Google DeepMind CEO Demis Hassabis has acknowledged DeepSeek’s AI model as a notable development from China but said it does not introduce any new scientific breakthroughs.

Speaking at a Google-hosted event in Paris yesterday (Sunday), ahead of the AI Action Summit, Hassabis described the model as “an impressive piece of work” and said it demonstrates “extremely good engineering.” However, he emphasized that the underlying techniques used in the model are already well-known, CNBC reported.

“I think it’s probably the best work I’ve seen come out of China,” Hassabis said. He also noted that DeepSeek’s AI model has geopolitical significance, as it showcases China’s ability to develop advanced AI systems. However, he cautioned against overestimating its impact. “Despite the hype, there’s no actual new scientific advance … it’s using known techniques,” he added.

DeepSeek’s Cost Claims and Market Impact

Last month, DeepSeek released a research paper claiming that it had trained its AI model at a fraction of the cost incurred by leading AI firms and used less-advanced Nvidia chips. The announcement had a significant market impact, triggering a stock sell-off and sparking discussions about the cost efficiency of AI development.

Hassabis’s comments add to the debate over whether AI firms are spending excessive amounts on infrastructure. While acknowledging DeepSeek’s engineering capabilities, he pointed out that DeepMind’s recently launched Gemini 2.0 Flash models are more efficient.

Meanwhile, some experts have questioned DeepSeek’s claims about low-cost development, suggesting that the actual expenses may be higher than reported.

The AGI Timeline Debate

Hassabis also addressed the broader topic of artificial general intelligence (AGI), which refers to AI systems with human-like cognitive abilities. He suggested that AGI could be achieved within the next five years.

“I think we’re close now, you know, maybe we are only, you know, perhaps 5 years or something away from a system like that,” he said. He added that society needs to prepare for the potential consequences of AGI, ensuring that its benefits are widely distributed while also addressing risks.

Deepseek’s AI model is ‘the best work’ out of China but the hype is 'exaggerated,' Google Deepmind CEO says https://t.co/GJLhpT5eQv

— CNBC (@CNBC) February 9, 2025

His remarks align with those of OpenAI CEO Sam Altman, who has said that he is “confident we know how to build AGI as we have traditionally understood it.” However, concerns remain within the AI community. Researchers such as Max Tegmark and Yoshua Bengio have warned that AGI could lead to a loss of human control over AI systems, raising ethical and safety concerns.

As discussions on AGI continue, the debate over AI innovation, cost efficiency, and global competition remains at the center of industry developments.

Italy's Data Protection Authority Blocks DeepSeek's Chatbot

Italy's data protection authority, the Garante, has ordered DeepSeek to block its chatbot due to privacy concerns. The regulator raised questions about DeepSeek's data collection practices, including the sources, purposes, and legal basis for gathering personal data, as reported by Finance Magnates.

Giorgia Meloni, the Prime Minister of Italy, said, "Italy was the first country to ban DeepSeek. I hoped that other Western countries, especially the United States, would follow suit. But I didn't expect that I'd end up being 'left alone'. " Right after she said this, Meloni… pic.twitter.com/hjeqsRqxdK

— 雁过留声 (@szygls) February 3, 2025

The Garante stressed the importance of protecting Italian users' data. Despite DeepSeek claiming its AI models rival those from the United States, the order was issued, coinciding with investigations by data regulators in Ireland and France.

Prediction on XRP and Bitcoin Prices for 2025

DeepSeek AI has made projections for XRP and Bitcoin in 2025 using machine learning, sentiment analysis, and economic data. For XRP, DeepSeek predicts a price range between $3.50 and $5.00 by the end of 2025, based on factors such as Ripple's legal situation, the adoption of its On-Demand Liquidity platform, and overall market conditions.

The model assigns a 70% probability of a positive resolution in Ripple's legal case, which could boost investor confidence and institutional adoption. For Bitcoin, DeepSeek's predictions include a base case range of $100,000 to $150,000, with the potential for higher prices in a bullish scenario or a “black swan” event.

DeepSeek AI Predicts XRP’s Price by End of 2025: A Game-Changer for Crypto Investors? https://t.co/IqSwacNxGX

— SaLiCryp (@SaLiCryp) January 28, 2025

The App Rises to Top of US App Store Charts

DeepSeek has quickly risen to the top of the US App Store charts, surpassing ChatGPT as the most downloaded app. The app’s success is attributed to its ability to match leading AI models while reportedly being developed for under $6 million, far less than the billions spent by competitors.

Its open-source foundation, DeepSeek-V3, has sparked discussions on cost efficiency in AI development. DeepSeek's rise has led to declines in stocks of major US tech firms, while some analysts caution that Chinese companies like DeepSeek could face challenges due to limited access to advanced US chips. The app's efficient use of Nvidia A100 chips, stockpiled before US export restrictions, has been credited with reducing costs without sacrificing performance.