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Deepseek claims its reasoning model beats OpenAI o1 in benchmarks

Deepseek is a Chinese AI that cost $5.6 Million to train versus OpenAI's models which cost hundreds of millions of dollars, so beating OpenAI's benchmarks is significant.

Key takeaways

  • Chinese Artificial Intelligence (AI) lab DeepSeek has released an open version of DeepSeek-R1, its so-called reasoning model, that it claims performs as well as OpenAI’s o1 on certain AI benchmarks.
  • R1 is available from the AI dev platform Hugging Face under an MIT license, meaning it can be used commercially without restrictions.
  • According to DeepSeek, R1 beats o1 on the benchmarks AIME, MATH-500, and SWE-bench Verified.
Cite or link to this article

Griffin, M. (2025) 'Deepseek claims its reasoning model beats OpenAI o1 in benchmarks', 311 Institute, 13 February. Available at: https://www.311institute.com/deepseek-claims-its-reasoning-model-beats-openai-o1-in-benchmarks/ (Accessed: 25 October 2026).

Chinese Artificial Intelligence (AI) lab DeepSeek has released an open version of DeepSeek-R1, its so-called reasoning model, that it claims performs as well as OpenAI’s o1 on certain AI benchmarks.

R1 is available from the AI dev platform Hugging Face under an MIT license, meaning it can be used commercially without restrictions. According to DeepSeek, R1 beats o1 on the benchmarks AIME, MATH-500, and SWE-bench Verified. AIME employs other models to evaluate a model’s performance, while MATH-500 is a collection of word problems. SWE-bench Verified, meanwhile, focuses on programming tasks.

Being a reasoning model, R1 effectively fact-checks itself, which helps it to avoid some of the pitfalls that normally trip up models. Reasoning models take a little longer, usually seconds to minutes longer, to arrive at solutions compared to a typical nonreasoning model. The upside is that they tend to be more reliable in domains such as physics, science, and math.

Inside DeepSeek AI, by Futurist Keynote Matthew Griffin

R1 contains 671 billion parameters, DeepSeek revealed in a technical report. Parameters roughly correspond to a model’s problem-solving skills, and models with more parameters generally perform better than those with fewer parameters.

Indeed, 671 billion parameters is massive, but DeepSeek also released “distilled” versions of R1 ranging in size from 1.5 billion parameters to 70 billion parameters. The smallest can run on a laptop. As for the full R1, it requires beefier hardware, but it is available through DeepSeek’s API at prices 90%-95% cheaper than OpenAI’s o1.

There is a downside to R1. Being a Chinese model, it’s subject to benchmarking by China’s internet regulator to ensure that its responses “embody core socialist values.” R1 won’t answer questions about Tiananmen Square, for example, or Taiwan’s autonomy.

Many Chinese AI systems, including other reasoning models, decline to respond - censor, to topics that might raise the ire of regulators in the country, such as speculation about the Xi Jinping regime.

R1 arrives weeks after the outgoing Biden administration proposed harsher export rules and restrictions on AI technologies for Chinese ventures. Companies in China were already prevented from buying advanced AI chips, but if the new rules go into effect as written, companies will be faced with stricter caps on both the semiconductor tech and models needed to bootstrap sophisticated AI systems.

In a policy document last week, OpenAI urged the US government to support the development of US AI, lest Chinese models match or surpass them in capability. In an interview with The Information, OpenAI’s VP of policy Chris Lehane singled out High Flyer Capital Management, DeepSeek’s corporate parent, as an organization of particular concern.

So far, at least three Chinese labs, DeepSeek, Alibaba, and Kimi, which is owned by Chinese unicorn Moonshot AI, have produced models that they claim rival o1. Of note, DeepSeek was the first, it announced a preview of R1 in late November. In a post on X, Dean Ball, an AI researcher at George Mason University, said that the trend suggests Chinese AI labs will continue to be “fast followers.”

“The impressive performance of DeepSeek’s distilled models […] means that very capable reasoners will continue to proliferate widely and be runnable on local hardware,” Ball wrote, “far from the eyes of any top-down control regime.”

311 Intelligence

What this means for your organisation

Reasoning AI is now cheap.

DeepSeek says it cost $5.6 Million to train R1, while OpenAI's models cost hundreds of millions of dollars. Its API is 90%-95% cheaper than o1. Any budget built on today's prices for reasoning models is likely to be wrong.

Open licences change vendor risk.

R1 carries an MIT license, so firms can use it commercially without restrictions. Distilled versions run from 1.5 billion to 70 billion parameters, and the smallest can run on a laptop. Capable reasoning can now sit on your own hardware, outside any single supplier.

Politics will shape your choices.

R1 will not answer questions on topics such as Tiananmen Square or Taiwan's autonomy, because of rules set by China's internet regulator. Export rules on Chinese ventures were proposed weeks earlier, and OpenAI has asked for US support. Expect legal, trust and supply questions to sit alongside any test of performance.

Three questions for your next leadership meeting

  1. Which of our AI contracts would break if reasoning costs fell 90%?
  2. Where could a small model on local hardware replace a paid API?
  3. Who approves a model whose answers are shaped by a regulator?

The trends and technologies behind this story

From the 311 Starburst, the 311 Strategic Intelligence Unit’s map of the technologies and trends shaping the next 50 years.

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Analysis by the 311 Strategic Intelligence Unit, from Matthew Griffin’s article and 311 data. First published on Fanatical Futurist.

FAQ

Why does this matter?

Deepseek is a Chinese AI that cost $5.6 Million to train versus OpenAI's models which cost hundreds of millions of dollars, so beating OpenAI's benchmarks is significant.

Matthew Griffin

About the author

Matthew Griffin Founder, President and Futurist, 311 Institute

Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."

Read full bio

Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 17-time best selling author of the "Codex of the Future" series, Matthew is the Founder, President and Futurist of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.

An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.

As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.

Regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, Matthews mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.

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Sources and further reading

  1. DeepSeek R1 huggingface.co
  2. World asia 66727459 bbc.com
  3. Us unveils new rules to restrict flow of advanced chips to china bloomberg.com
  4. Openai starts its trump strategy ces shows not everything needs ai theinformation.com
  5. Kimi x.com
  6. Bookmarks x.com
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