This Free Chinese AI Just Demolished OpenAI’s $200/mo o1 Model

It costs just $6M to train vs. $100M for GPT4.

Illustration by author

DeepSeek just became Sam Altman’s biggest nightmare.

• It doesn’t need a $5 billion budget like OpenAI.
• It doesn’t need Nvidia’s cutting-edge GPUs either.

DeepSeek thrives on doing more with less.

It’s a warning shot to the AI world.

DeepSeek outperforms GPT-4 in math and coding. It uses Chain of Thought reasoning to solve problems step-by-step.

And it’s free.

This isn’t just an AI model. It’s a shift in the game.

A challenger from China

DeepSeek isn’t just cheaper. It’s open-source and free for anyone to use, even for commercial projects. This flips the script on how AI is built and shared. OpenAI charges $200/month for its O1 model. DeepSeek is free. That’s a pretty big deal.

It’s built by a Chinese lab using Nvidia’s H-800 chips — not even the best GPUs out there. Yet, it’s pulling off results that rival the big players.

Here’s what’s wild: while OpenAI and Google are burning through billions to maintain their dominance, DeepSeek proves you don’t need a sky-high budget…