Researchers at Stanford and the University of Washington have developed a model that performs comparably to OpenAI o1 and DeepSeek R1 models in math and coding — for less than $50 of cloud compute credits.

DeepSeek is a Chinese artificial intelligence provider that develops open-source LLMs. R1, the latest addition to the company’s model lineup, debuted last week. The release of the LLM caused a broad selloff in AI stocks that sent Nvidia Corp.’s shares plummeting 17% on Monday, along with many other technology stocks.

A team of researchers at Stanford and the University of Washington have developed an AI reasoning model, s1, for less than $50. This is a massive achievement, given the notion that significant financial resources are essential for developing AI reasoning models.