DeepSeek R1: a new era for open-source AI or just another contender?

The AI world moves fast – so fast that if you blink, you might miss an entirely new open-source LLM popping up. This time, it’s DeepSeek R1, a Chinese-built AI model that’s making OpenAI’s GPT-4o look like an overpriced luxury handbag 👜

With 98% lower costs per token compared to OpenAI and an open-source MIT license, DeepSeek R1 is not just a technological feat but a potential game-changer for the AI industry.

But does it live up to the hype? Also, what does it mean for businesses, AI accessibility, and the future of open-source AI?

What makes DeepSeek R1 different?

This isn’t just another AI model that spits out text with questionable confidence. DeepSeek R1 is trained differently. Unlike many large language models that rely on vast amounts of supervised fine-tuning, DeepSeek R1-Zero was trained with reinforcement learning from scratch: it learned to reason by trial and error, much like a human would. But not like the rest of the class who studied from books, but like that one kid who learned math by playing poker and now beats everyone at blackjack, you see?

This self-improvement capability allowed the model to develop self-verification and reflection skills (basically it double-checks itself), making it particularly strong in problem-solving tasks like mathematics and coding. On benchmark tests, it outperformed OpenAI’s o1 model, scoring 79.8% on the AIME 2024 and securing an expert-level 2029 Elo rating on Codeforces – putting it ahead of 96.3% of human participants in programming challenges.

 
DeepSeek R1 vs. OpenAI: a shift in the AI power balance?

For years, OpenAI has dominated the landscape with GPT-4 and now GPT-4o, models that have become the de facto standard for AI integration in business. However, DeepSeek R1 is proving that open-source alternatives can be just as powerful, if not more cost-effective.

Key comparisons:

DeepSeek R1 is cheaper, performs well in coding/math-heavy tasks, and is fully open-source, making it attractive for developers and enterprises seeking AI independence from Big Tech. However, it lacks the extensive dataset refinement and user-friendly ecosystem of OpenAI’s models.

Why this matters for businesses

DeepSeek R1 is particularly promising for companies looking to:

• Reduce AI costs – Running an open-source model in-house eliminates API costs from OpenAI or Anthropic.

• Gain AI independence – Companies keep full control over their data and model fine-tuning, avoiding reliance on third-party providers.

• Enhance security & compliance – Some industries (finance, healthcare, defense) prefer on-prem AI rather than cloud-based services controlled by U.S. firms.

At Visionarist, we believe the future of AI lies in empowering companies to deploy their own models, which is why we enable businesses to install AI tools in just one click – without vendor lock-in. DeepSeek R1 fits right into this philosophy.

China’s open-source AI: a strategic move

DeepSeek R1 is more than just a model; it’s part of a broader strategy. China has historically lagged behind in AI research, but with models like DeepSeek R1, it’s positioning itself as a major open-source AI provider.

• Breaking U.S. dominance – OpenAI, Google, and Meta have led AI advancements, but China is proving it can compete on an open-source front.

• Regulatory uncertainties – Many Western companies may hesitate to adopt a Chinese-developed AI due to concerns about data security, government influence, and compliance.

• Economic shift – By making AI free and accessible, China is weakening the business model of AI giants relying on API monetization.

This raises the question: will we see more AI models shift toward open-source to remain competitive?

The challenges: open-source vs. entreprise AI

While DeepSeek R1 is exciting, it faces several obstacles:

• Lack of ecosystem support – OpenAI and Anthropic offer APIs, documentation, and enterprise support, while DeepSeek R1 is currently a DIY solution.

• Customization & compute costs – Although the model is free, companies will need specialized teams to fine-tune and deploy it efficiently.

• Unclear long-term vision – Can DeepSeek R1 sustain itself financially, or will it eventually follow OpenAI’s path from open-source to proprietary?

Open-source AI just leveled up

DeepSeek R1 is undeniably impressive – both in technical performance and in its open-source philosophy. It’s a direct challenge to the dominance of Western AI giants, proving that cutting-edge AI doesn’t have to be proprietary or prohibitively expensive.

But the open-source dream always comes with a reality check: maintaining competitiveness, governance, and long-term sustainability. Will DeepSeek R1 stay true to its mission, or will it follow the path of OpenAI—starting open, only to close off eventually?

One thing is certain: AI accessibility is at a turning point. And at Visionarist, we’re betting on a future where businesses can deploy the best AI tools on their own terms – without vendor lock-in, without insane costs, and without sacrificing control.

So, is DeepSeek R1 the future of AI? Maybe. But one thing is clear – open-source is no longer playing catch-up. It’s leading the way.