Sam Altman, the CEO of OpenAI, has found himself at the center of an online storm after an old video resurfaced where he dismissed the idea that AI startups with small budgets could compete with the big players. This remark has gained fresh attention as the Chinese startup DeepSeek, with its highly affordable AI model, rapidly gains popularity and challenges the dominance of companies like OpenAI.
The video in question was recorded in 2023 during an event in India. Altman was asked about small AI teams with a budget of $10 million. His response? He stated that such teams would be “totally hopeless” when it comes to competing in the field of training foundation models. At the time, his words seemed like a reflection of the prevailing belief that only well-funded tech giants could afford to train AI models at a scale that mattered.
Fast forward to 2025, and the landscape of AI has shifted dramatically. DeepSeek, a Chinese AI startup, made headlines after unveiling its DeepSeek R1 chatbot, which was trained at a fraction of the cost of models from major US players. DeepSeek claimed to have built its chatbot with a budget of just $6 million, a far cry from the billions spent by big companies like OpenAI and Google.
DeepSeek’s R1 chatbot has stunned AI experts by outperforming some of the world’s most sophisticated models. This development has thrown a wrench into the narrative that only companies with vast resources could lead the AI race. It also shows that smaller, more nimble teams can make a big impact with the right technology and strategy.
The timing of Altman’s old video resurfacing has caused quite a stir on social media. Entrepreneur Arnaud Bertrand shared the video with a humorous commentary, pointing out how Altman’s dismissal of small-budget AI startups now seems a bit off in light of DeepSeek’s success. His post has gone viral, with many online users chiming in with their own thoughts on how quickly the AI scene is evolving.
Some social media users found Altman’s comments to be misguided, suggesting that the fast-moving AI landscape might not be as predictable as once thought. One commenter pointed out that things would have made sense if Altman had added the caveat “within two years,” implying that even the smartest teams with small budgets could have a fighting chance now, especially with AI advancing at such a rapid pace.
Others pointed out how “totally hopeless” turned into serious competition in less than a year. The message seemed clear: AI technology is evolving so quickly that centralized control, once seen as an advantage, is being increasingly questioned. As DeepSeek proves that smaller companies can deliver results with less money, the question remains: Who truly gets to define the future of AI?
This event has triggered a broader conversation on the democratization of AI and whether smaller teams can now challenge the behemoths. In the past, it was almost unthinkable for a small startup to compete with the likes of OpenAI. But with DeepSeek’s rise, it appears that the game has changed, and smaller teams may have a viable path forward.
The backlash against Altman’s comments has also sparked a larger debate about the future of AI development. The reality is that AI technology is no longer reserved for the biggest players. New players, often with a fraction of the funding, can make huge strides, sometimes even outpacing the industry giants.
DeepSeek’s rapid success in AI has shaken things up. It is proving that innovation is not solely about who can spend the most money. The ability to think differently and make strategic choices is just as crucial. As more small, smart teams rise to the challenge, the AI industry may be in for some major changes in the years ahead.
While Altman may have been right in his time about the struggles of small-budget AI startups, it’s clear that the landscape has changed faster than anyone could have expected. With companies like DeepSeek making waves, the future of AI looks even more unpredictable and exciting.
The news about DeepSeek and Altman’s comments has certainly shaken up the tech world. Whether or not Altman’s views on small startups were premature, one thing is certain—the world of AI is moving at an astonishing speed. It’ll be interesting to see who emerges as the real leaders in this new, dynamic landscape.
