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Budget AI News 18 September 2025

China’s $300K AI Breakthrough: How DeepSeek’s Budget Model Shook the Tech World

China’s $300K AI Breakthrough: How DeepSeek’s Budget Model Shook the Tech World

DeepSeek R1: Technical Specs and Performance DeepSeek R1 is a large language model built to excel at reasoning-intensive tasks such as complex problem solving, coding, and mathematics scientificamerican.com. Under the hood, R1 is remarkable both for its scale and its design philosophy: In sum, DeepSeek R1’s technical profile – huge but efficient, open yet high-performing – upended conventional thinking in AI. It showed that a focused, lean-budget project could produce a model rivaling the best from Google or OpenAI on certain tasks businessinsider.com. As MIT CSAIL researchers noted, R1’s success “significantly increase[s] the pace of AI development” by “letting the
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