DeepSeek R1: The Disruptor That’s Shaking Big Tech to Its Core

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January 27, 2025 — A Game-Changing AI Emerges

Last week, Chinese company DeepSeek shocked the AI world by releasing its open-source R1 model. This groundbreaking development is sending shockwaves across big tech, Wall Street, and beyond. Not only does R1 outperform OpenAI’s $200/month GPT reasoning model, but it also leaves competitors like CloudSonic and Gemini trailing in its wake.

More than just another benchmark-crushing AI, R1 resonates with users, passing the elusive “vibe test” for many across the internet. The only catch? It falters when asked about certain controversial topics — like the events of April 15, 1989. Still, its math skills, reasoning capabilities, and accessibility have earned it a viral status, quickly catapulting it to become the number one app in America in just days.

But the true disruptive power of R1 lies in its simplicity. This side project, developed by a hedge fund with a stated goal of creating long-term social value, costs less than $10 million to build. It’s a seismic shift for an industry where success has traditionally required massive budgets and access to thousands of GPUs.

A Crisis for Big Tech and Wall Street