Following a dispute over the use of its AI model outputs, OpenAI's investor, Microsoft, plans to host DeepSeek R1 on Azure. DeepSeek R1, a cost-effective AI model, competes closely with OpenAI's o1 in performance. Asha Sharma, Microsoft's VP, stated that R1 allows broader access to advanced AI capabilities. While exact pricing on Azure remains unclear, DeepSeek's API pricing indicates a substantial cost advantage over OpenAI's services. This partnership highlights Microsoft's strategy to provide diverse AI model access through Azure.
DeepSeek R1 is a freely available simulated reasoning model that reportedly matches OpenAI's o1 in performance while being trained for a fraction of the cost.
R1 offers a powerful, cost-efficient model that allows more users to harness state-of-the-art AI capabilities with minimal infrastructure investment.
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