Economy Country February 06, 2025

DeepSeek R1: A New Low-Cost AI Model

The Chinese company DeepSeek has unveiled its new artificial intelligence model, DeepSeek R1, developed with an investment of only 5 million dollars. This sparks a debate about the relevance of multi-million dollar investments in AI, such as those by OpenAI. While DeepSeek has made significant progress, OpenAI still has advantages in infrastructure and scalability. This contrast highlights the emerging competition in the artificial intelligence sector.


DeepSeek R1: A New Low-Cost AI Model

DeepSeek R1 is a foundational artificial intelligence model that could improve over time. On the other hand, ChatGPT-4 and OpenAI models are multimodal, optimized for various advanced tasks, and operate on a global scale with millions of users. OpenAI aims to achieve Artificial General Intelligence (AGI), a more ambitious goal than simply training models like ChatGPT-4.

TechCrunch revealed that an artificial intelligence was created with an investment of 50 dollars, raising questions about the scale of investments made in OpenAI. ChatGPT mentioned that the difference in investments between DeepSeek R1 and models like ChatGPT/OpenAI has key justifications, such as global infrastructure and scalability implemented.

OpenAI has received significant investments from companies like Microsoft, SoftBank, and Thrive Capital, totaling 6.6 billion dollars by 2024. Multi-million dollar commercial agreements with companies like Microsoft support the high investments in OpenAI, while DeepSeek R1 has yet to establish a robust business model.

In comparison to models like s1, the investment in OpenAI is shown as a bet to lead the market in revenue generation through subscriptions, APIs, and enterprise licenses. Additionally, OpenAI seeks to maintain its competitive edge by investing in research and development of new models.

Although models like s1 could pose some competition, OpenAI continues to lead innovation in artificial intelligence. The investment in generative AI and advanced technologies supports OpenAI's valuation in the market. The company has focused its efforts on developing AGI and expanding its infrastructure to remain a leader in the AI market.