The Rise of DeepSeek's AI Models

DeepSeek has introduced a groundbreaking AI model, R1, which is capable of reasoning through problems step by step, similar to human thought processes. Unlike generative models that guess answers probabilistically, R1 allows users to see the logic behind its conclusions, making it effective for tasks where correct answers are critical, such as math or logic problems. Additionally, DeepSeek's V3 model competes with ChatGPT but comes with a striking cost advantage, as it is estimated to be 50 times cheaper to run than OpenAI's offerings. This efficiency demonstrates that advanced AI technology does not necessarily require the most powerful GPUs, challenging the prevailing assumption in the industry about the need for expensive hardware investments.