Public announcements or press releases from major tech companies

Chinese Startup DeepSeek Challenges OpenAI with $6 Million Open-Source Model

Jan 24, 2025, 01:50 PM

Chinese AI startup DeepSeek has released an open-source reasoning AI model, DeepSeek-R1, under the MIT license. The model, developed at a cost of $6 million, is said to match or outperform OpenAI's O1 model in reasoning, coding, and mathematics tasks, while being 20 times cheaper and fully open-source. Its release has generated significant attention in the AI industry and concern in Silicon Valley, as it challenges the dominance of US tech giants in artificial intelligence. In response, OpenAI's CEO Sam Altman announced that the free tier of ChatGPT will receive the new O3-Mini model.