Google, OpenAI, Microsoft's new Chinese AI rival: All you need to know about Deepseek R1

Google, OpenAI, Microsoft's new Chinese AI rival: All you need to know about Deepseek R1

DeepSeek R1, a groundbreaking AI model from China, is gaining global recognition for its efficiency and performance. Learn how it stands up against US counterparts and its potential impact on the AI landscape.

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Danny D'Cruze
  • Jan 27, 2025,
  • Updated Jan 27, 2025, 6:04 AM IST

For a long time, the global AI race seemed dominated by US-based companies like OpenAI, Google, and Meta. Even though Chinese firms like Alibaba and Baidu have been investing heavily in AI, they often seemed to be playing catch-up. That narrative might be changing. DeepSeek R1, a cutting-edge AI model developed by the Chinese startup DeepSeek, has recently gained international attention for its performance and efficiency. Here’s everything you need to know.

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What is DeepSeek R1?

DeepSeek R1 is a new large language model (LLM) designed for advanced reasoning and problem-solving tasks. Created by the Hangzhou-based startup DeepSeek, the model is being hailed as a competitor to OpenAI’s GPT models, such as ChatGPT o1. DeepSeek claims R1 matches—and in some cases surpasses—ChatGPT in areas like mathematics and coding while being significantly more cost-effective.

Unlike previous Chinese AI models, which often followed a US-led blueprint, R1 is an innovative leap. It uses a hybrid architecture and a “chain of thought” reasoning method to break down complex problems step by step—similar to how GPT models operate but with a focus on greater efficiency.

Why is DeepSeek R1 important?

1. High Performance at Lower Costs: DeepSeek R1 delivers competitive results in benchmarks without the high resource demands typical of most large AI models. This makes it particularly valuable for researchers and developers in regions with limited access to advanced technology or funding, such as the Global South.

2. Open-Source Advantage: DeepSeek has open-sourced smaller versions of R1, making advanced AI tools accessible to more people. Some of these smaller models can even run locally on laptops, a significant step in democratising AI access.

3. China's entry in AI race: China faces strict US export controls on high-performance chips like Nvidia’s A100 GPUs, limiting its access to cutting-edge technology. However, DeepSeek turned this into an opportunity, developing more efficient AI models using lower-powered hardware. This focus on resource optimisation could have long-term benefits for AI development globally.

How does R1 compare to ChatGPT?

While full comparisons are still emerging, early indicators suggest R1 performs particularly well in specialised areas like coding and advanced mathematics. Additionally, its smaller, open-source versions are attracting attention from independent developers and startups, offering functionality similar to ChatGPT o1-mini at a fraction of the cost.

DeepSeek R1 could reshape the AI landscape by providing a competitive alternative to US-led models while addressing the resource challenges faced by many developers worldwide.

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