Open-R1 is a truly open version of DeepSeek AI

On Monday, DeepSeek R1 crashed the stock market once it became clear to some of the investors trading AI-related stocks that the Chinese startup had found a way to train AI as capable as ChatGPT o1 without access to the state-of-the-art NVIDIA chips that OpenAI and US AI firms have access to. That's why firms creating hardware for AI infrastructure suffered the most. NVIDIA shed nearly $600 billion in market cap, while the entire market lost almost $1 trillion.

I said at the time that the reactions might be blown out of proportion. Yes, DeepSeek employed software optimizations to develop AI as capable as o1 instead of relying on hardware. But that doesn't mean NVIDIA's GPUs are suddenly obsolete. It just realigns the playing field while providing a new way to innovate.

I still think that AI firms with access to the latest hardware and top-tier software talent will have an edge over Chinese rivals. All a company like OpenAI or Google has to do is replicate some of the tricks DeepSeek used to match the Chinese startup's AI training and usage efficiency and then leapfrog it. The latest AI chips will still be very important here.

It turns out it's not just the big AI firms that might try to copy what DeepSeek has done. A team of developers calling themselves Open-R1 wants to replicate the DeepSeek R1 success to create a reasoning AI model that's just as powerful as R1. There's a big twist in all of this that AI fans in Western markets will appreciate. Open-R1 should be even more transparent than DeepSeek R1.

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Open-R1 is a truly open version of DeepSeek AI originally appeared on BGR.com on Wed, 29 Jan 2025 at 17:42:00 EDT. Please see our terms for use of feeds.