DeepSeek AI - Chinese Open Source AI Startup Disrupts American AI Ecosystem
OpenAI, Meta, Perplexity AI and Gemini are some of the popular AI products from US. Artificial Intelligence market is valued more than $100 billion. US has primary market share and most of the other countries are just consuming the model.
The Chinese company DeepSeek, a new startup launched by Chinese entrepreneur Liang Wenfeng. DeepSeek launched a new open source AI model called DeepSeek R1 which can be compared to OpenAI's o1 model. It performs better than all available models and also costs lesser than their rivals. This is the game changer, a great product with lesser cost than rivals will kill the competitor. DeepSeek models are particularly strong at reasoning through complex problems.
OpenAI founder Sam Altman in one of the interview mentioned that only US has capability to build the AI model and rest of the country does not have the capability. DeepSeek disproved it and made a better product than OpenAI at lesser cost.
Traditional AI systems provide answers based on the data being trained. It will not provide any explanation on how it arrived at the conclusions. DeepSeek focuses on transparency giving users a clear view of its logical steps.
DeepSeek-R1 is an open source model released under MIT license.
Research Paper: DeepSeek-R1 Paper
Github: DeepSeek and HuggingFace
You can also download and run from ollama.
DeepSeek-R1 is cost-effective. Training the model is 90% cheaper OpenAI, and its API costs just $0.55 per million tokens, a mere 2% of the cost of OpenAI’s O1. This disruptive pricing makes reasoning models feasible for most businesses. DeepSeek-R1 also offers distilled models with similar reasoning capabilities that can run on much smaller hardware, essentially providing an O1-mini experience on your computer.
DeepSeek-R1 done better in most of the benchmarks
Math Reasoning: 97.3%
Coding: 96.3rd percentile
AlpacaEval: 87.6%
Overall DeepSeek innovation going to disrupt the high valued AI industry. This is just a start and lot more innovations going to happen and many new competitors going to join the field. Developers and Enterprise users can now cheer as the monopoly going to end and they will have more options.