AI researchers develop ‘reasoning’ model for under $50 like OpenAI’s o1 and DeepSeek’s R1

A team of AI researchers from Stanford University and the University of Washington have achieved a breakthrough in AI development by training a sophisticated “reasoning” model for less than $50 in cloud compute credits. Researchers used AI models by Google, Alibaba to create a chatbot with reasoning level as good as the ChatGPT-maker OpenAI’s o1 LLMs.

The model, named s1, is claimed to exhibit performance comparable to cutting-edge reasoning models like OpenAI’s o1 and DeepSeek’s R1 on tests evaluating math and coding abilities.