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Calm down: DeepSeek-R1 is great, but ChatGPT’s product advantage is far from over

Jan 27, 2025 - venturebeat.com
DeepSeek, a Chinese AI startup, has launched an open-source AI model called R1, which has quickly gained popularity, surpassing OpenAI's ChatGPT in the Apple App Store. Despite its cost-effectiveness and efficiency, DeepSeek-R1's success is partly attributed to U.S. AI innovations, including the transformer architecture developed by Google and OpenAI's models. While DeepSeek-R1 excels in reasoning and cost savings, it lacks features like image and voice capabilities that make ChatGPT a more versatile tool.

Although DeepSeek-R1's achievements are significant, the current investor panic over U.S. AI companies seems premature. ChatGPT still offers superior vision and image generation capabilities, which are crucial for various professional and creative workflows. While DeepSeek-R1 may add these features in the future, doing so requires substantial resources. For now, ChatGPT remains the more comprehensive product, and U.S. AI innovation continues to play a vital role in the industry.

Key takeaways:

  • DeepSeek-R1, a new open-source AI model from Chinese startup DeepSeek, has quickly become the most popular AI product in the world, surpassing ChatGPT in the Apple App Store.
  • DeepSeek-R1 is highly cost-effective, developed with under $6 million, and offers API access at a significantly lower rate than OpenAI, causing a market shift and investor panic.
  • Despite its success, DeepSeek-R1 lacks several features that make ChatGPT more versatile, such as image and vision capabilities, image generation, and voice interaction mode.
  • While DeepSeek-R1's achievements are impressive, the article emphasizes the continued importance of U.S. AI innovation and investment, as well as the challenges DeepSeek faces in adding new capabilities.
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