DeepSeek, a US-based AI lab, claims its new reasoning model, R1, outperforms OpenAI's latest o1 model while costing significantly less to train. This has sparked debate about the escalating costs of AI development and whether DeepSeek's approach represents a breakthrough or a challenge to established norms.
DeepSeek claims its R1 outperforms OpenAI's latest o1 model despite costing a fraction of the price the U.S. AI lab charges for its large language models.
DeepSeek was founded in 2023 by Liang Wenfeng, co-founder of AI-focused quantitative hedge fund High-Flyer, to focus on large language models and reaching artificial general intelligence, or AGI. "But DeepSeek proves we are still in the nascent stage of AI development and the path established by OpenAI may not be the only route to highly capable AI."DeepSeek has two main systems that have garnered buzz from the AI community: V3, the large language model that unpins its products, and R1, its reasoning model.
Daniel Newman, CEO of tech insight firm The Futurum Group, said these developments suggest "a massive breakthrough," although he shed some doubt on the exact figures. DeepSeek says R1 costs 55 cents per 1 million tokens of inputs — "tokens" referring to each individual unit of text processed by the model — and $2.19 per 1 million tokens of output.
"The $5M number is bogus. It is pushed by a Chinese hedge fund to slow investment in American AI startups, service their own shorts against American titans like Nvidia, and hide sanction evasion."
Artificial Intelligence AI Artificialintelligence Deepseek Openai R1 O1 Cost Training Reasoningmodel Largelanguagemodel
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