DeepSeek's latest AI models, the R1 and R1-Zero, promise to reshape the AI landscape. Although the exact cost of developing these models remains unclear, experts suggest they could be a game changer, potentially pressuring the profitability of consumer AI firms. Customers are interested in utilizing DeepSeek's techniques to save costs. While there are concerns about using Chinese models, Perplexity has adopted R1, ensuring its independent hosting. Although R1 excels in text-to-code tasks, Anthropic's model remains preferred for engineering applications, showcasing the competitive nature of AI advancements.
The true price of developing DeepSeek's new models remains unknown, however, since one figure quoted in a single research paper may not capture the full picture of its costs.
I don't believe it's $6 million, but even if it's $60 million, it's a game changer; it will put pressure on the profitability of companies focused on consumer AI.
Many firms may have reservations about relying on a Chinese model for sensitive tasks; however, DeepSeek's R1 model is being hosted completely independent of China.
DeepSeek's latest models are capable of the same kind of simulated reasoning as the most advanced systems from OpenAI and Google.
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