DeepSeek R1 vs. OpenAI O1: The Open-Source Underdog Takes on the AI Giant

DeepSeek R1 vs. OpenAI O1: The Open-Source Underdog Takes on the AI Giant

January 22, 2025
5
min read

DeepSeek R1 vs. OpenAI O1: The Open-Source Underdog Takes on the AI Giant

(And Why This Battle Matters for the Future of AI)

The AI world is buzzing with the release of DeepSeek R1, a new open-source language model that’s challenging OpenAI’s flagship O1 in performance—but at a fraction of the cost. Think of it as a David vs. Goliath story, but with neural networks and math benchmarks instead of slingshots. Let’s unpack why this rivalry is reshaping the AI landscape.

The Contenders: Meet the Models

DeepSeek R1 (GitHub) is the brainchild of Chinese AI startup DeepSeek, built on their earlier DeepSeek-V3 architecture. Unlike traditional models that rely heavily on supervised fine-tuning (SFT), R1 was trained using large-scale reinforcement learning (RL) with minimal human-labeled data. This approach allowed it to “self-evolve” reasoning capabilities, like solving complex math problems through trial and error28.

OpenAI O1, on the other hand, is a proprietary model optimized for reasoning tasks. It uses a hybrid approach combining SFT and RL, backed by OpenAI’s massive resources. While exact details are scarce (it is closed-source, after all), O1 has set high benchmarks in coding, math, and general knowledge tasks16.

Head-to-Head: Performance & Cost

Let’s cut to the chase: How do they stack up? Here’s a snapshot of their benchmark scores and costs:

Benchmark DeepSeek R1 OpenAI O1 Winner
AIME 2024 (Math) 79.8% 79.2% DeepSeek R1
MATH-500 (Reasoning) 97.3% 96.4% DeepSeek R1
Codeforces (Coding) 96.3%ile 96.6%ile OpenAI O1
MMLU (General Knowledge) 90.8% 91.8% OpenAI O1
Cost per 1M tokens $0.55 (input) $15 (input) DeepSeek R1 (95% cheaper)

R1 shines in math and software engineering, while O1 edges ahead in coding competitions and general knowledge. But the real kicker? R1’s API costs just 5% of O1’s—a game-changer for startups and researchers8.

Why Open-Source Matters

DeepSeek R1 isn’t just a model—it’s a statement. By open-sourcing R1 under an MIT license, DeepSeek invites developers to tweak, refine, and build upon its architecture. Need a smaller, faster version? They’ve already distilled R1 into six variants (like Qwen-32B and Llama-70B) that outperform even GPT-4o in niche tasks28.

Compare this to OpenAI’s “walled garden” approach. While O1 offers polished performance, its closed nature limits customization and transparency. For example, DeepSeek R1’s training pipeline—revealed in its technical report—shows how RL can replace costly SFT data, a breakthrough for resource-strapped teams68.

The Bigger Picture: What This Means for AI

  1. Democratizing AI Innovation:
    R1’s affordability and accessibility lower the barrier to entry. A solo developer can now experiment with a model rivaling O1’s capabilities—something unheard of in the billion-dollar AI race810.
  2. Ethical Trade-Offs:
    Open-source models like R1 raise concerns about misuse (e.g., generating harmful content), but they also enable scrutiny. Proprietary models, while “safer,” operate in opacity510.
  3. The Efficiency Revolution:
    DeepSeek trained R1 on a $6 million budget—a fraction of what OpenAI likely spent. This proves that smart resource allocation (like RL-driven training) can rival Big Tech’s brute-force spending16.

Should You Switch to DeepSeek R1?

  • For math/logic-heavy tasks: Yes. R1’s Chain-of-Thought reasoning excels here.
  • For general-purpose chatbots: OpenAI O1 still leads, but R1’s distilled models are catching up.
  • For budget-conscious projects: R1 is a no-brainer. At 95% lower costs, it’s ideal for prototyping18.

Try R1 yourself on DeepSeek’s chat platform (look for the “DeepThink” mode) or via its Hugging Face integration.

a chart demonstrating the performance of DeepSeekR1 against models from openai.
LLM benchmarks comparing DeepSeek R1 Vs OpenAI o1

Personal Experience With R1: A Human Touch in AI Writing?

(Spoiler: I’m stealing this paragraph for my productivity newsletter)

I’ve been stress-testing DeepSeek R1 for the past few hours – coding Python scripts, drafting research summaries, and yes, even writing this blog section. What surprised me most wasn’t its math chops (though those are stellar), but how human its SEO copywriting felt.

When generating article drafts, most AI models make me feel like an editor battling robotic phrasing (“In conclusion, this revolutionary technology synergizes paradigm shifts!”). With R1, I simply added:

“Ensure the content is concise, flows naturally, and feels like an easy, relatable read.”

The result? Paragraphs that sounded like a colleague wrote them, not ChatGPT’s overly enthusiastic cousin. For coding tasks, it aced Python error debugging with clearer explanations than I’d get from Stack Overflow.

Why this matters: R1’s ability to grasp nuanced writing styles with minimal prompting (see their style guide tips) suggests open-source models are closing the “personality gap” that kept many businesses wary of AI content.

Final Thoughts

The DeepSeek R1 vs. OpenAI O1 rivalry isn’t just about benchmarks—it’s a clash of philosophies. Will open-source, community-driven AI overtake proprietary giants? Early signs suggest yes. As one researcher put it: “R1 proves innovation thrives when knowledge is shared, not siloed.”

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Nico Gorrono
SEO and AI Automation Expert

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