January 24th, 2025

Tech Things: Inference Time Compute, Deepseek R1, and the Arrival of the Chinese

OpenAI is improving LLM reasoning with "inference time compute." Deepseek's R1 model outperforms established models and is open-source, intensifying competition and challenging assumptions about Chinese AI capabilities.

Read original articleLink Icon
Tech Things: Inference Time Compute, Deepseek R1, and the Arrival of the Chinese

OpenAI has been exploring the concept of "inference time compute" to enhance the reasoning capabilities of large language models (LLMs). This approach allows LLMs to effectively "take more time" to solve problems, thereby improving accuracy. Techniques include having models show their work, using scratchpads for intermediate outputs, and running multiple reasoning threads in parallel. The competitive landscape for LLMs is intensifying, with major players like OpenAI, Google, and new entrants like the Chinese company Deepseek, which recently launched the Deepseek R1 model. This model reportedly outperforms existing models from Meta and Anthropic, as well as OpenAI's O1, and is available as open-source. The emergence of Deepseek challenges the assumption that Chinese models would lag behind their Western counterparts. The company, which is not primarily an AI firm but a quant hedge fund, has managed to produce a competitive model with significantly lower investment in resources compared to OpenAI. This raises questions about the potential of Deepseek's team and the hidden capabilities of OpenAI's infrastructure. The dynamics of the LLM market suggest that if Deepseek continues to offer superior performance at competitive pricing, it could disrupt the current landscape, prompting developers to shift away from OpenAI's offerings.

- OpenAI is enhancing LLM reasoning through "inference time compute."

- Deepseek's R1 model outperforms several established models and is open-source.

- The competitive landscape for LLMs is intensifying, with significant implications for market dynamics.

- Deepseek's success raises questions about the efficiency of resource use in AI model training.

- The emergence of competitive Chinese models challenges previous assumptions about their capabilities.

Link Icon 1 comments