DeepSeek-R1: The Open-Source AI Challenging ChatGPT

DeepSeek-R1 is a free, open-source alternative to ChatGPT, featuring advanced reasoning capabilities that mimick human thinking.

Credit: Matt Southern

DeepSeek-R1 is a new AI reasoning model from the Chinese company DeepSeek.

Released on January 20, it offers a cost-effective alternative to ChatGPT.

Here’s why it’s DeepSeek-R1 is trending across the web right now.

Key Features

Human-Like Thinking

DeepSeek-R1 has advanced reasoning skills that help it solve complex problems in math, logic, and coding.

People praise its ability to mimic human-like thinking. It breaks problems down into smaller steps using a “Chain of Thought” (CoT) method.

As it processes its responses, DeepSeek-R1 can adjust answers in real time and experience “aha” moments while solving tricky problems.

Here’s a screenshot from DeepSeek’s research paper (PDF link) demonstrating where this moment occurred:

Screenshot from: DeepSeek-R1: Incentivizing Reasoning Capability in LLMs via
Reinforcement Learning, January 2025.

Here’s another screenshot more representative of what you’ll likely see when you use the web interface. This is DeepSeek’s thought process when presented with an SEO-related question:

Screenshot from: chat.deepseek.com, January 2025.

Its chain of thought continued for numerous paragraphs before finally generating a response.

Open Source

DeepSeek-R1 is an open-source model released under the MIT license, which means anyone can use and modify its code.

This openness makes DeepSeek-R1 appealing to businesses, startups, and developers seeking affordable AI solutions.

Lower Development Cost

While companies like OpenAI have spent hundreds of millions to develop their models, DeepSeek-R1 was reportedly built with a budget of just $6 million.

DeepSeek achieved this by using data more efficiently and applying reinforcement learning strategies.

This reduced the need for large amounts of computing power, making it more affordable for end-users.

Affordable Pricing

DeepSeek-R1’s competitive pricing is another factor contributing to its growing popularity.

It’s completely free to use through chat.deepseek.com. And if your machine has the necessary specs, you can also run the model locally on your computer at no cost.

For those without such resources, DeepSeek offers a cloud-based API service at prices far below industry standards.

Additionally, DeepSeek offers a cloud-based API service. Accessing the model through this API incurs costs, but the pricing is notably lower than many competitors.

Is It Any Good?

While DeepSeek-R1 is praised for being affordable and open-source, opinions on its performance vary.

While DeepSeek-R1 may have unseen limitations, it’s a helpful option for tasks requiring systematic, step-by-step reasoning.

Its open-source nature allows for rapid iteration, making it a dynamic and evolving tool.

What People Are Saying

The release of DeepSeek-R1 has sparked widespread discussion about its potential to democratize access to AI.

The model’s launch also carries geopolitical significance.

Analysts view DeepSeek-R1 as a demonstration of China’s advancements in AI, particularly in light of U.S. technology export controls.

By achieving competitive results with a fraction of the resources, DeepSeek highlights the growing global competition in AI.

We will be trying this technology this week and report back our findings, if you have used it give us your feedback! The SPYDER team