Fei-Fei Li’s s1-32B introduces a new approach to low-cost AI distillation, achieving strong reasoning results at a reported cloud cost under US$50. The model’s efficiency invites comparison with DeepSeek’s US$5.6 million development budget, signalling a shift in how AI capabilities may be scaled.

With rising interest in AI models like Deekseek, we explore whether a US$5.6M budget can develop a ChatGPT-scale AI. From compute costs to alternative approaches, discover the reality of AI development in this in-depth analysis.

DeepSeek’s latest AI model, R1, utilizes knowledge distillation to rival ChatGPT while reducing computational costs. However, OpenAI has raised concerns about potential IP misuse. This report explores the advancements, applications, and ethical implications of knowledge distillation in AI development.