DeepSeek releases DeepSeek-R1, an open-source AI model outperforming OpenAI at lower cost

The Chinese AI startup DeepSeek has launched its new reasoning AI model, DeepSeek-R1, under an open MIT license. This model has surpassed OpenAI's o1 in several benchmarks for math, coding, and reasoning. With an impressive 671 billion parameters, R1 is accompanied by six smaller, distilled versions that range down to 1.5 billion parameters, enabling them to operate on local devices.

The DeepSeek-R1 family includes various models, such as DeepSeek-R1-Zero, which uses reinforcement learning without supervised fine-tuning, and six compact models with parameter sizes ranging from 1.5 billion to 70 billion. The model employs a mixture-of-experts structure, optimizing performance and cost efficiency.

Remarkably, DeepSeek-R1 was developed at a much lower cost than OpenAI’s o1, with API access starting at $0.14 per million tokens, significantly lower than OpenAI's $7.50 for the same tier. This makes R1 a cost-effective alternative, undercutting OpenAI’s unlimited o1 access priced at $2,400 annually through ChatGPT Pro. By releasing its models as open-source, DeepSeek aims to democratize access to advanced AI, and challenge established players like OpenAI with its cost-effective and high-performing models.