Despite these issues, DeepSeek's R1 model has gained popularity, surpassing ChatGPT in App Store downloads and ranking third on HuggingFace's Chatbot Arena. The model's success highlights a shift in AI development, allowing smaller entities to compete with major tech companies. This development comes amid tense Chinese-American tech relations, following the partial implementation of a TikTok ban in the US.
Key takeaways:
- DeepSeek, a Chinese AI startup, has released an open-source reasoning model, R1, which outperforms OpenAI's o1 and has become highly popular, surpassing ChatGPT in App Store downloads.
- R1 is significantly cheaper to access than comparable models, with API access starting at $0.14 for a million tokens, compared to OpenAI's $7.50 for the same tier.
- Privacy concerns have arisen regarding DeepSeek's data collection and potential sharing with the Chinese government, although the open-source nature of R1 allows for increased transparency.
- R1's success signifies a shift in AI development, enabling smaller labs and researchers to create competitive models, potentially impacting the AI investment landscape.