DeepSeek-R1: The Large Language Model Disrupting the AI Market

Dhana Tummala
January 30, 2025
February 4, 2025
Table of contents
1.
Introduction
2.
What Is DeepSeek-R1?
3.
Why Is There a Lot of DeepSeek Buzz?
4.
Is DeepSeek Good for the AI Industry?
5.
How DeepSeek-R1 Compares to Other LLMs
6.
DeepSeek and the Cerebro Generative AI Platform
7.
8.
9.
10.
11.
12.
12.
FAQ

Take a technical look at the hottest new AI model on the market: DeepSeek-R1! Deepseek made a huge splash this week by changing the way we think about AI and its development. But what is DeepSeek R1, why is everyone talking about it, and how does it compare to other AI systems? Let’s examine how the R1 model performs and whether DeepSeek’s Chat-GPT moment is good for the AI industry.

DeepSeek-R1: The Large Language Model Disrupting the AI Market

What Is DeepSeek-R1?

DeepSeek-R1 is an advanced large language model (LLM) attracting considerable attention for its extraordinary reasoning abilities, especially in mathematics, coding, and natural language processing (NLP). Released on January 20th, 2025, DeepSeek-R1 is open-source and uses the MIT License, which allows all researchers and developers to use, copy, modify, and sell the software.

Why Is There a Lot of DeepSeek Buzz?

There is a lot of DeepSeek buzz because DeepSeek-R1 performs on par with OpenAI o1 and Anthropic’s Claude 3.5 Sonnet despite a miniscule training budget of only $5 million. DeepSeek’s economical approach to AI development subverted the dominant industry paradigm, causing historical shifts in market capitalization that made global headlines. As a result, DeepSeek is now the most downloaded app in the United States, the United Kingdom, and many other countries.

Is DeepSeek Good for the AI Industry?

Deepseek’s success is a win for proponents of open-source AI software. The company demonstrated that an affordable AI system can generate similar outputs to those produced by top LLMs with multi-billion-dollar budgets. DeepSeek-R1’s elegant architecture heavily factored into this newfound efficiency.

DeepSeek Basic architecture

This new approach to AI development has already sparked competition between DeepSeek, OpenAI, Anthropic, Meta, and other companies as they all strive for increased performance and reduced costs. Revelations in the wake of DeepSeek’s latest release will affect AI engineers and data centers as the cost of development and hosting decreases.

DeepSeeks multi-token prediction system

How DeepSeek-R1 Compares to Other LLMs

In benchmark testing, DeepSeek-R1 performed exceptionally well, often exceeding the metrics produced by OpenAI o1 and Claude 3.5 Sonnet. OpenAI o1 still maintains a small edge over DeepSeek in English, but DeepSeek outperformed Claude on all benchmarks. Let’s take a closer look at how DeepSeek compares to the top LLMs in English, coding, mathematics, and Chinese.

DeepSeek-R1 Compare to other LLM

English

In English, DeepSeek-R1 performs admirably. Although it puts up lower metrics than OpenAI o1 for three out of four benchmarks, the numbers are close and DeepSeek outpaces OpenAI on DROP (3 shot FT). Notably, the Chinese LLM overcomes Claude 3.5 Sonnet on all 10 English benchmarks.

Coding

For coding, the compared metrics are even closer. DeepSeek performs better than its competitors on LiveCodeBench (Pass@1-COT), and is highly competitive on the other four tests. OpenAI bests its competitors in three of those four tests, and Claude takes the top spot for SWE Verified (Resolved).

Mathematics

Math is where DeepSeek-R1 really shines. In one pass, the newly released LLM puts out the best metrics for all three tests: AIME 2024, MATH-500, and CNMO 2024. When subjected to two of the three tests, OpenAI o1 finishes within a single point of DeepSeek’s latest offering. Claude is not competitive on any of the three benchmarks.

Chinese

Understandably, DeepSeek performs better than its rivals on Chinese language benchmarks. The R1 model produces the highest scores for two of the three tests. Oddly, Deepseek’s older model, V3, fares better than R1 on C-SimpleQA (Correct). OpenAI o1-mini and Claude both produce solid scores, but are only competitive on CLUEWSC (EM).

DeepSeek and the Cerebro Generative AI Platform

Cerebro Large Language Models
Cerebro Converse DeepSeek

Immediately after the release of DeepSeek-R1, the AI experts at AiFA Labs began integrating it into our Cerebro Generative AI Platform. It already serves as one of the most popular options for Cerebro Converse AI, our cutting-edge chatbot solution for business. Try out DeepSeek-R1 within a safe environment by booking a demo online or calling AiFA Labs at (469) 864-6370.