Google -parent Alphabet CEO Sundar Pichai has finally broken his silence about the Chinese AI startup Deepseek, which has been in the news everywhere in recent weeks. Pichai called the Deepseek team as 'huge' and further stated that the company did 'whole, very good work', but argued that Google's AI models are also comparable to the Chinese rival in terms of cost efficiency.
The Google CEO also stated that the costs for using AI Frontier models will continue to fall, so that the company is helped to stimulate 'extraordinary use cases'.
Pichai said during the latest profit call from Alphabet (via Techcrunch): “Part of the reason why we are so enthusiastic about the AI chance is that we know that we can encourage extraordinary use cases because the costs to actually use it, Will continue to come, which make more use possible cases … and that is the chance. It is as big as it comes, and that is why you see us investing to meet that moment. “
Google vs Deepseek:
Pichai went through the Gemini models of Google compared to Deepseek and stated that his models perform better on Pareto Frontier – a set of optimum solutions that best handle between different functions.
“If you look at all three attributes, I think we lead this pareto limit … they are some of the most efficient models there are, including comparison with Deepseek's V3 and R1, and I think much of it our strength Of the full stack is: development, end-to-end optimization, our obsession with cost-query “Pichai was quoted.
What is Deepseek? Why does everyone talk about it?
Deepseek is a Chinese AI Statup that shot famous after the two open source models V3 and R1 matched their Western counterparts, while they claimed to have been built on much cheaper costs and with older Nvidia chips.
The rise of Deepseek has destroyed the existing idea that building newer and powerful AI -Fundamental models would require increasing amounts of computing power and capital, which leads to increasing pressure on Google, OpenAi, Meta and the rest to rationalize their AI expenditure .
Pichai's alphabet announced on Tuesday that it will spend $ 75 billion on AI, which is about 29% more than Wall Street's expectations, according to Reuters. The investment by alphabet is comparable to the $ 80 billion obligation by Microsoft and $ 65 billion commitment by Meta. With Deepseek that increases despite the low costs, however, the major technology companies will find it increasingly difficult to justify the increasing investments on AI.
