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A Chinese startup just showed every American tech company how quickly it's catching up in AI


The Chinese startup DeepSeek has released a new AI reasoning model that appears to rival the abilities of a frontier model from OpenAI, the maker of ChatGPT.

The company also said that an earlier version of R1 called R1-Zero gave them an "aha moment" in which the AI "learns to allocate more thinking time to a problem by reevaluating its initial approach." Awni Hannun, a machine-learning researcher at Apple, said a key advantage of R1 was that it was less intensive, showing that the industry was "getting close to open-source o1, at home, on consumer hardware," referring to OpenAI's reasoning model introduced last year. Hannun demonstrated this by sharing a clip on X of a 671 billion-parameter version of R1 running on two Apple M2 Ultra chips, responding with reason to a prompt asking whether a straight or a flush is better in a game of Texas Hold'em.

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