DeepSeek R1: Chinese Open-Source Model Disrupts AI Industry
TL;DR
DeepSeek, a Chinese AI startup, has released R1, an open-source reasoning model that competes with OpenAI's o1 at 95% lower cost.
Key Points
- DeepSeek, a Chinese AI startup, has released R1, an open-source reasoning model that competes with OpenAI's o1 at 95% lower cost
- The model uses an innovative Mixture of Experts architecture with 671B total parameters (37B active) and achieves impressive benchmark results: 79
- 8% on AIME (math competition) and 97
- The MIT-licensed release includes compact versions from 1
- The news briefly rattled markets and intensifies global AI competition
Summary
DeepSeek, a Chinese AI startup, has released R1, an open-source reasoning model that competes with OpenAI's o1 at 95% lower cost. The model uses an innovative Mixture of Experts architecture with 671B total parameters (37B active) and achieves impressive benchmark results: 79.8% on AIME (math competition) and 97.3% on MATH-500. The MIT-licensed release includes compact versions from 1.5B to 70B parameters. The news briefly rattled markets and intensifies global AI competition.

Nauti's Take
DeepSeek is making a powerful statement: open source is far from dead. With R1, a Chinese startup delivers a reasoning model that competes at eye level with OpenAI's o1 – at a fraction of the cost. For developers, this is a game-changer: the MIT license enables commercial use without restrictions. The Mixture of Experts architecture is clever – only 37B parameters are active, drastically reducing inference costs. Our take: if you have complex reasoning tasks and OpenAI is too expensive, you should test R1.
Frequently Asked
What is DeepSeek R1?
DeepSeek, a Chinese AI startup, has released R1, an open-source reasoning model that competes with OpenAI's o1 at 95% lower cost.
Why does this matter?
DeepSeek, a Chinese AI startup, has released R1, an open-source reasoning model that competes with OpenAI's o1 at 95% lower cost
What are the key takeaways?
DeepSeek, a Chinese AI startup, has released R1, an open-source reasoning model that competes with OpenAI's o1 at 95% lower cost. The model uses an innovative Mixture of Experts architecture with 671B total parameters (37B active) and achieves impressive benchmark results: 79. 8% on AIME (math competition) and 97