The emergence of DeepSeek and its R1 V3-powered AI model, which surpasses OpenAI's o1 reasoning model across a wide range of benchmarks, including math, science, and coding, has raised investor concern about the exorbitant cost tied behind AI advances, seemingly making commitments such as OpenAI's $500 billion Stargate project seem counter-productive.
Researchers at Stanford and the University of Washington recently developed an AI model to take on OpenAI's o1 reasoning model. For more context, the model, dubbed s1, was trained using a dataset of 1,000 questions for under $50 (via TechCrunch). The researchers managed to achieve this milestone by distilling information from proprietary larger AI models.
