PSPINC CEO Kenichi Uchikura's Blog

A Chinese AI company called DeepSeek has released a new chatbot, R1, which is free, open source, and highly cost-efficient. The R1 model reportedly performs comparably to OpenAI's latest model at just 3-4% of the cost per output, requiring less than $6 million and only two months to develop, using earlier-generation chips. This breakthrough has influenced major stock indexes, as it signals that AI technology could become significantly more affordable to develop. The R1 model has already become the top free download in the Apple App Store.

 

While DeepSeek may not disrupt major US AI companies, analysts believe it could reshape the economics of the industry. This raises a strategic opportunity: monitoring the trend of cost-efficient AI could enable PSPINC to enhance hosting services and product development by integrating more affordable AI solutions. It might be worth exploring R1, given that it is both free and open source.