achievements. “We will obviously deliver much better models, and also it’s legit invigorating to have a new competitor!” Altman said in a social media post.
Schmidt stressed the importance of open-source development as a countermeasure to DeepSeek’s advancements. He called on the United States to foster collaboration, develop competitive AI solutions, and address the shifting dynamics of global AI competition.
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Former Google CEO calls DeepSeek 'turning point' for AI race
cgtn.com