When ChatGPT 3.5 first came on the market, everyone was amazed by how effortlessly it handled any topic, like talking to a digital genius. But as the hype settled, one question stuck: if AI is so groundbreaking, why is it so expensive?
But now a new tech giant has come into the market “DeepSeek“, an open-source AI from China, shaking up the game and labeling advanced ChatGPT models. It’s not just calling them out—it’s outshining them. Reports suggest DeepSeek’s R1 model matches or even beats ChatGPT and OpenAI’s o1 in math, coding, and reasoning, all at a fraction of the hardware, training, and inference cost. It’s forcing the tech world—and us—to rethink the idea of “premium AI.
Global markets are split as China’s AI startup DeepSeek shakes up tech. US stocks, led by Nasdaq, are falling, while Chinese and Hong Kong tech shares surge, challenging giants like Nvidia and Google
DeepSeek-R1 vs. ChatGPT: Which is better?
DeepSeek R1’s training cost just $5 million, a stark contrast to the $7 billion OpenAI spent on ChatGPT in 2024. If that’s accurate, it could mark a huge turning point. Maybe we’ve been overestimating how much power is needed for advanced AI models. And then DeepSeek R1 enters the scene, offering a solution that’s 20 to 30 times more affordable than what the US giants are charging. It’s not just a shift—it’s a game changer.
DeepSeek-R1 is a more powerful version of the DeepSeek-V3-Base, featuring 671 billion parameters, with 37 billion actives at any given time. It can process up to 128,000 tokens of input context, making it ideal for complex reasoning tasks. Fine-tuned with reinforcement learning and synthetic datasets, it delivers exceptional accuracy through incentivized problem-solving.
Accessing the model via API costs just $0.55 per million input tokens and $2.19 per million output tokens—far cheaper than OpenAI’s o1.
Conclusion
DeepSeek’s innovation has truly caught the tech world off guard, from Silicon Valley to all corners of the globe. The Chinese lab has created something remarkable—an open-source AI model that rivals the best from US companies. While most AI companies pour billions into training their models, DeepSeek has demonstrated that you can achieve greatness with limited resources. This shows that, alongside funding, it’s the vision and foresight that truly drive innovation. It’s a perfect example of how necessity can lead to unexpected breakthroughs
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