CNBC January 30, 2025
Ryan Browne, Dylan Butts

Key Points

– DeepSeek claims its R1 outperforms OpenAI’s latest o1 model despite costing a fraction of the price the U.S. AI lab charges for its large language models.

– The assertions have sparked concerns over the eyewatering sums tech giants are spending on AI — but many experts are urging skepticism.

– However the scrutiny surrounding DeepSeek shakes out, AI scientists broadly agree it marks a positive step for the industry.

Chinese artificial intelligence firm DeepSeek rocked markets this week with claims its new AI model outperforms OpenAI’s and cost a fraction of the price to build.

The assertions — specifically that DeepSeek’s large language model cost just $5.6 million to train — have sparked concerns over the eyewatering...

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Topics: AI (Artificial Intelligence), Technology
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