- DeepSeek-R1 offers AI at 90% lower costs, boosting accessibility for crypto startups.
- Affordable AI tools enable easier smart contract creation and NFT development in the crypto space.
- DeepSeek-R1 fosters innovation by lowering entry barriers for small teams and blockchain developers.
There’s been quite a commotion with last week’s release of DeepSeek-R1, a new open-source AI model from the Chinese startup DeepSeek AI.
Reportedly, it’s able to match or, at the very least, nearly match the capabilities of OpenAI’s GPT-4, Google’s Gemini, and the rest, but at a 90%-95% lower cost. This is huge since AI technology is considered to be expensive and power-hungry. So naturally, people are paying attention.
Of course, the hype around this affects the crypto world, especially Crypto-AI. So, is this a good thing?
Generally speaking, yes. A cheap generative AI can be highly beneficial for the cryptocurrency ecosystem primarily because it lowers barriers to entry, drives innovation, and enhances the functionality of blockchain-based projects.
Related: MyShell Adopts DeepSeek AI in Hours: A New Era for Open-Source AI
For instance, it could make it easier and cheaper to create unique digital assets, like NFTs, or can help developers write, debug, and deploy smart contracts more efficiently, thus reducing the need for expensive coding expertise.
Not to mention that with more affordable generative AI tools, smaller teams and individuals can enter the crypto space without needing significant resources. This fosters innovation across the board and levels the playing field for startups.
Granted, this is still a very early phase, and we’re yet to see whether the hype around R1 is justified. However, the fact remains that a cheap generative AI aligns well with the decentralized and innovative nature of the cryptocurrency world.
What Exactly Is R1?
In layman’s terms, R1 is basically a Chinese version of ChatGPT. It’s a product of DeepSeek, a startup from China that was established in 2023. The main reason why everyone in the AI and tech world is making a big deal out of it is because of the low cost.
Related: China’s DeepSeek AI Wipes Out $1 Trillion From US Crypto and Tech Markets
Now, coming from nowhere and so suddenly, there might be some skepticism about the actual cost, but nobody is really debating it, with the company saying it spent $5.6 million powering its base AI model. This is a massive difference compared to US companies that spent around 9 figures, if not more. Quite a contrast.
All things considered, DeepSeek-R1 is quite the achievement seeing that its AI model has seemingly similar capabilities as the big US counterparts. We’ll have to wait and see how it fares in the next few months.
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