section_path: Significance
section_name: Significance
paragraph_text: Significance
  
  DeepSeek's success against larger and more established rivals has been described as "upending AI".
  
  The DeepSeek-R1 model provides responses comparable to other contemporary large language models, such as OpenAI 's GPT-4o and o1. Its training cost is reported to be significantly lower than other LLMs.
  
  The company claims that it trained V3, a predecessor of R1, for US$6 million compared to $100 million for OpenAI's GPT-4 in 2023, and approximately one tenth of the computing power used for Meta 's comparable model, LLaMA 3.1.
  
  After the January 2025 release of the R1 model, which offered significantly lower costs than competing models, some investors anticipated a price war in the American AI industry. It was dubbed the " Pinduoduo of AI", and other Chinese tech giants such as ByteDance, Tencent, Baidu, and Alibaba cut the price of their AI models. Despite its low price, it was profitable compared to its money-losing rivals.