Elon Musk has finally spoken out about China’s latest AI breakthrough, DeepSeek, and his response is far from enthusiastic. While several industry leaders have praised DeepSeek’s achievements, Musk remains deeply skeptical about the true capabilities of the Chinese AI firm. His blunt remarks and dismissive tone highlight his doubts, not just about the model’s success but also about the transparency surrounding its development and resources.
One of the first public endorsements of DeepSeek came from Salesforce CEO Marc Benioff, who described the AI model as a major milestone in the industry, arguing that it proves data is more important than expensive hardware in advancing artificial intelligence. Benioff’s statement was met with an immediate and sharp response from Musk, who simply replied, “Lmao, no.” This reaction not only dismissed the claim but also suggested Musk’s firm belief that DeepSeek’s success cannot be attributed solely to data efficiency.
Musk’s skepticism doesn’t stop there. His response took a sharper turn when the conversation shifted to the model’s Chinese origins. A social media user jokingly remarked that DeepSeek’s AI model, R1, might have been “leaked from a lab in China,” a clear nod to past controversies surrounding China’s role in the spread of COVID-19. Musk’s reaction was a laughing emoji—an indirect but telling response that added fuel to the debate. Given Musk’s history of provocative comments, this reaction was interpreted as a dig at China’s track record of secrecy in technological and scientific advancements.
One of the biggest points of contention revolves around DeepSeek’s claims regarding its GPU resources. The company asserts that it trained its R1 model using approximately 10,000 Nvidia A100 GPUs. While this might seem substantial, it is far less than the computing power used by leading AI firms like OpenAI and Anthropic. However, Musk and Scale AI CEO Alexandr Wang believe that the real number of GPUs powering DeepSeek is much higher than what has been publicly disclosed.
During an interview with CNBC, Wang speculated that DeepSeek actually has access to around 50,000 Nvidia H100 GPUs—five times the number officially reported. If true, this would mean that DeepSeek possesses an extraordinary level of computing power that rivals, if not surpasses, some of the biggest AI labs in the world. However, the reason for downplaying these figures, according to Wang, could be linked to US export restrictions on high-performance AI chips. China has faced significant limitations due to US sanctions, which prevent it from legally acquiring advanced semiconductors like the H100. If DeepSeek is indeed using far more GPUs than publicly admitted, it raises serious concerns about how these resources were obtained and whether they comply with international regulations.
Musk, in his characteristic style, agreed with Wang’s theory in the most direct way possible. He simply responded with the word “Obviously,” implying that DeepSeek’s claims are misleading. This single-word response speaks volumes about Musk’s viewpoint—he doesn’t buy into the narrative that DeepSeek has achieved AI breakthroughs with limited computational power. Instead, he strongly suspects that the company has undisclosed resources that enable it to compete on a much larger scale than it publicly acknowledges.
While Musk’s skepticism is evident, other tech leaders have reacted to DeepSeek’s progress with a mix of admiration and cautious optimism. Benioff’s “Deepgold” analogy, likening DeepSeek’s achievement to a pivotal moment in AI history, reflects a positive outlook on how emerging AI firms can disrupt the industry without requiring massive investments in hardware. Microsoft CEO Satya Nadella also commented on DeepSeek’s work, suggesting that advancements in cost-effective AI models could accelerate global adoption and democratize access to powerful AI tools. Similarly, OpenAI CEO Sam Altman acknowledged that DeepSeek had built an “impressive model” given its purported resource constraints.
However, Musk’s response remains an outlier. Unlike Nadella, Altman, or Benioff, he refuses to accept DeepSeek’s success at face value. His dismissive remarks indicate that he sees the situation through a different lens—one that questions not just the technology but also the geopolitical implications of AI dominance. This skepticism is not surprising given Musk’s vested interest in AI through his own company, xAI, which recently launched Grok AI as a competitor in the generative AI space.
Musk’s reaction to DeepSeek raises a broader question: Is his skepticism rooted in legitimate concerns, or is it driven by competition? As the founder of xAI, he has a direct stake in ensuring that Western AI firms maintain their dominance. If DeepSeek truly has access to tens of thousands of high-performance GPUs, it could pose a serious challenge to OpenAI, xAI, and other major players in the field. Moreover, if China has found a way to circumvent US restrictions on AI chip exports, it would signify a major shift in the global AI race—one that could threaten the competitive advantage of Western firms.
There is also the possibility that Musk’s remarks are a strategic move to cast doubt on a rising competitor. His history of bold claims and provocative statements suggests that he is not afraid to use social media influence to shape public perception. By questioning DeepSeek’s transparency, he might be attempting to slow down its momentum in the AI industry.
Regardless of Musk’s skepticism, DeepSeek’s emergence is a significant development in the AI landscape. If the company’s claims about achieving high-performance AI with fewer resources are true, it could revolutionize the way AI models are trained and deployed. On the other hand, if Musk and Wang’s suspicions are correct, it raises critical concerns about China’s access to restricted AI technology and the potential for undisclosed computing power to shift the balance of AI leadership.
The coming months will likely shed more light on DeepSeek’s true capabilities and resources. As regulatory bodies and industry experts scrutinize the company’s claims, more transparency will be needed to determine whether it represents a genuine breakthrough or a well-disguised power play in the AI arms race. One thing is certain: Musk’s remarks have ensured that DeepSeek remains a hot topic of debate in the AI world. Whether his skepticism is validated or proven unfounded remains to be seen, but for now, the global AI community is paying close attention to China’s latest AI contender.
