Patrick BiddiscombeNew Breed · Founder & CEO of New Breed | HubSpot-Led Growth | Advisor to HubSpot & FinQore

The Cost of Reasoning: DeepSeek-R1's Impact on AI Economics

Name: The Cost of Reasoning: DeepSeek-R1's Impact on AI Economics
Uploaded: 2025-01-24T18:00:38+00:00
Duration: 54 s
Channel: Patrick Biddiscombe
Description: This is a short transcript excerpt from a video discussing the economic impact of the open-source model DeepSeek-R1 compared with proprietary models…

24 Jan 2025 · 1 min

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This is a short transcript excerpt from a video discussing the economic impact of the open-source model DeepSeek-R1 compared with proprietary models (notably OpenAI). The speaker highlights large cost differences (DeepSeek-R1 billed at $2.19 per 1M tokens vs OpenAI at $60 per 1M tokens), claims DeepSeek-R1 is 100% open source, about 96.4% cheaper, and suggests open-source models trail closed-source leaders by roughly six months. The piece emphasizes how falling costs of reasoning/intelligence could make superhuman AI capabilities widely accessible.

Questions this video answers

100% open source.

96.4% cheaper.

$60 per 1 million tokens.

$2.19 per 1 million tokens.

About six months.

Chapters

Deep seq R1 is 100% open source. It's 96.4% cheaper than OpenAI's own models. Right. It really does put pressure on these companies that are trying to differentiate through their models. I think open source, if we take deep seek face value it's like six months away from what the kind of large closed source companies are doing. So open source is trailing around like six months behind these companies. You can see here OpenAI's own is $60 per 1 million tokens. Deep seq R1 $2.19 per 1 million tokens. And what's incredible to just think about for a moment is this is intelligence, right? This is the cost of intelligence and reasoning going down. Over time you're going to get to a point in civilization where intelligence and reasoning that is above what a human can do is nearly given away for pennies. And I think that's an incredibly mind bending thing to think about in terms of where will the planet be when everyone has access to these tools and everyone kind of does because this is totally free.