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)

Google’s Hassabis acknowledged DeepSeek’s accomplishments but described its reported cost-efficiency figures as “exaggerated and a little bit misleading.”

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.