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Tuesday, July 8, 2025

Former Google CEO calls DeepSeek turning point for AI race

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San Francisco: Former Google CEO Eric Schmidt described DeepSeek’s rise as “a turning point” in the global artificial intelligence (AI) race, according to an op-ed published Tuesday in The Washington Post.

Schmidt emphasised that China’s ability to compete with Big Tech using fewer resources demonstrates the need for the United States to intensify its open-source AI efforts. He called for increased investment in AI infrastructure and initiatives like Stargate while urging leading research labs to share their training methodologies.

DeepSeek is a Chinese AI company founded in 2023. In January 2025, the company released its latest model, DeepSeek-R1, which has attracted significant attention for its advanced reasoning capabilities. The model is said to have achieved performance comparable to leading AI systems, such as OpenAI’s ChatGPT, but at a fraction of the development cost.

The launch of DeepSeek-R1 has sent shockwaves through the technology industry, causing a notable decline in the stock prices of major tech companies, including Microsoft, Meta, and Nvidia, on Monday.

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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