DeepSeek’s new open-source AI model can outperform o1 for a fraction of the cost
ZDNETOpen-source artificial intelligence (AI) has reached another milestone — and the cost differences it represents could shake up the industry.On par with o1On Monday, Chinese AI lab DeepSeek announced the release of R1, the full version of its newest open-source reasoning model, which the company launched in preview in November. The company noted that R1 beats or is on par with OpenAI’s o1 in several math, coding, and reasoning benchmarks.Also: $450 and 19 hours is all it takes to rival OpenAI’s o1-previewSimilar to o1, R1’s reasoning takes more time to answer than other models, but its queries are meant to be more sophisticated and accurate. Alongside the 671-billion-parameter model, DeepSeek also released six smaller “distilled” versions with as few as 1.5 billion parameters, which can be run on a local device.”Pushing the boundaries of **open AI**!” DeepSeek teased in the thread.DeepSeek’s release marks a promising trend in open-source reasoning models. Just over a week ago, UC Berkeley researchers succeeded in creating an open-source model on par with o1-preview. It only took them 19 hours and about $450 in compute costs.Also: OpenAI’s o1 lies more than any major AI model. Why that mattersPricingR1’s pricing structure is similarly poised to give OpenAI a run for its money. API access starts at just $0.14 for a million tokens (about 750,000 words analyzed) — a fraction of the $7.50 OpenAI charges for the equivalent tier. OpenAI is currently offering unlimited access to o1 for $2,400 a year through ChatGPT Pro.That multiple labs are increasingly able to build models with capabilities comparable to OpenAI’s proves competitive AI doesn’t have to be prohibitively expensive. Both DeepSeek and UC Berkeley making strides in the open-source AI — and releasing their training methods — draws attention to OpenAI’s long-forgotten original mission (though the company’s ironic name persists). More

