DeepSeek, the Chinese AI startup that debuted its R1 generative AI chatbot, has been getting a lot of attention—and not just for its features, but for its game-changing affordability.

Altman didn’t hold back when asked about DeepSeek’s progress. He called the R1 model “impressive,” admitting that it’s a solid product, especially for the price. But don’t think for a second that OpenAI is sweating. In fact, Altman said this new competition is “invigorating.” Translation? OpenAI sees DeepSeek as a challenge worth taking on.

“Better Models Are Coming”

Here’s the thing: Altman isn’t just clapping from the sidelines. He promised that OpenAI is working on delivering “much better models.” While he didn’t spill too many details, he teased some major updates that could outshine what’s currently on the market. He also hinted that OpenAI is accelerating its product roadmap, basically telling the world, “Stay tuned—we’re about to blow your minds.”

The Role of Compute Power

Altman emphasized that computational power is the real MVP in this race. “More compute is more important now than ever before to succeed at our mission,” he said. It’s a not-so-subtle reminder that OpenAI has the resources and infrastructure to scale its models in ways that few can match.

DeepSeek’s Shockwaves

DeepSeek’s R1 hasn’t just made headlines—it’s forced the tech world to sit up and take notice. The company’s ability to create a competitive model at a fraction of the cost has raised eyebrows and disrupted the usual players in the AI race. It’s also sparked broader conversations about affordability and accessibility in generative AI.

For OpenAI, this is more than a challenge—it’s an opportunity. Altman’s response shows that he’s not just ready for competition; he’s eager to raise the bar.