OpenAI CEO Sam Altman has done some soul-searching, reminiscent of when Gates admitted that Microsoft was slow to acknowledge the huge impact of the internet.
In an interview, Altman acknowledged the shift in AI development, saying, “We were probably on the wrong side of history for a while on this.” He hinted that OpenAI may adjust its release strategy, balancing proprietary models with increased transparency and collaboration.
But there’s no doubt that DeepSeek’s recent launch has been a wake-up call. OpenAI rushed out its new o3 models, which introduce improved reasoning in responses—a feature strikingly similar to DeepSeek’s approach. The new o3 model is now available to all OpenAI users, marking the first time in a while that OpenAI has been forced to react to a competitor’s innovation.
DeepSeek may have made the biggest splash, but Meta’s influence shouldn’t be overlooked. The company’s Llama models—also open-source—reportedly contributed to DeepSeek’s development. Yann LeCun, Meta’s Chief AI Scientist, has long been a vocal advocate for open-source AI, arguing that collaborative development accelerates innovation and democratizes access to advanced technologies.
While there is debate over DeepSeek’s actual costs and long-term viability, its David vs. Goliath challenge to OpenAI is already reshaping the AI landscape. The ripple effect has extended beyond OpenAI to Microsoft, which made two strategic moves:
- Offering DeepSeek on Azure just days after the model’s release.
- Making its Copilot learning model free, after previously charging for it. The new “Think Deeper” feature in Copilot now provides free access to OpenAI’s o1 reasoning model, a shift widely seen as a response to industry pressure for AI accessibility.
Altman’s admission highlights a growing industry-wide debate over closed vs. open AI models. When Bill Gates made his stunning admission it was in the context of challenging Microsoft to do an abrupt change of course and get on the leading edge, which they did, in record time.
The key question now may be how far OpenAI is willing to go toward openness.
For developers and businesses, the implications are clear—open-source AI models are reshaping competition, innovation, and accessibility and challenging proprietary and closed systems.
