Pat Gelsinger Chooses DeepSeek Over OpenAI for New Startup Gloo

DeepSeek’s R1 Model Disrupts AI Landscape

The recent unveiling of DeepSeek’s open source AI reasoning model, R1, triggered a decline in Nvidia’s stock value and simultaneously propelled its associated consumer application to the forefront of app store rankings.

Training and Performance

DeepSeek reported last month that the model was trained utilizing a data center equipped with approximately 2,000 of Nvidia’s H800 GPUs, completing the process in roughly two months at an estimated cost of $5.5 million. Subsequently, the company released a research paper demonstrating that the model’s capabilities are comparable to those of the most sophisticated reasoning models currently available.

These competing models are developed within data centers investing billions in Nvidia’s advanced, and expensive, AI chips.

Industry Reaction

The tech sector’s response to DeepSeek’s high-performing, yet cost-effective model has been notably enthusiastic. Pat Gelsinger publicly expressed his approval on X, stating, “Thank you DeepSeek team.”

Pat Gelsinger’s Perspective

Gelsinger previously served as the CEO of Intel, a hardware engineering role, and currently chairs Gloo, an IPO-bound platform designed for church messaging and engagement. He departed from Intel in December following a four-year tenure and an effort to compete with Nvidia using Intel’s Gaudi 3 AI GPUs.

Gelsinger highlighted three key takeaways from DeepSeek’s achievement: reduced costs facilitate broader adoption, innovation thrives under limitations, and “Open Wins.” He asserted that DeepSeek will contribute to a shift away from the increasingly closed nature of foundational AI model development, contrasting with the closed-source approaches of OpenAI and Anthropic.

Gloo’s Shift to Open Source

Gelsinger informed TechCrunch that the impressive capabilities of R1 have led Gloo to forgo utilizing and paying for OpenAI’s services. Gloo is currently developing an AI service, Kallm, which will incorporate a chatbot and other functionalities.

“Our Gloo engineers are currently evaluating R1,” he stated. “Access to o1 is limited to API access.”

Within two weeks, Gloo anticipates a complete rebuild of Kallm, leveraging “our own foundational model based entirely on open source components,” he explained. “This is a significant development.”

The Potential of Affordable AI

Gelsinger believes DeepSeek will make AI so accessible that it will become ubiquitous, and importantly, good AI will be widely available. “I envision enhanced AI integration in devices like the Oura Ring, hearing aids, smartphones, and embedded systems, such as the voice recognition in electric vehicles,” he elaborated.

Skepticism and Challenges

While Gelsinger reacted positively, others expressed less enthusiasm, questioning whether the performance claims of the new model were accurate and suggesting the training costs may have been underestimated. Some speculated that the use of higher-end chips may have been obscured due to U.S. AI chip export restrictions to China.

Concerns were also raised regarding specific performance benchmarks where other models demonstrated superior results. A prevailing sentiment suggests that OpenAI’s forthcoming model, o3, will ultimately surpass R1, restoring the existing market dynamics.

Addressing Concerns

Gelsinger dismissed these criticisms, acknowledging the lack of complete transparency due to the model’s development in China. However, he maintained that “all evidence indicates that its training cost is 10-50 times lower than that of o1.”

He emphasized that DeepSeek’s success demonstrates that progress in AI can be driven by “engineering creativity, rather than simply increasing hardware power and computational resources. This is truly exciting.”

Geopolitical Implications

Regarding the implications of a Chinese developer leading this innovation, particularly concerning privacy and censorship, Gelsinger acknowledged a degree of irony.

“It is perhaps somewhat humbling for our community, and the Western world, to be reminded of the power of open ecosystems by China,” he commented.

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