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DeepSeek R1 Benchmark & Comparison Evaluating Performance & Cost Efficiency

The AI landscape has long been dominated by models that require enormous financial and computational resources, making them accessible only to tech giants. But the rise of DeepSeek is shifting the narrative. By dramatically reducing the cost of training high-performing models, DeepSeek has triggered a wave of innovation, enabling more entrepreneurs, developers, and researchers to explore AI’s potential without breaking the bank. This democratization of LLMs is fueling a new era of AI adoption, sparking fresh competition, and accelerating advancements in generative AI across industries.
The Rise of DeepSeek-R1
DeepSeek-R1 has rapidly emerged as a game-changer in the AI space. Unlike its costly, proprietary counterparts, DeepSeek-R1 is an open-source marvel, making advanced AI capabilities accessible to a much wider audience. The model was trained using just 2,048 Nvidia H800 GPUs over two months, at a remarkably low cost of $5.6 million. To put this in perspective, many of the top models in the industry require training budgets that reach well over $100 million. By adopting model distillation, chain-of-thought prompting, and reinforcement learning, DeepSeek has effectively slashed the cost barrier, proving that high-performance AI doesn’t have to come with an astronomical price tag.
Breaking Down the DeepSeek Models
To bring you this analysis, we went deep into our own pockets (seriously, our wallets are crying) to benchmark these models across key tasks: reasoning, coding, creative writing, and overall cost. Here’s what we found:

- 1 — Excellent
- 2 — Satisfactory
- 3 — Could Be Better
So, after burning a hole in our budget, here’s what we learned: If you’re looking for a model that delivers excellent reasoning, coding, and creative writing, the 651B variant is king — but it comes at a premium price. On the other hand, if cost-efficiency is your top priority, the Qwen-1.5B version is an absolute steal, though it struggles with more complex tasks. The LLama 8B variant strikes a middle ground, making it a solid choice for balanced workloads.
Choosing the Right Model for Your Needs
- DeepSeekR1-Distill-Qwen-1.5B 🏗️ Best for: Low-cost applications, basic chatbot interactions, and lightweight text analysis. Why? Cheap to run but struggles with complex reasoning or creative writing.
- DeepSeekR1-Distill-LLama 8B ⚖️ Best for: Mid-tier AI applications, general-purpose coding, and reasonable creative tasks. Why? Balances cost and performance without breaking the bank.
- DeepSeekR1–651B 🚀 Best for: High-end AI applications, enterprise-level reasoning, and top-tier generative tasks. Why? Unmatched power, but at a hefty price.
Final Thoughts
DeepSeek isn’t just another AI model — it’s a movement towards making cutting-edge AI more accessible. Whether you’re a solo entrepreneur experimenting with LLMs or a company looking to integrate AI into critical workflows, there’s a DeepSeek model that fits your needs. And as long as they keep pushing boundaries (and helping us keep a few extra bucks in our pockets), we’re here for it!
Author
Bakrudeen — https://www.linkedin.com/in/bakrudeen-k-6790219b/
