DeepSeek-R1: open reasoning matches o1 at 1/30 the cost
In one sentence Chinese startup DeepSeek releases R1, a reasoning model with MIT-licensed open weights. Performance on par with OpenAI o1, API pricing $0.55/$2.19 per 1M tokens (vs o1 $15/$60). Nasdaq AI loses $1T in two days.
DeepSeek, a Chinese startup little known outside China, publishes R1: a model that reasons like OpenAI's o1, but costs a fraction and has weights freely downloadable under MIT license.
The accompanying paper shows how: training mostly via pure reinforcement learning, without large human-written reasoning datasets. The model "discovers" reasoning on its own.
The next day, Nasdaq AI loses almost $1 trillion in market cap. Nvidia alone loses $600B. The narrative that "frontier AI requires billions and months" breaks publicly.
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