Marketing Against The Grain Episode: DeepSeek R1: The FREE AI That's Beating OpenAI’s GPT-1 Model
Release Date: January 23, 2025
Host: Kieran Flanagan (Co-Host)

Introduction to DeepSeek R1

In this episode of Marketing Against The Grain, Kieran Flanagan delves into one of the most unexpected yet impactful AI launches in the past year: DeepSeek R1. Diverging from the conventional tech giants like Google, OpenAI, and Anthropic, DeepSeek R1 emerges from a Chinese company, challenging the status quo with its open-source AI model.

Launch and Open-Source Commitment

At [00:00], Kieran introduces DeepSeek R1, emphasizing its groundbreaking nature:

“It's not come from any of the big players, it's not come from Google, it's not come from OpenAI, it's not come from Anthropic.”

The standout feature of DeepSeek R1 is its open-source framework. Unlike its counterparts, DeepSeek R1 is freely available, with the company providing comprehensive documentation, including model weights and detailed papers on its architecture. This transparency is particularly noteworthy given that China isn't typically recognized for promoting open-source initiatives.

Comparative Analysis with Existing Models

Kieran draws a compelling comparison between DeepSeek R1 and OpenAI's GPT models:

“DeepSeek R1 is 96.4% cheaper than OpenAI's GPT-1 model.” [01:16]

He highlights that DeepSeek R1 matches the intelligence and reasoning capabilities of ChatGPT and OpenAI's latest GPT-1 releases, but without the associated costs. This positions DeepSeek R1 as a formidable alternative for marketers and businesses wary of expensive AI solutions.

Cost Efficiency and Accessibility

One of the most striking points Kieran makes is about the cost-effectiveness of DeepSeek R1:

“OpenAI's GPT-1 is $60 per 1 million tokens. DeepSeek R1 is $2.19 per 1 million tokens.” [01:16]

This drastic reduction in cost democratizes access to advanced AI, enabling a broader range of businesses to leverage powerful AI tools without significant financial barriers.

Capabilities and Unique Features

DeepSeek R1 isn't just cost-effective; it's also feature-rich. Kieran showcases its ability to:

• Access the Web: Similar to OpenAI's models, DeepSeek R1 can retrieve and utilize real-time data from the web, enhancing its responses and relevance.
• Internal Monologue: The model exhibits a natural language internal monologue, simulating human-like reasoning and problem-solving processes.

“It's doing, reasoning, it's thinking. And when you go through this, this is fascinating... it really is like a person trying to think through a problem.” [01:16]

Practical Application: Marketing Campaign Analysis

Kieran demonstrates DeepSeek R1's practical utility by running a prompt to analyze a marketing campaign. He provides detailed data including campaign timelines, budgets, ROI, target audience, and conversion rates. The AI meticulously evaluates this information and offers actionable recommendations:

“Expand interactive content formats because it's figured out that webinars work really well. Live demos work really well.” [01:16]

Furthermore, DeepSeek R1 considers external factors affecting campaign performance, such as:

“Q1 lead generation aligns with clinics and annual planning cycles. June content market potentially impacted by summer vacation reducing engagement.” [01:16]

These insights not only enhance campaign strategies but also save marketers significant time by automating complex data analysis.

Implications for the Future of AI in Marketing

Kieran reflects on the broader implications of DeepSeek R1's open-source nature:

“Intelligence and reasoning that is above what a human can do is nearly given away for pennies.” [01:16]

He envisions a future where open-source models like DeepSeek R1 enable businesses to fine-tune AI to their specific needs, fostering innovation and customized solutions across various industries. This shift away from proprietary models also suggests a trend towards greater flexibility and autonomy in how companies integrate AI into their operations.

The Evolution and Potential of Open-Source AI

Emphasizing the rapid evolution of AI models, Kieran predicts:

“This year we are going to see an incredible speed pace evolution of models. So I would strap in for an incredible year.” [01:16]

The open-source community's ability to iterate quickly on models like DeepSeek R1 could lead to unprecedented advancements and applications, especially as more businesses adopt and adapt these tools for niche purposes.

Conclusion and Takeaways

In summary, this episode highlights DeepSeek R1 as a transformative player in the AI landscape, particularly for marketers seeking affordable and versatile tools. Its open-source availability, cost efficiency, and robust capabilities position it as a strong competitor to established models like OpenAI's GPT series. Kieran encourages listeners to explore DeepSeek R1, experiment with its features, and consider the vast potential it holds for future marketing strategies and beyond.

“DeepSeek R1 is like six months away from what the kind of large closed source companies are doing... And open source is trailing around like six months behind these companies, which is not very far if you just want to wait it out and get these things for free.” [01:16]

By embracing open-source AI, businesses can harness cutting-edge technology without heavy investments, paving the way for more innovative and effective marketing campaigns.

Notable Quotes:

• “DeepSeek R1 is 96.4% cheaper than OpenAI's GPT-1 model.” [01:16]
• “Intelligence and reasoning that is above what a human can do is nearly given away for pennies.” [01:16]
• “It's doing, reasoning, it's thinking. It really is like a person trying to think through a problem.” [01:16]
• “This year we are going to see an incredible speed pace evolution of models. So I would strap in for an incredible year.” [01:16]

Key Insights:

• Open-Source Advantage: DeepSeek R1's open-source nature fosters transparency, collaboration, and customization, setting it apart from proprietary models.

• Cost Efficiency: Significantly lower costs make advanced AI accessible to a wider range of businesses, democratizing AI utilization.

• Enhanced Capabilities: Features like web access and internal monologue simulation provide more natural and effective interactions.

• Strategic Applications: Practical use cases, such as marketing campaign analysis, demonstrate the model's ability to generate actionable insights and optimize strategies.

• Future Outlook: The rapid evolution of open-source AI models suggests a dynamic and innovative future for AI integration in business operations.

For marketers and businesses eager to stay ahead of the curve, exploring DeepSeek R1 offers a glimpse into the future of AI-powered strategies and operational efficiencies. Embracing such open-source tools can provide a competitive edge, fostering innovation and adaptability in an ever-evolving digital landscape.