Open-source AI Reaches New Milestone, Challenging Industry Giants
Open-source artificial intelligence (AI) has reached another milestone — and the cost differences it represents could shake up the industry.
On Par with o1
On 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-preview
Similar 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.
Pricing
R1’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.
Limitations
R1 does have some limitations, however. Models made by Chinese companies are subject to certain censors by the Chinese government, meaning while their abilities are comparable, there are certain queries R1 may simply not answer compared to o1. When tested by ZDNET’s Tiernan Ray, R1-preview struggled to clearly provide its chain of thought when compared with o1-preview, striking Ray as “baffling and tedious in ways o1 is not.”
Conclusion
DeepSeek’s release marks a promising trend in open-source reasoning models. The company’s pricing structure and capabilities are poised to give OpenAI a run for its money, and the trend of open-source AI development is likely to continue. As the industry continues to evolve, it will be interesting to see how OpenAI and other companies respond to the growing competition.
FAQs
Q: What is DeepSeek’s R1 model?
A: R1 is an open-source reasoning model developed by DeepSeek, a Chinese AI lab. It is capable of performing tasks similar to OpenAI’s o1 model, but at a lower cost.
Q: How does R1’s pricing compare to OpenAI’s o1?
A: R1’s pricing starts at $0.14 for a million tokens, while OpenAI charges $7.50 for the equivalent tier. OpenAI also offers unlimited access to o1 for $2,400 a year through ChatGPT Pro.
Q: Are there any limitations to R1?
A: Yes, R1 is subject to certain censors by the Chinese government, which may limit its ability to answer certain queries. Additionally, R1’s reasoning may take more time to answer than other models.
Q: How can I access R1?
A: R1 is available via an MIT license, and users can chat with the model at chat.deepseek.com. The API is also available for developers.
