Chinese AI startup DeepSeek’s claim of developing a powerful AI model at a much lower cost than major tech giants like Alphabet’s (GOOGL)

Deepseek’s AI model “is probably the best work” out of China, Demis Hassabis said on Sunday, but added it was not a scientific advancement.

The notion that China’s DeepSeek spent under $6 million to develop its artificial intelligence system is “exaggerated and a little bit misleading,” according Google DeepMind boss Demis Hassabis.