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DeepSeek’s R1 and OpenAI’s Deep Research just redefined AI — RAG, distillation, and custom models will never be the same

Feb 06, 2025 - venturebeat.com
The article discusses recent developments in AI, focusing on DeepSeek's R1 model release and OpenAI's Deep Research product. DeepSeek's R1 model offers a cost-effective and transparent reasoning model, significantly cheaper than OpenAI's offerings, enabling developers to create customized AI models through techniques like distillation, supervised fine-tuning (SFT), reinforcement learning (RL), and retrieval-augmented generation (RAG). The trend is moving towards smaller, task-specific models that are more efficient for enterprise needs. For most companies, RAG is highlighted as a practical approach to integrate proprietary data and counteract hallucination issues, making AI applications more accurate and domain-specific.

OpenAI's Deep Research aims to enhance RAG capabilities by autonomously gathering web data for customized research, though concerns about accuracy and hallucinations remain. The article emphasizes the importance of clean, curated data for successful AI applications, as data quality directly impacts model accuracy and reliability. The cost reduction in AI models is democratizing innovation, allowing smaller companies and individual developers to experiment without needing extensive resources. The future of enterprise AI is portrayed as open, affordable, and data-driven, with a focus on leveraging these new tools and techniques to build powerful, domain-specific applications.

Key takeaways:

  • DeepSeek's R1 model offers industry-leading reasoning capabilities at a significantly reduced cost, promoting the use of distillation to create smaller, task-specific models.
  • Supervised fine-tuning (SFT) and reinforcement learning (RL) are crucial for companies in niche domains to customize AI models for specific applications.
  • Retrieval-augmented generation (RAG) is a straightforward and effective method for most companies to ground AI models with proprietary data, mitigating hallucination risks.
  • Data quality is paramount for the success of AI applications, emphasizing the need for clean, curated data to ensure model accuracy and reliability.
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