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Big Tech in panic mode… Did DeepSeek R1 just pop the AI bubble?
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4 min readJan 27, 2025
Last week, a Chinese company named DeepSeek took the AI world by storm. Their open-source R1 model didn’t just outperform OpenAI much-hyped GPT-4; it crushed the competition, including Claude and Gemini. The innovation was so groundbreaking that it became the number-one app in America practically overnight. The implications? Nothing short of earth-shattering for big tech and Wall Street.
Why does this matter? Because R1 didn’t just win on key AI benchmarks. It also passed what’s being called the “vibe test,” resonating deeply with users across the globe. More importantly, R1 was developed on a shoestring budget, costing under $10 million — a fraction of what industry giants spend on AI development.
