DeepSeek just exposed how OpenAI have been overpriced

DeepSeek R1

I remember using Chat GPT extensively and it made me fall in love with the technology and opportunities AI provided. Open Ai pushed gen Ai to the market because Google's deepmind couldn't be the one pushing such a new innovation due to the established name google has.

They delivered their promises and put their name on the map. But instead of staying true to their promises. They just used their new market dominance to drain every single dollar out of their customers. Built on open source and the promise of doing good to the world, it just turned out to be a new cash cow for investors. Being the fastest growing startup that reached unicorn status in less than 2 years just shows you that.

Why im i frustrated you might wonder? All i hear is this stupid narrative of " ai is going to replace humans " " everyone will lose their jobs" " we will reach AGI ". All these stupid attempts at creating fear among people drove up their prices even more.

These so called " reasoning models with PHD level intelligence " that deliver " amazing zero shot results " are nothing more than a oversimplification of steps even someone without an academic background in AI could see through. Overly expensive API cost for all of their models.

All of this talk, all of this marketing hype. Just for a Chinese startup called deepseek to completely ruin their plans. Deepseek trained their newest R1 model comparable to o1 on an investment of 5 million compared to Open Ai's 7 billion.

They deliver a model for free Open Ai advertises for $200,- a month.

A startup that was legitimately made for the fun of it, to be a side hustle for a quant company called high flyer. With only a investment of 50 million dollars compared to open Ai's 17,9 billion. Run by people that actually care about delivering results has just shown that yet again. Consumers have yet again been lied to by another unicorn company to believe good products and services cannot be delivered for cheap. Which they can, its just that we live in a overly capitalistic society that rather cares about the wellbeing of a small percentage of people rather than the world as a whole.

Power to the people, and let the power of open sourced Artificial intelligence expose many more companies to follow. And let it manifest in the freedom and quality every individual on this earth deserves to experience!