DeepSeek launches R1, an open-source AI model that rivals OpenAI's o1 at lower cost

DeepSeek has launched R1, a new open-source AI model that matches or surpasses OpenAI's o1 in various benchmarks. R1 was first previewed in November and is now fully available, including six smaller versions for local use. R1's API pricing is significantly lower than OpenAI's, starting at $0.14 for a million tokens, compared to OpenAI's $7.50. This development highlights a trend where multiple labs can create competitive AI models at lower costs. However, R1 has limitations due to Chinese government censorship, which may restrict its responses. Additionally, it has been noted that R1 struggles with clarity in its reasoning compared to o1.