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Is DeepSeek a ChatGPT Killer?

“In recent years, Large Language Models (LLMs) have been undergoing rapid iteration and evolution, progressively diminishing the gap towards artificial general intelligence (AGI).” That’s the first paragraph of the introduction of the recently released DeepSeek R1 paper, and it sets the tone for a fascinating new player in the world of AI.

 

chat-gpt-killer

How Does DeepSeek R1 Compare?

When benchmarked against OpenAI’s o1, DeepSeek R1 shows nearly identical performance, surpassing its rival in some areas while falling slightly behind in others. The comparison reveals a fierce competition between proprietary and open-source models.

https://github.com/deepseek-ai/DeepSeek-R1?tab=readme-ov-file#1-introduction

Pricing Advantage

DeepSeek R1 also boasts a significant edge in pricing, offering lower costs for both input and output API usage compared to OpenAI. For example, while OpenAI’s output API price is $60 per 1M tokens, DeepSeek R1 manages the same at just $2.19, as seen in the attached charts.

https://x.com/deepseek_ai/status/1881318145761439995/photo/2

Synthetic Data Generation

Another exciting area DeepSeek is exploring is using its models to generate synthetic data for fine-tuning smaller models. This method has proven to significantly enhance the performance of non-reasoning models, paving the way for more efficient AI solutions. But this time, those improved models are small enough to be run on a personal computer.

https://github.com/deepseek-ai/DeepSeek-R1/blob/main/DeepSeek_R1.pdf

Conclusion

DeepSeek is not a ChatGPT killer but is undoubtedly putting considerable pressure on OpenAI. By providing a model with comparable capabilities, lower costs, and open-source accessibility, DeepSeek fosters innovation and competition in the AI space. We believe this development will drive more advancements in the industry, ultimately benefiting users worldwide.

 


 

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At Cordillera Digital, we specialize in building and deploying applications tailored to your business objectives. We offer integrations with LLMs providers like OpenAI and DeepSeek. From ideation to launch, we ensure your apps are scalable, secure, and user-friendly. Let us help you harness the power of AI to transform your business and stay ahead in the digital world.

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