Kai-Fu Lee: Deepseek Threatens OpenAI

Kai-Fu Lee, former head of [Google China (https://en.wikipedia.org/wiki/Google_China), views DeepSeek, a Chinese AI startup offering free open-source models, as an existential threat to OpenAI. Lee’s company, 01.AI, now fully relies on Deepseek models, as they have sparked a “ChatGPT moment” in China. Many users have canceled their paid ChatGPT subscriptions due to Deepseek’s free offerings. Lee highlights that Deepseek’s cost efficiency, running on just 2% of OpenAI’s expenses, raises concerns about the sustainability of OpenAI’s more expensive model. Lee predicts 01.AI’s revenue will reach $13 million in early 2025. Despite growth, the company is not yet profitable.