The launch of DeepSeek R1, a Chinese AI model akin to OpenAI's offerings, is shaking up the industry with its performance and significantly lower cost. At just 3% of OpenAI's expenses, DeepSeek is open source, allowing customization while running locally on servers. With strong interest from both startups and Fortune 500 companies, the AI market is buzzing with possibilities. As prices for comparable models drop, manufacturers are keen on quality without the high costs. This shift highlights a contrast between open versus closed technologies, further enhancing competition in AI.
Twenty-four hours before the White House and Silicon Valley announced the $500 billion Project Stargate to secure the future of AI, China dropped a technological love bomb called DeepSeek.
DeepSeek R1 is a whole lot like OpenAI's top-tier reasoning model, o1. It offers state-of-the-art artificial thinking: the sort of logic that doesn't just converse convincingly, but can code apps, calculate equations, and think through a problem more like a human.
DeepSeek largely matches o1's performance, but it runs at a mere 3% the cost, is open source, can be installed on a company's own servers.
'Everyone wants OpenAI-like quality for less money,' says Andrew Feldman, CEO and cofounder of the AI cloud hosting service Cerebras Systems that is hosting DeepSeek on its servers.
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